Business Groups and Transnational Capitalism in Central America : Economic and Political Strategies

Palgrave Macmillan is the global academic imprint of the above companies and has companies and representatives throughout the world. Palgrave® and Macmillan® are registered trademarks in the United States, the United Kingdom, Europe and other countries This book is printed on paper suitable for recycling and made from fully managed and sustained forest sources. Logging, pulping and manufacturing processes are expected to conform to the environmental regulations of the country of origin. "Business Groups and Transnational Capitalism in Central America" investigates Central America's political economy through the lens of its powerful diversified business groups. It provides unique insight into their strategies when confronted with a globalized economy, their impact on development, and how they shape the political and economic institutions governing local varieties of capitalism. This study is based on the collection of data on sixty-nine of the largest groups from the six countries of the isthmus -- Guatemala, El Salvador, Honduras, Costa Rica, Nicaragua and Panama -- and combines qualitative and quantitative methods. It seeks to analyze historical trajectories of individual groups and their evolution in distinct national contexts as well as their contributions to innovation and exports. The analysis shows that the business groups have formed alliances with multinational companies (MNCs), but are not in the process of being absorbed by them. Rather they shift sector focus and exploit their networks in order to face competition from MNCs Front Matter....Pages i-xi Introduction: The Emergence and Evolution of Business Groups in Central America....Pages 1-21 Between Hierarchies and Networks: Understanding Business Group Strategies in a Global Capitalism....Pages 22-38 Regional Shifts and National Trajectories: Differences in the Context and Strategies of Business Groups....Pages 39-72 From Oligarchs to Transnational Business Group Leaders? The Shifting Strategies of Key Business Groups....Pages 73-93 Internationalization and the Export Performance of the Central American Business Groups....Pages 94-114 Central American Business Groups, Innovation, and Institutional Conditions....Pages 115-137 The Role of the State: Government Financial Policies and Business Group Strategies....Pages 138-159 Between the Back and the Front Stage: The Political Strategies of Central American Business Groups....Pages 160-186 Conclusion....Pages 187-196 Back Matter....Pages 197-225 This book investigates Central America's political economy seen through the lens of its powerful business groups. It provides unique insight into their strategies when confronted with a globalized economy, their impact on development of the isthmus, and how they shape the political and economic institutions governing local varieties of capitalism.