DOCSLIB.ORG

Technology, Financing and Policy Shifts in Mexico: Challenges for Small Firms in a Newly Opened Economy

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Technology, Financing and Policy Shifts in Mexico: Challenges for Small Firms in a Newly Opened Economy University of London The London School of Economics and Political Science Department of Government Department of International Relations TECHNOLOGY, FINANCING AND POLICY SHIFTS IN MEXICO: CHALLENGES FOR SMALL FIRMS IN A NEWLY OPENED ECONOMY Joaquin-Joaquin Lozano-Aguirre Thesis Submitted for the Degree of Doctor of Philosophy Ph.D. 2001 1 UMI Number: U156130 All rights reserved INFORMATION TO ALL USERS The quality of this reproduction is dependent upon the quality of the copy submitted. In the unlikely event that the author did not send a complete manuscript and there are missing pages, these will be noted. Also, if material had to be removed, a note will indicate the deletion. Dissertation Publishing UMI U156130 Published by ProQuest LLC 2014. Copyright in the Dissertation held by the Author. Microform Edition © ProQuest LLC. All rights reserved. This work is protected against unauthorized copying under Title 17, United States Code. ProQuest LLC 789 East Eisenhower Parkway P.O. Box 1346 Ann Arbor, Ml 48106-1346 ABSTRACT The thesis argues that as technology and the economy are closely related, one factor undermining Mexico's economic performance may be the lack of a coordinated technology and innovation policy. It examines the relationships between three main participants in the national system of innovation: government, firms and financial institutions. Indigenous technology development in Mexico has become a more relevant debate since the country evolved from a protected to an open economy. Therefore, the period of study starts with the background of the 1970s, while the core of the thesis covers the mid-1980s onwards. It is argued that the economic crises of this period justify the need for, and hence the assessment of, government participation. Among the different government policy tools, this work focuses on the financing of private firms' technology projects. Small and medium-size enterprises (SMEs) are the subgroup of firms analysed through both quantitative and qualitative methods. Empirical evidence was gathered mainly from primary sources, including documents, in-depth interviews and a national survey of SMEs that have sought support from government agencies for undertaking technology projects. Even if Mexico has the main elements that, by international standards, any national system of innovation should have, this research shows that the short-termism of the government policies to promote the development of technology clashes with the long-term nature of technology projects. The lack of effective coordination between participants within the system undermines the creation of national technology capabilities. Designers and users of technology promotion programmes are isolated from each other, and bridging institutions, like business chambers, are not bringing them closer overcoming divide. Small firms do not have internal resources for research and development (R&D) activities, and banks have been reluctant to fund technology projects. Therefore, this thesis makes the case for government intervention, while suggesting more suitable actions for change. 2 'Emulate rather than imitate' Balthasar Gracian, 1637 3 To my father, Joaquin Xavier To my mother, Marfa Concepcion To my brother, Joaquin Ulises 4 To Francesca, my wife, my love, my endurance. 5 CONTENTS Abstract 2 List of figures and tables 9 Acronyms and abbreviations 11 Academic and personal acknowledgments 15 Chapter 1: Introduction 22 1.1 The argument 22 1.2 The research approach and structure of the thesis 29 Chapter 2: A review of the literature concerning technology, its link to the economy and government intervention 37 Introduction 37 2.1 Concepts and definitions 38 2.2 Views on technology, innovation and the economic performance of nations 47 2.3 The political economy of innovation: The interaction of states and markets 56 2.4 Technology and economic performance in 'catching up' countries: The context for the case of Mexico 67 Summary 72 Chapter 3: Evolution and institutional framework of Mexico's national system of innovation 74 Introduction 74 3.1 National systems of innovation: Conceptual framework 75 3.2 Historical background of the Mexican System of Innovation 80 3.3 The Mexican System of Innovation since the opening of the economy 90 3.4 The technology