| Explanations for successful implementation of economic policy reforms have focused closely on state-societal linkages and the role of the private sector. A central argument is that the state depends on private sector organizations for rapid communication with firms, information on business sectors and resolution of collective action problems. The cooperation of private actors is also necessary for investment and production to occur under a market-oriented development model.; This study addresses two key areas in which the current understanding of business-government relations in the context of economic restructuring needs further elaboration and clarification. First, it specifies that the private sector institutions most important to implementation include formal business associations, policy task forces and business groups, or "grupos." The way in which private sector institutions are organized helps to determine the quality and type of information the state receives. These institutions provide a set of opportunities for and constraints on state action, and influence the final content of reforms which are implemented.; Second, this dissertation focuses on how implementation varies not only by country, but also by economic sector. An essential problem in many economic transitions is that even in a change toward the free market, states have strong political and strategic interests to protect certain sectors, such as finance. As illustrated in the Mexican case, this allows new opportunities for unproductive rent-seeking behavior. In addition, protection of the financial sector is likely to cause serious economic disequilibria within overall liberalization programs in which other sectors are more fully liberalized. Third, a common problem in economic liberalization is that business-government collaboration may take the form of exclusive linkages to business elites or some subset of firms, which also contributes to economic instability.; The problems of sectoral variation and selectivity in business-government relations during the implementation of economic reforms led to unintended political consequences for Mexico's authoritarian regime, including a notable rise in business protest by small and medium firms. Business associations and social movements have linked Mexico's economic crisis to inefficiencies in economic policy management under an authoritarian political system. |
