Economic liberalization, political pluralism and business associations in developing countries

Abstract

Trends toward economic liberalization and political pluralism in developing countries would seem to presage a more active political and economic role for business associations. The evidence suggests, however, that business associations are unlikely to be such malleable instruments for the promotion of the private sector and of political pluralism as one might initially expect. They often act more in the interests of their own staff than in those of members. The potential for “unproductive” rivalry and conflict between competing associations is high. The more effective associations are those not financially dependent primarily on membership fees.