This book describes the contrasting economic strategies pursued by conservative and social democratic governments. The current literature on political economy maintains that, due to the globalization of the economy and each country's institutional structures, parties hardly affect the economy. Examining all advanced countries since the 1960s, Professor Boix shows instead that partisanship and electoral politics play a fundamental role in the selection of policies to generate long-term growth and economic competitiveness. The book reinvigorates the claim that democratic arrangements matter.