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

This article examines reasons for the failure of market reforms and their inability to produce prosperity and sustained growth in Mexico and Argentina, resulting in the economic meltdown in both countries. The author discusses policy reforms such as increased social spending supported by tax reform, and an end to corruption and support for small and medium sized businesses, which would require government's autonomy from business interests; the author finds that the market reform experiences in Argentina and Mexico simply reinforced political practices and the power structures that already existed, strengthening the personalized access of business owners to politicians and increasing their economic clout.