Mexico's Rising Inequality
1997; Monthly Review Foundation; Volume: 49; Issue: 7 Linguagem: Inglês
10.14452/mr-049-07-1997-11_3
ISSN0027-0520
Autores Tópico(s)Economic Theory and Policy
ResumoMexico, like most other Latin American countries, has seen social inequality significantly increase as free market reforms have been introduced. The transition from protectionist to free trade policies began, not in 1994 with the inauguration of the North American Free Trade Agreement (NAFTA), but rather in 1982 under the administration of Miguel de la Madrid. The new president inherited an economic crisis caused by declining oil revenues and soaring debt payments that began at the end of the administration of his predecessor, Jose Lopez Portillo. The International Monetary Fund (IMF), in return for new loans, required a steep peso devaluation, which resulted in declining real income for the majority of Mexicans. The IMF also applied pressure for other market-oriented reforms including a shift from protectionist to free trade policies. De la Madrid followed the IMF urging and significantly lowered tariffs on imported commodities, signalling the shift away from the decades-long policy of using high tariffs to protect domestic producers. Thus began the era of neoliberal reforms that has continued up through the present, largely capstoned—rather than begun—by the inauguration of NAFTA on January 1, 1994.This article can also be found at the Monthly Review website, where most recent articles are published in full.Click here to purchase a PDF version of this article at the Monthly Review website.
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