ABSTRACT
The liberalization of the European markets coincided with the implementation of the structural reforms by most Latin American countries in the late 1980s and early 1990s. Most Latin American countries returned to democratic rule in the 1980s, after years of dictatorship and in some cases even civil war. The influx of Spanish direct investment into Latin America grew considerably in the early 1990s, attracted by the process of privatization of state-owned enterprises undertaken by most governments and the development of a new legal framework, which gave more freedom to foreign companies. The economic boom of the Spanish economy in the 1980s increased the needs of firms and individuals for reliable and efficient telecommunications. The liberalization of the energy sector in Latin America was the response of the governments to the growing needs for energy generated by higher rates of economic growth in the 1990s.
