| In the past 15 years, the post-communist countries have attempted to rebuild state society relations. Central to this process has been the formation of business associations. Despite roughly similar starting points, the post-communist countries vary dramatically in the number and type of business associations. This variation poses a number of empirical questions. Why do business associations form? What kinds of firms join associations? What roles do business associations play in the creation of capitalism? Existing literature often treats business associations as marginal players, but my dissertation demonstrates that they are important organizations that have a profound effect on the political and economic life of post-communist countries. Moreover, while scholars have examined the behavior and influence of interest groups, the actual causes of group formation (or non-formation) remain underdeveloped. My dissertation examines the creation of business associations and their subsequent development across countries and economic sectors.; Based on a cross-national survey of firms in 25 countries as well as a comparative analysis of business interest representation in Russia, Ukraine, Croatia, and Kazakhstan, I find that low-level bureaucratic corruption and excessive state regulations facilitate the formation of business associations. This might seem counterintuitive, but I argue that increasing bureaucratic pressure on businesses stimulates collective action to combat corruption. Another empirical finding is that firms in different sectors of the economy are unequally represented by business associations. Contrary to prevailing theoretical arguments, firms in the service sector are most likely to join business associations, while firms in mining and heavy industry are least likely to join. This finding is consistent with my argument because firms in the service sector are more vulnerable to invasive regulations. My analysis suggests that the nature of state regulatory institutions and policies affects business association formation. When corruption and regulations by bureaucrats are rampant, businesses have greater incentives to join associations that provide legitimate means to counter bureaucratic pressure. Thus, business associations arise as a defensive mechanism to protect business against corruption and extensive regulation.; This contributes to the debates about the sources of civil society organizations suggesting, ironically, that petty corruption may strengthen business associations---a crucial element of civil society. In addition, my investigation contributes to the on-going exploration of economic transitions and evolving patterns of governance in the post-communist countries of Eastern Europe and the former Soviet republics. Identifying the roots of the formation of business interests is a critical step in advancing a more general understanding of the development of capitalism in the post-communist countries. |
