Mirrors of Change A Study of Industry Associations in Chile and Uruguay Mirrors of Change A Study of Industry Associations in Chile and Uruguay ANDRÉS RIVAROLA PUNTIGLIANO INSTITUTE OF LATIN AMERICAN STUDIES STOCKHOLM UNIVERSITY 2003 MONOGRAPH SERIES 39 June 2003 © The author and the Institute of Latin American Studies S – 106 91 Stockholm, Sweden ISBN: 91-85894-60-5 ISSN: 0284-6675 Techinical Editing: Akhil Malaki Printed in Sweden by Akademitryck AB, Edsbruk, Sweden To Alma and Camila Contents List of Abbreviations i Acknowledgements v Preface ix INTRODUCTION 1 Institutions and Organisations 4 Studying Industry Associations in Latin America 9 Method and Sources 15 Limitations and Structure 24 CHAPTER 1 EARLY ORGANISATION AND INDUSTRIAL POLICIES 29 URUGUAY 29 CHILE 36 CHAPTER 2 THE ASSOCIATIONS IN THE SIXTIES 45 THE URUGUAYAN CASE 52 National Level 54 Regional and Global Levels 70 THE CHILEAN CASE 79 National Level 81 Regional and Global Levels 98 CHAPTER 3 THE MILITARY INTERLUDE 109 URUGUAY 110 CHILE 117 CHAPTER 4 THE ASSOCIATIONS IN THE NINETIES 127 THE CHILEAN CASE 135 National Level 136 Regional and Global Levels 156 THE URUGUAYAN CASE 171 National Level 173 Regional and Global Levels 191 CONCLUSIONS 209 EPILOGUE 219 Appendix 223 Selected References 231 Index 255 List of Abbreviations AGCI Agencia de Cooperación Internacional de Chile AID Agency for International Development AILA Asociación de Industriales Latinoamericanos ALADI Asociación Latinoamericana de Integración ASEXMA Asociación de Exportadores de Manufacturas de Chile ASIMET Asociación de Industriales Metalúrgicos BROU Banco de la República Oriental del Uruguay CAUSE Convenio de Cooperación Económica entre Uruguay y Argentina CEGETEC Centro de Gestión Tecnológica CEPAL Comisión Económica Para América Latina y el Caribe CICYP Consejo Interamericano de Comercio y Produccion CIDE Comisión de Inversiones y Desarollo Económico CIM Consejo Industrial del MERCOSUR CIU Cámara de Industrias del Uruguay CNC Cámara Nacional de Comercio CND Corporación Nacional para el Desarrollo COMCORDE Comision Coordinadora para el Desarrollo Económico COMISEC Comisión Intersectorial del Mercosur CONAMA Comisión Nacional Medioambiental CONICYT Consejo Nacional de Investigaciones Científicas y Técnica CORFO Corporación de Fomento a la Producción CORMA Confederación de Pequeños y Medianos Idustriales Metalúrgicos CPC Confederación de la Producción y el Comercio DINAPYME Dirección Nacional de Artesanías, Pequeñas y Medianas Empresa FTAA Free Trade Area of the Americas GTZ Deutsche Gesellschaft für Technische Zusammenarbeit ii List of Abbreviations ICARE Instituto Chileno de Administración Racional de Empresas IGO International Governmental Organisation ILO International Labor Organisation INE Instituto Nacional de Estadística INGO International Non-Governmental Organisation ISI Import Substitution Industry ISO International Standard Organisation LAFTA Latin American Free Trade Associations LATU Laboratorio Técnico del Uruguay MIEM Ministry of Industry, Energy and Mining NAFTA North American Free Trade Association NPM New Public Management ODEPLAN Oficina de Planeamiento Nacional ONSC Oficina Nacional de Servicio Civil OPP Oficina de Planeamiento y Presupuesto OTIC Organos Técnicos Intermedios para Capacitación PEC Protocolo de Expanción Comerncial PGO Para Governmental Organisation PROPESA Corporación de Promoción para la Pequeña Empresa PUC Pontífica Universidad Católica de Chile REIH Red Empresarial para la Integración Hemisférica SENAE Servicio Nacional de Apoyo Empresarial SENSE Servicio Nacional de Capacitación y Empleo SEPRI Centro de Productividad Industrial SERCOTEC Servicio de Cooperación Técnica SII Servicio de Impuestos Internos SNA Sociedad Nacional de Agricultura SONAMI Sociedad Nacional de Minería TIPS Technological, Informational Promotion System TNC Transnational company TPO Trade Promotion Organisation List of Abbreviations iii UCH Universidad de Chile UIU Union Industrial Uruguaya UNIT Instituto Uruguayo de Normas Técnicas UROU Universidad de la República Oriental del Uruguay Acknowledgements __________________________________________ Umberto Ecco argues that when an author claims to have been working through inspiration he lies since genius is twenty percent inspiration and eighty percent perspiration. I don’t agree in the percentages, but it is certainly true that I have been through a whole deal of perspiration over the last five-years. While writing this book, I was constantly confronted with my own limitations, but the struggle to overcome gave me valuable personal insights and learning. Some people think that academic research is a lonely profession, but I don’t feel that way. Even if there have been many lonely hours in front of the computer, I have felt