Designing Industrial Policy in Latin America: Business-State by B. Schneider

By B. Schneider

Improvement economists and practitioners agree that shut collaboration among company and govt improves commercial coverage, but little study exists on how most sensible to arrange that. This publication examines 3 useful functions–-information alternate, authoritative allocation, and lowering lease seeking–-across reviews in Latin the US.

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Most observers and scholarly evaluations had positive views of the interactions. Most of these arrangements were ad hoc, involving only the several years it normally took to negotiate a treaty. Chile, however, became a world leader in negotiating trade agreements, so throughout the 1990s and into the 2000s, governments were negotiating agreements along with private sector representatives. Constant contact made for very close relations between association staffers and government negotiators (Bull 2008).

Japan pioneered deliberation councils for a wide range of policy areas, but more recent and relevant experiences for Latin America come from Korea (see also Kuo 1995 on Taiwan). In particular, the Korean export council of the 1960s has become something of a developmentalist touchstone, and recent councils in technology policy illustrate ongoing institutional innovation in designing new forms of deeper integration between business and government. These cases give more concrete examples of most of the more theoretical and deductive points made so far in this chapter.

That is, the government offered firm-specific subsidies that were intended to change firm behavior (increase exports). The government monitored that performance and rewarded better performers with more subsidies and punished poor performers with fewer subsidies (Westphal 1990). Democratic governments in Korea in the late 1980s and early 1990s abandoned most of the industrial policies of the previous military regime, in part because the chaebol were increasingly viewed as too big and powerful, as well as successful enough to prosper without government help (a view shared by many chaebol) (see Larson and Park 2014).

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