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ECONOMIC DEVELOPMENT AND SOCIAL POLICIES IN MEXICO - Coggle Diagram
ECONOMIC DEVELOPMENT AND SOCIAL POLICIES IN MEXICO
Mexico adopted a neoliberal- agenda of trade and financial liberalization
Reforming economic and social policies was essential if Mexico was to achieve sustainable economic growth with a substantial reduction of poverty
the reduction of poverty achieved has been determined much more by the increase in the proportion of economic active population than by the impact of social policies
BACKGROUND
IMPORT SUBSTITUTION INDUSTRILIZATION
Complemented by social policies aimed at universal coverage of basic social services
Was designed to protect Mexico's domstic market for manufactures from the pressure of the competition of imports
It was achieved by applying tariff duties on imports
1977
Maquiladora programme:
*Boosted Mexico's economy
*Expanded GDP
THE END OF ISI
Miguel de la Madrid: initiated the process of radical macroeconomic reform
Mexico had become a member of GATT: Salinas de Gortari accelerated these reforms, opening the domestic financial market to foreign competition
NAFTA: eliminate all tariff and non-tariff barriers to intra-regional trade
Zedillo and Fox: reorientation of industrial policy
Felipe Calderon: NAFTA and fiscal balance
MEXICO'S ECONOMY AFTER THE NEO-LIBERAL REFORMS
*Monetary policy: reduce inflationary expectations but leads to persistently overvalued real exchange rates.
*The share of manufactures in total exports exceeds 80 per cent
Imports: expand by 15 per cent
GDP: expanded during 1990-2006 at and average rate way below its historical average in 1950-1980.
The collapse of the oil boom forced and economic slowdown in the 1980's concomitant with a significant trade surplus
NAFTA: with the agreement real GDP expanded more than 5 per cent annual average
Education challenge: Mexico's poor results are explained not so much by the quantity of resources it dedicates to education as by its inefficiency in using them
*Mexico and Slovakia are the countries with the smallest expenditures on education
Poverty: Poverty is the answer to many other problems that have to be taken into account to fight against it, corruption in Mexico, the government, the different policies and how they are promoted.
Poverty is a sructural and socioeconomic problem with lack of opportunities, resulting in unemployment and inequality.
Economic development began with the entry of NAFTA, however with the increase of foreign debt and inflation problems, Mexico had a setback.
Neoliberalism has socially constrained Mexico to grow economically.
