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This is a very complex question, and it could have many answers. It is however, believed that Mexico was on the good road to industrialization until the 1970's, when Mexican Presidents Luis Echeverria and Jose Lopez Portillo began to rely heavily on oil exports when the 1973 Oil Crisis hit the developed world, supporting the financial needs of the country while taking advantage of the high oil prices.
When the market eventually stabilized, the little diversification of exports and large foreign debt resulted in an economic slump and a devaluation of the Mexican Peso by 500%. This is often called the Lost Decade or Decada Perdida(1973-1982). Three years later, the Mexico City Earthquake(1985) further deteriorated the economy, as Mexico City, which agglomerates 20-25% of the country's national income, was heavily hit by such natural disaster.
Another explanation is that when President Carlos Salinas de Gortari was elected in 1988, he began a process of privatization of most government industries and businesses. This is known as the Rise of Neoliberalism in Mexico; this privatization process was however, bad to the economy as it transformed state-owned monopolies into privately-owned monopolies. One such example is Telefonos de Mexico, the only land telephone company in Mexico, which has a moderately bad service with one of the most expensive price rates in the world. These kind of monopolies prevent a healthy competition, curtailing investment and preventing a higher growth for the economy.
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What is Mexicos Economy in Latin America?
It is the second largest economy after Brazil, and roughly represents 25% of the region's GDP.
How did the panic of 1837 affect the the nation's economy?
it ruined the nations economy by no money
Contribution of industry to national economy?
The industry contributes to the national economy by creating things for consumption.
When was National Administrative Department of Solidary Economy created?
National Administrative Department of Solidary Economy was created in 1998.
Why did many Southerners object to ending the slave trade?
They feared that the Southern economy would be ruined if slavery was outlawed.
What has made Mexicos economy grow in the past?
DRUGS
What are mexicos common needs?
Security, a good economy, jobs for the population.
What is Mexicos Economy in Latin America?
It is the second largest economy after Brazil, and roughly represents 25% of the region's GDP.
What are mexicos national foods?
Enchiladas, Tacos, Nachos, Buritos etc
How did the panic of 1837 affect the the nation's economy?
it ruined the nations economy by no money
What Flowers start with the letter Y and is mexicos national flower?
The dahlia is the official national flower of Mexico (the country).
What is mexicos national plant?
the national flowers are the dahlia officially and the Poinsettia unofficially I think. And the national tree is the ahuehuete
What were the results of mexicos foreign debt cisis?
Devaluation of the Mexican peso as well as a fall of the Mexican economy.
Mexicos national bird?
The golden eagle is the national bird of Mexico. It is featured on the coat of arms for the country and inhabits much of the country's mountains.
How has the North American free trade agreement helped mexicos economy?
It has led mexico to depend less on farming and more on manufacturing.
Which of President Cardenas's policies most affected Mexicos economy?
novanet answer:: He brought Mexico's oil reserves under government control.
Why does the yucatan peninsula conributes to mexicos economy because of its?
Beautiful landscapes along the Caribbean Sea. The most prominent activity is tourism.
