State-owned enterprise reform in Latin America

The purpose of this study is to analyse the major characteristics and consequences of State-owned enterprise (SOE) reforms in Latin America so as to derive conclusions useful for guiding future reform programmes. Three countries at different stages of the reform process were identified for in-depth study; Chile, Mexico and Argentina. The underlying rationale for SOE reforms in Latin America has been both economic and political. In most countries the need to reduce the public sector deficit was a primary motive for initiating reforms. In Chile, Mexico and Argentina public sector deficits hit historic highs in the year prior to the initiation of reforms. Chile initiated the first major reform of sons in the region in 1974.