Mexican Oil and Privatization

Some of our past class conversations have addressed the controversial adoption of neoliberal policies as a means of revitalizing Latin American economies. Following the economic stagnation of the 1980’s and the subsequent economic upturn under neoliberalism, these policies have indeed divided many as its advocates point to the economic benefits while opponents insist—among other things—that the loss of national sovereignty is too high a price to pay. The recent upheaval in the Mexican congress over a bill that would allow private investors to increase their participation in Mexico’s nationalized oil industry demonstrates that the issue is indeed far from settled. The bill does not intend to privatize Pemex (Petroleos Mexicanos), but opponents contend that any involvement of the private sector would be detrimental for the future of the industry. A member of the opposition commented: “They've sharpened their teeth and are ready to rob a natural resource and make a big business out of it; we're not going to let them.”

You can read an article on the topic here.