The National Institute of Justice (NIJ) is the research, development and evaluation agency of the US Department of Justice. The NIJ is dedicated to improving knowledge and understanding of crime and justice issues through science. NIJ provides objective and independent knowledge and tools to reduce crime and promote justice, particularly at the state and local levels. Each year, the NIJ publishes and sponsors dozens of research and study documents detailing results, analyses and statistics that help to further the organization's mission. These documents relate to topics like biometrics, corrections technology, gun violence, digital forensics, human trafficking, electronic crime, terrorism, tribal justice and more. This document is one of these publications.

Beginning in 1983, the Mexican government implemented one of the most extensive programs of market-oriented reform in the developing world. Downsizing the State examines a key element of this reform program: the privatization of public firms.

Drawing upon interviews with government officials, business executives, and labor leaders as well as data from government archives and corporate documents, MacLeod highlights the difficulties of linking market reforms to improved public welfare. Privatization failed to live up to its promise of raising living standards or decentralizing the economy. Indeed, privatization actually increased the concentration of wealth in Mexico while redirecting the economy toward foreign markets. These findings contribute to theoretical debates regarding state autonomy and the embeddedness of economic action.

MacLeod calls into question the autonomy of the Mexican state in its privatization program. He shows that the creation of markets where public firms once dominated has involved both the destruction of social relations and the construction of new relations and institutions to regulate the market.