Public-private alliances for long-term national development strategies

Abstract

Fe w developing countries have succeeded in consistently closing the income gap with the world's richest nations without proactive government action in pursuit of economic transformation and a dynamic role in the global economy. Two factors are crucial here: the development and implementation of a medium-and long-term strategy to achieve rapid economic transformation, and the support provided to this strategy by a public-private alliance forged by means of a social process suited to local conditions. This article analyses the way alliances of this kind operate in 10 countries outside the region deemed to be successful because they have achieved a process of convergence with the developed countries or performed better than those of Latin America and the Caribbean, despite having similar resource endowments. One element that is lacking in the region, or at best is only incipient, is public-private collaboration. Thus, the aim of the analysis is to prompt reflection about the kind of alliances we ourselves could form to underpin strategies aimed at creating "Latin American tigers".

Public Private Partnerships for Internationalization of Services: Chilean Architecture Industry

“…EPAs targeted policies for export promotion have tended to public-private partnerships since for most countries the productive apparatus is in the private sector; consequently, they have at their disposal market information, for incomplete that it could be, which could be useful to identify opportunities and obstacles towards economic transformation (Devlin & Moguillansky, 2009). In addition, there are developing countries where PPPs are presented as an alternative for their limited capacity of action in terms of public policies, their scarce resources and the size of its productive sectors.…”

“…Figure 1, represents the frequency of the arguments throughout the investigation, which some of them are consistent with the analytical framework described above. Literature on public-private partnerships explains that when evaluating a promotion program is necessary to consider the economic environment in which it is framed (Devlin & Moguillansky, 2009). This represented one of the main barriers faced by the analysed program as it presented persistent financial difficulties to meet the objectives.…”

“…Undoubtedly by creating the brand, studies on the attributes and strengths of the sector are made, but to create a business model, decisions should be based on data that, until today, we do not have" (Olavarría, 2014). This lack of coordination is called by Devlin and Moguillansky (2009) "coverage gaps" which usually occur in activities that are critically interlinked, which is detrimental to the necessary synergies for full achievement of strategic objectives. The inability to elaborate these studies responded to different incentives from the program.…”

“…In recent years, State involvement to promote services exports has increased in Latin America as a result of the vulnerability shown in economic growth due to high dependence on its primary products exports, in the context of the fall of commodity prices post the global financial crisis 2008-09; and the positive industrial improvement achieved in East Asia developing economies through government interventions (Devlin & Moguillansky, 2009;Foxley, 2012).…”

Reconstituting the Neostructuralist State: the political economy of continuity and change in Chilean mining policy

“…Interestingly Devlin and Moguillansky observe that countries which successfully utilised public sector interventions underwent a two-stage process where, after the exploitation of their static comparative advantage, policy makers were determined to create new comparative advantages. 32 Through the entrepreneurial spirit of business and government financial support, it may be possible simultaneously to diversify private firms' scope of activities within one sector and link leading industries to others. Such strategy is relevant in the resource sector which grows without sectoral linkages, further creating uneven sectoral growth.…”