ABSTRACT
This chapter shows that economic and political transformations pose serious challenges to democratic governance in the region. It offers a new angle to the study of the dilemma of governance in South America. The chapter focuses on the role of an overlooked, but quite relevant actor in democratic governance: business interest groups. It also shows that the newly changed relationship between business and state has also transformed business interest groups' strategies and tools to influence politics. The chapter discusses the literature on the role of business in the policy-making process in Latin America. It also discusses the patterns of business organisation in the region. The chapter also focuses on the evolution of traditional business associations and the emergence of economic conglomerates as pivotal actors in the policy-making process. The political influence of business interest groups could partially explain the limitations of tax policy as a redistributive policy tool.
