The Transaction Costs of the Governments’ Response to the COVID‐19 Emergency in Latin America

The COVID‐19 pandemic has created a crisis that is challenging national and local governments to innovate in their responses to novel problems Despite similarities to the challenges confronted in developed countries, for Latin American governments, these problems are amplified by structural obstacles such as social inequalities These countries must respond with capacities and resources that are often limited by spoils systems and by social and political polarization This essay provides an overview of some innovative practices in Argentina, Brazil, Chile, Colombia, and Mexico In particular, this essay concentrates on some salient collaborative efforts in the region To draw lessons from these practices, the authors focus on the formal and informal institutions that facilitate or obstruct collaboration across jurisdictions The findings are discussed in terms of the transaction costs of collaboration identified in these experiences