policy framework for a national system of innovation under an open economy 98 6 3.5 Some indicators of the performance of the Mexican System of Innovation 108 Conclusions 112 Chapter 4: Creating technology policy in Mexico 115 Introduction 115 4.1 The state, institutions, politicians, bureaucracy and policy networks: The context of Mexico's political system 117 4.2 Outline of the origins of technology policy in Mexico (1970-mid 1980s) 124 4.3 Technology policy in Mexico since the mid-1980s 128 4.4 Technology policy and networks in Mexico 135 4.5 Obstacles and limitations of technology policy in Mexico 144 Conclusions 152 Chapter 5: Small firms, business associations and indigenous technology innovation in Mexico 155 Introduction 155 5.1 The importance of indigenous technology for less developed countries and for small and medium-sized firms 157 5.2 Mexico's private sector 172 5.3 Business associations 181 5.4 Business-government relations and the effects on SMEs and technology 189 Conclusions 199 Chapter 6: The role of banks and firms in the financing of innovation in Mexico 202 Introduction 202 6.1 Theory and concepts inherent to a system for financing innovation 203 6.2 The Mexican banking system 214 7 6.3 Banks and the financing of technology and innovation 219 6.4 Firms: The demand for financing technology and innovation 227 Conclusions 237 Chapter 7: Mexico's government programmes for direct project financing: A technology policy case study 241 Introduction 241 7.1 The role of government 243 7.2 Banco de Mexico and Nafin 249 7.3 The evolution of Conacyt's financial programmes 256 7.4 Conacyt's FIDETEC: The credit programme for SMEs' technology projects 262 7.5 The other side of the programmes: The 'clients' and their experiences 271 Conclusions 282 Chapter 8: Conclusions 285 List of Appendixes 297 Appendix 1: Methodology and research tools 298 Appendix 2: Three technology successes of Mexican small firms and their experience with the government 304 Appendix 3: Reference numbers of interviews and details of interviewees 311 Appendix 4: Summary of topics from the guides for interviews 314 Appendix 5: Names of the firms whose owner or Director-General responded to the surveys questionnaire 317 Appendix 6: Survey questionnaire (Spanish) 320 Appendix 7: Survey questionnaire (English translation) 328 References 336 8 LIST OF FIGURES AND TABLES Figures Figure l.A. Interrelations among the processes affecting the performance of Mexico's System of Innovation 30 Figure 3.A. Respondents' answers to the question: What type of R&D institution did you use to develop your project? 103 Figure 3.B. Respondents' answers to the question: How do you rate the service of the R&D centre that you used for your project? 104 Figure 3.C. Respondents' answers to the question: From which agencies did you receive protection advice for your project? 108 Figure 4.A. Respondents' answers to the question: How responsible is the federal government in the promotion and support of technology development in Mexico? 138 Figure 5.A. Respondents' answers to the question: What categories of firms are able to develop technology in Mexico? 165 Figure 5.B. Respondents' answers to the question: How responsible are businessmen in the promotion and support of technology development in Mexico? 180 Figure 5.C. Respondents' answers to the question: How well do business chambers defend their members' interests? 189 Figure 6.A. Respondents' answers to the question: How do you perceive the financial institutions' attitude towards technology projects? 224 Figure 6.B. Respondents' answers to the question: How risky is your firm's technology project? 226 Figure 6.C. Presidential periods (post-1970) during which surveyed firms were established 232 Figure 6.D. Respondents' answers to the question: Is an internal financial strength essential for a firm's technological capacity? 235 9 Figure 7.A. Respondents' answers to the question: How long did it take you to get a response from the programme you were applying to? 275 Figure 7.B. Respondents' answers to the question: How were the resources given to your firm? 277 Figure 7.C. Respondents' answers to the question: How was the project financed? 278 Figure A .I. Cartoon illustrating a small firm-government relationship 308 Tables Table 2.1. Suppliers in the innovation process 45 Table 2.2. Users in the innovation process 46 Table 4.1. Technology policies and tools for innovation support 140 Table 4.2. Respondents' answers to the questions: Did the change of President affect your project? In which ways? 146 Table 5.1. Respondents' answers to the question: Which factors are essential for a firm to develop technology capabilities? 