Business associations include peak business associations that represent a large segment of private firms in the country, chambers of commerce and business membership associations that represent smaller groups of businesses, and sector associations that represent firms in specific sectors or industries.
The evidence on the success of business associations in contributing to effective state-business relations in low income country contexts is limited, with most evidence drawn from the growth successes of East Asia (Maxfield and Schneider 1997, Doner and Schneider 2000).
Using case-studies from Mauritius, Zambia and Zimbabwe, Bräutigam et al. (2002) argue that effective state-business relations were more likely to emerge when the business association broadly represented the range of business interests in the country, had technical capacity, credibility and a resource base, and when the government and business associations had institutionalised, regular, consultations. However, they also suggest that the sustenance of effective state-business relations in low income country contexts also depends on other factors such as state leadership, ideological commitment to growth and state capacity.
Taylor (2012) suggests that, where good policies towards the private sector have emerged in the African context, it has not been through these East Asian-style growth coalitions, but argues that it has occurred through specific actions taken by a committed pro-business leadership, as in the case of Rwanda and Zambia. However, such improvements in the business environment that depend on the actions taken by specific political leaders are unlikely to be sustained in the long term (Taylor 2012).
- Bräutigam, D., Rakner, L., & Taylor, S. (2002). Business associations and growth coalitions in Sub-Saharan Africa. Journal of Modern African Studies, 40(4), 519-547. See document online
- Doner, R. F., & Schneider, M. R. (2000). Business associations and economic development: Why some associations contribute more than others. Business and Politics, 2(3), 261-288. See document online
- Maxfield, S., & Schneider, B. R. (Eds). (1997). Business and the state in developing countries. Ithaca: Cornell University Press.
- Taylor, S. D. (2012). Influence without organizations: State-business relations and their impact on business environments in contemporary Africa. Business and Politics, 14(1), 1-35. See document online