But the national elite, under strong foreign influence, regrouped and never allowed for a fundamental redistribution of wealth and power. Mexico has experienced periods of high growth, particularly during the 1960's and 70s. But with the wealthy able to orchestrate economic activity, they received most of the benefits of growth. By the early 1980's, changes in the global economy destabilized Mexico's short-sighted economy to the point of near default on its enormous foreign debt. Once again, the national and foreign elite sought to advance their own interests, fueling crisis rather than addressing it.
Globalization refers to the growth of large corporations that operate internationally.
As companies become more international in scope, they are free to move operations quickly from country to country based on local conditions, greatly enhancing their power against local governments, businesses, and workers. Most recently, this support of transnational corporations by Western power players has taken the form of neoliberal policies. In practice, of course, neoliberal policy is not really about free markets, but about creating the conditions advantageous to large private interests. Neoliberal policies are literally imposed on Third World governments. Yet, although the carrots offered to large business have resulted in periods of investment and growth, the overall affect of neoliberal adjustment has been crisis.