By Ravi Agrawal, CNN
Ravi Agrawal is senior producer of Fareed Zakaria GPS. The views expressed are his own.
Here’s some trivia. Which of these countries has the highest average income: India, China, Brazil or Mexico? If you guessed Brazil, you’d be wrong. And if you guessed India or China, you’d be way off: even if you combine the incomes of the average Indian and Chinese you wouldn’t reach the $15,000 annual purchasing power of the average Mexican.
These numbers don’t fit with many people’s perception of America’s southern neighbor. Mexico, you see, has a PR problem. A quick Google search for news from Mexico throws up a set of results that usually includes the words violence, drugs, cartels, and migrants (or the 2010 oil spill in the Gulf of Mexico). But it’s not just the international media that seems to have it in for Mexico’s reputation. Mexicans themselves seem woebegone. A recent Pew survey found that only a third of Mexicans think they have a good national economic situation. Compare that with half of Indians, 65 percent of Brazilians, and 83 percent of Chinese. Or let’s go back to average citizens: 52 percent of Mexicans think they have a good personal economic situation, but for Indians, Chinese, and Brazilians, those numbers rise to 64 percent, 69 percent, and 75 percent respectively – and that’s despite the fact that in purchasing power terms, Mexicans actually earn more per capita than citizens of all three of those countries. And, unlike the others, Mexico’s growth rate is actually rising.
Indeed, Mexico’s economy has a number of strengths. It is the 14th largest in the world. If you take into account purchasing power, it is the 11th largest economy – larger than Canada, Turkey, and Indonesia. It is projected to grow 4 percent this year, and even faster in the coming decade, a rate that the financial services firm Nomura says will lead to Mexico overtaking Brazil as Latin America’s biggest economy within 10 years, despite the fact that Brazil’s economy is currently twice as large.
Still, there is a weakness in Mexico’s growth, as I saw for myself when I was there last month: the money hasn’t been trickling down. According to the Organization of Economic Cooperation and Development, Mexico has the highest rate of poverty among the group’s 34 member nations. If you consider inequality, the OECD ranks it the second most unequal, with only Chile more unequal.
So although the headline numbers might surprise, Mexico presents something of a mixed bag. Yet this hasn’t deterred investors taking a growing interest in this Latin-but-North American country. In a special report on investing in Mexico, the Financial Times went as far as to call its macroeconomy “virtually bulletproof.” Move over BRICs – Brazil, Russia, India, China – it’s time for the MISTs – Mexico, Indonesia, South Korea, Turkey.
Part of Mexico’s appeal to investors is tied into what I think may be the country’s key weakness: inequality. You see, at the lowest-end, labor remains cheap. The Economist points out that in 2003, Mexican pay was three times China’s rates; now it is only 20 percent higher. So Mexican manufacturing is poised for a boom. And while in the past few years Mexico banked on its proximity to the U.S. (lower transport costs) and trade deals like NAFTA to compete with China, it will now be able to manufacture and price products at an advantage.
The big question, of course, is whether the export dollars will trickle down. But making this happen will require significant market reforms. In his recent book Breakout Nations: In Pursuit of the Next Economic Miracles, Morgan Stanley’s Ruchir Sharma points out how the top 10 Mexican families account for more than a third of the country’s stock market value – an almost unheard of number. “Private cartels produce about 40 percent of the goods that Mexicans consume and charge prices that are 30 percent higher than international averages,” he writes. “Phones, services, soft drinks, and many foodstuffs cost more in Mexico than in the United States.”
One thing is clear – Mexico is not the war-torn wasteland it is often made out to be. Its people have a glorious history, and a hopeful future. This isn’t to say that Mexico is destined to be the next investment hotspot – that’s far too simplistic a way of looking at this. Instead, the numbers suggest the truth is somewhere in between. Mexico has enormous capacity to surprise on the economic stage. But to really shine, it needs to work on developing a vibrant – and bigger – middle class.
© 2012 Cable News Network. Turner Broadcasting System, Inc. All Rights Reserved.
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Tell Kofi Anan he is needed to help create a massive aid plan in Africa. One that is largest in scope that this world has ever seen. This will be news. The rest can go get thier blankies.
Tell Kofi that he is a crook, and he should be in prison now.
Only a fool would trust this con artist who laughed as he ripped off millions from the UN
Thank you for this detailed and fact filled report.
Kofi didn't steal the money, his kid did it (mostly, by making illegal deals with Iraq's Hussein). Most interesting is accompanying news stories soon disappeared.
Why? So they can waste it all? Poor delusional/naive boy.
We've already given the value of a hundred Marshal Plans to Africa... and it is not any better off.
Stop having so many children. Fix the problem of corruption. And stop looking for handouts.
It is God that commands us to properly give and God that commands us to properly receive. There is no take. So right now, we must give aid to those in Africa, in faith, that we will recieve aid ourselves in our time of need.
To say we must give when we all know from past experiences that our hard earned and taxed money never gets to those in need is very naive at best.
Then lest's let God give aid to Africa. If he does not he must have his reasons and his master plan.
Is that money earned there or money earned(tax free) or stolen here?
Alicia, you should educate yourself before opening your mouth and make yourself look like an idiot who has no idea about anything else but the little ignorant world you live in.
Please, mexsdo, be respectful and set the example you wish others to follow. Your reply isn't very Mexican, except perhaps in a "NiNi" sort of way. If Alicia is in error then explain to her why.
well.... i guess if you count all the illegal jobs they do in the US and send money back, AND if they are going to count drug money and drug dealing then... Mexico's economy is doing great! LOL
Alicia, there's a wealth gap in Mexico, but don't generalise! For adventurers, Mexico is a nation where affluence, poverty, natural splendour and urban blight rub shoulders. The country has potential to become an economic powerhouse. Yet the one-party system with a democratic facade leaves much to be desired and the powerful cartels are a thorn in the people's side. Political and socialeconomic reforms are necessary for Mexico to face regional and global challenges.
good try but you are way off. mexico is a crack nation and drug haven. there economy is good???? why then are all of its citizens killing themselves to escape into the US? mexicans are afraid to fight for what's right.
honest abe – You do the name an injustice.
