Pearson and Public Works Construction in Mexico,1890–1910

Abstract

S. Pearson & Son, forerunner to the present-day Pearsons PLC, started as a general works contractor in the 1860s and emerged as a global enterprise mainly on the strength of public works contracts undertaken for the Mexican government between 1889 and 1906. This article looks at how this business operated, analysing the capital flows through the contracts. These involved substantial quantities of public debt, mostly in the form of silver bonds. The very favourable terms achieved by Pearson and the fact that he built all the largest public works projects, suggest that he enjoyed a virtual monopoly over this kind of contract in Mexico. Some explanations of this are examined, together with their possible implications regarding technology transfers and modelling the future development of the Mexican construction industry.