Explaining choice of development strategies: suggestions from Mexico, 1970–1982

Economic development requires choices among a broad spectrum of alternative strategies and, as the recent experience of Mexico suggests, those choices are not easy. A complex politics is involved in the transition from one development strategy to another. The international political economy and domestic social coalitions both influence the costs and benefits associated with various development policies; they rule out some choices, but numerous options still remain. How can one explain actual outcomes? Observers may significantly increase their ability to explain outcomes by incorporating a statist component into their analyses. Within the very broad parameters set by the international political economy the state influences (but does not determine) the creation and the demands of the social coalition itself. In addition, the state may use policy instruments and advantages from the domestic and international arenas to implement policy even in the face of domestic opposition. The structure of the domestic political economy determines the space within which the statist perspective contributes to explanatory power. Eventually, it is in a historically based ideology that the chief explanation for the state's choice of policy and the construction of particular domestic coalitions is to be found.