The Rise of Neoliberalism in Mexico: from a Developmental to a Competition State
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One of the most predominant features of globalization, namely, the increasing mobility and power of global capital flows, has acted to constrain the scope of state intervention over the past two and a half decades, particularly in the area of economic policy formation. As we saw in the first part of this volume, within the context of the advanced industrialized countries (AICs), globalization has acted as the underlying impetus of the shift from various expressions of Keynesian demand management/welfare state to neoliberal forms of government intervention. The latter has been aptly captured by the term ‘national competition states’ (Cerny, 1993b, 1999; Hirsch, 1995). One of the main characteristics of competition states is that traditional policies aimed at achieving social justice through economic redistribution have been challenged and profoundly undermined by the marketization of the state’s economic activities and its focus on attracting and retaining capital flows (Cerny 1999: 3). This situation raises at least two interrelated questions. First, is it correct to assume these neoliberal forms of political regulation hold true for ‘Third world’ developmental states? And, second, if the states of emerging market economies have adopted the characteristics of a competition state, then to what degree, and with which political, social and economic consequences? In what follows I aim to provide answers to these questions by exploring key changes in the area of economic policy formation in Mexico from the 1982 debt crisis to the peso debacle in 1994/95.
KeywordsTrade Liberalization Capital Flow Capital Inflow Debt Crisis Mexican State
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