164 Table 5.2. Advantages/Disadvantages of small firms relative to large firms 171 Table 5.3. Respondents' answers to the question: How have the effects of trade liberalisation been for your firm? 197 Table 6.1. Components, functions and properties of a financial system 205 Table 7.1. Respondents' answers to the questions: Did your project start and end as planned? Why? 276 Table 7.2. Respondents' answers to the questions: How many changes of personnel took place during the development of your project? At which levels? 279 Table 7.3. Respondents' answers to the questions: Did
Load more

Recommended publications
  • South of the Border, Down Mexico Way: the Past, Present, and Future of Petroleum Development in Mexico,‡ Part I
    Owen L. Anderson* & J. Jay Park† SOUTH OF THE BORDER, DOWN MEXICO WAY: THE PAST, PRESENT, AND FUTURE OF PETROLEUM DEVELOPMENT IN MEXICO,‡ PART I ABSTRACT Mexico is estimated to have 9.8 billion barrels of untapped oil reserves, or about 10 percent of the world’s crude oil; however, much remains undeveloped and production is declining as a result of dysfunction in the structure of Mexico’s petroleum regime. Until recently, Mexico’s Constitution and laws limited oil and gas activities to those of its state oil company, Petróleos Mexicanos (Pemex), which struggled to invest in new drilling and technology. In 2013, however, Mexico reopened its petroleum sector to foreign investment. Although 75 years in the making, Mexico is taking a bold new path toward developing its petroleum resources. Mexico stands to benefit from foreign investment and new technology to develop its remaining resources, which include shale deposits, deepwater reserves, and reserves only recoverable through modern enhanced recovery techniques. This two-part article has two objectives: Part I reviews the history of petroleum in Mexico—much of it unhappy—as a reminder of the long and tortuous pathway that led to Mexico’s current initiative to open its petroleum sector to foreign investment. The Mexican economy was built on oil in the early 1900s, but a combination of nationalism, petroleum-investor arrogance, and eventual over- dependence on petroleum revenues all served to undermine the Mexican oil industry. It is important for petroleum investors to understand and appreciate this history in order to ease the transition of new oil production in Mexico.
    [Show full text]
  • The Modernization of the EU-Mexico Global Agreement, 2000-2020
    Master’s Degree in Comparative International Relations Final Thesis Towards a new generation trade agreement: the modernization of the EU-Mexico Global Agreement, 2000-2020 Supervisor Ch. Prof. Duccio BASOSI Assistant supervisor Ch. Prof. Vanni PETTINÀ Graduand Silvia SCHIAVONI 877176 Academic Year 2019/2020 Index Abstract 1 Introduction 5 Chapter 1: The external trade policy of the EU 1) Influences on the evolution of European trade policies 10 2) The Common Commercial Policy of the EU 13 3) The Treaty of Lisbon and the new EU trade strategies 20 4) Main characteristics of FTAs/PTAs 26 5) First Generation FTAs 31 6) DCFTA 35 7) EPA 36 8) New Generation Agreements 38 9) The new generation of EU FTAs: South Korea, Japan, Singapore, Vietnam, TTIP, CETA and Mercosur 41 Chapter 2: Mexico’s external policy and its trade relations with the EU 1) History of Mexican commercial policy 53 2) The 1980s trade opening and liberalization reforms 60 3) The North America Free Trade Agreement (NAFTA) 64 4) European Union relations with Latin America 68 5) Evolution of Mexican relation with the European Union, 1900s – 1992 73 6) The framework of the 1997 Mexico-European Union Global Agreement negotiations 83 Chapter 3: Modernization of the Mexico-European Union Global Agreement 1) Analysis of the Global Agreement and the 2008 Strategic Partnership 88 2) First years of Global Agreement implementation: 2002-2006 97 3) EU-Mexico relations in the framework of the Global Agreement 2006-2012 106 4) The period 2012-2016 and the decision to modernize the Global Agreement 115 5) Global Agreement impact assessment 123 6) The Agreement in Principle and the inclusion of new elements 129 Conclusion 139 Bibliography 144 Abstract Verso la metà degli anni Novanta, mentre il Messico firmava l’Accordo nordamericano di libero commercio con i due partner principali dell’America del Nord, gli Stati Uniti e il Canada, la quota europea del mercato messicano diminuiva in maniera costante.
