Mexico 1988-1991: A Sweeping Reform
This chapter looks in detail at Mexico's successful privatization of its national carrier, Teléfonos de México, S.A. ( TELMEX), and the liberalization of its domestic telecom market. The Mexican case offers fruitful comparison with the Argentine case, because both countries share certain economic and political features as well as the initial goals of their telecom reform programs; however, the Mexican administration was able to achieve without major sacrifice what was impossible or difficult in the Argentine case (i.e., privatization of their state- owned telecommunications enterprise [ SOTE] and significant liberalization of the local market). A comparison of the Salinas and Menem governments' privatization efforts reveals common characteristics in regard to state-society relations and hierarchical relations within each administration that contrast sharply with those of the 1980-1989 Argentine governments. Hence, an analysis of the contrasts in Mexico's and Argentina's privatization and liberalization experiences provides rich material to help understand the divergent outcomes of reform.
This chapter further extends the arguments outlined earlier: successful privatization is highly dependent on the nature of state-society relations and level