Ben Schneider's comparative historical analysis of the incorporation of business into politics in Latin America examines business organization and political activity over the last century in five of the largest and most developed countries of the region. Schneider's explanation for why business became better organized in Chile, Colombia, and Mexico than in Argentina and Brazil, lies neither in economic characteristics of business nor broader political parameters, but rather in the cumulative effect of state policy actions.

This book argues that Latin America has a distinctive, enduring form of hierarchical capitalism characterized by multinational corporations, diversified business groups, low skills, and segmented labor markets. Over time, institutional complementarities knit features of corporate governance and labor markets together and thus contributed to institutional resiliency. Political systems generally favored elites and insiders who further reinforced existing institutions and complementarities. Hierarchical capitalism has not promoted rising productivity, good jobs, or equitable development, and the...