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Original Articles

Private sector power and market reform: Exploring the domestic origins of Argentina's meltdown and Mexico's policy failures

Pages 491-512 | Published online: 25 Aug 2010

  • 2001 . 'The Latinobarometro poll. An alarm call for Latin America's democrats' . The Economist , July 28-3 August : 38
  • Teichman , Judith A . 2001 . The Politics of Freeing Markets in Latin America: Chile , 16 – 18 . Argentina and Mexico, NC : Chapel Hill: University of North Carolina Press . Policy networks as used in this analysis are arenas of policy development exhibiting features of personal power and wide discretionality where actors, bound together by personal trust, bring both interests and ideas to bear on policy outcome. On the adaptation of the concept of policy network to Latin America, see
  • Pastor , Manuel Jr and Wise , Carol . 'The politics of second-generation reform' . Journal of Democracy , 10 (3) 3 – 48 .
  • Naim , Moisés . 'Latin America: the second stage of reform' . Journal of Democracy , 5 32 – 48 . Although different authors attribute distinct policy concerns to this stage, generally it is seen as including such policies as the privatisation of companies remaining in state hands, regulatory reforms, especially those governing monopolies, and measures to combat poverty and improve governance, including decentralisation
  • 11 July 2000 . Latin American Weekly Report 11 July , 318 – 319 . London Terragno and Storani were replaced in the first cabinet shuffle in October 2000, and Fernández Meijide in early 2001
  • Evans , Peter . 1992 . “ 'The state as problem and solution: predation, embedded autonomy and structural change' ” . In The Politics of Economic Adjustment , Edited by: Haggard , Stephan and Kaufman , Robert R . 164 Princeton, NJ : Princeton University Press .
  • Smith , Peter H. 1969 . Politics end Beef in Argentina , 46 New York : Columbia University Press . Hence, between 1910 and 1940, for example, 40 of all cabinet appointments, including the most important ones of foreign relations and finance, went to members of the Rural Society, the organisation of the country's big landowners
  • Lewis , Paul H . 1990 . The Crisis of Argentine Capitalism , 173 Chapel Hill, NC : University of North Carolina Press . During the first Peronist administration (1946-55), the head of the General Economic Confederation (CGE, the officially recognised business peak organisation representing small and medium business), José Ber Gelbard, attended cabinet meetings and sat on the high-level President's Economic Advisory Committee, while representatives of the CGE were appointed to a variety of government boards and commissions
  • Niosi , Guido. Jorge . 1974 . Los empresarios y el estado argentino (1955-1969) . Buenos Aires: Siglo , XXI : 219 For much of the 1955-70 period big landed, commercial and industrial interests, members of the Coordinating Association of Free Businessmen's Institutions (ACIEL) dominated government positions, holding 18 of 22 cabinet posts under President Aramburu, 29 of 33 under Frondizi and all 37 under
  • With the return of Peron to power in 1973, Gelbard was appointed Economy Minister and the CGE returned to policy influence.
  • Erro , David G . 1993 . Resolving the Argentine Paradox. Politics and Development, 1966-1992 , 187 470 Boulder, CO : Lynne Rienner . Lewis, The Crisis of Argentine Capitalism
  • Ramos , Monica Peralta . 1992 . “ 'Economic policy and distributional conflict among business groups in Argentina. From Alfonsín to Menem 1983-1990' ” . In The New Democracy. The Search for a Successful Formula , Edited by: Edward , E and Epstein . 78 Westport, CT : Praeger . On the privileges granted government contractors, see Jorge Schvarzer, Expansion económica del estado subsidiario 1976-1981, Buenos Aires: Centra de Investigaciones sociales sobre el Estado y la Administración (CISEA), 1981, pp 79, 113. Financial liberalisation had produced a rapid expansion of the banking sector and a binge of borrowing on the international market, while an overvalued exchange rate hurt exports and encouraged imports
  • Ostiguy , Pierre . 1989 . Los capitanes de la industria. Grandes empresarios, politico y economia en la Argentina de los años 80 . Buenos Aires: Editorial Legasa , : 40
  • Ramos , Peralta . 1992 . The Political Economy of Argentina. Power and Class since 1930 , 111 Boulder, CO : Westview .
