Parastatal Companies, a Mexican Experience. In the world, few parastatal companies has correctly administrated and generate utilities and earning. Mexico has some parastatal companies and in the major

José Alberto

Parastatal Companies, a Mexican Experience. In the world, few parastatal companies has correctly administrated and generate utilities and earning. Mexico has some parastatal companies and in the majority, the government needs to subsidize them with our taxes. I said “the majority” because in there is a company that have utilities, the parastatal company is located in Baja California and is a desalination plant. Historically, the expropriation of private companies and their conversion to parastatal companies had been seen as a governmental success by politicians. In Mexico, in 1938, the president Lazaro Cardenas expropriated oil industry and created “Petroleos Mexicanos (PEMEX)” and in 1960, the president Adolfo López Mateos finished the expropriation of the electric industry and two parastatal companies absorbed the control of the generation and distribution of electric energy, those companies were “Luz y Fuerza del Centro (LyFC)” and “Comision Federal de Electricidad (CFE)”. Generally, to avoid the control of critic industries (oil, energetic, water, army, and sometimes, airspace) by foreign companies or other governments, expropriation has been showed as a strategy to maintain parastatal companies. However, sometimes governmental administrations or public staff take bad decisions and break parastatal companies. Again, in Mexico, LyFC has been closed, and PEMEX and CFE has a great labor liabilities with other financial problems. Recently, many countries has sold their parastatal companies with great losses (Russia and Greece). Other countries are trying new business systems in association with private companies to maximize their utilities (Cuba, Venezuela, Colombia, Noruega). Recently, Mexico have approved constitutional reforms and soon, parastatal companies in association with private companies could invent in our country. In conclusion, I think that government control on companies is a bad decision because governmental administrations are cyclic and staff aren´t evaluated by productivity and their jobs depending about politicians interests. Also, international experiences has showed that private companies can be better administrated with a correct governmental framework to avoid economic abuses. Saludos desde México.

Mar 2, 2015 6:56 AM

Corrections · 5

Parastatal Companies, a Mexican Experience.

In the world, few parastatal companies have correctly administrated and generated utilities and earning. Mexico has some parastatal companies and with the majority, the government needs to subsidize them with our taxes. I said “the majority” because in there is a company that has utilities, the and this parastatal company is located in Baja California and is a desalination plant.

Historically, the expropriation of private companies and their conversion to parastatal companies had been seen as a governmental success by politicians. In Mexico, in 1938, the president Lazaro Cardenas expropriated oil industry and created “Petroleos Mexicanos (PEMEX)” and in 1960, the president Adolfo López Mateos finished the expropriation of the electric industry and two parastatal companies absorbed the control of the generation and distribution of electric energy, those companies were “Luz y Fuerza del Centro (LyFC)” and “Comision Federal de Electricidad (CFE)”.

Generally, to avoid the control of critic? industries such as (oil, energetic, water, army, and sometimes, airspace) by foreign companies or other governments, expropriation has been showed as a strategy to maintain parastatal companies. However, sometimes governmental administrations or public staff take make bad decisions and break parastatal companies. Again, in Mexico, LyFC has been closed, and PEMEX and CFE has a have great labor liabilities with other financial problems.

Recently, many countries has have sold their parastatal companies with great losses (Russia and Greece). Other countries are trying new business systems in association with private companies to maximize their utilities (Cuba, Venezuela, Colombia, Noruega). Recently, Mexico have approved constitutional reforms and soon, parastatal companies in association with private companies could invent begin in our country.

In conclusion, I think that government control on of companies is a bad decision because governmental administrations are cyclic and staff aren´t evaluated by productivity and their jobs are dependant on about politicians interests. Also, international experiences has showed have shown that private companies can be better administrated with a correct governmental framework to avoid economic abuses.

Saludos desde México.

March 2, 2015

Parastatal Companies, a Mexican Experience.

In the world, few parastatal companies has correctly administrated and generateD utilities and earning. Mexico has some parastatal companies and in the majority, the government needs to subsidize them with our taxes. I said “the majority” because in there is a company that have HAS utilities, the parastatal company is located in Baja California and is a desalination plant.

Historically, the expropriation of private companies and their conversion to parastatal companies had been seen as a governmental success by politicians. In Mexico, in 1938, the president Lazaro Cardenas expropriated oil industry and created “Petroleos Mexicanos (PEMEX)” and in 1960, the president Adolfo López Mateos finished the expropriation of the electric industry and two parastatal companies absorbed the control of the generation and distribution of electric energy, those companies were “Luz y Fuerza del Centro (LyFC)” and “Comision Federal de Electricidad (CFE)”.

Generally, to avoid the control of critic industries (???) (oil, energetic, water, army, and sometimes, airspace) by foreign companies or other governments, expropriation has been showed as a strategy to maintain parastatal companies. However, sometimes governmental administrations or public staff take bad decisions and break parastatal companies. Again, in Mexico, LyFC has been closed, and PEMEX and CFE has a great labor liabilities with other financial problems.

Recently, many countries has sold their parastatal companies with great losses (Russia and Greece). Other countries are trying new business systems in association with private companies to maximize their utilities (Cuba, Venezuela, Colombia, Noruega). Recently, Mexico have approved constitutional reforms and soon, parastatal companies in association with private companies could BE inventED in our country.

In conclusion, I think that government control on OF companies is a bad decision because governmental administrations are cyclic, and staff aren´t ISN'T evaluated by BASED ON productivity and their jobs. depending about politicians interests (???). Also, international experiences has showed that private companies can be better administrated with a correct governmental framework to avoid economic abuses.

Saludos desde México.