FYI – Mexico is not a "crack nation" or "drug haven". Unlike in the USA, most folks here do not use anything stronger than alcohol. We don't have anywhere near the drug abuse problem rampant and still growing across the USA.
I get it, like a good modern US racist you hate Mexico and Mexicans. But that doesn't give you the right to make up lies about Mexico or its wonderful people.
Remittances represent less than 2% of GDP so, no, it is not money earned in or stolen from the US.
Oh boy, talk about cluelessness. Go back and read the history book to find out who steal from who!
Ever wondered why one of our states is called New Mexico?
The Northeast section of the US is called New England. Does that mean that it was stolen as well?
it is true , more than half of our Great country used to be Mexico, and those who know our history, sometimes tend to dislike mexicans who live here , because they are envious of the history the U.S.A. and Mexico or mexicans have to know it once used to belong to Mexico.
we also have states named.... new hampshire, new york, new jersey... and it's who stole from who not 'who steal from who'. well if mexico was tough enough they would've defeated the americans and taken this country. don't cry because mexico lost land in war. be happy the US didn't take the entire country. mexico would have been better off.
so do the native americans claim to be mexicans then? do they fly mexican flags? do they speak spanish? wow... wierd since they were living in mexico all that time... so it shouldnt be the Navajo Nation it should be the Mexican Nation..... LOL
Actually, it was Spanish. Once the spaniards left Mexico, Mexico lost all of it's military clout and shortly after Mexico lost about half of its territory to a greater nation.
Fareed, you are such a fraud and a fool
Mexico is embroiled in a civil war between the cartels and the govt.
Their new president plans on begging the cartels for peace and ending the war on drugs
That has been tried before, there will still be massive beheadings and murders galore in this cesspool of humanity
And that has, what, to do with the article?
m123 – Well, no. We are NOT embroiled in a civil war. We are, however, fighting the USA's proxy war on drugs. However that may be coming to an ignomious end soon thanks to this year's presidential elections because (a) it is not our war, and (b) we can certainly use the money that the USA's stupid and broken Prohibition policy offers us.
funny how Mexicans blame Americans for the drug problems in their country. they also blame american companies for illegal immigration also. Mexicans do not handle taking ownership and responsibility of their own country and will blame everyone else. (i.e. mexican kids in schools failure rate – not their fault it's american teachers fault). that's why mexico is a hell hole!
honest abe – Once again, your racism blinds you. Mexico is not a hellhole, it is easily one of the best places to live and raise a family on the planet, where the people are still decent and take care of their families and where racism isn't rampant, a failing of proper upbringing that you exhibit so clearly. It's good that you can read the sensationalist stories in US newspapers. Unfortunately you don't read Spanish so you really are simply a clueless wonder when it comes to what life in Mexico is really like. If the USA took responsibility for its problems we wouldn't be having this "conversation" because popular banned substances wouldn't be banned and violent mafias wouldn't be enriching themselves and corrupt public servants. But war is good for the US economy (which is why the USA is the number one arms dealer of the world) so the drugs remain illegal despite all the misery the bad and broken US policy continues to cause. Whenever you folks find your moral compass hopefully you'll put it to good use instead of starting more wars and causing your own terrorism to justify your police state under siege mentality.
Visit the country and be a first-hand witness, aside of the narco-killings, you could enjoy a very tranquile stay on a Mexican beach and be just another American enjoying herself overthere...
?
That just isn't true. I travel there all the time. Don't go the bad areas of LA and don't go to bad areas of Mexico. It is that simple. The whole country is not embroiled in battle.
Over twenty five years, I've travelled and covered Mexico for Wolffe Street News and have found no trouble; but I do acknowledge a true (and expandable) problem exists with the drug cartels. For the record, I've traveled around the world and the most dangerous place I've visited is Gary, Indiana.
m123...youre in the same misguided, ignorant boat as Alicia. Grow up. Have you even been to Mexico or spent any significant aount of time there?. Or are you basing your idiotic opinions off a 50 second news clip?
Uhhh, you do realize that Fareed did not write this article. It was one of his producers and posted by the producer!
Your lack of intelligence is amazing. Please give your mind a rest and sit down.
The article wasn't even written by Fareed, but by one of his producers, as an independent piece. I'm sure you read it thoroughly before commenting, though.
Maybe this article should be brought to the attention of all the pro-illegal immigration advocates who keep insisting that the Mexicans are so very, very poor that they have no choice except to sneak across the border to the US. But I'd bet that they already know they're full of it, so having it shoved in their face wouldn't make any difference anyway. Too bad.
Your racist.
Hey @Illegal Troll
That is not racism. That is called the truth, reality, fact. You are an imbecil.
Not racist the truth was said
cant you see that this doesnt add up. Mexico's economy is so good...... yet Mexicans are fleeing to the US in record numbers risking death to escape poverty!!!!!! Like i've said before... Mexicans are not good at dealing with reality
America needs the Mexican labor, we aren't letting them cross for humanitarian reasons.
Very well said
Thanks
Mara how are you? Yes there is an illegal problem, but on the flip side we are arguing that they are stealing jobs from us. I don't see any hight executives that are illegal stealing are jobs. Yes they are taking advantage of the system, but at the same time we cry foul because no one is willing to pick up the strawberry in the fields of California or the Oranges in Florida, and it doesn't matter how great the pay is, No one wants to break there back and sweat all day. I know it because I've seen it. I have a bigger beef with the government giving huge tax breaks to oil companies that don't need them. There are two sides to a coin.. .but they aren't stealing our jobs, they are simply filling in the jobs we are not doing.
Finally, an intelligent article! It's a pleasure to (at last) see a journalist that can look at Mexico with some semblence of perspective. My compliments.