    [Show full text]
  • Pervasive Precarity: Migrant Mexican Oil Workers
    Pervasive Precarity: Migrant Mexican Oil Workers’ Experiences and Tactics to Navigate Uncertainty By Rebecca J. Crosthwait © 2014 Submitted to the graduate degree program in Anthropology and the Graduate Faculty of the University of Kansas in partial fulfillment of the requirements for the degree of Doctor of Philosophy. ________________________________ Chairperson, Donald D. Stull, Ph.D., M.P.H. ________________________________ Brent E. Metz, Ph.D. ________________________________ Ebenezer Obadare, Ph.D. ________________________________ Peter Herlihy, Ph.D. ________________________________ Ruben Flores, Ph.D. Date Defended: November 24, 2014 The Dissertation Committee for Rebecca J. Crosthwait certifies that this is the approved version of the following dissertation: Pervasive Precarity: Migrant Mexican Oil Workers’ Experiences and Tactics to Navigate Uncertainty ________________________________ Chairperson Donald D. Stull Date approved: December 10, 2014 ii Abstract An ethnographic analysis of precarity as experienced by migrant Mexican oil workers in permanently insecure work structures in the Gulf of Mexico, this study explores precarious employment situations in the oil industry and tactics workers use to navigate, cope with, and diminish uncertainty. In addition to workers’ experiences, I analyze the contexts in which individuals live and work, including: labor-market changes; the history, politics, and geography of oil; and hurricanes’ impacts on labor. To better understand the tightrope walk between precarious employment and unemployment, I conducted interviews with workers and others affiliated with the oil industry during fieldwork in the Coastal Bend of Texas, in 2008, and Ciudad del Carmen, Mexico, in 2012. Both areas are important in the Gulf of Mexico oil industry and draw workers for projects both in the fabrication of offshore vessels and drilling and production of offshore oil.
    [Show full text]
  • The Case of Mexico
    Wright State University CORE Scholar Browse all Theses and Dissertations Theses and Dissertations 2011 When Prohibition and Violence Collide: The Case of Mexico Kyleigh M. Clark Wright State University Follow this and additional works at: https://corescholar.libraries.wright.edu/etd_all Part of the International Relations Commons Repository Citation Clark, Kyleigh M., "When Prohibition and Violence Collide: The Case of Mexico" (2011). Browse all Theses and Dissertations. 1070. https://corescholar.libraries.wright.edu/etd_all/1070 This Thesis is brought to you for free and open access by the Theses and Dissertations at CORE Scholar. It has been accepted for inclusion in Browse all Theses and Dissertations by an authorized administrator of CORE Scholar. For more information, please contact [email protected]. WHEN PROHIBITION AND VIOLENCE COLLIDE: THE CASE OF MEXICO A thesis submitted in partial fulfillment of the requirements for the degree of Master of Arts By KYLEIGH CLARK B.A. International Studies, Wright State University, 2009 2011 Wright State University WRIGHT STATE UNIVERSITY GRADUATE SCHOOL November 18,2011 I HEREBY RECOMMEND THAT THE THESIS PREPARED UNDER MY SUPERVISION BY Kyleigh Clark ENTITLED When Violence and Prohibition Collide: The Case of Mexico BE ACCEPTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF Master of Arts. ______________________________ December Green, Ph.D. Thesis Director ______________________________ Laura M. Luehrmann, Ph.D. Director, Master of Arts Program in International and Comparative Politics Committee on Final Examination: ___________________________________ December Green, Ph.D. Department of Political Science ___________________________________ Laura Luehrmann, Ph.D. Department of Political Science ___________________________________ Nancy Broughton, Ph.D. Department of Modern Languages ______________________________ Andrew T.
