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Globalization and Business Politics in Protected and Semi-Open Economies
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IF YOU WOULD LIKE A COPY OF THIS PAPER, PLEASE CONTACT ME AT
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Abstract: Globalization and Business Politics in
Protected and Semi-Open Economies
Melani Cammett
Department of Political Science
Brown University
Proponents of globalization argue that market-oriented reforms enable business leaders to push interventionist, authoritarian governments to relax economic and political restrictions. Business elites launched to new prominence by participation in global markets will push for economic liberalization, transparency and the rule of law. But do business leaders conform to these expectations? This paper develops an analytical framework based on a typology of “protected” and “semi-open” developing economies to explain how globalization affects business politics. The argument holds that new incentives from integration in the global economy interact with varied institutional legacies in these two types of systems to produce distinct prospects for business mobilization and, ultimately, broader political and economic change. In protected economies, new export-oriented business factions organize themselves in opposition to an established, protectionist economic elite, which long monopolized economic opportunities. Reactive cycles of mobilization between the two groups spur the creation of well-structured business lobbies that push for greater transparency in business-government relations and become active partners in national development efforts. In semi-open economies, where a small domestically-oriented industrial class is not very influential and has coexisted with exporters for years, economic liberalization engenders far less pronounced domestic struggles. As a result, business groups do not mobilize extensively and, thus, do not compel significant shifts in business-government relations. Paradoxically, protected economies start off more insulated from the global economy than semi-open economies but are more likely to breed forceful pro-liberalization constituencies once economic liberalization takes root. To support my general argument about globalization and business politics, I provide a comparative study of two developing economies in the Middle East – Morocco, an example of a protected economy, and Tunisia, an example of a semi-open economy – using paired comparisons of the textile and apparel sectors.
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| | Authors: Cammett, Melani. |
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IF YOU WOULD LIKE A COPY OF THIS PAPER, PLEASE CONTACT ME AT
## email not listed ##
Abstract: Globalization and Business Politics in
Protected and Semi-Open Economies
Melani Cammett
Department of Political Science
Brown University
Proponents of globalization argue that market-oriented reforms enable business leaders to
push interventionist, authoritarian governments to relax economic and political
restrictions. Business elites launched to new prominence by participation in global
markets will push for economic liberalization, transparency and the rule of law. But do
business leaders conform to these expectations? This paper develops an analytical
framework based on a typology of “protected” and “semi-open” developing economies to
explain how globalization affects business politics. The argument holds that new
incentives from integration in the global economy interact with varied institutional
legacies in these two types of systems to produce distinct prospects for business
mobilization and, ultimately, broader political and economic change. In protected
economies, new export-oriented business factions organize themselves in opposition to
an established, protectionist economic elite, which long monopolized economic
opportunities. Reactive cycles of mobilization between the two groups spur the creation
of well-structured business lobbies that push for greater transparency in business-
government relations and become active partners in national development efforts. In
semi-open economies, where a small domestically-oriented industrial class is not very
influential and has coexisted with exporters for years, economic liberalization engenders
far less pronounced domestic struggles. As a result, business groups do not mobilize
extensively and, thus, do not compel significant shifts in business-government relations.
Paradoxically, protected economies start off more insulated from the global economy
than semi-open economies but are more likely to breed forceful pro-liberalization
constituencies once economic liberalization takes root. To support my general argument
about globalization and business politics, I provide a comparative study of two
developing economies in the Middle East – Morocco, an example of a protected
economy, and Tunisia, an example of a semi-open economy – using paired comparisons
of the textile and apparel sectors.
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