This article compares Mexico and India’s experiences with neoliberalism to propose that the collapse of the developmentalist state generates countermovements. In both nations, neoliberalism is associated with the decline of the one-party dominant system, and a restructuring of civil society. Variations emerge in the timing of democratization in these countries. In India, democratization preceded neoliberal reforms, whereas in Mexico democratization followed neoliberal reforms, but in both cases democratization mitigates the effects of neoliberalism on civil society. Conclusions drawn from the comparative analysis of Mexico and India concur with Karl Polanyi’s proposition that there is a double movement of marketization and protectionist countermovements. The case studies suggest a pattern to these countermovements. Actors are confronted abruptly with threats to their well-being; not only economic threats but also environmental, political, and symbolic threats. The threatened value in each case is a former entitlement, typically a form of protection ensured by the state. Thus, even in the presence of countermovements, neoliberalism mediates a divergence of state and civil society relationships creating uncertain futures for democratic possibilities.
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