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The Political Preferences of Diversified Business Groups: Lessons from Colombia (1994–1998)

Published online by Cambridge University Press:  20 January 2017

Angelika Rettberg
Angelika Rettberg*
Affiliation:
Universidad del Rosario—Bogotá, Colombia
*
Facultad de Ciencia Política y Relaciones Internacionales, Universidad del Rosario, Bogotá, Colombia. E-mail: [email protected].
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Abstract

The article discusses the political preferences of diversified business groups—or economic groups (EGs)—based on a case study of business political behavior in Colombia. EGs are groups of firms held together through ‘interlocking directorates, holding companies, crossfinancing, and often continued family ownership’, which dominate significant portions of the Latin American economies. The Colombian EGs supported president Ernesto Samper (1994–1998) amidst accusations that his campaign had been funded by drug traffickers, despite the prospect of U.S. sanctions and economic recession. The article suggests that a crucial factor shaping EG political preferences was their relationship of mutual dependence with the Colombian state, which is based on contracts, credit, and regulation. In contrast to expectations that privatization policies associated with the 1990s' economic reforms would weaken the business-state relationship, this case shows that these ties have been strengthened, making EGs stand out as winners of the reform process.

Type
Research Article
Information
Business and Politics , Volume 3 , Issue 1 , April 2001 , pp. 47 - 63
Copyright
Copyright © V.K. Aggarwal 2001 and published under exclusive license to Cambridge University Press 

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Footnotes

Acknowledgement: A previous version of this article was presented at the Joint Annual Meeting of the International Studies Association (ISA) and the North Eastern Political Science Association (NEPSA), Albany, NY, November 9–11, 2000. Research for this article was made possible by a Colciencias and Interamerican Development Bank (IADB) Scholarship.

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