The Transformation of Developing Economies in the Process of Financialization
The Transformation of Developing Economies in the Process of Financialization

A discussion of growth constraints based on the Mexican economy

Summary/Abstract: Developing Latin American economies underwent a profound transformation in their productive, commercial and fi nancial sectors during the neoliberal period dominated by fi nancial capital, without reaching a process of stable economic growth or external equilibria. There are two structural features that constrain economic growth in Latin America economies, particularly in Mexico – the economic dissociation between dynamic and indigenous productive sectors that limited the accumulation process of these economies and increased exports without reaching external equilibria; and these economies have not been able to transform external liquidity into fi nance for production and investment. In this paper it is argued that Latin American countries have been dominated by large corporations, operating at the margin of their domestic productive and fi nancial markets. Th ese conditions have disabled these economies to take advantage of the favorable external sector conditions.

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