Business Associations and Economic Development: Why Some Associations Contribute More Than Others

Doner, Richard F.; Schneider, Ben Ross

doi:10.2202/1469-3569.1011

Cited by 282 publications

(221 citation statements)

References 37 publications

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“…In the former, the participant speaks on behalf of a stakeholder group, while Several insights can be drawn from Box 7.2. Representation from centralized associations has the advantage of ensuring institutional technical support for the entity and high member density for representativeness (Donor and Schneider, 2000). 30 On the other hand, the need for mediation and reconciliation, relating to the many interests, may dilute the contextual information provided and weakens the positions.…”

Section: Council Membershipmentioning

confidence: 99%

Two to Tango: Public-Private Collaboration for Productive Development Policies

Fernández‐Arias¹,

Sabel²,

Stein³

et al. 2016

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work is licensed under a Creative Commons IGO 3.0 Attribution-NonCommercial-NoDerivatives (CC-IGO BY-NC-ND 3.0 IGO) license (http://creativecommons.org/licenses/ by-nc-nd/3.0/igo/legalcode) and may be reproduced with attribution to the IDB and for any non-commercial purpose. No derivative work is allowed.Any dispute related to the use of the works of the IDB that cannot be settled amicably shall be submitted to arbitration pursuant to the UNCITRAL rules. The use of the IDB's name for any purpose other than for attribution, and the use of the IDB's logo shall be subject to a separate written license agreement between the IDB and the user and is not authorized as part of this CC-IGO license.Note that the link provided above includes additional terms and conditions of the license.The opinions expressed in this publication are those of the authors and do not necessarily reflect the views of the Inter-American Development Bank, its Board of Directors, or the countries they represent. (PdPs) cannot be found in economic textbooks. in conventional theory, either the market provides the best solutions based on its know-how and profit incentive or, when private returns deviate from social returns, the public sector takes note and intervenes with policies that correct the market outcome. If the market works well, the public sector should abstain from interfering; if the market fails, the public sector should act to bring it into line. In no case is there room for collaboration.However, public-private collaboration figures prominently in the actual experience of successful productive development policies, some of it documented in the last chapter of the book. Policymakers need to access the deep knowledge held by private producers in order to learn about market failures and formulate the right policies to address them.Private actors may benefit from coordinating around public initiatives and sharing the broader purview that the public sector brings. Both public and private sectors can win from collaboration in information sharing and coordination, increasingly so as the economy modernizes.On the other hand, public-private interaction may open the door for private capture of public policy and lead to damaging productive development policies. For all the promise of collaborative win-win solutions, private businessmen will always prefer to receive preferential treatment and subsidies over good policies. Good government is required to make the endeavor of public-private collaboration worthwhile. The history of industrial policy in Latin America often dominated by private capture of vi TWO TO TANGO public policy is a reminder that strong institutions of public-private collaboration are needed.This book analyzes 25 examples of public-private collaboration for PDPs in Argentina, Colombia, Costa Rica, Chile, and Uruguay with an eye to understanding the rationale and value of such collaboration as well as the challenges it poses. The cases reviewed clearly show that there is active private sector engagement in a wide variety of mod...

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Section: Council Membershipmentioning

confidence: 99%

Two to Tango: Public-Private Collaboration for Productive Development Policies

Fernández‐Arias¹,

Sabel²,

Stein³

et al. 2016

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“…The government may want to help such organizations "upgrade" so that they become better counterparts for collaboration. Doner and Schneider (2000) provide numerous examples of business associations that have contributed significantly to economic development both by pushing for better market-supporting institutions, such as property rights, and by participating in the provision of market-complementing services, such as setting standards and coordinating joint efforts to upgrade quality. 5 Schneider recently (2015) The strength of business associations is certainly important for their effectiveness in reaching their own objectives-but not necessarily for their socially beneficial contribution to…”

Section: The Private Sector Counterpartmentioning

confidence: 99%

“…However, strong business associations can direct their efforts to productive development activities or to lobbying for rents. 7 In summary, institutional capacity is neutral: associations can use it for good or ill depending on the circumstances (Doner and Schneider, 2000).…”

Section: The Private Sector Counterpartmentioning

confidence: 99%

Two to Tango: Public-Private Collaboration for Productive Development Policies

Fernández‐Arias¹,

Sabel²,

Stein³

et al. 2017

View full text Add to dashboard Cite

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Inter-American Development Bank. This work is licensed under a Creative Commons IGO 3.0 AttributionNonCommercial-NoDerivatives (CC-IGO BY-NC-ND 3.0 IGO) license (http://creativecommons.org/licenses/by-nc-nd/3.0/igo/ legalcode) and may be reproduced with attribution to the IDB and for any non-commercial purpose, as provided below. No derivative work is allowed. Terms of use: Documents inAny dispute related to the use of the works of the IDB that cannot be settled amicably shall be submitted to arbitration pursuant to the UNCITRAL rules. The use of the IDB's name for any purpose other than for attribution, and the use of IDB's logo shall be subject to a separate written license agreement between the IDB and the user and is not authorized as part of this CC-IGO license.Following a peer review process, and with previous written consent by the Inter-American Development Bank (IDB), a revised version of this work may also be reproduced in any academic journal, including those indexed by the American Economic Association's EconLit, provided that the IDB is credited and that the author(s) receive no income from the publication. Therefore, the restriction to receive income from such publication shall only extend to the publication's author(s). With regard to such restriction, in case of any inconsistency between the Creative Commons IGO 3.0 Attribution-NonCommercial-NoDerivatives license and these statements, the latter shall prevail.Note that link provided above includes additional terms and conditions of the license. This paper summarizes the findings of the recent Inter-American Development Bank book Two to Tango: Public-Private Collaboration Productive Development Policies, based on case studies of 25 productive development policies (PDPs) in five countries and discusses an additional example from Peru. One finding that emerges from those studies is that governments could not make policy in isolation and needed private sector involvement at every phase of the policy process. It is also found that the private sector generally collaborated in the design and implementation of PDPs without attempting to manipulate or capture them. In contrast to previous views of PDPs as static and best undertaken in isolation by governments, successful PDPs involve a dynamic and interactive process with ample and continuous private sector participation. JEL classifications: L52, O25 O54

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“…Scholars also emphasize that business associations often impede the development of the introduction of new technologies (Pyle, 2006, 493). Other literature emphasizes that in weak states, business associations often press for clean and effective government administration and provide its members with services that promote economic growth and create social benefits (Doner and Schneider, 2000). As the literature on the developmental state in East Asia argues, when business associations regularly organize consultations with government and mediate between its members and government, they can enhance economic development (Campos and Gonzalez, 1999).…”

Section: Private Sector Voicementioning

confidence: 99%