    [Show full text]
  • Fiscal Policy in Latin America
    This PDF is a selection from an out-of-print volume from the National Bureau of Economic Research Volume Title: NBER Macroeconomics Annual 1997, Volume 12 Volume Author/Editor: Ben S. Bernanke and Julio Rotemberg Volume Publisher: MIT Press Volume ISBN: 0-262-02435-7 Volume URL: http://www.nber.org/books/bern97-1 Publication Date: January 1997 Chapter Title: Fiscal Policy in Latin America Chapter Author: Michael Gavin, Roberto Perotti Chapter URL: http://www.nber.org/chapters/c11036 Chapter pages in book: (p. 11 - 72) MichaelGavin and RobertoPerotti INTER-AMERICANDEVELOPMENT BANK; AND COLUMBIAUNIVERSITY AND CEPR Fiscal Policy in Latin America 1. Introduction Macroeconomic analysis of Latin America has long been primarily an exercise in monetary analysis. Fiscal policy has always formed part of this study, but the emphasis has typically been on fiscal deficits only, with the interest primarily centered on their effect on monetary out- comes and inflation. This emphasis is understandable, in light of the region's history of monetary and financial instability, but the time may be ripe for a. change. While inflation has not vanished from Latin Amer- ica, over the course of the past decade it has fallen nearly to single-digit levels. There is good reason to hope that Latin America will no longer be a breeding ground for the extreme and exotic monetary experiments that have in the past occupied monetary economists around the world. If so, policymakers in the region will have scope to turn their attention to other policy problems, and students of economic policy will have to search elsewhere for lessons.
    [Show full text]
  • U.S. Relations with Mexico and Central America, 1977-1999
    The Center for Comparative Immigration Studies CCIS University of California, San Diego U.S. Relations with Mexico and Central America, 1977-1999 By Marc Rosenblum University of California, San Diego Working Paper 10 May 2000 2 U.S. Relations with Mexico and Central America, 1977-1999 Marc Rosenblum Introduction This dissertation, takes issue with the null hypothesis that Congress acts alone to make immigration policy in response to domestic interest group demands. Rather, I argue that both the president and migrant-sending states care about, and seek to influence, U.S. immigration policy; and I argue the president, with varying degrees of success, seeks to use immigration as a tool of foreign policy. In this chapter, I focus on U.S. immigration relations with Mexico, El Salvador, Guatemala, and Nicaragua between 1977 and 1999. I have intentionally chosen a set of countries which have often sent large numbers of immigrants to the United States and, on the surface, appear to care about U.S. immigration policy. During the time period under consideration, U.S. relations with each of these countries have undergone important shifts: while relations with all four are very positive in the late 1990s, relations were strained, at best, with Mexico and Nicaragua during the 1980s, while the United States supported the right wing governments of El Salvador and Guatemala in civil wars during the 1980s. U.S.- Mexican underwent a similar, though less profound shift within the 1970s as well.. Second, these countries have also varied in their importance, from the perspective of the United States: Mexico became very important during the 1970s when new-found Mexican oil reserves became extremely appealing during the U.S.
    [Show full text]
  • Crisis, Restructuring and Urban Poverty in Mexico
    MEXICO Crisis, restructuring and urban poverty in Mexico Agustín Escobar Latapí and Mercedes González de la Rocha SUMMARY: This paper describes the scale and nature of ur- ban poverty in Mexico and how it changed during the 1980s and early 1990s. The authors draw on their own research in Guadala- jara and on other studies in Mexico and in other Latin American countries to consider how men and women within households responded to rising prices, falling incomes and other economic and social problems. The paper also includes a review of how poverty and inequality have changed in Mexico, over the last few decades. Both authors work at CIESAS- I. INTRODUCTION Occidente (Centro de Investi- gaciones y Estudios Super- iores en Antropologia Social IN THIS PAPER, we seek to explore and explain not only the de Occidente) in Mexico. extent and level of poverty in Mexico during the period of crisis Among their recent publica- and restructuring of the 1980s, but also the social institutions tions in English are Social and the actions of people who must struggle for survival daily. Responses to Mexico’s Econ- While the main changes in the Mexican political economy ex- omic Crisis of the 1980s that plain the changes in employment and wage levels, we believe they co-edited (Center for U.S.- Mexican Studies, University of the social meaning of poverty needs to be approached in terms California at San Diego, La of people’s actions and opportunity structures. The two funda- Jolla). Mercedes de la Rocha mental areas in this regard are work and the household, as has also recently published both are spheres of significant, if limited, agency for the poor.
