ABSTRACT
The business and government relationship is closely associated with nation building. This is not to suggest that it constitutes the axis around which all else revolves nor that one mode of interaction is necessarily superior to another. Indeed, it may be argued that it is the adaptability of this relationship to the evolving economic and political construct which is essential to sustain development. Learning is equally essential. In a relationship as complex as that between business and government, it is unreasonable to anticipate that the various actors will strike upon the optimal manner of interaction from the outset. The capacity and willingness of actors to learn from past mistakes and to evolve towards more effective modes of interaction is undoubtedly critical to the capacity to cope with long-term change. As much as cooperation between business and government may serve to reduce transaction costs and facilitate the flow of information, equally, resistance by key stakeholders to necessary change may lead to institutional rigidities. Understanding how the business and government relationship operates during times of prosperity and stability helps to explain year-on-year economic growth but it tells us less about how that relationship adapts and evolves.
