Mexico Development Policies

1. Gizem YALÇIN
130301039
MEXICO
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2. Introduction: Country Description
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3.  Mexico located in North America and is bordered by
the United State,Belize and Guatemala.
 Mexico's economic history has been characterized
since the colonial era by resource extraction,
agriculture, and a relatively underdeveloped industrial
sector.
 Economic elites in the colonial period were
predominantly Spanish born, active as transatlantic
merchants, silver mine owners and diversifying their
investments with the landed estates.
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4.  New Spain was envisioned by the Spanish crown as a
supplier of wealth to Iberia, which huge silver mines
accomplished.
 Crown economic policy rattled American-born elites’
loyalty to Spain when in 1804 it instituted a policy to make
mortgage holders pay immediately the principal on their
loans, threatening the economic position of cash-strapped
land owners.
 The 19th century Liberal Reform attempted to decrease the
economic power of the Roman Catholic Church and to
modernize and industrialize the Mexican economy.
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5.  Following civil war and a foreign intervention, the late 19th
century found political stability and economic prosperity
during the presidential regime of General Porfirio Díaz (1876–
1911). Mexico was opened to foreign investment and to a
lesser extent foreign workers.
 The mining industry revived in the north of Mexico and the
petroleum industry developed in the north Gulf Coast states
with foreign capital.
 Regional civil wars broke out in 1910 and lasted until 1920,
known generally as the Mexican Revolution.
Following the military phase of the Revolution, Mexican
regimes attempted to "transform a largely rural and
backward country into a middle-sized industrial power’.5

6.  The Mexican Constitution of 1917 gave the Mexican
government the power to expropriate property, which
allowed for the distribution of land to peasants, but also
the Mexican oil expropriation in 1938.
 Mexico benefited economically from its participation in
World War II and the post-war years experienced what has
been called the Mexican Miracle (ca. 1946–1970). This
growth was fueled by import substitution
industrialization.
 The Mexican economy experienced the limits of ISI and
economic nationalism and Mexico sought a new model
for economic growth.
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7.  Huge oil reserves were discovered in the Gulf of Mexico in the
late 1970s and Mexico borrowed heavily from foreign banks
with loans denominated in U.S. dollars.
 When the price of oil dropped in the 1980s, Mexico experienced
a severe financial crisis.
 Under President Carlos Salinas de Gortari Mexico campaigned
to join the NAFTA with the expanded treaty going into effect in
Mexico
 Mexico implemented neoliberal economic policies and changed
significant articles of the Mexican Constitution of 1917 to
ensure private property rights against future nationalization.
 In the 20th first century, Mexico has strengthened its trade ties
with China, but Chinese investment projects in Mexico have hit
roadblocks in 2014-15.
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8. Why I Choosed Mexico?
 Mexico's $1.3 trillion economy has become increasingly in
the 20 years since the North American Free Trade Agreement
(NAFTA) entered into force.
 Mexico is abundant resources.It is the world’s greatest
prodecer silver and also oil,natural gas.
 Mexico is the world’s 9th greatest greenhouse gas emitter.
 It is responsible for 3% of the world’s total GHG emissions.
370 millions tones(3.8 tonnes per person)
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9. Mexico’s Advantages and
Disadvantage’s
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 Advantege’s; Mexico is the world's eighth largest producer of
oil, at nearly three million barrels per day.
 Mexico's first export is manufactured products. It also exports
silver, fruits, vegetables, coffee, and cotton.
 Disadvantage’s; The biggest challenge is getting rid of the
drug cartels. President Peña Nieto's focus is to
increase security spending from %1.5 to %5 of GDP the level
that worked for Colombia.
 Many Americans worry about illegal immigration from
Mexico. The country is actually gaining immigrants itself. The
legal foreign-born population now one million total. Of these,
750,000 are Americans.
 As a result, more Americans have immigrated to Mexico over
the past few years than vice-versa.