    [Show full text]
  • Université De Montréal Protective Liberalization: the State and The
    Université de Montréal Protective Liberalization: The state and the Mexican petrochemical industry 1958-2000 par Ana Beatriz Vila Freyer Département de Science Politique Faculté des Arts et des Sciences Thèse présentée a la Faculté des Arts et des Sciences en vue de l’obtention du grade de doctorat en Science Politique Août, 2009 © Ana Beatriz Vila Freyer, 2009 ii Université de Montréal Faculté des études supérieures et postodctorales Cette thèse intitulée Protective Liberalization: The state and the Mexican petrochemical Industry 1958-2000 présentée par Ana Beatriz Vila Freyer a été évaluée par un jury composé des personnes suivantes Graciela Ducatenzeiler Présidente - rapporteur Jane Jenson Directrice de recherche Laura Loaeza Reyes Examinatrice externe Martial Foucault Membre du jury Catherine Poupeney-Hart Représentant du doyen iii ABSTRACT This thesis follows and analyses the involvement of both social actors and the state in the industrial transformation of Mexico. While these actors have been key associates in the development of the Mexican economy for decades, with the 1982 debt crisis, and especially after the promotion of a structural reform in 1986, the patterns of their involvement changed. However, this change was more limited than expected, and the state did not abandon its participation in some key industrial sectors. This thesis will demonstrate that the role of the state remained important during the process of change towards an Export-Oriented developmental paradigm, although the state continued to participate in fashioning social relations, it did so in new ways that can be termed “protective liberalization.” Key words: Mexico, petrochemical industry, developmental state, protective liberalization, state participation Cette thèse évalue et analyse la participation des acteurs sociaux et de l'État dans la transformation industrielle du Mexique.
    [Show full text]
  • World Bank Document
    PS_25q2. POLICY RESEARCH WORKING PAPER 2592 Public Disclosure Authorized Management of Oil Policyoptions for protecting Mexico'seconorny from Windfalls in Mexico volatilityin oil revenues without eliminatingthe Historical Experience and Policy benefitsfrom rising prices Public Disclosure Authorized includea stabilizationfund Options for the Future and hedging strategieson internationalmarkets. A Stephen Everhart stabilizationfund and Robert Duval-Hernandez hedgingstrategies can complementeach other-the fund working as the main recipientof revenues,and the hedgingstrategies managing Public Disclosure Authorized short-livedmovements in prices.This joint strategy would reducethe sizeof the fund and the probabilityof its going bankrupt. The World Bank Mexico Country Management Unit Public Disclosure Authorized and International Finance Corporation Economics Department April 2001 IPOLICY RESEARCH WORKING PAPER 2592 Summary findings The macroeconomic impact of commodity windfalls has shocks threaten the economy's fiscal balance and provided fertile ground for research since the 1970s. stability. Particularly affected are developing economies that rely Policy options for protecting the economy from heavily on commodity exports. In the case of oil volatility in oil revenues without eliminating the benefits windfalls, cross-country experience is vast: Indonesia, from rising prices include a stabilization fund and Kazakhstan, Mexico, Nigeria, the Russian Federation, hedging strategies on international markets, which the and Republica Bolivariana de Venezuela have all been authors discuss. The stabilization fund smooths buffeted by such windfalls. Everhart and Duval- consumption and reduces the costs associated with Hernandez investigate Mexico's experience. volatile spending. The fund and hedging strategies can They provide an overview of oil's impact on the complement each other-the fund working as the main Mexican economy and of the management of oil rents recipient of revenues, and the hedging strategies engineered by the government from the 1970s to date.