If we pay attention..the U.S. and Mexico could do great things 2gether in the 21st Century. Include Canada too.
Very True Judith, it is already happening as we speak, US and Mexican firms joining up to compete againts China!
There is more legal money going back and forth between US and Mexico than all of Europe!!
isnt it called NAFTA? lol.....
but in all seriousness i agree.....maybe some more ....maybe even bring in the rest of "North America" (central america and the carribean)
Nafta only helps the US it was never desinged to help Canada or Mexico much
@Mara, maybe you didnt read the end of this article stupid. It said that Mexico needed to improve the middle class, in order for its poor poor people to stay in Mexico rather then you Americans coming in to our country and messing it up. Did you ever read about that, no you are only concern with what happens if Mexicans take over. So no it wouldnt make a difference because Mexicans know their current situation then they wouldnt have to cross Illegally.
Ravi. I do not know were this $15,000 are caming from. I suposse this amount is in Mexican pesos, because there is no way that mexican people (at least no the average mexican, as you say) can espend that amount in US dollar. I can tell you the median salary iin Mexico is no higher than 10,000-20000 Mexican pesos/month (and this is a good-high salary in Mexico) . It means We earn no more than $800-1,500USD. You can no concider this a "purchsing power" when you have to pay taxes, medical services, etc, etc. I concider, it is easy to you to do statistical analisys and do an "average" with numbers taken from these 10 super-rich mexican families and then divide between the 100 million-plus people than live in famine conditions. But guess what, even when you do it in paper, this super-rich Mexican do not share that money. So, there is not that "average Mexican" spending $15000/annum in "cotton candy". So, yes Mara, good Mexican still need to look for a better job to feed their families, and if necesary will try to find it in another country.
Mi estimado Fernando, by your own math you just justified the amount you said you didn't understand.
And I hope more of our fellow Mexican workers will stop migrating and stay here to help us build Mexico into a better country instead of going off to build the USA or Canada. ¡Sí se puede!
Is built Spanish for destroy? You mean destroy right?
Yes please conconvince them to stay. Cuz they aint building nothing here but resentment and racism
Zhroub or whatever your stupid name is, why don't you want Mexicans coming here? Because they will steal your mothers job cleaning the toilets? Give me a break puta, and grow some balls.
Fernando chongo – another example of reading but not understanding.
Zihuarob is saying that mexican should focus their labor resources into building their own country instead of migrating to another country (whether the opportunity is there or not is another matter).
Bendeho.
I'm 34 my wife is 31, we live and Work in Tijuana. She is an attorney her net pay is $38,000 pesos a month ($2950 dlls) I am and accountant, my net pay is $65,500 pesos per month ($5100 dlls) and my boss makes about double what I do and his boss well.....I can only imagine. Obviously we are well off but by no means rich. My wife would love to quit her job in order to have more time for our 4 year old twins and 1 year old girl but we can't live on my salary alone so until I get another promotion she needs to keep working. I'm just saying there is more than just 1 Mexico and it's all relative on what part of the city you live in and how you live.
Roberto, you make 8000 a month as a family in Mexico. I'm sorry but you are way above median. That put's you in the 60 percent of the American enconomy easily. If you're wife is working is because she might love to work, which is fine but not because she has to. The truth is that we are never satisfied with the money we make, there is always room for more.
Fernando, the article is right. Skilled workers make about half what they make here in America so it would probably average out to $15,000
The men that work for me make about 40,000 a year here in the States and when they go home they make about 20,000
Fernando–you do realize that 20,000 pesos is $1481 dollars. That is almost 15,000 U S dollars a year. Spendable money includes taxes, medical expenses but I don't know of very many people in Mx. that spends money on medical. The one thing Mx. needs to do is for the parents to insist their children go to school. For most jobs, at least in manuf., you need an anywhere from middle school to high school diploma. There is so much skipping of school by kids it is ridiculous. As for as extra spending money goes there are bus loads if mexicans coming from all parts of mexico, especially chihuahua, to the outlet mall in el paso. Go to the stanton street bridge, in el paso, and see the thousands of mexicans crossing the border to spend their money in el paso, either in dollars or the equivalent ampount in pesos. There is still a booming housing market in juarez. Citizens in mexico, for the most part, have more disposable money since 9/11. The majority of citizens that have no disposable money, or cross the border illegally, do not have a middle/high school education and cannot find decent work in mexico.
At my home in Mexico they charge me $2.00 for water (sink, bath, etc.) the electricity bill is around $60.00 (when I stay an entire month) and the taxes are very low for the amount of land I have, plus care (I've only done dental care)it's inexpensive also for an excellent job. Mexico is a very inexpensive place to live in.
Agree. My telephone + internet is about USD 27.00 per month, dish satellite USD 24.00 per month, electicity about USD 22.00 per month, property taxes USD 200.00 per year. Food products mostly seem to be about 1/3 to 1/2 the equivalent cost in the US. The things that are more expensive in Mexico are the ones that are imported, like electronics (TVs, computers). Private medical costs are 1/12th to 1/10th here compared to US. Much cheaper to live good life here.
Wow Fernando. you could not have said this in a better way. I agree with you and very good response. Saludos.
Fernando, I live and work in Mexico and I can tell you that 10,000 – 20,000 is not the average. Maybe is the average for workers without any experiencie or basic education, but you forget all the people that work in offices or with professional education. Also you forget that 30% of Mexican work in informal business and certainly they earned more money that 10,000 – 20,000 at year.
http://caffertyfile.blogs.cnn.com/2011/08/03/illegal-aliens-leaving-u-s-returning-to-mexico-for-better-life/
I think its JUST GREAT they have this wonderful economy. MAYBE that means the influx of all these illegal immigrants from MEXICO will slow down or cease? AND if its THAT good, hey maybe we should send our people down there for JOBS since obviously OBAMA cant get anything going for us in the job market up here.
