Economic Issues In Mexico

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A major finding in this country report was the following: In recent years Mexico has experienced economic growth and overall quality of life for its citizens has improved but it is still short of being fully developed country. It was also found that the United States and Mexico have increasingly close ties whether it be social politically, or economically. With a Mexican population of about 33.5 million living in the United States (The World Factbook), having knowledge on one’s neighbors and residents is very important. The objective of this report is to describe social, political, and economic issues that have and are occurring in Mexico. First the report describes Mexico’s economy including: current GDP, economic reforms, and economic stability. …show more content…
Implemented by the current president Enrique Pena Nieto these long-term economic reforms aim to raise competitiveness and boost the Mexican economy. The current government has also adopted structural reforms that can help the economy further grow. One of the major economic risks is that over 20% government revenue comes from, PEMEX, the state-owned oil company; with falling oils prices, the country faces a great economic risk (Investment Climate). For Mexico economic risk remain and relate to high inequality, weak rule of law, low productivity, and corruption (The World Factbook) as well as narcotic traffic and an increasing flow of immigrants (Focus Economics). While the government has implemented measures to improve the situation full improvement has yet to be …show more content…
The chief of state and Head of government is the current president Pena Nieto. The president is elected by majority vote, the cabinet is appointed by the president, and the president is elected by majority vote (WorldFactBook). There are three major political parties PRI (Institutional Revolutionary Party), PAN (National Action Party), PRD (Party of the Democratic Revolution). During World War II, Mexico supplied vital raw materials to the United States (Mexico - World War II).While Mexico was not as involved in World War II as the United States, it did lead to economic, political and social changes. During but especially after the war, industrialization and urbanization began to increase in Mexico. Mexico began to prosper and a drastic increase in the population was seen. But by the 1970’s an economic strain occurred, oil prices drastically fell, and the Mexican government could not afford to pay their foreign debt. As the inflation rate grew so did unemployment and underemployment, investment was being taken abroad. By 1976, economic stability was reappearing. To improve the economy the president at the time, Jose Lopez Partillo, nationalized the country’s banks and enforced strict foreign-currency controls. In 1988 by PRI president Carlos Salinas implemented free market-driven policies that were much different from the ideals of

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