Antitrust policy in a hostile environment: institution building in venezuela's procompetencia

Theories of bureaucracy in Latin America generally stress institutional weakness, political volatility and the politicized nature of government agencies. One product of market liberalization in Venezuela was the creation of the anti-monopoly agency called “Procompetencia”, which managed to survive a change of government and a move toward interventionist, anti-market mechanisms hostile to its survival. The strategy and tactics of this agency are reviewed with the objective of detecting bureaucratic responses to threat and successful efforts to survive. Some lessons are derived for infusing more stability into weak institutions.