Neoliberalism, Democracy, and the Transformation of State-Society Relations in Mexico

Abstract

Though the particulars of the Mexican case differ from the Argentine, the general pattern with respect to popular sector cohesion and representation is the same. The dominant segments of Mexican capital have gained privileged access to policymakers; market pressures and economic crises have undermined formal labor code protections against labor flexibility; social welfare reforms reinforce stratification and thereby undermine popular sector cohesion; and the popular sectors lack an effective and reliable party ally to represent their interests in the electoral arena. Thus, in spite of differences in terms of historical precedents and the timing of reforms, we observe a pattern in Mexico much like what has occurred in Argentina and Chile. Neoliberal reform has transformed the embeddedness and structure of the state and the organization of society in a manner detrimental to the popular sectors’ cohesion and their ability to compel political leaders to be accountable and responsive. To develop this argument, the following analysis first examines the interaction between economic elites and state policymakers in instituting neoliberal reforms. Subsequently, it looks at changes in the labor code and labor markets as well as social welfare provision. Finally, it considers how the popular sectors have fared in terms of political representation via the party system.