In the future Lynna, in the future. It look like you will have to head south for better. At least in the Ravi's paralel world.
Maxico is a capitalist nation in it's pure form not "socialized capitalism" like the US, Canada or most European nations so most jobs suck. If you are entraprenuer however you have a good chance of making a good living, just opening a taco stand in the corner will offer a better living than that of most collage graduates that are just looking for a job.
Sarkis – Obviously you haven't the faintest clue what you're talking about and simply are taking advantage of this forum to take a silly and misguided jab below the belt at President Obama. In Mexico even the ultra-conservatives believe in socialism because it is an integral part of any democratic nation.
Exuse me but I live and grew up in Mexico. Got my undergraduate degree in econnomics at UCSD and my MBA from the University of Chicago. Been working for the last 8 years in Mexico so I think I am well qualified and have a good understanding on how both countries work. Call it what you want, the fact of the matter is that in Mexico a business owner for your average mom and pop shop makes about 10 times more than his employees in the states you are probably looking at making 3-4 times more than your employees and work longer hours because the average small business has less employees than it would in Mexico as it's not the same to pay someone $8 an hour vs. $15 a day. Capitalism leads to inequality if the government does not step in to prevent it. I think you are talking about handouts and "subsidies" (government run elecrical power and gasolin is supposedly subodized but electricity is more expenseve than in the states and gasoline is waterdown and a tankfull last 70 miles less than a tankfull in San Digo )
And by the way I support Obama and that is not where I was going with that. Regardless of who is in power the US system is more geard towards equality than the mexican system is, that is a good thing but not the spirit of capitalism which calls for the government to intervine as little as possible in regulating business'
So True!!!! I would even say Mexico is a caricature of US capitalism with its main features grossly exaggerated and corrupted. Many foreigners come to Mexico to become entrepreneurs in B&B's restaurants, etc. while NO ONE in his/her right mind would want to work under a Mexican boss.
The point of this article is that there are a few greedy families sucking the life out of Mexico and have their PR departments blame the USA, the fact that we have a border and an immigration policy. RISE UP MEXICANS take control of your country! You are being cornholioed by your own rich, corrupt leaders. Ask RAVI to research Mexican oil and see where all the money goes...
That's exactly right! Mexico, China, and Turkey (where I am from) are all highly capitalistic. That is the kind of capitalism that Marx opposed to and Bolsevic's revolution was triggerred by. Americans cannot understand that. I live in the US and this is a socialistic capitalist economy, just like Sarkis said. Finally someone who makes sense! Turkey, however, recently transformed more into a euro style capitalism, with $6,000 minimum wage, but still far from enough. From my undertanding the slavery goes on in Mexico.
Lynna, pay attention, it's slowed to a virtual stop.
There are many good things going on in Mexico. I have been over there and I can see that Mexicans are very persisisting and enduring people. They have suffered the onslaught of crime and the killings that came with it and still they are managing to come up ahead. Even they understand the the road is long, uphill, and tortuous, many areas of the country's economy need to be improved: Elementary education has to be one of the most important areas the federal govt must address, but for that the leonine leaders of the teacher syndicates have to really start leading no just enjoying the member fees.
President Calderon gave it a good try facing the narco problem head on and really had some success. I want to see president elect Pena Nieto improving on that himself. Mexico is a very rich country and has a lot of resources, including of course over a 100,000,000 millions of young and vibrant people.
Let us now turn towards India with razor like focus.
Look in at India through the prism of Mexico, The American invasion of Afghanistan brought to the forefront the irrelevance of India as a nation. With a population of over 1.2 billion people there was no value that this nation could bring to the table. Their soldiers (ragtag) 1.2 million continue hiding in the trenches scared from Talibans. A few teenage Talibans invaded the country and held it hostage for days on end showing how useless India is. It was embarrasing for the world to observe this humiliation of a nation that was being touted as a regional power.
We continue to read with interest the thesis presented on CNN that "less is more" in a political context as applied to India. Although Mies Van Der Rohe adopted this in an architectural context, its economic and political connotations are indeed powerful. Empowering subjugated minorities in India by splitting it into smaller states would trigger uber economic demand for western nations who have given so much financial and technology aid to India with no return to show for the investment. We concur with this approach and find the premise to be on solid footing. Central Asian States (CAS) are a case in point on this successful approach. We need to understand that India has an unmanageable large population mired in poverty and we are spinning our wheels trying to feed it. It is also too big of a geographical unit to govern. Again, we saw how a few teenage talibans were able to invade it with a few BB guns. And that says a lot... in a negative way not only for a large unmanageable country like India but also for USA which is trying to prop it up against China. Besides, Americans cannot afford to look like losers in the midst of a terror war which has lasted for over ten years now.
Americans will be better off seeking partnerships in the neighborhood than across the ocean.
Hello Pakistani troll who has no work but to write stupid things against India on CNN even in the most irrelevant of news contexts.
Sir. with all due respects I believe that the above comment is above your pay grade and comprehension. Please read it again and appreciate the intellectual substance therein. There is nothing in the post that is anti Indian. The article quotes India and others in a discussion on Mexico and the author of the comment appears to provide linkages to common issues such as poverty, size, return on investment, spending power, defence etc. The thesis being that being small is a blessing. The question is how big is big and how small is small. Please feel free to enter into a debate and share your thoughts. But please don't try to intimidate others from expressing their ideas by calling them names. That, Sir, is not our American way.
The context of your post is well taken. First, the lessons learned for Mexico is that like the big banks a country is NEVER too big too fail. Implosions are an inevitable part of political evolution. We saw it in USSR and are currently witnessing in India as we write.
The point is that such survivalistic tendencies are to be taken in an economic context.Being small equips a country to tackle its poverty issues by unleashing economic demand, individual and aggregate, as confidence and propensity to spend increases.
unfortunately "broadening the middle class" means salaries would have to go up, thereby reducing Mexico's cheap labor advantage. Many maquiladora's pay $1.80/hr for assembly work, and that's what keeps Mexico attractive. Can't have it both ways, so this dream of a robust middle class isn't going to happen in a big way. With population growth under control and improved schooling, it definitely will grow ... but slowly.