10. National Sustainable Development
Strategy
 The 2001-2006 national developmet plan establishes sustainability
as one of its twelve basis principle. (Secretariat of Environment
and Natural Resources)
 There are six years programs established by the Mexican President
at the begining of the presidential term.
 It releated to the environment and the promotion of sustainable
development.
 Unlike previous plan prepared under other administrations,the
current plan provides both.
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11.  Plan 2001-2006 has three main objectives:
1) Social and Human Development : improve the well being
of the population.
2)Growth with Quality: develop the national economy with
increase competitiveness and promote balance regional
development.
3) Order and Respect: improve co-operation among
authorities,make progress towards decentralization.
 Every develops a national sectoral program with the
President’s based on its own long term(25 year)
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12. Services
56%Industry
24%
Agriculture
20%
Labour Force
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13. 2002 2003 2004 2005 2006
GDP(ppp) $924.4
billion
$10.713 $11.330 $12.212 $13.298
Gdp (per
capita) $6.650 $6.940 $7.470 $7.810 $8.370
Unemploym
ent Rate %3 %5 %8 %5 %6
Human
Developmen
t Index
0.800 (#55) 0.714(#66) 0.719(#66) 0.723(#67) 0.731(#70)
Life
Expectancy
at birth
74.74 74.94 75.12 75.28
(50th)
75.44
Corruption
Perceptions
Index
36 (#57) 36 (#64) 30 (#65) 35 (#65) 33 (#70)
Co2
emissions 3,97 4.16 4.12 4.29 4.35
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14. Second Development Strategy Program
 Since 2013,Mexico has pursued and enacted a historic economic
reform that will increase the growth potential of the economy
while promoting strong,sustainable and balance growth.
 The objective of the Mexican government is to guarantee the full
implementation of the reforms.
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15. Macroecconomic Policy Responses
 Second key include four field.
A)Investment and Infrustructure:The NIP includes 743 infrastructure
projects to be devoloped between 2014 and 2018 in the following
sectors: Energy($143.8billion),Communications and
Transpotation($102 billion), Water ($32.2 billion), Tourism ($14
billion) and Health(5.6 billion)
B)Employment
C)Competition
D)Any other structural policy:The Energy reform aims to increasing
privateinvestment across the whole sector.The government perform
exploration activities oil,natural gas ,gasoline.
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16. 2013 Current and future growth prospects
2013 2014 2015 2016 2017 2018
Real gdp
growth % 1.4 2.7 3.7 4.9 5.2 5.2
Inflation
3.97 4.02 3.0 3.0 3.0 3.0
Fiscal
Balance -0.4 -1.5 -1.0 -0.5 0.0 0.0
Current
Account
Balance
% of Gdp
-2.1 -1.9 -2.0 -2.0 - 2.1 -2.1
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17. The Mexicon Economy Now and Future
 The Mexican economy is still growing. After achieving 2.4%
in 2017, the Mexican economy will continue to grow at rates
above 2% in 2018.
 The same will hold in 2019. Although this is an impressive
pace, given the external constraints, it still falls short of what
Mexico needs to make a significant cut in poverty and to
create the jobs that their young people are demanding.
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18. Mexican Economy in 2018 Points to a
Number of Positive or Encouraging Signals
 1)Fiscal performance is improving. The process of fiscal
consolidation is on track, limiting the growth of debt and keeping
financing costs low. The tax reform has boosted non-oil revenues
 2)Monetary policy continues to be independent, responsible
and reliable. Although inflation has exceeded its forecast range,
the Bank of Mexico has taken appropriate decisions to reduce the
inflationary index over the course of 2018, raising interest rates
from 3% at the end of 2015 to around 7% at the end of 2017.These
high interest continue 2018.18

19.  3) Exports are growing. The value of Mexico's total goods
exports rose by around 10% in 2017. The challenge is to link
Mexican SMEs into these flows. The share of Mexican SMEs in
global value chains is still very low.
 4) Foreign direct investment is also growing. Inflows of
foreign direct investment to Mexico in the first half of 2017 were
up by around 9%
 5) The reforms are already bearing fruit. The results of the
telecommunications reform are impressive: prices for mobile
broadband service fell by up to 75%,
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20.  5) The energy reform has boosted private investment by
nearly 80 billion dollars.
 The labour reform has led to the creation of around 3 million
jobs during the present presidential mandate to date.
 The education reform has made merit and transparency the
hallmarks of the education system's management.
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21. Current Indicators
2017 2018
Gdp current $1.152 trillion $1.047 trillion
Gdp per capita $9.830 $9.707
Unemployment Rate %3.2 %2.9
HDI 0.762(#77)
CO2 Emissions 4.002 3.86 metric tones per
capita
Life expectancy at birth 76.933 (#46) 77.118 (#46)
Corruption Perception
Index 29 (#135)
Growth Rate %1.87 %2.1
Population 124.221.600 127.540.423
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