Furthermore, the theory that flexibility is essential for socio-economic progress does not hold up historically, in Latin America or in other countries. Development can and should be achieved by strengthening labour rights and standards rather than dragging them down. The case studies of Mexico, Chile and Brazil presented in this report reveal both similarities and differences in labour market trends. Chile, which was never a typical corporatist state, has followed a different path. In all cases, there has been heavy downward pressure on labour rights and standards, with little more than half-hearted efforts to honour the historic goals of labour protection established in the early part of the century.
Mexican workers enjoy one of the most protective and progressive labour regimes in the Americas.
Yet labour relations have been marred by a corporatist system dating back to the 1920s. The primary function of labour unions officially linked to the State and the ruling party, has been to ensure social stability and the continuing power of the one-party state. Until the late 1970s, the state was able to provide enough benefits to union leaders and members to avoid social disruption. Following the peso devaluation of late 1994, Mexico was plunged into its worst recession since the 1930s. Workers were once again asked to pay the price of international investors folly.