Business sector political influence in taxation policy in Costa Rica

• In Event: Macroeconomía y Desarrollo

Abstract

The intertwinement between private and public interests is likely more evident in Central American democracies, such as in Costa Rica. The business sector, specifically, has turned into an actor that usually participates and has the intention to influence the policy making decisions with the aim of protecting its own interests. This applied pressure by the associations that represent the sector is different from the one other actors and sectors in society exert. Thus their own influence mechanism and power resources allow business sector to get important power assessments that are later translated into –in some cases-favorable results for their specific interests. Therefore, and given this stage, this research analyzes the ways in which the Costa Rican business sector tries to influence a policy formulation process, and particularly if it is able to exert such influence in a specific case. In consequence, influence mechanism and power resources used by the association with the greater amount of enterprises, the Costa Rican Business Sector Associations and Chambers Union (UCCAEP) by their initials in Spanish, is studied in the frame of a specific taxation public policy (Proyecto de Solidaridad Tributaria 2011-2012). It is worth mentioning that a methodology based on Document Analysis and Social Network Analysis is prioritized in this research, so we were able to draw and analyze different Business Power Networks that UCCAEP has built in relationship with other actors, and which allows the understanding of their particular influence mechanism and power resources.

Author

• Ana María Morales Chacón