Sociology of Developing Countries Essay
SOC300 Sociology of Developing Countries
The Mexican Development
During the last decade Mexico's economic performance has been positive. In 2001 Mexico became Latin America’s largest economy according to the IMF. The implementation of economic policies have strengthened Mexico's fundamentals and increased its resilience to external shocks. Due to the GDP1 growth (25.7% percent higher than the Brazilian) Mexico is considered the fourth fastest growing economy among the 30 largest economies in the world and it is expect that the economy will growth 3% and soon It could become the first and that is why further lending needs to occur.
Mexico has also achieved …show more content…
Mexican economy has had a very positive performance compared to other third world countries, registering a 4.8% GDP growth in real terms during 1998, and it made Mexico the fourth fastest growing economy among the 30 largest economies in the world. This good performance was the result of the domestic and external economic demand. Also unemployment has maintained its statistics down thanks to the creation of new jobs in the formal sector of the economy.
According to the Mexican Social Security Institute (IMSS) the workers registered by the end of 1999 increased by 432,531, which means that these new people got employee. The unemployed rate by the end of the year was 2.8%, which has been the lowest level since 1991.
IV. Economic Program
For the first time in Mexico’s story, in November of 1998, the Federal government presented to the Congress an economic strategy policy for a two-year period (1999-2000). The fiscal consolidation and the reduction of the inflation were the priorities. The public debt was managed also to reduce its financial costs, increased its maturity profile and avoid the accumulation of over payments. All these elements will help the stability of the macroeconomic and will show into higher growth rates. a) Fiscal Policy b) Exchange rate policy c) Debt management
V. Structural Reforms a) Private Sector involvement