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State, Market and Democracy in Chile assesses the quality of Chilean democracy by examining the impact of free market reforms on the urban poor's incentives for political participation and capacity for collective action. Through in depth analysis of labor market, social welfare and state reforms, along with extensive interviews with party officials and shantytown residents, this book reveals the manner in which neoliberal reform has undermined the urban poor's incentives and ability to hold public officials accountable. In so doing, it demonstrates the manner in which economic liberalization has negatively affected the quality of Chilean democracy.