  • 1999 . Latin American Weekly Report , 16 February : 84 385 and 24 August 1999
  • 1997 . 'Para los empresarios, es un tema que hay que tratar con cautela', darin (Buenos Aires) . Latin American Weekly Report , 25 March : 152 7 June 2001, at Clarín.com
  • 1992 . Latin America Weekly Report , 22 October : 3 558 30 November 1999
  • Author interviews, four business leaders; and Peralta Ramos, 'Economic policy and distributional conflict among business groups in Argentina', p. 103
  • Schvarzer , Jorge . 1995 . “ 'Grandes grupos-económicos en Ia Argentina. Formas de propiedad y lógicas de expansion' ” . In Mas Alla de la estabilidad. Argentina en la época de la globalización y la regionalización , Edited by: Bustos , Pablo . 142 Buenos Aires : Fundación Fredrick Ebert .
  • Azpiazu , Daniel and Vispo , Adolfo . 1994 . 'Algunos enseñanzas de las privatizaciones en Argentina' . Revista de CEPAL , 54 : 138
  • Basualdo , Eduardo M . 1994 . 'El impacto economico y social de las privatizaciones' . Realidad Economica , 123 : 50
  • Basualdo . “ 'El impacto economico y social de las privatizaciones ” . 45
  • Felder , Ruth . 1994 . 'El estado se baja del tren: la politica ferrovaria del gobierno menemista. La restructuratión de los ferrocarriles: particularidades y perspectivos' . Realdad Economica , 123 : 58
  • Saba , Roberta Pablo and Manzetti , Luigi . 1997 . 'Privatization in Argentina: the implications for corruption'. Crime, Law and Social Change . Latin American Weekly Report , 25 : 353 355 11 The description of the privatisation process in this paragraph is taken from, from author interview, senior government official,1 March 1990
  • According to an internal report of the Argentine Central Bank reported in 'Banca estatal o banca offshore', El Cronista (Buenos Aires), 9 January 2001, at http://cronista.com.
  • 1993 . Data in this paragraph are from Latin American Weekly Report , 8 July : 308 2 26 November 1992
  • Charges were brought against then minister of public works, Roberta Dromi in 1991, against then president of the Banco de la Nación, Aldo Dadone in 1996; against Domingo Cavallo, former and current minister of the economy in 1996. Rumours and allegations have circulated about Menem's involvement in corrupt practices, culminating in his arrest in 2001 on charges of illegal arms dealings with Croatia and Ecuador.
  • World Bank . 2000 . Poor People in a Rich Country. A Poverty Report for Argentina, Part I, Overview , 3 Washington, DC : World . Between 1994 and 1998 the proportion of urban families living below the poverty line in Argentina increased from 21.6 to 29.4, while the percentage living in extreme poverty rose from 3.7 to 4
  • 2001 . By 2001 the total proportion living in extreme poverty stood at 10 . Latin American Weekly Report , 13 March : 123 By 2000 unemployment had risen to 15.4 from 12.8 in 1998. It had reached a high of 17.5 in 1995
  • World Bank . 2000 . Poor People in a Rich Country . Latin American Weekly Report , 25 July : 3 343
  • Camp , Roderic . 1989 . Entrepreneurs and Politics in Twentieth Century Mexico , New York : Oxford University Press . Story, Industry, the State and Public Policy
  • Camp , Roderic . 1984 . The Making of a Government , Tucson, AZ : University of Arizona Press .
  • Story, Industry . the State and Public Policy , 82 94
  • Ibid , P. As in Argentina, this group emerged with the import substitution phase of the Depression and the Second World War 94
  • Villareal , René . 1977 . “ 'The policy of import substitution industrialization, 1929-1975' ” . In Authoritarianism in Mexico , Edited by: Reyna , José Luis and Weinert , Richard S . 71 Philadelphia, PA : Institute for the Study of Human Issues .
