Towards Good Governance of Public-Private Alliance Councils Supporting Industrial Policies in Latin America

Systematic application of industrial policies has reemerged in Latin America after a hiatus during the era of the Washington Consensus. These industrial policies are broadly different from the past. One of the characteristics of the region's new industrial policies is the use of public-private alliance councils (PPAs) to help guide their development and implementation. The deployment of public-private dialogue and related problem solving is considered an essential component of modern industrial policies. However, to be effective councils must be well governed. This paper approaches the issue of governance of PPAs with an overview of their rationale and framework, and then draws from the experience of several OECD countries, most of which have long experience working with councils, to illustrate how they operate and gain insights on good governance for Latin America alliances. The paper examines the intangible dimensions of governance, as well as tangibles involving the structure and procedures of councils.