They have to attack the bribary problem first. You have to pay bribes to get any thing. When they do construction the bank only pays a little at a time, so they can inspect the job and see that something was done with the money. Corruption is rampant. They will have to go through a cultural reform before they can come out of 3rd world status.
TAKE AWAY FOR MEXICO......
THE ECONOMIC SUBJUGATION OF INDIA & The Taming of Hindus!!!
The one most successful aspect of recent American foreign policy has been the conquest of India without firing a bullet. That is the beauty of capitalism used as a Trojan Horse! Economic victory! Give them a taste of steak and they will never settle for hamburgers again. USA now owns India Inc. not only economically but also militarily as economic subjugation ultimately leads to military domination
Corruption is endemic, and isn't going away.
To be fair, it's pretty much a permanent fixture once you get out of northern Europe and East Asia. And much of the latter has nepotistic traditions that have a hobbling effect on business.
you guys ARE IGNORANTS NOTE THAT IM NOT OFFENDING JUST CALLING IT LIKE I SEE IT.. IF YOU GUYS WERE TO PICK UP A BOOK EVERY ONCE IN A WHILE YOU WOULD KNOW THAT MEXICO IT'S BASICALLY THE US'S BIGGEST AND BEST ALLIED IN THE AMERICAN CONTINENT.. YES YES FOR THOSE THAT DON'T GET IT EVEN BIGGER THAN CANADA AND CHINA WHY???? BECAUSE MEXICO THE COUNTRY YOU ALL CRITICIZE AND HATE BUYS WAAAY MORE THAN CHINA FROM THE US AND ALLOWS FOR THE CLOSEST COOPERATION OF ANY OTHER COUNTRY IN LATIN AMERICA BUT LIKE ALWAYS TALKING WITHOUTH A CLUE IS BETTER
Use your indoor voice.
Better yet, go to school and learn English usage and grammar.
B-R-A-V-O This story hits th nail on the head. I have shown picutres of Mexicali to people and they are shock to see this modern city. Mexico's image problem is created to a degree by Hollywood which seems to always show the country as a poor and dirty place. I think Mexico has a bright future. It's birth rate is now lower than the U.S. and high oil prices are helping.
So, if Mexico is such a great place why are so many Mexicans spending thousands of dollars and risking their lives to come to the US?
If you read the article again you'll notice that the author clearly points out that money doesn't trickle down. Therefore the rich get richer the poor get poorer and no middle class.
India's economy: The tiger that's actually an elephant
Posted by Lisa Renaud
Investors have been disappointed by India's slowing growth, and even more sheen came off courtesy of S&P's downgrade. Panelists at this Global Conference session on India agreed that the move was justified by the macro picture.
India's coalition politics may slow reforms, said Apollo's Sanjay Patel, especially since many poor voters are not educated. "Tiger is the wrong word," he said, arguing that a lumbering elephant is a better analogy.
• 1/3rd world’s poor is in India. It also has a higher proportion of its population living on less than $ 2 per day than even sub-Saharan Africa.
• 828 million people or 75.6% of the Indian population is living below $2 a day. 42% of the population is living below the new international poverty line.
• 33% of the global poor are Indians. Sub-Saharan Africa considered the world’s poorest region is better than India.
• 41.8% of the rural population survive with monthly per capita consumption expenditure of Rs447 ($7)on essential necessities like food, fuel, light and clothing
Hmmmm......it does not appear that democracy, economic policies, etc have helped a lot there. I am sure there are some positives to them but not fast enough for poverty alleviation to take traction. Mexico should learn some lessons from that.
AMERO TIME?
There is no question how the country has been growing this is in part of the younger generation that is rising with better education than previous years where old meant experienced now young is looked as new and needed to change the old ways of thinking specially when you look at the old police force, politicians etc...
I believe the economy will grow 5% within the next 2 years and will keep steady, this should be great news for the U.S
The most powerful thing stated in this op-ed is
"Still, there is a weakness in Mexico’s growth, as I saw for myself when I was there last month: the money hasn’t been trickling down. According to the Organization of Economic Cooperation and Development, Mexico has the highest rate of poverty among the group’s 34 member nations. If you consider inequality, the OECD ranks it the second most unequal, with only Chile more unequal."
Trickle down economics do not work. They are a neat way for racism, classicism, and economic terrorism to pervade healthy economies. It keeps schools underfunded which keeps the populace ignorant. It keeps the money at the top with the people who do some positive things but mostly just hoard it. Look at corporate profits for the last few years, through the roof and where are the jobs?
Mexico – a rich country with an abysmal distribution of wealth.
Quote...Part of Mexico’s appeal to investors is tied into what I think may be the country’s key weakness: inequality. You see, at the lowest-end, labor remains cheap.
Insight into your future under Robmey. US-Mexico what's the f-ing difference.
I spend 3 weeks a year in an indigenous village in southern Oaxaca. The lives of these people has not improved at all in the 10 years I have been visiting there.
Next time you are there spend some more money so that their standard of living can improve.
Mexico is as wealthy as the US or Canada. It's just very very poorly governed.
As important to satisfaction as the overall economy is how that economic wealth is distributed. Even in a growing economy if the wealthy are benefiting more than the average person then it's not surprising that the average person doesn't feel good about it. Given Mexico's history I wouldn't be surprised if this was the case-and the violence, crime, and unrest are all symptoms of such an imbalance. (They might have other causes though. Only actual facts about the distribution of wealth can tell whether or not an imbalance is causing the symptoms.)
