Cooperation between government and business generally contributes to better policymaking and improved economic performance. Business associations can play a key role in facilitating this process, as experience in a growing number of developing countries shows. But there are lessons to be learned on how governments can best promote open and constructive dialogue with business, and avoid unhealthy power struggles. Both governments and aid donors can contribute to strengthening business associations, though care is needed. The wrong kind of support can undermine their independence and do more harm than good.