Business associations and better governance in Africa

Abstract

AbstractAre business associations a cure for or a cause of bad governance in Africa? Pluralists think business associations are needed to bargain and compromise over improvements in public policy, whereas public choice theorists suspect business associations of destructive rent‐seeking. This article reports results of a survey in eight African countries that illuminates these issues. Most business leaders and civil servant respondents see major problems with governance, though across countries there is a perception of improvement. Business associations are reported to work reasonably well as policy advocates for better governance. They are seen as doing a fair job of keeping members updated on the policy environment. The associations also appear to be building ‘social capital’ (the ability to trust and work cooperatively with others) among member firms. Thus, the evidence is that business associations in Africa conform better to the pluralist model of interest group behaviour, as opposed to the more critical public choice viewpoint. Copyright © 2002 John Wiley & Sons, Ltd.