México is indeed more than "the war-torn wasteland it is often made out to be", and is filled with some of the warmest and hard-working people I've ever had the pleasure of meeting. But in the years I have lived here it's been startlingly clear – México will never truly prosper while this hideous war on drug rages on. The article cites the poor distribution of wealth as a key problem in the country's economic growth – I am fortunate to live in a city with a very large middle class. But although I live in an extremely industrial and affluent city, kidnappings and murder are completely commonplace. Bribery and ransoms are a part of everyday life. As another poster stated, the crucial issue is how poorly governed the country is.
i have both, mexican and US citizenship.... for me both countries are like one, and like me there are millions mex immigrants that feel the same way...so the US can't have better friend, if u don't believe it, then ask around and compare among other people
The goverment has claim the economy is rising, yet the economy of common people each day is worst, so everone ask.. ¿where is all that money?
Acording the Centro de Análisis Multidisciplinario, the growth of the salary of the mexican worker, is the lowest in Latin america for the last 12 years.
So if we take inflation into account, form 2000 to 2011, workers have loose 24.4% of their salary.
Rising prices in food and gasoline, take a great toll on the population.
That is why few believe the government statistics.
Human happiness is a proven relativistic phenomenon. Indians compare themselves to the untouchables and Brazilians compare themselves to the street urchins. Mexicans compare themselves to US citizens. Mexicans look up while in these other two countries, the majority are looking down. You are not going to change this about Mexico, but this unhappiness with their current situation is GOOD for Mexico because it will ultimately drive positive results.
we should have taken over Mexico when we had the chance, after the invasion of 1845.
Is Mr Zacharia a US citizen or is he here on a H1B1 Visa. Government should revoke his visa and send his ass back to here he came from. Better yet CNN should send him to work as a reporter in Mexico. That way he will get killed by drug dealers and we will never hear from him again
It's call freedom of speech, the fact he is showing Mexico in a better light (a reality you don't want to see) he is just writing an article how relevant is for you his citizenship or legal status... is that's the case we should ask about yours just for posting a comment
I pray for peace, prosperity and more education for our neighbor to the south. The safer Mexico is with less killing and kidnapping and general lawlessness, the safer we as Americans are.
Two things turned Mexico around. The drug trade and Bill Clinton signing NAFTA agreement with Mexico which brought a lot of jobs to Mexico. Its that dirty little agreement that Bill Clinton does not like to talk about. Obama also has a dirty little agreement called the Cross boarder trucking program. It finally allows Mexican trucking companies to deliver and pickup in the US. Who does that help? All the Mexican companies who now will not have to pay a freight forwarder in the US.
Tell me who is looking out for American jobs?
A good chunk of Mexico's economy is driven by ILLEGALS here in this country sending money back home.
You are probably an economist and an expert on Mexican Economics,
and a bad one at best. The money that migrant workers send to Mexico
is only 1.5% of the economy... I guess that is a "good chunk" in your eyes.
You dont like it? Stop encouraging illegal immigration ot the US.
STOP playing golf, most of the courses are tended by migrant workers...
STOP buying US produced fruits and vegetables, most are picked by migrant workers...
STOP eating at fancy restaurants, lots are crewed by migrant workers...
STOP eating at fast food joints, lots are crewed by migrant workers...
STOP drinking US wines, most are picked and made by migrant workers...
STOP hiring landscaping companies, lots are composed of migrant workers...
STOP buying chicken processed in the US, most are processed by migrant workers...
Should I continue or you get the point?
Mike, start reading more, travelling a lot internationally, and opening your mind....
your heart will follow
AND start taking responsibility of your country, it is too easy to blame others for the
current problems of yourselves... realize that just Goldman Sachs causes much more
harm to the United States that people that go to work for you guys for less than minimal
wage.
And if you think that they are stealing your money, you probably think that Coca Cola, IBM,
Apple, GM, Ford, and the rest of the "American" companies are stealing our money when
they sell their stuff for a profit and take that money to the US. Read a little and you will see
that it is called "The Economy".....
Carlos, I don't live in a border state or buy wine picked by illegals, so none of those things are true.
Best way to stop encouraging illegal immigration is to fund the damn fence that was authorized years ago and triple the number of border patrol agents. Then go after the employers.
"Which of these countries has the highest average income: India, China, Brazil or Mexico?"
...And did you know that if one man earns one hundred million dollars a year, and 99 other men earn one hundred dollars per year, the AVERAGE annual income for those one hundred men is just over one million dollars per year?
In almost EVERY economic analysis of national incomes the MEDIAN income is used – but not in this article. Could it be because the author is trying to down play the vast income discrepancy between the rich and poor in Mexico, and minimize the fact that the middle class in Mexico is exceedingly small. THAT'S where Mexico's economic problem lies, and that's also where the United States seems to be headed. Yet the author relegates this problm to the very last sentence, "But to really shine, it needs to work on developing a vibrant – and bigger – middle class." when that should be the main topic of the entire article.
But then what's worse, concentration of wealth, or re-distrbution of wealth?
TOUGH TIMES IN INDIA: FOREIGN FIRMS PACKING AND RUNNING FOR EXITS
“NEW DELHI/MUMBAI: Frustrated by a lack of opportunities in India, Germany's Fraport (FRAG.DE), the world's No. 2 airport operator, is shutting its development office in the country, the latest in a growing list of companies exiting Asia's third-largest economy.
"When we came to India in 2006, we were actually extremely bullish about the market. We felt India had a lot of potential at that time," Ansgar Sickert, who heads Fraport's India operations, told Reuters in a telephone interview on Friday.
"We were disappointed when none of these opportunities materialized," said Sickert.
The list of companies to leave India includes telecoms carriers Etisalat ETEL.AD of Abu Dhabi and Bahrain Telecommunications Co BTEL.BH. Another firm, Norway's state-backed Telenor (TEL.OLhas threatened to pull out…..
India definitely faces the threat of more foreign companies signaling an exit in the near future, as well as warding off new entrants. …
According to a Nomura report last month, multinationals pulled $10.7 billion out of the country in 2011, up from $7.2 billion in 2010 and $3.1 billion in 2009.
