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Business Politics and Policy Making in Latin America

Business Politics and Policy Making in Latin America. Ben Ross Schneider Department of Political Science Northwestern University. A Tale of Two Coffee Sectors. Brazil: state control, low quality, and declining consumption, little dialogue with growers

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Business Politics and Policy Making in Latin America

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  1. Business Politics and Policy Making in Latin America Ben Ross SchneiderDepartment of Political ScienceNorthwestern University

  2. A Tale of Two Coffee Sectors • Brazil: state control, low quality, and declining consumption, little dialogue with growers • Colombia: high quality, private regulation, close collaboration between growers and the state • Why? Federacafe

  3. 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

  4. Portfolio analysis of business investment in politics • Business associations • Campaign contributions and lobbying • Personal networks • Corruption

  5. Strong Voluntary Encompassing Associations

  6. Weak Voluntary Encompassing Associations

  7. Political Activities of Associations • Visibility in media • Direct contacts with policy makers • Distant relations with politicians and parties • Representation on consultative or policy councils

  8. Elections, Campaign Finance, and Lobbying • 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, 2004

  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 • Business influence on policy more likely to be positive when its participation is formal, encompassing, organized, and transparent

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