involved in a constant dialogue with many scholars through their research. Rather than being alone, I felt myself as a part of an intellectual community to which I make my small contribution. In the preparation of this book I have been fortunate to have the assistance of a number of institutions to which I would like to convey my appreciation. The Department of Economic History accepted me for the doctoral program and gave me the opportunity on different occasions to present working manuscripts at their higher seminars, where I received valuable inputs from my colleagues. Moreover, the department’s program of International Relations, where I also teach, has been a source of inspiration. Tthanks to the stimulating inputs from both colleagues and students. A special mention goes to my supervisor, Prof. Ulf Jonsson. His open-minded attitude, curiosity and enthusiasm have been a constant source of inspiration. I also want to express my gratitude to Prof. Johan Söderberg who provided helpful suggestions and ideas. Horacio de Marsilio, who recently passed away, gave me important insights into Latin American history and research. I would like to thank the Institute of Latin American Studies where I had my office and ‘home’ during these years. I feel deeply indebted to the Institute and to all the people working there. I could not have asked for a more selective environment. My other supervisor, Prof. Jaime Behar, has been a pillar of support throughout my work, helping to clear my mind of a number of doubts and giving a refreshing perspective. But there is a dimension that I want to highlight above all. In his work and personal contact with me, Jaime has always had an ethical dimension from which I have learned much. My gratitude is also due to other colleagues at the Institute: Cecilia Gil-Swedberg who introduced me to the area that became vi Acknowledgements my theoretical point of departure. Magnus Lembke, with whom I shared the room a year and our almost daily witty conversations have been something like mini-seminars from which came out many ideas embodied in this book. I thank Akhil Malaki for correcting my English, for helping me with some theoretical points and editorial assistance by highlighting parts that were not as clear as I thought, the remaining mistakes are of course all mine. James Wardally, Rickard Lalander, Virginia Queijo, Paulina Morel, Birgitta Genberg, Mona Rosendhal, Tommy Strömberg, Weine Karlsson and Fredrik Uggla, have all in one way or another given support and useful comments. Last but not the least, I want to mention the efficient work and encouraging support from the librarians Margareta Björling, Britt Johansson-Svanberg and Ayako Miyaki, as well as from the bureau secretary Karin Paulsen. I am grateful to all the above people for their friendship and help during these years. Another organisation to which I want to express my gratitude is to the Stockholm Centre for Organisational Research (SCORE). Thanks to their courses and research seminars, I could deepen in understanding of the theoretical approach followed in my thesis. In one of these courses I had the privilege to attend some inspiring lectures given by Prof. John Meyer from Stanford University. Professor Meyer read my manuscript in record time and helped me immensely with his comments in moments when I really needed encouragement. Many thanks to the Department for Research Co-operation (SAREC) at the Swedish International Development Co-operation Agency (Sida), for financing this project during the three last years. In Chile, Guillermo Campero was the person who contributed the most to this book. He opened my eyes to the SFF, recommended readings and helped schedule interviews. In this respect, I owe much to his secretary Ximena Osses. I am also grateful to Patricio Meller for institutional help and Ivan Witker for comments. Apart from research activity, I enjoyed the hospitality of a group of people whose friendship and love have planted the Chilean flag in my heart. I refer to Silvia, Nancy, Patricio, Marcos, Thomas and Christopher. Besides giving me warm support, they also taught me a lot about the Chilean society. In Uruguay, I am enormously grateful to the people of the Unidad Multidisciplinaria who gave me an institutional enclave at the time I most needed one. Particularly to Luis Bértola and Raúl Jacob that, together with their colleagues, gave me helpful comments in their research seminars. A special word of thanks to Alcides Beretta Curi from the Facultad de Humanidades, Christina Zurbriguen and Adolfo Garcé from the Departamento de Ciencias Políticas at Universidad de la República and Martin Buxedas from the Centro Interdisciplinario de Estudios Sobre el Acknowledgements vii Desarrollo, Uruguay (CIEDUR). They provided