High Price for Change : Privatization in Mexico (illustrated ed)

The Mexican government abandoned its role as owner of diverse enterprises and began to focus efforts on the populations most pressing needs: drinking water, health, education, agriculture, nutrition, housing, the environment, infrastructure and the administration of justice.

The aim was to transform a paternalistic government into a supportive government - governing for all, but working harder for those who have less.

Did it succeed? In this text, a leading economist tells the story behind Mexico's programme of divestitures.

After describing the principle problems of privatization, the author goes on to assess its macroeconomic impact on Mexico's government finances, balance of payments and financial markets; and its microeconomic effects on employment, profits and productivity.

Rogozinski explains why the sale of state-controlled enterprises was desirable, not only economically, but also from a social perspective, and analyzes the benefits and costs of this programme, which laid the foundation for the country's modernization.