Unfinished Business: Telecommunications Reform in Mexico

By Judith Mariscal | Go to book overview

2

The Policy Process

The objective in this chapter is to provide a political economy framework that examines the privatization and deregulation of the Mexican telecommunications sector. While the literature examined in the previous chapter regards national telecommunications reforms as variations on technological developments, the literature reviewed in this chapter views reform to be a reflection, to a significant degree, of national political systems. Through the analytical lens provided by the positive literature of economic regulation, this chapter will build a conceptual framework that reflects on the political dimension in which the reform took place and examines the nature of the problems policy makers were trying to solve.

This framework suggests that the balance of power within political institutions and the interaction between government and interest groups shape policy outcomes. Within this perspective and through interviews with central actors of the policy process, this chapter seeks to explain why policy reform maintained a limited degree of competition by leaving a vertically integrated firm. To this end, it closely examines the policy process of the Mexican reform analyzing political institutions, policy choices, and preferences of key agents.

The study of the Mexican policy process includes another analytical category; the policy context in which this decision was taken. The concept of policy context includes the notion of political transaction costs. It aims to capture those elements that presented policy makers with opportunities, pressures, and constraints and that constituted its government agenda. The context of economy-wide performance problems and the requirements of a transition to a new development project were the key problems to be solved by the Salinas government.

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Unfinished Business: Telecommunications Reform in Mexico
Table of contents

Table of contents

  • Title Page iii
  • Contents v
  • Contents vii
  • Preface ix
  • Introduction xiii
  • 1 - Technological Change in the Telecommunications Industry 1
  • 2 - The Policy Process 25
  • 3 - Policy Outcomes 67
  • Notes 92
  • 4 - Telecommunications Reform in Other Countries 93
  • 5 - Conclusions 129
  • Bibliography 143
  • Index 155
  • About the Author 159
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