Recent econometric analysis of state-business relations (SBRs) in Africa from IPPG shows that where effective state-business relations are established – either through formal or informal institutional patterns and relationships – the growth effects are generally positive.
But such institutions of co-operation and credibility cannot be made to order. Establishing, sustaining and renewing effective state-business relations are political processes. This new publication synthesises the work from four contrasting country studies from IPPG’s state-business relations work in order to better understand the relationship between state-business relations and economic performance.
The studies have a number of take-away messages. For academics, the case studies provided new ways (methods and methodologies) of examining growth by including SBRs (empirical examinations rooted in theory). For government policy makers, whilst it is known that informal networks matter, formalised ways of engaging with business can also be useful for economic development. For business leaders, engaging in a well informed democratic conversation with government helps (and pays for itself); SMEs feel under-represented in meetings with government. And for donor agencies, it is important to consider SBRs in donor advice on economic development and in governance indices
Research Programme Consortium for Improving Institutions for Pro-Poor Growth, Manchester, UK. ISBN-10: 1-905469-22-5. 40 pp.