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Business and development: how organization, ownership and networks matter

Ignacio Puente and Ben Ross Schneider

Review of International Political Economy, 2020, vol. 27, issue 6, 1354-1377

Abstract: A recent wave of research – including the five books we review – argues for paying more attention to business and the private sector when explaining development outcomes. We draw on these books to make four main arguments. First, micro-attention to variations in business organization and behavior forces a framework shift away from a statist literature that attributed explanatory power to bureaucracies and state capacity and away from market-oriented institutionalists who focus on rules – domestic and international – rather than organizations like firms. Second, we identify aspects of firm organization and ownership as key variables in assessing business impact on development. Third, we highlight the development-enhancing networks that grow out of, and transcend, firms. Fourth, we suggest that business characteristics should be both inputs into policy-making and targets of policy. The paper closes with a reminder that beyond its direct contributions to development, business is also a powerful actor in shaping politics and policy in its favor.

Date: 2020
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Citations: View citations in EconPapers (5)

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DOI: 10.1080/09692290.2020.1727548

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