“What’s that Sound?” is a pretty good article written by Thomas L. Friedman about the Mexican economy.
It’s becoming a more and more apparent problem according to Friedman, that Mexico is losing it’s small corner of the American and world markets. “Will Rogers said it a long time ago: "Even if you're on the right track, you'll get run over if you just sit there." Mexico has put itself on the right track. But for the moment, it's just sitting there. If it doesn't start moving again, it's going to get run over by China, India, America — or all of the above.”
It seems Mexico hasn’t made the necessary upgrades to its country to be a formidable competitor in the world market. The Mexican Government has laid out a plan of action including five main “micro reforms” that will grease up the squeaky hinges of this country. In no particular order; Fix the Labor Markets, Tax Collection, the Judiciary System, the Constitution & Electoral System, and open the Energy & Electricity Markets to foreign markets. Sounds like the micro reforms aren’t so micro after all and what happened to education? Shouldn’t that be up there somewhere? I’ve talked to many friends that have lived in Mexico for years and according to them the education system is all but “Up-to-Par”.
The main reason that countries like China and India are working over Mexico is because of the highly educated human capital these countries are producing. Mexico has been trying however but not doing good enough to make the needed reforms. “While Mexico has upgraded its competitiveness, notes the analyst Daniel Rosen in the journal The International Economy, China upgraded worker education, infrastructure, management skills, technology and quality controls even faster.”
It sounds like Mexico needs to stop sitting on the track and start running full steam ahead or get run over!