Mexico: The Remaking of an Economy Book

	Abbreviations and Acronyms
	Introduction	1
	Mexico's Adjustment and Recovery: A Summary	2
	A Note on Method	12
1	The Genesis of the 1982 Crisis	14
	The Golden Years of "Stabilizing Development"	14
	Macroeconomic Imbalances and the 1976 Balance-of-Payments Crisis	17
	The Oil Boom and the Onset of the 1982 Crisis	20
	Concluding Remarks	26
2	From Crisis to Recovery	28
	The First Attempt at Stabilization, 1983-85	29
	The Failure of the First Stabilization Program	34
	From the 1986 Oil Shock to the 1987 Run on the Peso	39
	The Implementation of the Economic Solidarity Pact	50
	The Pursuit of Economic Recovery	55
	Concluding Remarks	59
3	The Social Costs of Adjustment	61
	Adjustment, Living Standards, and Income Distribution	61
	Living Conditions before the Crisis	65
	Trends in Earned Real Incomes since 1982	66
	Unemployment and Employment Patterns	75
	Social Income: The Evolution of Public Spending on Social Sectors	78
	Resource Availability in Education and Health	83
	Food Subsidies: From General to Targeted	86
	Social Indicators: Nutrition and Health, Education, and Incidence of Crime	87
	Household Survival Strategies	89
	Who Bore the Costs and to What Extent?	92
	Concluding Remarks	94
4	Public Sector Reforms	96
	Fiscal Policy Reform	98
	Divestiture of Public Enterprises	103
	Deregulation	107
	Concluding Remarks	112
5	Looking Outward: Reforms in the Foreign Trade and Investment Regimes	114
	Trade Liberalization	117
	Impact of Trade Liberalization on Economic Performance	120
	Industrial Programs	122
	The Changing Foreign Investment Regime	125
	Intellectual Property Rights	129
	Joining the General Agreement on Tariffs and Trade	130
	Seeking Closer Ties with the United States	132
	Concluding Remarks	137
	Epilogue	140
	Appendix: Agreement Signed by Mexico and Its Commercial Banks on Debt and Debt Service Reduction	141
	Notes	145
	Index	181