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Business-Government Interaction in Policy Councils in Latin America - Cheap Talk, Expensive Exchanges, or Collaborative Learning?

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  • Ben Ross Schneider

Abstract

While effective industrial policy requires close cooperation between government and business, there is little agreement on what makes that cooperation work best. This paper analyzes institutional arrangements for public-private cooperation and the character of private sector representation. Questions on institutional design focus on three main issues: i) maximizing the benefits of dialogue and information exchange; ii) motivating participation through authoritative allocation; and iii) minimizing unproductive rent seeking. Key elements in the nature of business representation through associations are the quality of research staff and internal mechanisms for reconciling divergent preferences within associations. The empirical analysis also disaggregates councils by scope (economy-wide versus targeted), function (trade, upgrading, technology, etc.), sector (agriculture, industry, services), and level (national, provincial, and municipal).

Suggested Citation

  • Ben Ross Schneider, 2010. "Business-Government Interaction in Policy Councils in Latin America - Cheap Talk, Expensive Exchanges, or Collaborative Learning?," Research Department Publications 4688, Inter-American Development Bank, Research Department.
  • Handle: RePEc:idb:wpaper:4688
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    More about this item

    Keywords

    Industrial policy; Business-Government relations; Rent seeking;

    JEL classification:

    • O25 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Industrial Policy
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean

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