Despite the recent shift to democratic regimes and market‐based economies, in many Latin American countries the military retains important economic roles as owner, manager, and stakeholder in economic enterprises. Such military entrepreneurship poses a challenge to the development of democratic civil‐military relations and, by extension, to the development of liberal democracy in the region. While scholars have noted this situation with concern, they have given little attention to distinguishing the different types of military entrepreneurship, which reflect distinct historical patterns and implications. This article identifies two major types of military entrepreneurs in Latin America: industrializers, determined to build national defense capabilities and compete for international prestige; and nation builders, seeking to promote economic development that can foster social development and cohesion. Case studies of Argentina, Brazil, Cuba, and Ecuador demonstrate important differences between these two types in their origins, paths, and political consequences.

Over the course of the twentieth century, militaries in the developing world adopted roles as owners and managers of economic enterprises that constitute an important source of financial and institutional autonomy from the state and society. This article identifies several distinct types of military entrepreneurship and argues that their development depends on patterns of state capacity, military professionalization, and threat conditions facing the country. Case studies of Pakistan, El Salvador, and China test the argument, exploring both the origins of military business activities and their current condition. The study finds that military entrepreneurship is harmful to the achievement or maintenance of military professionalism and that it is quite durable because it adapts to prevailing market conditions and therefore can weather major shifts toward democracy and the market.

In the twentieth century, Latin American militaries developed economic industries, organised businesses, and provided security and development assistance in lieu of the state. Despite shifts to democracy and the market, the military remains an economic actor in many countries in the region. This article seeks to open debate and suggest ways to approach the subject theoretically. It examines the concept of military entrepreneurs and scholarship on the topic, and then suggests how three approaches from the domain of comparative politics -rational, structural and cultural -can be useful to develop theoretical frameworks for studying the military's role in the economy.

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