Austerity and private investment in Mexican highways

Abstract

Austerity when applied to the budget, it expressed in massive cuts in public spending and the consequent deterioration of public goods and services. The still valid Washington Consensus policies, determine to decrease public investment, particularly for Caminos y Puentes Federales de Ingresos y Caminos Conexos (CAPUFE) assets and investment programs in the rest of the road sector. To have resources for the construction and modernization of roads, the involvement of Public Private Partnerships (PPP) in the backbone, through concessions, packages asset utilization and Service Delivery Projects (SDP) is allowed. Such schemes end up subordinating public resources to the needs of profitability of the financial monopoly capital.