Many recent studies of business-state relations in the developing world foc
us on state-level and higher variables. For more accurate models scholars n
eed to shift the focus to the institutional representation of business. The
divergent outcomes of business lobbying in Jordan and Kuwait lead to two c
onclusions. Strong, effective business associations can compensate for weak
state capacities in formulating and implementing economic reform, and the
ability of the business association to play such productive roles is determ
ined largely by the structure of representation within the association.