Powerful business associations have been economically beneficial in Mexico but have also been a mixed blessing for democracy, a Northwestern professor said Wednesday.
Ben Ross Schneider, an associate professor of political science at NU, spoke about his studies of large Mexican business associations to 14 people at the Center for International and Comparative Studies. The talk, titled "Why is Mexican Business so Damn Organized?" was part of a yearlong faculty colloquium sponsored by CICS.
Schneider spent a year in Mexico studying large business associations in the Mexican economy. Voluntary organizations such as the Mexican Council of Businessmen, or CMHN, consist of wealthy corporate leaders who work to advance their business interests as a single group. Such associations are distinct to Mexico and are not seen in other Latin American countries, Schneider said.
Concerns about government policy, such as nationalization of industry or shifts in labor policy, are often the motivations for group action, Schneider said. For example, the Coordinating Council for Business Organizations in International Trade played a powerful role in negotiating the North American Free Trade Agreement, he said.
The business associations have been good for Mexican capitalists but have occasionally hindered the democratic process in Mexico, Schneider said. Influential business leaders who fear losing governmental favoritism may oppose changes in political leadership, sometimes allowing corrupt regimes to remain in power, he said.
"The consequences have been negative for democracy and positive on occasion for the macroeconomy," he said.
The centralized Mexican government makes large associations beneficial for business, Schneider said. It is difficult for private businessmen to move into government, and associations such as CMHN allow business executives a powerful voice, he said.
"There are different kinds of selective benefits that have different impacts," Schneider said. "The key selective benefit if you're a member of CMHN or CCE (the Business Coordinating Council) is information. You have to be at the meeting to get the benefits, leading to greater collective action."
He said the associations communicate directly with government leaders. The CMHN hosts a monthly luncheon where its 40 members discuss their concerns directly with a government minister, Schneider said. The president of Mexico serves as the minister at one luncheon each year.
The discussions are informal, but the topics are undisclosed to the press and the public. The meetings allow the government to deal directly with business concerns but can lead to business leaders exercising a high level of influence on government decisions, Schneider said.
While similar associations generally fade after immediate concerns have passed, they remain together in Mexico, a policy not seen in other Latin American countries, Schneider said.
"We see groups coming together in a time of business crisis, but what usually happens is a dissolution of the association," he said. "What's key is the cooperation between business and government."
Be the first to comment on this article!