Organization for Economic Cooperation and Development Oecd

Regulatory Reform in Mexico (Oecd Reviews of Regulatory Reform) Organization for Economic Cooperation and Development Oecd

Regulatory reform has been key to the transformation of the Mexican economy over the past 15 years. Formerly inward-looking and heavily regulated, the Mexican economy today is relatively open and market-based. The rapid pace, broad scope, and depth of regulatory reforms exceed those of most OECD countries. These reforms have already produced major benefits for Mexico, no least by increasing economic flexibility so that Mexico rebounds more quickly from economic crises. But benefits of reforms have been slowed by the macroeconomic crises of the 1990s. Sustained attention is needed to complete and implement reforms to establish conditions for vigorous market competition and entry, while strengthening the capacity of the Mexican state to use high quality and transparent regulatory instruments in carrying out public policies. A multiyear period of policy stability supportive of market led growth could produce enduring and broad-based benefits for Mexican consumers and businesses. Mexico was one if the first OECD countries to request a broad review by the OECD of its national regulatory practices and domestic regulatory reforms. This report--the result of intensive assessments by the OEDC and reviews by its Member countries--is unique in that it presents an integrated assessment of regulatory reform in framework areas such as the macroeconomic context, the quality of the public sector, competition policy and enforcement; and integration of the market openness principle in regulator processes, and in sectors such as telecommunications. The policy recommendations present a balanced plan of action on both short and longer-terms, based on the best international regulatory practices.