After the collapse of Soviet power in the Eastern bloc and the upheaval of the debt crisis in Latin America, the political agenda in both regions was dominated by struggles over creating free market economic systems. Just as striking, those economic experiments were accompanied by a wave of political opening in both parts of the world. Such simultaneous transitions naturally spawned investigations into how these processes might be causally related. Scholars, however, have encountered a number of difficulties in exploring that link. First, many studies, especially the more common small-N analyses, have had trouble distinguishing between the effects of economic liberalization and other, often collinear, potential influences on political outcomes. Second, large-N studies of a cross-sectional nature are unable to evaluate the expectation of many scholars that the short- and long-term effects of economic liberalization on politics are quite distinct. Finally, studies focused on a single geopolitical region cannot say which of their findings will travel to other parts of the world. In this paper we seek to overcome these challenges in two ways. First, we use a time-series/cross-sectional framework, which allows us both to evaluate the short- and medium-term effects of economic liberalization on democratization and to hold constant the influence of international pressures, the weight of the agrarian sector, and the level of socioeconomic development. Second, we evaluate the generality of our findings by conducting parallel analyses in two distinct geopolitical regions: Latin America and the formerly communist countries of the Soviet bloc. Our approach yields four preliminary findings. First, we find that the establishment of free markets has little to do with the consolidation of democracy. We find no relation between the two in the short run, and we argue that the positive medium-run relationship in Latin America is a function of the way that free-market reforms undermine the ability of material losers from liberalization to organize. Second, we find that a large agrarian sector impedes democratization in both regions, even controlling for other factors. Third, on questions of international influence, we find that generic linkages between a developing country and industrialized democracies have no discernible effect on democratization. By contrast, the explicit and consistent democratic conditionality attached to EU accession appears to have a very strong (and positive) influence on political liberalization. Finally, while our analysis is not aimed at evaluating the much-debated modernization thesis linking socio-economic development and democracy, our results are consistent with recent work that has called into question a causal link between these two phenomena. [ABSTRACT FROM AUTHOR]