Public Policy Madison Samuels, Andrew Kendall, Megan Glova, Lauren Dunlap

HDI,GDP, GNI Andrew Kendall

HDI Human Development Index Based on a formula that takes into account the three factors of longevity (life expectancy at birth), knowledge (literacy and average years of schooling), and income (according to PPP). Mexico’s literacy rate is 86.9% for men and 85.3% for women. Mexico’s life expectancy is for men and 79 for women.

GDP Gross Domestic Product GDP is the monetary value of all the finished goods and services produced within a country's borders in a specific time period. Usually calculated on an annual basis. Official Exchange rate: $1.163 trillion GDP per capita (PPP): $15,300

GNI Gross National Income GNI is the gross domestic product (GDP) plus net receipts of primary income (employee compensation and investment income) from abroad. The latest value for GNI in Mexico was $1,012,540,000,000, as of 2010.

Problems and Reforms Madison Samuels

Mexico’s Problems Growing Gap Between Rich and Poor Grew due to rapid economic growth Mexico had one of the most unequal income distribution of all the LDs The bottom 40% never making more than 11% of the total wages Has become a little less of a problem but still an important one

Problems Continued Rapid and Unplanned Urbanization Major cities (The Fed District, Guadalajara, etc) became overpopulated disasters Millions of people without sewers, electricity, or running water Bad highway planning No mass transit Among the worst traffic in the world Dirty air unsafe to breathe

Reform President Miguel de la Madrid started dramatic reforms which continued through Salinas and Zedillo’s presidency Sharp cuts in government spending ◦Austerity plan reducing government spending ◦Job cuts ◦Subsidies to government agencies removed ◦Eliminated hundreds of public enterprises

Reforms continued Debt Reduction US devised a plan that allowed more generous repayment terms and gave loans a reduced interest rate Mexico still suffers from debt Average of $10 billion of interest payments a year

Privatization Economic power of Madrid’s government were reduced Privatized many public enterprises Special laws and cheap labor made US companies invest in Mexico

Attempted Energy Reform Felipe Calderon, president starting in 2006, created a reform to give PEMEX (Mexican petroleum company) “greater budget autonomy” and to intensify the oil industry’s regulations Also allowed PEMEX private contractors and contracting of refining Legislature opposed because they believed Calderon was trying to privatize PEMEX

Population Issues Lauren Dunlap

Population Background 114 million people Most populous Spanish-speaking country in the world Population growth has slowed significantly to approximately 1.1% Population is still increasing Gaps in population between: ◦Urban and Rural ◦North and south

Urban Population 75% of entire population lives in the cities or along the coasts 21 million living in or close to it Urbanizing rapidly Shifting from rural to urban has disrupted traditional politics in Mexico, including the patron-client system

Northern Population More prosperous than south many involved in trade with the United States Middle class with high education Expanding faster than south

Southern Population Less influenced by urban areas and the United States Lower incomes than in the North Typical adult only has about 6 years of schooling (compared to the north’s 8 years)

Population Issues Summary Gap between North vs. South and Urban vs. Rural divide the population Incomes of the poorest half of the population are growing faster than the average Population issues are effecting the economy

Foreign Affairs Meghan Glova

Foreign Policy After the 1982 crisis, it became obvious that a policy was needed to encourage an increase in Mexican exports and open markets to foreign goods.

Foreign Policy Continued After 1982, Mexican private industries were encouraged to produce goods to export, tariffs were reduced (and even eliminated), and there were loosened restrictions on foreign property ownership

Maquiladora In the 1960`s a manufacturing zone was established south of the United States border in Northern Mexico. The workers in this maquiladora district produced a majority of their goods for United States consumers.

Maquiladora and NAFTA In 1995, Mexico, the United States and Canada signed the North American Free Trade Agreement (NAFTA) to eliminate free trade barriers in the three countries. Now, those working in the maquiladora make up 20% of Mexico`s labor force.

Trade Agreements GATT/WTO (1986) - The General Agreement on Tariffs and Trade - Attempted to promote an increase in free trade among countries. - This agreement created the World Trade Organization (WTO) - Mexico has now begun to export goods besides oil, and has started to trade with a variety on different countries besides the United States.

Trade Agreements NAFTA Main goal: integrate the economies of Mexico, Canada and the United States by reducing restrictions and eliminating tariffs so companies have more freedom to expand. Negatives for Mexico: Mexico could be “overshadowed” by the United States, and these two countries have gotten into political battles over road transport.

Immigration Policy NAFTA does not allow a free flow of labor across borders. Vicente Fox proposed an immigration policy including guest worker programs, amnesty for illegal immigrants, increase in issued visas, and movement to an eventual open border. Fox`s plan would have let Mexicans work in the United States legally and offered green cards to illegal immigrants living in the United States. Fox assured he would prevent additional illegal immigration by tightening the Mexican border

Immigration to US

“Building Blocks” Article on free trade by The Economist. deals-are-only-game-town-supporters-free-trade-are-they-any