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From Entrepreneurial State to State of Entrepreneurs: Ownership Implications of the Transformation in Mexican Governance Since 1982

This article recognises that the Mexican financial crisis of 1982 marked a turning point in the country's development. The crisis followed a period of steady economic growth. Since then, the entrepreneurial state has been under steady attack by members of a new business elite, who are direct beneficiaries of the massive transfer of public assets as part of the change in ownership from public to private property. The Mexican State is now captive to the interests of private entrepreneurial rule and governance. The article examines these matters with reference to selected cases, including changes in ownership in land, the banking and financial system, the telecom company TELMEX and airlines. The effects of the changes are evident. A weak system of regulatory agencies and the mismanagement of privatisation programmes have ended in private monopolies, low economic growth, uneven social development, political instability, an alarming increase in insecurity and social unrest.