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Economic events & structural problems contributing to the Mexican financial crisis of 1994 are identified. A neoliberal policy was adopted following the crisis of populist politics in the 1980s as the politically correct course, from an international viewpoint. However, it has been impossible to eliminate rent seeking (special interests) in privatization. Special interest groups, eg, local elites, the international banking community, & US interests, have benefited at the expense of the impoverished Mexican population. To resolve the neoliberal crisis, the function of the Mexican state needs to be intelligently reconstructed. 24 References. Adapted from the source document.

Neoliberal economic policy has spread quickly in the last fifteen years. This policy was originally intended for developed countries with democratic political systems & organized civil societies, but when applied in less-developed countries (LCDs) with their different types of societies, governments, & state goals, problems have occured. Democracy is the exception in these countries, & the concept of public choice still refers to meeting basic necessities, not to the desire for consumer goods. In the LCDs, neoliberal governments have reduced inflation, but income redistribution & social inequality are serious problems that spur the search for alternatives to neoliberalism. These states should not retire from a guiding economic role before social equality is achieved. 29 References. Adapted from the source document.