The present trend toward democratic regimes in Latin American countries raises the issue of their regime-determined capabilities. Democracy is generally defined in procedural terms and supported on moral rather than policy grounds (Schumpeter 1950, 242). Consequently, very little is known about the policy consequences, if any, of the adoption of democratic forms and procedures by Latin American political systems. One way to examine this question is to analyze the policy performance of the three democratic regimes in Latin America that are the most institutionalized: Colombia, Costa Rica, and Venezuela. These three nations, unlike Argentina, Chile, Peru, and Uruguay, were able to withstand the authoritarian trends of the 1960s and early 1970s. They have been democratic long enough (well over two decades) during a period when development issues were salient to indicate the policy-performance capabilities of democratic regimes operating within the cultural, economic, and political context of Latin America.