Government-Business Relations and Regional Development in Post-Reform Mexico

1.      Introduction

1.1.   Why Puebla and Querétaro?

1.1.1.      Initial Conditions

1.1.2.      Economic Divergence between Puebla and Querétaro

1.2.   Research Design and Methodology

1.2.1.      Comparing Subnational Economies

1.3.   Relevance for Mexico and Beyond: Theory and Practice

2.      Governing Subnational Economies

2.1.   The Territorial Dimension of Economic and Political Reform

2.1.1.       Local Responses to Economic Reforms

2.1.2.      Localization and Globalization in the World Economy

2.2.1.      Business as a Political Actor

2.2.2.      Varieties of Capitalism

2.3.   A Subnational View of Political Institutions and Development

2.3.1.      Less Stateness

2.3.2.      Focus on Firms

2.3.3.      The (diminishing) Role of Labor

2.3.4.      National Reforms as Existential Threat

2.4.   The Argument

2.4.2.      Differences in Organized Labor

2.4.3.      Governors' Responses to National-level Reform

2.4.4.      Subnational Institutional Divergence and its Economic Consequences

2.5.   Alternative Explanations

3.      Origins and Consequences of Divergent Private Sector Organization in Puebla and Querétaro

3.1.   Organized Business in Mexico

3.1.1.      Reconfiguration of Government-Business Relations

3.1.2.       Government-Business Relations in the States

3.2.   Explaining Business Sector Divergence in Puebla and Querétaro

3.2.2.      Effects on Business Associations

3.2.3.      Explaining the Participation (or not) of Large Firms

3.3.   Preferences of Local Business in Puebla and Querétaro

3.3.1.      Political or Economic Opinions

3.3.2.      Preferences on Economic Issues

3.3.3.      Unity or Division in the Private Sector

4.      Building Institutions for Cooperation in Querétaro, 1979-1991

4.1.   Unlikely Origins of Global Economic Success: Querétaro under Rafael Camacho Guzmán

4.1.2.      Emergence of Tripartite Cooperation

4.1.3.      Institutionalizing Coordination to Manage Economic Shocks

4.1.4.      Political Calm Prevails

4.2.   Results of the Camacho Guzmán Administration

4.3.   Preparing for Global Competitiveness: Querétaro under Mariano Palacios Alcocer

4.3.1.      Local Adjustment to Global Integration

4.3.3.      Sharing the Burden of a New Economic Shock

4.3.4.      Policy Actions to Support Global Integration

4.4.   Results of the Palacios Administration

4.5.   Conclusion

5.      Partisan Rivalry between Government and Business in Puebla, 1981-1993

5.1.   Background: A History of Social Conflict and Interlude of Calm

5.2.   Economic Shock and Renewal of Government-Business Conflict under Guillermo Jiménez Morales

5.2.1.      An Election Battle between Government and Business

5.2.2.      Post-election Appeasement: Political Calm but Modest Economic Progress

5.2.3.      Firm and Sector-level Adjustment

5.2.4.      Return of Electoral Conflict

5.3.   Results of the Jiménez Morales Administration

5.4.1.      Conflict and Corruption at the End of the Piña Olaya government

5.4.2.      Private Sector Adjustment outside of Local Institutions

5.5.   Results of the Piña Olaya Administration

5.6.   Conclusion

6.      Consolidation of a Developmental Alliance in Querétaro, 1991-1997

6.1.   Introduction

6.1.1.      Bringing Business Ideas into Government

6.2.   Implementing a Strategy for Global Competitiveness

6.2.2.      Public-Private Synergies in Industrial Parks

6.2.3.      Consolidating a New Labor Culture

6.3.   Managing Electoral Conflict and Economic Crisis

6.4.   Results of the Burgos Administration

6.5.   Conclusion

7.      Authoritarian Political Economy and Global Integration in Puebla, 1993-1999

7.2.   Hierarchical Development and Political Cooptation in the First Half of the Bartlett Administration

7.2.1.      City of Angels, Governed by Men

7.2.2.      Consolidation of Hierarchical Development in Puebla

7.3.   Breakdown of Government-Business Relations and Return of Political Conflict

7.3.1.       The Aftermath of the Electoral Clash

7.3.2.       Bartlett Confronts the Business Sector

7.3.3.      Volkswagen Accelerates away from Local Conflict

7.4.   Results of the Bartlett Administration

7.5.   Conclusion

8.      Querétaro's Rising Star in the Global Economy, 1997-2009

8.1.   Political Alternation and Economic Continuity under Ignacio Loyola

8.1.2.      Preparing Querétaro's Economy for Take off

8.1.3.      Continuation of Tripartite Coordination

8.2.   Results of the Loyola Administration

8.3.   A New Phase of Development and New Forms of Coordination: Querétaro under Francisco Garrido

8.3.1.      Emergence of an Aerospace Hub

8.3.2.      Preparing for the Arrival of a New Industry

8.3.4.      New Institutions and Actors for Economic Governance

8.4.   Results of the Garrido Administration

8.5.   Conclusion

9.      Institutional Erosion and Economic Stagnation in Puebla, 1999-2011

9.1.   Mending Fences but Building Few Bridges: Puebla under Melquiades Morales

9.2.   Uneven Results of Uncoordinated Development Policy

9.2.1.      Industrial Infrastructure Lags Behind

9.2.2.      Limited Industry-University Linkages

9.2.4.      Volkswagen Confronts Labor Problems

9.3.   Results of the Morales Administration

9.4.   A Turn towards Authoritarianism under Mario Marín

9.4.1.      A Government Disgraced and a Business Sector Divided

9.4.2.      Return of Government-Business Electoral Conflict

9.4.3.      Cronyism in Public Works and Worsening Relations with Business

9.6.   Conclusion

10.  Conclusion

10.1. Political Transitions and Economic Transformation: Querétaro (2009-2017)

10.1.1.  Developing Sectors through Cluster Coordination

10.1.2.  Local Leadership in Research

10.2.  Old Wine in New Bottles: Puebla (2011-2017)

10.2.1.  Doubling Down on the Auto Sector

10.3. Implications of the Argument

10.4. Thoughts on Policy