  • Haber , Stephen H . 1989 . Industry and Development: The Industrialization of Mexico , 80 Stanford, CA : Stanford University Press . On the the Monterrey Group, see
  • Saragoza , Alex M . 1988 . The Monterrey Elite and the Mexican State , Austin, TX : University of Texas Press .
  • Arronte , Ricardo Carrillo . 1987 . “ 'The role of the state and the enterpreneurial sector in Mexican development' ” . In Government and Private Sector in Contemporary Mexico , Edited by: Maxfield , Sylvia and Anzaldúa , Ricardo . 53 San Diego, CA : Center for Mexican-US Studies and the University of California .
  • Camp, Entrepreneurs and Politics in Twentieth Century Mexico, p. 171.
  • Gutierrez , Ignacio Hernández . 1978 . “ 'La burgues fa comercial nativa y el capital extranjera' ” . In Esparza, Enrique Olivares Emilio Leyva & Hernández G Ignacio, La burguesía mexicana , Edited by: Reyes , Ramiro . 190 – 191 . 208 Mexico City : Editorial Nuestro Tiempo . Cockcroft, Class Formation, Capital Accumulation and the State
  • Puga , Christina E . 1984 . “ 'Los empresarios y la politica en Mexico' ” . In Closes dominantes y estado de Mêxico , Edited by: Salvador , H , Cordero& , Ricardo and Tirado . 192 Mexico City : UNAM . Members of Argentina's CEA, the presidents of the country's biggest conglomerates, have also played an important role in other business organisations, often dominating them. These include the Bankers Association, the Chamber of Commerce and the Argentine Industrial Union (UIA), in addition to chambers representing specific economic sectors such as petroleum
  • Luna , Matilda , Tirado , Ricardo and Valdés , Francisco . “ 'Businessmen and politics in Mexico, 1982-1986' ” . In Government and Private Sector in Contemporary Mexico , Edited by: Maxfield , Sylvia and Montoya , Ricardo Anzaldúa . 18 San Diego : Center for US-Mexican Studies, University of California .
  • Teichman , Judith A . 1995 . Privatization and Political Change in Mexico , Pittsburgh, PA : University of Pittsburgh Press .
  • Luna , Matilda . 1992 . 'Las associations empresariales Mexicanas y la apeitura externa' . paper presented at the 17th International Congress of the Latin American Studies Association . September 24-27 1992 , Los Angeles. pp. 16
  • Kleinberg , Remonda Bensabat . 1999 . Strategic Alliances and Other Deals. State Business Relations and Economic Reform in Mexico , 127 – 151 . Durham, NC : Carolina Academic Press .
  • Data in this paragraph aie from Proceso (Mexico City), 3 July 1995, p.39 and 5 February 1996, pp 6, 8, 15-16, 31, 188. The most notorious example of big business's campaign contributions occurred in 1993, when the country's top business leaders were each invited to pledge $25 million to the PRI's 1994 election campaign; public outcry resulted in a reduction of contributions to a third of a million each. Teichman, Privatization and Political Change in Mexico, p.256.
  • Heredia , Bianca . 1996 . “ 'Contested state: the politics of trade liberalization in Mexico' ” . 249 187 Columbia University . On the benefits to the big conglomerates of the export programme and privatization,and Teichman, Privatization and Political Change in Mexico see, unpublished PhD thesis
  • On this, see Teichman, The Politics of Freeing Markets in Latin America, pp 148 149
  • Mizrahi , Yemile . 1992 . 'Rebels without a cause? The politics of entrepreneurs in Chihuahua' . paper presented at the 17th International Congress of the Latin American Studies Association . September 24-27 1992 , Los Angeles. pp. 19 43 14 26 30 January 1995 Proceso, 8 May 1995 9 October 1995
  • Lustig , Nora . 1998 . Mexico: The Remaking of an Economy , 202 – 204 . Washington, DC : Brooking s Institution . While between 1989 and 1994 extreme and moderate poverty fell in Mexico, it rose in the agriculture sector generally and among rural workers, especially in the south and southeast. Moreover, the 1995 crisis reversed the improvements of the earlier period, with the proportion of moderately poor rising from 29 to 39 of the population and the proportion of extremely poor from 15 to 21 between 1994 and 1996. Between 1984 and 1985 inequality increased, with the income of the top 10 of the population increasing from 36 to 43 and that of the poorest 30 of the population declining from 8.3 to 6.7.
