The varying role of the state in the making of Latin American multinationals

Globalization has certainly unveiled an economic window of opportunity for the internationalization of firms from the Global South. Latin America is no exception to this trend. Since the 1990s, there has been a substantial increase in the number of so-called multilatinas. The state has played a role in the internationalization of Latin American firms, as well as in the scaling up of these firms. However, the role of the state in Latin America has been highly varied. The chapter points out major differences and similarities between the trajectories of the Latin American multinationals in Brazil, Chile, Mexico and Argentina. This role ranged from passive support by structuring the capital market and directing a share of pension funds investments to firms being internationalized, as in the case of Chile, to a more active role with direct support and ownership participation of a development bank, as in the case of Brazil with the Banco Nacional de Desenvolvimento Econômico e Social (BNDES). The role of the state in the internationalization of Latin American firms is better grasped by the relationship between business and the state, and the state’s capacity to provide long-term stability in the rules of the game as well as developing specific policy instruments.