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New Era of Free Market Spirit, Here to Stay
A crucial step in introducing foreign participation into the Mexican economy were the initial privatizations. The first reductions in tariff barriers on trade were approved under the De la Madrid administration, as the change from an economy shaped by a closed, self-sufficient, nationalized domestic industry to a Neo-liberal model was precipitated by a debt crisis outset by a collapse in oil prices. President Salinas followed De la Madrid's lead and opened the commercial banks, mining and steel companies, and transportation sector to private investors.
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Clearly Zedillo's biggest task has been to tow the line, and expand the initiatives his predecessors made. He agreed with Congress to change the constitution to allow railroads to be privatized. The three most important lines are already being managed by private investors. Ports have also been passed into the hands of private investors, and by the end of the current administration, airports will be fully privatized - with exception of the capital city's international airport.
The telecommunications sector has also been opened to private funding. AT&T with its Mexican subsidiary Alestra and the MCI/Avantel venture were the first big batters to break onto the scene in 1997, providing alternative services in the long-distance market, though the sector is still far from saturated. One of the most attractive opportunities to investors hoping to tap into Mexico's opening market, over 26% of the $12.37 billion of new foreign inflows expected this year will be channeled into the telecom sector. |
MEXICO
