ABSTRACT
Mexico is speeding up the liberalization program it began in the mid-1980s because of developments in Central and Eastern Europe. Apart from all of the political, economic and social dislocation brought about by these shocks, the debt crisis and the collapse of communism have produced the same important side effect—each has accelerated the pace of economic reform and liberalization in many of the emerging countries. And we are seeing evidence that the rise in oil prices is doing the same. In Eastern Europe, Poland is an example of a country that has not simultaneously implemented stabilization measures and structural adjustments. While its stabilization program has apparently succeeded in substantially reducing inflation, the lack of structural adjustments has made it difficult to create markets for labor and capital. Of all the Latin American countries, Mexico is one of the best examples of a country that is adopting reform measures in order to attract the necessary foreign investment.