"Augere, which owns 4G broadband airwaves in one of India's 22 telecoms zones, has stopped operational activities and is set to sell its airwaves due to regulatory uncertainties, the Economic Times reported last month.
More exits are expected in the crowded insurance industry, where a long-expected increase in foreign investor holdings has been stuck and where many joint ventures are losing money.
The mutual fund sector, where a regulatory change banning distribution fees as well as a sharp drop in markets have led to a drop in profits, is also seen to be poised for exits.
Fraport, which owns 10 percent of the company that operates New Delhi Airport, is looking to sell that stake to a partner as its role as an operator will lapse in May 2013, meaning the company would not have a presence in India, one of the world's fastest-growing airline markets.”
I don't know what it is with economists and their unrequited love for these acronyms (BRICS, CIVETS, PIIGS, MISTS), but it really isn't doing them a very good job.
There are some very important sentences in this article:
"A recent Pew survey found that only a third of Mexicans think they have a good national economic situation. "
"Still, there is a weakness in Mexico’s growth, as I saw for myself when I was there last month: the money hasn’t been trickling down."
"If you consider inequality, the OECD ranks it the second most unequal, with only Chile more unequal."
"Part of Mexico’s appeal to investors is tied into what I think may be the country’s key weakness: inequality."
" Morgan Stanley’s Ruchir Sharma points out how the top 10 Mexican families account for more than a third of the country’s stock market value – an almost unheard of number. “Private cartels produce about 40 percent of the goods that Mexicans consume and charge prices that are 30 percent higher than international averages,” he writes. “Phones, services, soft drinks, and many foodstuffs cost more in Mexico than in the United States.”"
One doesn't have to spend much time in Mexico to figure out that the vast majority of people there live at, or below the poverty level. All the money in that country is held by an incredibly small percentage of people.
All the "facts" regarding GDP, per-capita income, average annual income, etc, are probably correct, but they do not, by any means, reflect the reality of "life in Mexico". Down there, you have the "Absolutely Filthy Rich" (a very tiny percentage), and just about everybody else is poor or dirt-poor. "Middle class" is almost non-existant.
But, that situation will continue, because as always, those that have the money also have the power, and as always, it's in the interests of the "rich and powerful" to keep it that way. And, that's why most of that country is a dump. It's a pathetic situation...
The problem is many central north americans (ie. USA) perceive Mexico as they are accustomed to. Look a McDonalds! Look a Peter Piper Pizza! Look an Autozone! Look an Avon lady! Look a Chevy!
What they do not see is that usually the people who can afford to run franchises in Mexico are in one way or another involved in the drug trade. read...laundering... it is a reality of Mexico. Additionally all those transnational conglomerates who start maquiladoras... they have to deal with Unions (syndicatos), local utility providers, customs agents, local government, etc. and yes they too are involved indirectly or directly in the illicit trade. Believe what you want to, but it's the truth.
When some politico in Mexico or even american diplomats who are engaged there are killed. The Mexicans will ask "HMMMM? how was he involved?" The american " Oh my goodness, what evil people these drug people are."
What bearing does it have with the op-ed? Mexico has always been a country of potential, the people are its power. The government corrupt beyond thinking. Transparency....a laugh,, a word to make the US happy.
A $15K per capita....? Come with me to all the infonavits in a given mexican city show me the 15K. In fact, everyone there in the infonavit would love to see it too.
my 2 cents
YES ! YES! YES ! I HAVE BEEN SAYING this for many years, MEXICO HAS A PR COUP! Most people think Mexico is way over populated when they have LESS THAN HALF the people of the USA (but 14-25 million are in the USA illegally), They are 5th in oil exports and 9th in oil production, their country is RICH but they DO NOT TAKE CARE OF THEIR PEOPLE, because they are SO CORRUPT! Please USA "gubmint": CLOSE THE SOUTHERN BORDER. MAKE MEXICO TAKE care of their own.
Inequality: the 1% would like to keep it that way. Whenever anyone like Obama question it and ask how to bridge the gap a bit he's called "divisive". There's no end to the greed.
But here's the irony, decreasing the greed to narrow the gap is actually in everyone's interest. Why? Because we can't have an ever-expanding gap between rich and poor. Otherwise the 1% will be forced to spend that wealth – either in building more prisons and hiring more cops to keep them safe in their mansions or letting go of some of their grip on wealth so we can all have a world where everyone can coexist. It's a choice.
As a Mexican citizen living in NY (iBanking)I can confidently say there is some truth, there are some falsehoods and there are some misstatements in the article. Yes, Mexico has a higher GDP per capita than either China, Brazil or India; but is also growing more slowly (faster than it used to but slower than China or India, faster than Brazil). In terms of inequality and poverty it is useless to use OECD numbers because you are only comparing it to developed countries (except Chile, Turkey and South Korea); as a matter of fact it is less unequal than Brazil and other Latin American countries. Inequality (and poverty) in Mexico is also very geographically determined; the Southeast (Oaxaca, Guerrero, Chiapas) being substantially poorer than Central and Northern Mexico (where most of the drug violence is now). Yes the economy is growing, but is mostly just recovering from a deeper slump during the recession compared to China or Brazil. The fact of the matter there is a middle class in Mexico, it is just not the same middle class as in the US (most mexican middle class families would qualify as poor in the US). Mexico also has one of the highest homeownership rates in the world (higher than the US, but mostly because everyone still lives with their family/parents) and an active mortgage market. The share of investment as percent of GDP is higher than Brazil's which may point to higher growth rates in the future. The truth is China and India are growing fast because they are coming from a very low level of development, where policy choices have steep benefits. Once you climb the development ladder the policy choices are not as clear or easy, which is partly why China is slowing down and the US cannot expect to grow at 7%. Still, Mexico has challenges to unlock its full potential, and those are mostly governance and education related, issues where the past presidents have done very little about.
