The making of a new alliance: the privatization of the banks in Mexico

Abstract

In this paper I analyze the privatization of the Mexican banks that started in May of 1990 with the initiative of reform of articles 28 and 123 of the Constitution and that ended on June 16, 1992 in a public meeting between the government and the new bankers in which they celebrated their new alliance. If the reestablishment of a good relationship between business and government has been crucial to the success of the program of economic reform initiated by the de la Madrid government and deepened by the Salinas' administration, the reestablishment of a strong alliance with private financiers seems a key variable in making this new relation politically and economically stable.