Big Business and the Golden Straitjacket

Abstract

The rise of large domestic corporations in Russia, China, India, Brazil, Mexico, and others is transforming competition, regulation, and business government relations in these economies. Big business is appearing in very different national settings simultaneously. Western multinationals have had a virtual free ride there in the past decade. This will change as large home companies increasingly control access to key markets.

The political economy of big business in the emerging markets has received scant attention to date. Its impact goes far beyond business. The large domestic corporation is becoming a powerful new political actor, at the expense of government, labor, and NGOs. It is the key institution for balancing the centrifugal forces of globalization with the consolidating need of national identity.

JEL Classification: F20, F23, H10, H11, L10, L21, O10