    [Show full text]
  • The-Communist-Challenge-In-The
    Job Name:2105384 Date:14-12-31 PDF Page:2105384cbc.p1.pdf Color: Black PANTONE 1255 C the Communist Challenge in the Caribbean and Central America the Communist Challenge in the Caribbean and Central America Howard J. Wiarda and Mark Falcoff with Ernest Evans and jiri and Virginia Valenta American Enterprise Institute for Public Policy Research Washington, D.C. Distributed to the Trade by National Book Network, 15200 NBN Way, Blue Ridge Summit, PA 17214. To order call toll free 1-800-462-6420 or 1-717-794-3800. For all other inquiries please contact the AEI Press, 1150 Seventeenth Street, N.W., Washington, D.C. 20036 or call 1-800-862-5801. Acknowledgments are given at back of book. Distributed by arrangement with UPA, Inc. 4720 Boston Way Lanham, MD 20706 3 Henrietta Street London WC2E 8LU England Library of Congress Cataloging-in-Publication Data Wiarda, Howard J., 1939- The communist challenge in the Caribbean and Central America. Bibliography: p. 1. Caribbean Area-Relations-Soviet Union. 2. Soviet Union-Relations-Caribbean Area. 3. Soviet Union-Foreign relations-1945- . 4. Communism­ Caribbean Area-History-20th century. 5. Geopolitics­ Caribbean Area. I. Falcoff, Mark. II. Title. F2178.S65.W52 1987 327.729047 87-14032 ISBN 0-8447-3627-9 ISBN 0-8447-3628-7 (pbk.) AEI Studies 458 © 1987 by the American Enterprise Institute for Public Policy Research, Washington, D.C. All rights reserved. No part of this publication may be used or reproduced in any manner whatsoever without permission in writing from the American Enterprise Institute except in the case of brief quotations embodied in news articles, critical articles, or reviews.
    [Show full text]
  • The Political Economy of Fiscal Reforms in Latin America: Mexico Eric Magar (ITAM), Vidal Romero (ITAM), and Jeffrey Timmons (ITAM)
    The Political Economy of Fiscal Reforms in Latin America: Mexico Eric Magar (ITAM), Vidal Romero (ITAM), and Jeffrey Timmons (ITAM) Fiscal reform... was necessary under President Zedillo, urgent under President Fox and can be postponed no longer under President Calderón. – OECD Secretary General Angel Gurría (2006) INTRODUCTION This paper describes the main features of the Mexican fiscal system, details the most important changes that have occurred/not occurred over the past two decades, and explains what factors influenced the rate, degree and direction of change. In brief, we contend that there have been profound and ideologically consistent changes in spending assignment and in the institutional arrangements governing taxes, spending and debt management. Over the past 20 years, Mexico has moved from a highly centralized fiscal system characterized by extensive presidential discretion to a moderately decentralized system with more meaningful checks and balances. Decentralization of spending assignments has been coupled with steps designed to increase transparency, efficiency and accountability over public funds. Changes to the revenue collection system, by contrast, have been much smaller in magnitude and not as consistent in ideational terms; while the general trend has been to increase tax revenue in an equitable manner, not all changes in tax law have increased revenue or equity. Two factors—crisis and democratization/electoral competition, notably the emergence of multi-party government in 1997—particularly help explain the patterns
    [Show full text]
  • Assessing the Role of the Export Sector in Mexican Economic Development, 1965-2014
    Assessing the role of the export sector in Mexican economic development, 1965-2014 Citation for published version (APA): Castillo Sanchez, J. C. A. (2018). Assessing the role of the export sector in Mexican economic development, 1965-2014. Datawyse / Universitaire Pers Maastricht. https://doi.org/10.26481/dis.20180613js Document status and date: Published: 01/01/2018 DOI: 10.26481/dis.20180613js Document Version: Publisher's PDF, also known as Version of record Please check the document version of this publication: • A submitted manuscript is the version of the article upon submission and before peer-review. There can be important differences between the submitted version and the official published version of record. People interested in the research are advised to contact the author for the final version of the publication, or visit the DOI to the publisher's website. • The final author version and the galley proof are versions of the publication after peer review. • The final published version features the final layout of the paper including the volume, issue and page numbers. Link to publication General rights Copyright and moral rights for the publications made accessible in the public portal are retained by the authors and/or other copyright owners and it is a condition of accessing publications that users recognise and abide by the legal requirements associated with these rights. • Users may download and print one copy of any publication from the public portal for the purpose of private study or research. • You may not further distribute the material or use it for any profit-making activity or commercial gain • You may freely distribute the URL identifying the publication in the public portal.
    [Show full text]