Time is money. The NAFTA region’s market-oriented national governments have sought to help private enterprise save both. In Mexico, these efforts have resulted in significant legislative reform: In 2000, the legislature completely overhauled Mexico’s bankruptcy scheme, resulting in fundamental structural changes to Mexican insolvency law. The aim of such measures was to help address the challenges of financial globalisation, the need to attract foreign investment and credit, and the proliferation of regional and global trade agreements.
But have Mexico’s reform efforts worked? This article suggests that two primary features of those efforts – the expedited pace of insolvency proceedings and the establishment of a separate governmental agency charged with overseeing them – appear to be generating real savings in time and, in at least some cases, money.
This 2008 article is accessible here. Republished with kind permission of Chase Cambria Company (Publishing) Ltd.