Of course Mexico's economy is doing well. A Mexican drug kingpin is now rumored to be the richest man in the world. Where do you suppose he and his kind spend their money? A lot of drug money is thoroughly distributed at the bottom and has to work its way up through the economy before international bankers get their hands on it. Great economy, you should go there Fareed; the US is not good enough for you.
I live in Mexico and the fact that low wages are touted as a good thing is sickening. Companies basically treat people like cattle and pay very little in return. But this is what the globalized world wants I guess.
Mexico has gone from an income or $3500 in the early 90's to $15000 in 2012 and rising
has more than 100 tons of gold in his reserves and a surplus of 150 billion dollars .
Ah... Nothing like the old mexican jealousy about brazil
Ha! I envy NOTHING about Brazil.
With 10 families controlling 1/3rd of the stock market you have a sure fired formula for another revolution.
This article is quite misleading because average income doesn't tell one much of anything. It's the concentration of wealth and the poverty level that is much more telling.
So it is pretty much like the US, where wealth is concentrated at the top. But w/ higher poverty level!
So much for Trickle Down/Supply side voodoo economic theory!
Hot mops are sending all their people to the US. Of course there's money in mexico cause all the filth and crap comes to California and Arizona. Yes I said it. Poor Mexican people are filth and crap.
"Mexico is not the war-torn wasteland it is often made out to be."
Actually, that's exactly what it is: a war-torn wasteland, and, as the author points out, has an almost unbelievable degree of income inequality. I wouldn't visit Mexico if I was paid to go there.
Good, I'm sure a grand total of zero Mexicans will be upset you're not going to visit. It's better that you stay in the United States, which does not problems with drugs, inequality, poverty, violence and political corruption. No problems at all.
Edit: *which does not have*
More likely the USA will become more like Mexico.
So you will probably soon be seeing Americans sneaking into Mexico looking for work.
HA! HA! HA! HA!
The lesson is, keep Mexico a norco state and keep begging the USA for money.
Well I've been to Mexico and do like its people but have to say the author is way off and those predictions are just Excel cheap graphs, meaning just as much. You have to be rather dumb or keep a hidden agenda to ignore Mexican realities. Here, let me edit this naive authors Pollyanna predictions:
"One thing is clear – Mexico is a drug cartel war-torn wasteland. Its people have a glorious history, and a hopeful future, if they someday create an economy that is not addicted to easy oil money and cheap underpaid labor for American companies."
There, more like it.
Mexico is viewed through a prism that throws a negative pereception across the border and in this process its inherent strengths are seldom portrayed. Its potential is much larger than generally perceived. .
Reblogged this on disfrutando la vida and commented:
Something to reflect on...
Well one thing's for sure: people who claim Mexico to be a "cesspool" and a "failed state" have never been there. Its not paradise either, but it does have tremendous potential. I assume that many people here writing negative comments about Mexico or Mexicans are in border states who have at one time or another blamed them for rising prices (inflation) or higher taxes (caused by inflation) or a lack of jobs (where are all the Americans lining up for farm jobs?). The day I see anglo-german descended people as the majority of a team of fruit pickers, I'll eat my words. Untill then, maybe you laid-off industrial workers should look for a job in Mexico.
will I see a white illegal crossing south of the border soon my friends? I will be happy to treat them with the same dignity they treated us.
Mexico is the perfect example of trickle-down economics at work. Republicans want the USA to end up like Mexico: they and their cronies will own everything, and everybody else will be wage slaves or subsistence farmers.
LOL $15,000 annual purchasing power of the average Mexican. Yeah right, maybe in a parallel universe! LOL
Net immigration from Mexico to the U.S is now 0; Violence is restricted to a few areas, and in per-capita terms, deaths are not particularly high. The Mexico-bashing by some can only be described as ignorant-bigotry.
As per my thoughts, decreasing the greed to narrow the gap is actually in everyone's interest. Why? Because we can't have an ever-expanding gap between rich and poor. Otherwise the 1% will be forced to spend that wealth – either in building more prisons and hiring more cops to keep them safe in their mansions or letting go of some of their grip on wealth so we can all have a world where everyone can coexist. It's a choice.
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Imagine a place full of chinese where there are no cement roads and the people are buying or selling in a rural area where there is sand flowing by, now imagine that instead of chinese, they are brown mexicans with greasy skin (no matter how rich they get that will never change) but the salary and the poverty is the same, if you thought you saw an economic difference, then you ARE a racist. Everything bad about Mexico is bigger in China (except for inequality and few other things), take for example the drug cartels, the salary and the system of education (which in China is even worse than Thailand), in fact, there are eleven african countries richer than china, and several african countries are richer than several eastern european countries (like South Africa vs. Ukraine) in GDP ppp per capita . Nothing stays the same my friend, africa was once rich (according to ancient greeks) and so was Arabia, India and china in different times, even if you look at Europe, 500 years ago southern Europe was richer and more developed than northern Europe (500 years ago, spain could colonize almost an entire continent, whereas 100 years ago, they had trouble invading the weakest areas of Morroco that were basically given to them by France (France invaded the toughest area of Morroco including its capital without breaking a sweat) and Italy couldnt defeat a France that was already beaten by Germany),and in the era of the Roman Empire, the Romans (mediterranean race) thought they were superior to the blonde barbarians of northern Europe (Nordic race) and the arabs (also part of the mediterranian race). Many "European" inventions were not inventions but rather, innovations that used previous inventions in order to maximize profits (for example, the first gun was invented in China and were introduced in Europe by the mongols and arabs, and the guitar,was influenced from the oud which was introduce in spain when arabs invaded it for 800 years).Also, read about "white slavery" in the arab slave trade, which existed when the arabs where the most civilized race in the world (the word slave comes from the word slav, which are a race whiter than the spanish and italians, now known as eastern europeans), and also read the article about the United States becoming Argentina and maybe youll see that nothing stays the same, and even IF you believe in a superior race, there is no need for hatred towards others, peace out.