San Valentin

Structural problems in Mexico

The economic downturn in the country has been justified by the external crisis that impacts us, but stagnation in economic growth is caused by internal factors.

In recent months the issues of unemployment, economic growth, public finances and poverty have been an important part of care by specialists and media.
The financial crisis that exists has been theframework under which explained the fact that Mexico is facing a severe contraction of economic activity, where the reduction of 9.5% in Global Index of Economic Activity (IGAE) of January or 11.1% in industrial production figures are jointly not appreciated since the 1995 crisis.

As a result of this can be understood that the unemployment rate is increasing to 5.3% in the month of February,making it the highest in the last nine years. When the public finances report the first two months of 2009 showed a 6.7% reduction in tax collection, no doubt part of the explanation lay in the lower level of consumption and layoffs that occurred in the country (nearly 600,000 since November last year) have led to the taxation of the Value Added Tax (VAT) and income tax (ISR) in the January-Februarythis year has been lower than the same period in 2008 (21.9 and 6.2% respectively).

Overall, this represents a reduction of income for the public sector, where the variable remains relatively healthy for your finances is the inflow of resources that represents the sale of oil and high tax revenues that there is clear.

What previous figures represent a country with a lower economic dynamics,and therefore has a lower income, which is certainly a poorer country, or if you see otherwise less rich. It has been said that the crisis comes from abroad, and for the first time is not our fault, but it seems important to reconsider that argument since it implies that once the crisis ends a cycle begins again for economic growth in Mexico. The 2.6% average annual growth since 1981 shows thecountry seems to belie this perspective, because on a per capita average growth recorded since that date barely scratches the 1% marginal amount for an economy with high energy resources, human capital , with numerous trade agreements and geographical situation in terms of logistics represents the gateway to the world's largest market.

Do not be condescending to the question of economic growth,since it is the source of wealth for the population, and a modest increase stands as the people have no more resources to significantly raise the quality life. In that sense the current economic crisis is not the fault of the lethargy that showcases our production system, lack of productivity and competitiveness is a structural issue and stale, which could not be solved and it represents one of themajor contradictions in history country's recent economic: How is to compete in the global economy if it is not productive and efficient, the answer and economic policy measures should be implemented successfully and a couple of decades ago, today we live the consequences of not doing timely .

The lack of economic growth have different impacts on employment, as an economy with a growth of 2.6%also represents a low value-added production, the above two conclusions are derived. The first revolves around that are difficult to reach jobs needed by the population growth, the legendary million jobs.

During the last twenty years has been almost a goal we observe from a distance, without the possibility of being achieved sustainable. The second element is more worrying, a few days ago saidthat people should study what the market demand for labor, the problem is that the Mexican labor market demand to low-value added, ie the incentives for to study population are low because economic growth stunted as the only outcome we can have is a poor demand for highly skilled workers. When the country was left out of the technological advances in areas such as microelectronics, computers,...