Introduction
Most Latin America countries are known as third world countries because the economic structure still in development. To overcome such judgment the countries had been developing different policies since the 1970s. The policies promise to help the countries to obtain a healthier economy and have an economic growth. The author Franko explains in the book The Puzzles of Latin America Economic Development how the economist Paul Rosenstein “believes that in order to achieve sustained growth, an economy must develop various industries simultaneously, requiring a coordination of investment or a big push.” (pg. 19) But to accomplished economic growth countries need to reduce the government control over the economy and start developing a market-base economy. Market-base economy would not only guarantee positive results of development, but will also create a more stable economy. Mexico is one of the countries that have integrated new policies and other economic change which have been giving the country positive results mainly on its economy.
Neoliberal Model
Neo-liberalism is a mixture of free-market policies and global-market-liberalism. The neoliberal model consists of reducing the state intervention in the economy. Franko describes “New political economy suggests that people make their own best choices” (Franko 2007 page 151). The model gives each individual the opportunity to make the most adequate choices for the economy without the interference of the government. It is believe that the state intervention will distort the market signals required to make the most precise decision making (pg. 151 Franko 2007).
The reduction of government role in the economy will affect fiscal policy by decreasing deficit spending a...
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...nstant economies. Mexico has been adapting to policies and other models to help improve the economy. Mexico is recently fighting against corruption to offer Fiscal Transparency to the prominent investors. The country continues working in lowering inflation rates. In the Human Development index Mexico demonstrated to be having good quality of education, with high percentage of adult literacy, taking the country to the 53 place of the HDI value. Neo-liberalism helped Mexico to reduce government intervention over the economy. Mexico is also working with NAFTA and Mercosur agreements to improve free trade status and reached a healthier the economy. Mexico still working to liberalize its trades with other countries, and expects to have positive in the next couple of years. Mexico has made the necessary decisions to create a better country for the future generations.
Mexican Lives is a rare piece of literature that accounts for the human struggle of an underdeveloped nation, which is kept impoverished in order to create wealth for that of another nation, the United States. The reader is shown that the act of globalization and inclusion in the world’s economies, more directly the United States, is not always beneficial to all parties involved. The data and interviews, which Hellman has put forth for her readers, contain some aspect of negativity that has impacted their lives by their nation’s choice to intertwine their economy with that of the United States. Therefore it can only be concluded that the entering into world markets, that of Mexico into the United States, does not always bring on positive outcomes. Thus, one sees that Mexico has become this wasteland of economic excrement; as a result it has become inherently reliant on the United States.
Kurian, George Thomas, ed. "Mexico: Economy." World Geography and Culture Online. Facts On File, Inc. Web. 13 May 2014. .
· According to Euromoney, Mexico?s ranking among borrowing countries improved between March and September 1994
Many years of war made Latin America’s economy suffer, and made it almost impossible to be able to recover from their debt. A stable economy was crucial to be able to gain credibility, from other countries so that investments would continue. In Peru, for example the silver mines and machinery where destroyed beyond repair. “Horrendous economic devastation had occurred during the wars of independence. Hardest hit were…Peruvians silver mines. Their shafts flooded, there costly machinery wrecked.” 120(Chasteen ). This made Peru suffer greatly because this was one of their main trades. In Mexico, one of their largest economic struggles was the lack of transportation infrastructure, meaning that Mexico did not have railroads. Mexico also lacked navigable rivers which made it much harder to be able to...
Kehoe, Timothy J. (November 2010). Why Economic Reforms Have Not Generated Economic Growth in Mexico. Kim J. Ruhl Department of Economics, NYU Stern School of Business. Retrieved from http://www.kimjruhl.com/storage/data/KehoeRuhlJEL.pdf
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