ABSTRACT
The increasing integration of international finance and the historical financial needs of the Mexican economy have often subordinated the policy choices of the state to the preferences of international capital. Mexico's economic reform under President Salinas was heavily reliant on capital and therefore most of the reforms aimed to improve the investment conditions. Economic and financial integration has greatly enhanced the leverage of international capital to influence domestic policy choices. However, this leverage is ultimately rooted on domestic needs, namely: economic development and financial stability are heavily reliant on capital inflows. International capital made possible the enormous growth in the balance of payments deficits in Mexico since the early 1970s. The Multilateral Financial Organisations (MFOs) are at the core of the international policy networks; they provide the organisational infrastructure for the communication and collaboration between policy makers from industrialised and developing countries.
