Economic Concentration and Conglomerates in Mexico

Abstract

Mexico’s economic groups are currently the most powerful of Latin America. Various indices show that Mexican conglomerates are very successful, and Cemex is the only company from the region in the top 25 MNCs from developing countries. Large Mexican companies have grown extensively with the expanded export opportunities created by NAFTA, turning Mexico’s economy into the largest in Latin America. But are Mexican conglomerates expected to survive new waves of international acquisitions and mergers, or will their expansion soon turn out to be only an intermediary step in Mexico’s economic integration of the early 21st century? The article analyzes the rise of Mexican economic groups and conglomerates, and the relations between this economic elite and the political elite since neoliberal restructuring, discussing the policies and effects of privatization, liberalization and economic integration. Special attention is paid to the attitude of corporate giants and the state towards the financial sector, especially since the peso crisis in 1994/5. Finally, the article analyzes some effects of economic concentration in large local and foreign conglomerates on the Mexican economy and employment.