Saturday, January 29, 2011

Pokemon Yellow Online

Development and Growth in the Mexican Economy: A Historical Perspective



David Ibarra



History and national development



In Mexico, citizens would like to make things better walk. Apart from the eradication of organized crime, or perhaps because of it, is widespread aspiration, folded exclusion and poverty, create opportunities to overturn informal employment in the modern sector of the economy. In short, you want to resume growth, the impasse, understand well what happens. Exiting

new impasse in which we are is a question not addressed or if it is under pressure from distorting ideologies or interests overwhelming. Thus, they were well received in their time critical essays The Mexican Revolution is a fact or past de Silva Herzog of Mexico's crisis de Cossio Villegas. O broader economic literature, although somewhat aged, among them Mexican economic reality: rear view and perspectives of Leopoldo Solis, and The Mexican Economy: Twentieth Structure Growth and Clark Reynolds. now, deserves the warmest welcome the book of Moreno-Brid and Jaime Ros, Development and Growth in the Mexican economy, which is to catch up, to fill a gap in the economic history of independent Mexico with a systematic account, valuable, which also includes events of the late twentieth century and the early years of which we live.

The main merit of the work translated and published under the seal of the FCE worth, is to contain an interpretation of events, strengths, successes and failures of government that have determined the evolution of national development since independence until today . The emphasis on the weight of history and sociopolitical factors, much distinguishes this book from monism which abounds in the work of many authors. Another virtue of the analysis presented is its impartiality, while still being critical does not take sides between conservatives and liberals in the nineteenth century, nor after technicians, bureaucrats, free traders or statist.
In each period, our authors try to identify the major impediments to development and responses of governments and economic elites. For example, in the disorder of the half century following independence, the investment process stops, we suggest, not only by lack of roads and communications or insufficient skilled labor, but institutional and political factors related to the search for a new canon of political organization and growth. The checkpoints fractionated country markets and, above all, makes, persistent social inequality. To these faults are added disagreements between political factions, including the successive waves of state officials and between economic agents. The constellation of circumstances that require inhibitory to prosperity, clarifies the nature of Diaz's success in producing a clear step up the economic ladder. In institutional terms were integrated markets and created a banking system, as well financed the State to the nascent industrial entrepreneurship. Similarly, investment in railways struck internal transport costs, helped to unify the internal market and to open the country to foreign trade. A break of the pitfalls that legacy, governments joined Porfiristas authoritarianism or replaced forcing consensus on economic policy, the cost of reinforcing the democratic and distributive marginalization that eventually opened the doors to the Revolution. In any case, the growth rate increased from 0.4% to 3.6% per year from 1820-1870 compared with 1870-1910 periods. The Diaz regime drops its social and political sins, not for its economic success, each other but form an indivisible whole.
Between 1970 and 1981, GDP rose at a rate of 6.8% and income per capita at 4.1% year on year. Public investment in physical infrastructure and private returns favored coinciding with the industrial policy of protectionism and to the work of development banks to expand domestic demand and supply simultaneously. social and political stability gained was based on the effects of land reform, corporatist organization of workers or the creation of institutions. All this culminates in the golden period of stabilizing development in which high growth rates achieved with relative price stability. In part, the price of that achievement was the postponement of necessary internal changes, fiscal reform, financial modernization, political reform, as well as adaptive measures of protectionism to the external opening.

The currency crisis of 1982, the imbalances of the balance of payments, external debt in parallel to the vertical rise of domestic interest rates complicate the deferrals are reforms outlined and put into crisis the whole of the previous development strategy. At the same time, at the international level, the progressive Keynesianism post-war social reconstruction, gives way to the neoliberal paradigm of stabilization and individualism. Mexico, weakened, must begin the painful process of economic adjustment over the next three decades, while redirecting public policies in line with the new paradigms of economic order. The country vulnerable to external phenomena and unconsolidated safe path, undergoes a series of crises (1982, 1987, 1995, 2001, 2008) that reduce their average growth rate of no more than 2% per annum from the early 80's and the first decade of this century. Today, the fundamental obstacles to access welfare of the population, are the low level of public investment, the dismantling of industrial policy, the shortage of production financing, the sustainability of the overvaluation. And socially, the problems of educational backwardness of the coverage of health systems and social security, as well as the exorbitant explosion of informality and the continuing concentration of income. From the foregoing, the authors draw an outline of actions they might take account of authorities and political elites: to expand fiscal space and public expenditure, change in depth the monetary, exchange and credit, print depth to sectoral development policies supported by public banks, improve external integration and deliberately put the emphasis on employment policies. As seen, the task is enormous and it is, decades of neglect of the core issues of economic management in our society. Political analyst



Source: http://www.eluniversal.com.mx/editoriales/51509.html


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