After neoliberalism - The politics of reregulation in Mexico

Neoliberal economic reforms, rather than unleashing market forces, can resu lt in new institutions for market governance. By vacating institutionalized policy domains, neoliberal reforms can trigger two-step reregulation proce sses, as first, political entrepreneurs launch projects to build support co alitions by reregulating markets, and second, societal groups respond to th ese projects by mobilizing to influence the terms of reregulation. Dependin g on the strengths and strategies politicians and societal groups, reregula tion processes result in varied institutions for market governance. The art icle develops this argument by analyzing how neoliberal reforms in Mexico l ed to the construction of distinct institutions for market governance acros s four states (Chiapas, Guerrero, Oaxaca, and Puebla). The findings from Me xico highlight the importance of moving beyond the questions of why develop ing countries choose neoliberal policies and how they implement them. Stude nts of the political economy of development should shift their attention in stead to understanding the kinds of new institutions that replace those des troyed or displaced by neoliberal reforms.