From economic to political power: economic elites and policymaking during times of crisis

Abstract

The shared crisis brought on by COVID-19 offers an opportunity to study how economic elites attempt to shape policy responses. In this article, we inquire about the conditions under which economic elites shaped containment and business support measures in Latin America. We argue that wealthier and better-organised elites are more likely to shape policies because they have increased access to policymakers. To test this, we combine regression analysis with three case studies: Chile, Mexico, and Peru. Our quantitative findings align with our expectations regarding containment measures and present mixed results for pro-business policies. Case studies illustrate how elites attempted to influence policy, highlighting the centrality of access to the Executive and the importance of distinguishing between institutionalised or personalised access. The degree to which policy responses aligned with elite preferences varied according to the nature of the ties: ranging from the most alignment in Chile to the least in Peru.