Sustainable Democracy is a joint report of twenty one social scientists, from eleven countries and four academic disciplines, who collaborated over the period of two years under the name of the Group on East-South Systems Transformations (ESST). Their report identifies the principal political and economic choices confronting new democracies in Southern and Eastern Europe and South America, while evaluating their merits and feasibility in the light of current social science knowledge. The scientists explore the social, political and economic conditions under which democracy is likely to generate desirable and politically desired objectives, as well as, whether it is likely to last. It is argued that the state has an essential role in promoting universal citizenship and in creating conditions for a sustained economic growth. Special emphasis is placed on the interdependence between political and economic reforms.