This paper is aimed to analyze the development process of Atenquique, a corporative town, and how these changes have affected the livelihood and welfare of its inhabitants. This paper focuses on the analysis of effects that the transfer of ownership from a state-owned Paper Mill Company to a corporate private ownership has had on environmental and economic shrinkage in Atenquique. This transfer was the result of the ongoing economic process of globalization, after the industrial boom of the paper mills during the second half of the last century. The paper also focuses on how the employees of this Paper Mill Company live and how they have been affected by globalization and how they feel about their paper mill’s new corporate owners. The methodology used was descriptive and exploratory. A sample of forty workers at the company who lived in Atenquique was chosen for an interview. After being inhabited the town of Atenquique developed in terms of population, society and economy. On the other hand the Industrial Company of Atenquique grew during the period when it was a property of the Mexican State. After the company’s privatization, the town started to decline and shrink in three above-mentioned variables. The impact on the environmental and economic development has initiated the shrinking and declining of Atenquique and the surrounding cities and towns.