Mexico Confronts the Challenges of Global Competition

The End of Nostalgia

Mexico Confronts the Challenges of Global Competition

Editor Dr. Diana Villiers Negroponte recieved her JD from Georgetown University and practiced law specializing in international law and aviation matters. She played an active role with the U.S. Chamber of Commerce in Mexico during the negotiations for the North American Free Trade Agreement. She has assembled colleagues from both sides of the Rio Grande to examine the steps necessary for this proud nation to continue its momentum toward effective participation in a highly competitive world.  With one foot on North America and the other in South America, it is a land in transition, from a one-party political system steeped in a colonial Spanish past toward a modern liberal democracy with open markets.


Excerpt:

In 1993, this author’s speech before an association of engineering companies in Guadalajara on the opportunities presented by the North American Free Trade Agreement (NAFTA) was greeted with significant criticism. The prospects of competitive trade implied a threat, and all the questions from the audience centered on how their businesses might survive. Twenty years later, the same companies have either gone out of business or adapted to the reality of international trade and global competition.


Metamorphosis is not easy; economic and political transformation, in particular, is hard. However, a proud trading people can find confidence in their heritage.


Today, Mexico has become a manufacturing center, with family-owned companies engaging in international trade and acquiring new technologies. Protectionist regulations are being dismantled, and young business leaders learn colloquial English, study at international business schools, and connect easily with foreigners. The young men and women whom I met over two years at a business summit held in the colonial city of Queretaro are not resigned to the new reality; instead, they seek to thrive in a competitive world. Their network is global, including colleagues encountered at school, at professional conferences, and on social media. They interact with foreigners with enthusiasm; they take on new international contracts with excitement.

But the old ways are hard to eradicate. The yearning for the predictability of government contracts, dependence on political patrons, and reliance on family ties have not disappeared. The authors of these chapters therefore agreed on the need to analyze and relate how the old Mexican system is changing. Metamorphosis is not easy; economic and political transformation, in particular, is hard. However, a proud trading people can find confidence in their heritage. Continued democratization and exposure to foreign competition is inevitable, but efforts to put the brakes on that process should not be ruled out. Therefore this volume is also about protest and conflict deep within the Mexican political economy.

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The End of Nostalgia is available in both hardcover and eBook formats:

 

What's Inside

Piecing Together the Puzzle of Mexico’s Growth - What happened to the lusty 7% growth of the 1960s and 1970s?
Arturo Franco (Harvard University)
What might explain Mexico’s lack of competitiveness? A comprehensive review of the factors that —rigid labor markets, inadequate infrastructure and access to finance, size of the informal labor sector, high cost of energy, poor education system, and Chinese competition yields no easy answers.

Unlocking Mexico’s Political Gridlock - Is the Mexican legislature a "Siesta Congress?"
Arturo Franco (Harvard University)
In the last 20 years, Mexico has moved from a hegemonic party system under the PRI to a political equilibrium in which the three major political parties together account for 90 percent of the votes but none exceeds 42 percent. Since the election of a president from the PAN in 2000, no president has enjoyed a majority in congress, and coalitions must be formed to pass legislation

Energy Challenges for the Pena Nieto Administration – An examination of the serious decline in petroleum reserves in Mexico
Duncan Wood (Director of the Mexico Institute at Woodrow Wilson International Center for Scholars)
With corrupt practices, political interference and lack of accountability within PEMEX, the state owned petroleum company, opportunities for natural resources may be missed. Wood presents specific solutions to augment energy supplies and is extraordinarily optimistic about Mexico’s renewable energy potential.

Toward Regional Competitiveness Agenda: U.S.–Mexico Trade and Investments – How trade and investments are strategic drives of the U.S.-Mexico relationship
Christopher Wilson (Mexico Institute of the Woodrow Wilson International Center for Scholars)
Mexico is the United States’ second-largest export market, and the United States is Mexico’s largest export destination. However, the high growth rate between bilateral trade and investment has slowed due to the increasingly low cost of labor. Wilson posits how to spur trade and increase regional competitiveness through a Trans-Pacific Partnership.

The Priority of Education in Mexico – An examination of the quantity and quality of education in Mexico
Armando Chacon (Mexican Institute for Competitiveness)
Pena Nieto’s administration has yet to propose a budget that provides the funding needed for critical education reforms. Yet, significant value is added with respect to health, absorption of new technologies, and parenting skills for every additional year of schooling beyond sixth grade. Chacon examines and provides recommendations around improving education public policies.

Security Policy and the Crisis of Violence in Mexico  - A critical assessment of current public security in Mexico
Eduardo Guerrero (Lantía Consultores)
Under Presidents Calderón and Peña Nieto, intentional homicides have diminished. But serious problems remain: the slow pace of reforming to criminal justice procedures, inadequate resources to reform the correction system, and inadequate domestic intelligence capabilities. Guerrero presents eight recommendations tailored to address the main sources and consequences of organized crime–related violence.

The Merida Initiative: A Mechanism for Bilateral Cooperation – Tracing the evolution of the Merida Initiative
Diana Villiers Negroponte (The Brookings Institution)
The Merida Initiative has evolved from a mechanism for the delivery of sophisticated, custom-made equipment to being a developer of programs that support training of law enforcement and gang prevention.  Now, the Mexican government is reexamining its security policy, and U.S. priorities have also shifted. Negroponte asks if Merida has run its course, and if so, what mechanism should emerge to continue U.S. support and funding.

Mexico and the United States: Where Are We and Where Should We Be? – An expert view on the U.S.-Mexican bilateral relationship
Andres Rozental (Eminent Ambassador of Mexico)
Rozental demonstrates his deep knowledge of the U.S.-Mexican bilateral relationship, based on thirty years of negotiations with the U.S. government on maritime boundaries, nuclear proliferation, border issues, and immigration.  Rozental recommends de-scrutinizing the bilateral agenda and prioritizing trade, investment, climate change, and the Trans-Pacific Partnership.