Unfinished legacy: understanding reciprocity, business groups and MNCs in Latin America

Three core topics in Alice Amsden's work have special relevance for the analysis of development in Latin America. First, relationships of reciprocity were prominent in developmental states of East Asia where governments provided firms with large subsidies in return for exacting performance standards. Reciprocity was weak or absent in many industrial policies in Latin America. Second, Amsden emphasised the central role of diversified, family-owned business groups in the industrialisation of East Asia. Business groups also predominate in Latin America though they tend to be risk-averse portfolio groups. Third, while East Asian countries limited entry by multinational corporations, they dominate many manufacturing sectors in Latin America.