This is a paper which links two related problems of policy making: problems of cycles (e.g. the adoption and abortion of a policy in a short run) and the more continuous problem of chronically weak state capacity. I argue that both are two different sides of the same coin. I use a highly stylized model, when and why political factions cannot agree on a common middle ground and then introduce ideologically opposed policies which will soon be reverted. I use a couple of historical episodes from Latin America, especially in terms of privatization vs. nationalization cycles, to illustrate the problem.
Here is the manuscript of the paper. Here is the link to the publisher.