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The Mexican Economy, The Causes And Characteristics Of Growth.

749 words - 3 pages

The Mexican economy, The causes and characteristics of growthEconomic policyMexico's National Development Plan proposes the following strategy guidelines to promote sustainable economic growth:1)Make domestic saving the main source for financing national development and use foreign savings as a complementary source of funds to advance productive investment.2)Establish conditions that favor and preserve economic agents' confidence in, and the stability of, the future evolution of economic activity.3)Promote the efficient use of resources.the economic strategy that has been in place for the last 18 years is not delivering for the majority of the people in Mexico. The structural adjustment policies and trade liberalization policies have sharpened inequality and income disparity in Mexico. These policies have benefitted only a small circle of economic agents of corporations, mostly those already connected to the international economy, to the detriment of the majority of micro and small and medium businesses, workers and the average Mexican citizen. So when people say that the fundamentals are sound, that the economy is performing well, the relevant question up front is for whom?Mexico's economic plans as they are presented above are good policies without any doubt , but they are a little bit too vague to be believable. What Mexico needs is a step-by-step concrete plan to get themselves out of the sluggish economic situation they are in.The high dependency on american economy is a risk, Mexico should try to spread their interests over many other developped nations to achieve a more stable kind of growthNot enough has been done by the mexican government to reverse or improve the situation of the sharpened inequality in the country. And the fighting of poverty and development of a stable middle class is not an objective in these targets mentioned above.Economic growthIn Mexico the inflation is now under control, the current account deficit is manageable, the fiscal and monetary policies are disciplined, exports are growing, and so forth, but then when you break down growth into different sectors, you find that it's only the economy connected to multinationals established in Mexico that is growing. In fact, you may find negative growth when it comes to Mexican...

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