Politics, Vested Rights, and Economic Growth in Porfirian Mexico: The Company Tlahualilo in the Comarca Lagunera, 1885-1911
IN its efforts to stimulate the economic development of Mexico, the government of Porfirio Dlaz offered incentives to private entrepreneurs for the development and exploitation of Mexico's resources. These incentives were available to anyone, regardless of nationality, and took the form of monopoly privileges, tax exclusions, tariff exemptions and concessions to exploit natural resources. In the capital and technology-scarce Mexican environment, the bulk of these concessions went to foreign interests, particularly American, British, Spanish and French. For the most part, the Mexican bourgeoisie cooperated with foreign capital. In cases where conflicts did arise, the Dlaz government established a reputation for consistent support of foreign interests. As the participation of foreign capital in the country's economy increased, however, vested interests established in the early years of the Porfiriato began to create obstacles to further development. Consequently, in the latter years of his rule Diaz came to regret many of the generous concessions granted earlier. Banking reform and "Mexicanization" of tlhe railroads were examples of the government's attempt to assume a more active role in directing its economy and to control the economic chaos its earlier policies had helped to create. The regime's difficulties in modi-