Questions of Ownership: Social Implications of the Mexican Privatisation Programme

Abstract

This article analyses the social implications of ownership changes involving state-owned enterprises and land in Mexico. The changes involved have led to foreign investors owning the most profitable enterprises that were formerly state-owned, and the associated spirit of globalisation of business has terminated any sentiment of national capitalism. The policy of privatisation has not achieved the stated aims of increasing economic growth and development, but has rather turned Mexico into a subsidiary economy owned and managed by transnational and multinational corporations. This result runs counter to the declared aim of contributing to the economic development of the country, and brings few benefits to society. The paradox is that, if good performance under privatisation is required, it can only be achieved if the state-owned enterprises are so well managed that there is no need to privatise them.