"Move and Accommodate: Business and Government Relations during the Peruvian Military Dictatorship (1968-1980)"

The relationship between business and government in emerging economies moves swiftly form collaboration to distrust due to the weakness of institutional frameworks. The Peruvian military dictatorship (1968-1980) offers a privileged case to understand this complicated relationship of collaboration and distrust. Unlike other dictatorships in the region, the Peruvian military implemented a program of agrarian reform, nationalization of foreign companies, and creation of state-owned companies. But, at the same time, they gave a series of economic incentives and legal privileges to Peruvian companies.
The military sought the collaboration of businessmen to carry out its development policies, but at the same time it distrusted business associations (National Industry Society, Chamber of Commerce, etc.), which they considered as potential political rivals. This resulted in the loss of centrality of associations in business networks in favor of economic group leaders. On the other hand, the leading businessmen used their contacts with the government to diversify their interests and expand their market share to the detriment of medium-sized entrepreneurs.
This paper explores how the processes of collaboration and distrust between government and business affected corporate network and the management of Peruvian business groups. The first part analyses the Military dictatorship policies and its relation with local and foreign companies. The second part studies the interaction between government and business associations. And the third part examines the business strategies vis a vis the military economic policies.