What determines the policy autonomy of leftist governments in small states? This question occupies a notable sphere in political economy and comparative politics debates. The convergence hypothesis states that leftist governments in small states do not enjoy significant autonomy and will be pushed to centrist “third wayism” by international financial pressures, leading to budgetary and distributive austerity. This contested position is tackled head-on by Juan Bogliaccini in this important new book. Extant literature discusses leftist government autonomy over redistributive policies; Bogliaccini focuses on the understudied use of wage policy as a pre-distributive instrument.

The analysis is supported by compelling case selection and data collection. It combines three countries that have experienced a dual transition (the simultaneous transition in both economic and political regimes); yet, while much research focuses on South America or European cases, Bogliaccini selects cases across the two regions, namely Chile, Uruguay, and Portugal. The comparison is based on archival research in parliamentary, national, and private libraries, press reviews, and 160 interviews. The data offer an understanding that encompasses both an historical perspective on labor movements and union legitimacy, as well as insights on short-term electoral and coalitional calcul