ABSTRACT
This chapter examines the transformation of the local regime with a focus on the strategies of the domestic and the foreign bourgeoisie. It shows that the main factor that explains the emergence of the contested local development is the strategic alliance of the domestic and the foreign bourgeoisie invested in the tourism industry with the strong indigenous peasant movement. The path of local development in Guerrero is shaped by the alliances and the conflicts between tourism sector bourgeoisie and indigenous' peasants within the PRD structure as opposed to the traditional PRI elite. When the local economy was poised to integrate into the world market with its tourism industry, foreign tourism bourgeoisie invested heavily in the Acapulco region in partnership with domestic capital groups. The increased pluralism in local politics has not automatically lead to an increase in the efficiency of the policy outcomes.
