The Real Mexico: Narcotrafficking or Economic Growth?
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I had an interesting conversation with Jorge Ramos and Jesus Esquivel, author of La DEA en México, this weekend on Al Punto. You can watch it here:
Published in conjunction with Latin America’s Moment at the Council on Foreign Relations.
Hi Shannon, I’m really happy that I now know of your blog and will be following closely. Great insight and analysis! I’m looking to improve my knowledge and understanding of issues in the region as I plan to pursue postgraduate studies focusing on Latin America beginning in 2014. Best wishes from Sydney, Peter
An an MBA living in Mexico, I just cannot reconcile Mexico’s giant growth and increase in capital with visual confirmation (I live in Mexico) that Mexico’s balance of trade is fabulously skewed in favor of negative trade balance.
It does not fit. Income generated by oil, and the manufacturing sector versus the billions of dollars leaving the country for consumer goods not manufactured in Mexico. Volkswagen, Ford, Audi, they all have plants here. Coca Cola, Bayer, Nestle, the percentage of the manufacturing base of foreign origin is stupendous. Foreign investment is not present in Mexico to “lose money”. Agriculture? How can seventeen cents per pound tomatoes, hope to offset the trade deficit?
It does not fit. If Mexico were an American Company, and the FBI and IRS learned of the company’s economic profile, their hair would stand out on end. Go to any big box store, look at shoppers emerging with shopping carts loaded with goods. Comprehend the amount of money in those carts that contribute to negative balance of trade. Look at the autopistas. Where is all this money coming from? The aggregate total of foreign investment in this country cannot begin to touch the amount of negative trade balance.
Yet the peso remains strong, and the stock market is flying high. Crude oil market prices? I remember the crown prince of Saudi Arabia quipping years ago “If you believe an oil exporting country earns more than a fraction of current market prices, you are dreaming”
Billions and billions of dollars are entering the country apart from the published figures, and fueling the “prosperity”. Like that fast food burger advertisement of years ago featuring the little old lady lifting a corner of the bun and declaring “Where’s The Beef?”
It Does Not Fit
Where’s The Beef?