posted Apr 28, 2015, 5:18 AM by Hernan Cortes
updated Apr 28, 2015, 5:19 AM
With a strong national culture and positive international relations marred by expanding cartel violence, we wanted to know, just how powerful is Mexico?
Mexico is poised to become Latin America’s economic star in the coming decade. The government’s recent reform of the energy sector will contribute directly to economic performance by reducing the cost of manufacturing.
In the context of the North American Free Trade Agreement (NAFTA), the resulting increase in manufacturing competitiveness promises to boost Mexico’s growth substantially.
None of this is to deny that Mexico still must confront other significant problems. For example, primary and secondary education needs improvements that the teachers’ unions are blocking, and criminal activity, much of it drug-related, makes personal security a serious concern throughout the country.
Mexico's poverty rate fell 0.6 percent between 2010 and 2012 to 53.3 million people, the government's social development agency Coneval said. Factoring in population growth, the ranks of the poor grew by half a million people in that time. That rise underscores the challenges President Enrique Pena Nieto faces as he tries to lift millions of people out of poverty and boost growth in Mexico, which has a huge wealth gap.
But, despite such problems, the energy and electricity reforms, and the deeper links with the US and Canada that they imply, promises to accelerate Mexico’s growth rate, boost employment and income, and thus raise Mexicans’ standard of living.