The State Incentives to Oligopoly in Face of Small and Medium-sized Enterprises in Latin America (original) (raw)

2016, Pursuing Competition and Regulatory Reforms Achieving Sustainable Development Goals

The participation of Micro, Small & Medium Enterprises (MSMEs) in the economies of the developing countries is essential, at the same time that we face a global increase of enterprises concentration in the sense of creation of large economic conglomerates that have the main world market shares. The oligopolies' matter, especially in Latin America, is correlated to the democratisation and privatisation processes of the economy of those countries which occurred more intensely in the beginning of the 1990's, after the fall of the dictatorships and infusion of neoliberalism prevailing in the local State policies. Therefore, despite constitutionally most of the Latin-American countries are protected by rules that value the social justice and the distribution of wealth, the globalised economy, through economic liberalism, undertook a process that lead to the current scenario of oligopolistic presence of domestic or international enterprises, although normally with transnational size. Henceforth, considering those conditions as paradigms of a structural condition conniving with oligopoly and consequently, the lack of incentive to the productive efficiency of MSMEs, there should be a discussion, especially within the Latin America scope, concerning the examples and references associated to such issues and the possible solutions for implementation of conditions of development for those enterprises and, consequently, provide compulsion to the necessary increase of competition, for the sake of favouring the entire society.