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Business Politics and Policy Making in Contemporary Latin America

Business Politics and Policy Making in Contemporary Latin America. Overview. Portfolio framework for analyzing business politics. Comparative examination of patterns of business politics in Argentina, Brazil, Chile, Colombia, and Mexico.

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Business Politics and Policy Making in Contemporary Latin America

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  1. Business Politics and Policy Making in Contemporary Latin America

  2. Overview • Portfolio framework for analyzing business politics. • Comparative examination of patterns of business politics in Argentina, Brazil, Chile, Colombia, and Mexico. • Assessment of how various types of policy encourage different political responses from business.

  3. Portfolio analysis of business investment in politics • Business associations • Legislative lobbying • Elections and campaign contributions • Personal and policy networks • Corruption

  4. Strong Voluntary Encompassing Associations

  5. Weak Voluntary Encompassing Associations

  6. Political activities of associations • Visibility in media • Direct contacts with policy makers • Little sustained contact with politicians and parties • Representation on consultative or policy councils

  7. Legislative lobbying • New form of business politics • Little empirical research • Narrow, fragmented influence

  8. Elections and Campaign Finance • Legal framework greatly restricts private sector funding. • Yet millions of dollars flow from business to politicians. • Contributions may not buy much influence -- low reelection rate -- narrow impact, collective weakness -- insurance contributions

  9. Business Appointees in Recent Government Cabinets

  10. Perceived Corruption in Latin America, 20042007 index

  11. Estimates of Patterns of Business Politics

  12. Negotiating Trade Agreements • Chile, Mexico, and Colombia relied on “cuarto al lado” model of consultation between business and government. • Business participation mediated by associations. • In Brazil and Argentina negotiations for Mercosur excluded business.

  13. Scope and Implementation in Policy Making

  14. Conclusions • Root causes of variation in patterns of business politics usually found in prior government actions. • Patterns of business politics are fairly stable over time, yet still subject to change through policy.

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