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Business associations and politics in the post-EDSA Philippines: neither oligarchy nor civil society

Ensuring an adequate representation of business interests in policy making is a crucial issue that influences the quality, capacity, and resiliency of new democracies and more market-oriented economies. Patterns of business organization and relations between business and government vary widely across developing countries and the sectors of each country. They have never been static. Contending positions in debates on the consequences of collective and organized business activities are often directly opposed to one another. On the negative side, observers who examine rent-seeking activities mostly emphasize the harmful consequences of organized business. On the other hand, scholars of civil society (or social capital) and corporatism are mostly optimistic about the contributions organized social groups, including business associations, can make to democracy and development. This paper examines collective business activities in the Philippines, where many business associations, including the Philippine Chamber of Commerce and Industry (PCCI) and the Makati Business Club (MBC), are active in economic policy making and advocating reforms relating to political and social issues after the restoration of democracy. In spite of their importance, little attention has been given to collective and organized business activities in the Philippines.