Two European economists, one from West Germany and the other from East Germany, have produced a pithy little survey of the current relationship between the Mexican government and foreign business concerns. After a brief historical account they summarize pertinent Mexican legislation, which they find surprisingly piecemeal, the general policy of mexicanización, and various bodies of opinion on foreign capital.
This is a balanced study—at least in the sense that the authors have avoided serious criticism of either side. Their conclusion is rather sedative: “While on occasions there have been contradictions and want of perspective, the policy of Mexico toward foreign direct investments has nevertheless been logical, viewed in its entirety and after the lapse of time” (p. 66).
An appendix summarizes the combined experiences and outlook of fifty industrial companies operating in Mexico, obtained through interviews with officials. Government policies, they feel, have not cut harmfully into profits, and while the companies look askance at mexicanización, they are willing to adapt themselves to change, since the government has made it clear that it does not threaten the continued existence of foreign capital in Mexico. Perhaps, indeed, the lion and the lamb have lain down together.