By B. Schneider
Improvement economists and practitioners agree that shut collaboration among enterprise and govt improves commercial coverage, but little study exists on how top to prepare that. This e-book examines 3 worthy functions–-information alternate, authoritative allocation, and lowering hire seeking–-across reviews in Latin the United States.
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Additional resources for Designing Industrial Policy in Latin America: Business-State Relations and the New Developmentalism
Sample text
By training at least, their orientation was more towards problem solving on technical issues rather immediate company profitability. Moreover, by the 2000s, three quarters of R&D spending was private, so business, especially the chaebol, was not dependent on public spending and subsidies. Although the government wanted some resources to go to less applied research, most of it was still geared to fostering commercial applications, so private participation was intended to pull spending in applied ways that would benefit private R&D.
The less problematic variable is allocative authority which may require political will at some point, but is thereafter given concrete manifestation in the resources allocated (which can long outlast particular politicians). Another important departure in this chapter is the emphasis on internal versus external monitoring to deter rent seeking. There are both empirical and theoretical reasons to expect that internal monitoring by business peers—often from different sectors—can be simpler to institutionalize and more effective than external monitoring.
Some councils, especially in Brazil and Colombia, also privilege direct representation by managers and owners of the largest business groups. Lastly, given the long and extensive presence of MNCs in Latin America, it is intriguing that there is so much variation in whether and how they are included in business-government councils. The goal for this chapter is to analyze variations in representation; Chapter 4 takes a closer look at MNCs and business groups, their politics, and potential contribution to designing and implementing industrial policy.