Mexico: Economic and Social Issues

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  • Topic: North American Free Trade Agreement, United States, Mexico
  • Pages : 2 (696 words )
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  • Published : December 6, 2012
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Mexico: Economic and Social Issues

After WWII, Mexico’s economy, much like the other countries involved, got better. They went from an agricultural economy to an industrial economy. After the war, Mexico also went from a closed economy to an open economy. In 1992 Mexico introduced NAFTA, North America Free Trade Agreement. Their economy slowly but surely got a lot better. Also, while the economy was getting better, so were the social issues. The population grew significantly, and the quality of life got a lot better. The number of deaths from diseases lowered. Literacy and education levels reached all-time highs. Mexico was growing to be a great and powerful country.

Before the war agriculture only was 19% of the GDP and accounted for 65% of the jobs in Mexico. In 1999, after the shift to an industrial economy, agriculture only accounted for 5% of the GDP and only 23% of the jobs. Manufacturing accounted for 88% of the GDP and also accounted for 70% of the jobs. The shift came from before the end of WWII. Mexico started to supply Allies with equipment and things needed, and because of the decrease of availability of consumer products, Mexico had to supply its own population as well. Since the end of the war Mexico has just kept enhancing the industrial development.

Mexico also switched from a closed economy to an open economy. A closed economy is when a country keeps all its goods within itself. After the war, government in Mexico tried to institute a policy to industrialize Mexico but it got rejected because people were still trying to keep the economy closed. Mexico tried to institute a policy that would encourage the manufacturers to start import substitutions. This policy would require the government to set up barriers which included tariffs etc, to the importations of trade of the same items. In 1985, the government instead changed and decided to come up with a policy that would increase Mexican exports and decrease barriers to import into...
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