  • Székely , Miguel . 'Poverty and inequality in Mexico' . Interamerican Development Bank , www.iadb.org/oce/poverty_mex/
  • 30 March 1999 . The account in this paragraph is based on Latin American Weekly Report 30 March , 156 235 15 23 May 2000 and 22 May 2001, pp 228, 230
  • The data in this paragraph are from 'Harán lobby con el UIA ante de la Rúa', El Cronista (Buenos Aires), 29 October 1999; 'El gerente tiene que ser Machinea', El Cronista, 23 June 2000; 'El CEA aplaude baja de impuestos', El Cronista, 20 September 2000, at http://cronista.com; and 'Advertencia del establishment financiero a Fernando de la Rua', Pagina 12 (Buenos Aires), 12 July 1999, at http://www.pagina12.com.ar.
  • This paragraph is based on information from 'Reunion con cincuenta empresarios', Clarin, 16 April 2001; 'Empresarios, en Cancillería', darin, 4 May 2001; and 'La cena de los capitanes con el Presidente', Clarín, 30 May 2001, at http://Clarín.com.
  • 'El mes de la emergencia sin fin', El Cronista, 23 November 2002.
  • 2002 . 'Buscan ampliar el margen para negociar con bancos y privatizadas ' . Clarín , 5 January
  • In addition to interviews with businessmen the material in this paragraph draws from Proceso, 5 February 1996, p. 6; 18 May 1997, p. 9; and Mexico & NAFTA Report (London), p. 13; 13 June 1996, p. 5.
  • Subsequent audits showed a link between PRI campaign contributions and generosity of bank rescue operations. Andrés Manuel López Obrador, Fobaproa: Expedierte Abierto, Reseña y Archiva, Mexico City: Editorial Grijalbo, 1999 32 34
  • Mexico and NAFTA Report, 13 June 1995, p. 5
  • Proceso, 26 February 1995, pp 36, 38.
  • Teichman, The Politics of Freeing Markets in Latin America, pp 153 154
  • 2001 . 'New Directors for Mexico Oil Company' . ISLA (Information Services for Latin America) , February : 74 The information is this paragraph is from Reforma (Mexico City), at www.reforma.com/flashes/nacional/gabinete_fox/; 'Terrien empresarios que vuelva al terrorismo fiscal con Gil Díaz', La Jornada (Mexico City), 23 November 2000, at http://www.jornada.unam.mx; Latin American Weekly Report, 20 February 2001, p. 89
  • 2001 . Information on the fiscal deficit and budget reduction from 'No more sleight of hand by Mexico's finance minister' . ISLA , March : 38
  • 2001 . 'Two cheers for Mexico's tax reform' ISLA . Latin American Weekly Report , 15 May : 39 221
  • 2001 . 'Roadblocks right and left for Mexico's president' . ISLA , 22 January : 1 Currently in Mexico fiscal revenue represents just 11.6 of GDP, far below the 20 collected in Chile and Argentina; in the USA the figure is 30 of GDP
  • Mexico and NAFTA Report, 1 May 2001, p. 8
  • Latin American Weekly Report, 10 April 2001, p. 175
  • 2000 . 'No se indigaron los antecedentes de invitados a la gira de Fox: Sahagún' . La Jornada , 4 August
  • 2001 . 'Fox has little to show for promises of quick action' . ISLA , March : 21

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