WHY MEXICO, CHAPTER 8 (Part I)

Can Mexico eradicate poverty and become a developed country? 

THE THREAT THAT COMES AND HOW TO TRY WITH IT

   In no more than fifty years, most of the transnational corporations that now have facilities in México, will no longer need Mexican labor, due to automation, so they will migrate to get closer to their natural markets and the Mexican economy will collapse.

   In addition, also in fifty years, Mexican oil sales will decrease due to the use of other sources of energy.

   I used to think that Mexicans were right in saying that for México to succeed, Mexicans had to change.

   Now I am convinced that the only way in which Mexico can survive is to put into practice what Mexicans are, without them remaining inactive waiting for the miracle of becoming what they are not.

   Mexico has the knowledge, institutions, genius, and social values necessary to become a World Economic Power.

   This can be achieved if.

1.     Mexico launches the potential of its people.

2.     México implements a long term Development Plan.

STEP ONE. MEXICO LAUNCHES THE POTENCIAL OF ITS PEOPLE.

   We have to remember that to solve any problem we must described it first.

   That is always a great challenge, especially when the existence of problems is denied.

  That is precisely what Mexicans face. They do not accept or understand the existence of the following problems.

·        Despite the love that all Mexicans have for their country, they lack a common national identity.  Mexicans are divided by many prejudices (including racial prejudice), and are not interested in reviewing them.

·        The history of México hides the fact that the wars of Independence and Revolution benefited only those who were already part of the privileged minorities, perpetuating a culture of exclusion of those who were only taken into account to risk their lives in battles. Mexicans must realize that the least benefited deserve help, and that making amendments is the only way to reduce social tension and see the future with confidence.

·        The education system is producing mainly low-wage labor. Students and their parents tend to deny this until graduates have to accept a low-paid job.

·        Foreign Industries do not provide sustainability to the Mexican economy. Transnational corporations are present in industry, agriculture, and service activities, and benefit national economy through low wages and purchases of consumables, materials, crops and so on. Unfortunately transnational corporations do not have a commitment to the local economy, but to more profitable operations wherever they can be achieved. This makes the Mexican economy very vulnerable to any negative effect technology may have, and forces wages to remain low to be competitive with wages in other countries.

·        Politicians withdraw Public officials at will. This practice produces many negative effects on the performance of the Public Administration. Given that the Public Administration offers all Mexican the possibility of obtaining a well paid job when a friend or close relative is designated for a place of power, many Mexicans have the idea that the permeability of the Public Administration is a benefit instead of a problem.

·        Creditors are abusing Mexicans and the government is allowing that. In general, Mexicans do not see it that way and they even ask for more credit and credit cards because that gives them an idea of security and success that has not logical explanation.

·        There is a common understanding that providers are a natural source of financing. Neither Mexicans nor their government seem to realize that it is a problem and that to solve it, banks must reassume their financial role so that suppliers are no longer use as a banking alternative.

   If these problems are solved, all productive activities will coexist in a less dangerous way.        

STEP TWO. MEXICO IMPLEMENT A LONG TERM DEVELOPMENT PLAN

   To plan their economy, Mexicans must stop thinking about the classic economic theories of left and right. Mexican politicians have managed to put in place a free market economic model that cannot be classified in any direction.

   Experts in Economy and opinion leaders from the “Left” and the “Right” have been debating that issue without knowing what they are talking about.

   Currently the only philosophy of economics that can vaguely explain what is happening in México is “Savage Capitalism”. Now the best thing that Mexicans can do is to tame the beast they have created.

   Lopez Obrador, the new president of México has mentioned the need for a long term economic development plan and is establishing a promising relationship with industrial organizations and foreign investors.

   Once again, the main opponent of Lopez’s project is the ongoing National Culture.

   It is desirable that Mexicans understand that:

Ø Globalization is here to stay.

Ø Being a provider of low cost workers will not sustain Mexico’s economy for more than 50 years.

Ø Having good figures for the Gross Domestic Product is not evidence of a healthy economic system if the per capita income does not provide stability and social mobility to at least 90% of the population.        

   This last characteristic of a healthy and just economic system is not present in most countries. I think that is why the politicians and ideas against the “state of affairs” are winning elections around the world.