The Concentration of Economic and Political Power
Jul 1, 2021
Chapter 3. Regional Human Development Report 2021
Markets in Latin America tend to be dominated by a small number of giant firms and are characterized by high levels of market power.
Monopolies contribute to high inequality and low productivity growth by making consumers pay higher prices, allowing firms to forgo more efficient technology and hindering innovation.
Monopoly power and business political power are two sides of the same coin as monopoly rents translate into political power that, in turn, increases monopoly power, creating a vicious circle.