For this reason, Mexican presidents with scholarships at Harvard, UCal, Yale and other universities of the developed world, such as de la Madrid, Salinas, Zedillo and their treasurers, AspeArmella, Gil Diaz, and Caso Lombardo, rushed to privatize a maximum of state companies that were considered to be a burden, even though some, such as Telmex, weren't really such.
With most companies having been privatized,the bureaucracy that was born from the Mexican revolution threatened their economic power. But it was too late, because the gravity center of the infrastructure companies' property had moved on to the private industry. On the other hand, the loss of strength made the state so weak it was not able to create a fiscal tool sufficiently efficient to substitute the advantages of the socialist state economy for an open market economy whilst still obeying the nation's fiscal needs.
The state's real economic power was lost, lying in public companies as well as the real economic power stemming from the automatic fiscal collection. From the automatic fiscal collection of the public company, the total fiscal evasion of private capital followed.
These conditions of the state's economic orphan-hood, with which Calderon came to power, gave origin to the public-private companies creation strategy. In these, the greater amount of capital is private, but the state conserves certain dominance due to the natural control over land and eventually over the rates coming from monopolist companies.
In this watershed, meetings to constitute PPAs in projects that form part of national, state, and municipal development plans in the country were born.
Nevertheless, the strategy suffered two problems from the very start. The first is that bureaucrats or consultants who have never managed a company of more than ten workers in their life dictate the rules of the game, claiming to constitute open market companies. The second is that the corruption that has always nestled the construction industry has now silently been transferred to this other economic power commerce environment.
The economic strategy of the state, named the PPA, suffers from various instrumentation defects. Instead of encouraging private capital for investment immediately, as it used to happen, its laws and regulations submit bids designed with "intentional chemistry," that give place to bribery and corruption, as was made public in the Mexico City- Queretaro Light Train scandal. This exposed the obscure management of the concession of public services controlled by the state at the federal PPA level. International capitalists monitor these unquestionable processes.
The sophisticated legislation that has been created to process concessions bids, with the basic condition of the creation of a project managerPPA, gives place for discretional and irregular management of administrative processes. This often discourages open participation of private capital, which procures to deduce the "access keys" encrypted by the government.
As it normally tends to be, the complexity of the law has given place tocharlatanism and prevarication. Associations and companies dedicated to deciphering the legal framework of the PPA for investors are being created. Now there are professional colleges, similar to those for other practices, which sell bran instead of yeast to potential investors interested in PPA projects. Soon, only these professionals will have state patents to guide private investors and to elaborate successful business models that will follow.
The design of a capital business figure created by socialist bureaucrats
The experience of the forced privatization of Salinas' nine highways leads one to think and call in the business design of companies from a bureaucratic concept of markets; becoming a part of the managing experience of state businesses, monopolies, without competition, without modern business design, without the stimulus of reliable utility, and prediction models that are not based on business experience but academic references.
Through Salinas, it was demonstrated that… Continue reading article here
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