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Public Policy. Madison Samuels, Andrew Kendall, Megan Glova , Lauren Dunlap. HDI,GDP, GNI. Andrew Kendall. Human Development Index - PowerPoint PPT Presentation
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Public PolicyMadison Samuels, Andrew Kendall,
Megan Glova, Lauren Dunlap
HDI,GDP, GNIAndrew Kendall
HDI
Human Development IndexBased on a formula that takes into account
the three factors of longevity (life expectancy at birth), knowledge (literacy and average years of schooling), and income (according to PPP).
Mexico’s literacy rate is 86.9% for men and 85.3% for women.
Mexico’s life expectancy is 73.25 for men and 79 for women.
GDP
Gross Domestic ProductGDP is the monetary value of all the
finished goods and services produced within a country's borders in a specific time period.
Usually calculated on an annual basis.Official Exchange rate: $1.163 trillionGDP per capita (PPP): $15,300
GNI
Gross National IncomeGNI is the gross domestic product (GDP)
plus net receipts of primary income (employee compensation and investment income) from abroad.
The latest value for GNI in Mexico was $1,012,540,000,000, as of 2010.
Problems and ReformsMadison Samuels
Mexico’s Problems
Growing Gap Between Rich and PoorGrew due to rapid economic growth1940-1980 Mexico had one of the most
unequal income distribution of all the LDsThe bottom 40% never making more than
11% of the total wagesHas become a little less of a problem but
still an important one
Problems Continued
Rapid and Unplanned UrbanizationMajor cities (The Fed District, Guadalajara,
etc) became overpopulated disastersMillions of people without sewers,
electricity, or running waterBad highway planningNo mass transitAmong the worst traffic in the worldDirty air unsafe to breathe
Reform
President Miguel de la Madrid started dramatic reforms which continued through Salinas and Zedillo’s presidency
Sharp cuts in government spending◦Austerity plan reducing government spending◦Job cuts◦Subsidies to government agencies removed◦Eliminated hundreds of public enterprises
Reforms continued
Debt ReductionUS devised a plan that allowed more
generous repayment terms and gave loans a reduced interest rate
Mexico still suffers from debtAverage of $10 billion of interest
payments a year
PrivatizationEconomic power of Madrid’s government
were reducedPrivatized many public enterprisesSpecial laws and cheap labor made US
companies invest in Mexico
Attempted Energy Reform
Felipe Calderon, president starting in 2006, created a reform to give PEMEX (Mexican petroleum company) “greater budget autonomy” and to intensify the oil industry’s regulations
Also allowed PEMEX private contractors and contracting of refining
Legislature opposed because they believed Calderon was trying to privatize PEMEX
Population IssuesLauren Dunlap
Population Background
114 million peopleMost populous Spanish-speaking country
in the worldPopulation growth has slowed significantly
to approximately 1.1%Population is still increasingGaps in population between:
◦Urban and Rural ◦North and south
Urban Population
75% of entire population lives in the cities or along the coasts
21 million living in or close to itUrbanizing rapidlyShifting from rural to urban has disrupted
traditional politics in Mexico, including the patron-client system
Northern Population
More prosperous than south many involved in trade with the United
StatesMiddle class with high educationExpanding faster than south
Southern Population
Less influenced by urban areas and the United States
Lower incomes than in the NorthTypical adult only has about 6 years of
schooling (compared to the north’s 8 years)
Population Issues Summary
Gap between North vs. South and Urban vs. Rural divide the population
Incomes of the poorest half of the population are growing faster than the average
Population issues are effecting the economy
Foreign AffairsMeghan Glova
Foreign Policy
After the 1982 crisis, it became obvious that a policy was needed to encourage an increase in Mexican exports and open markets to foreign goods.
Foreign Policy Continued
After 1982, Mexican private industries were encouraged to produce goods to export, tariffs were reduced (and even eliminated), and there were loosened restrictions on foreign property ownership
Maquiladora
In the 1960`s a manufacturing zone was established south of the United States border in Northern Mexico. The workers in this maquiladora district produced a majority of their goods for United States consumers.http://www.youtube.com/watch?v=EDMpwwIToTc
Maquiladora and NAFTA
In 1995, Mexico, the United States and Canada signed the North American Free Trade Agreement (NAFTA) to eliminate free trade barriers in the three countries. Now, those working in the maquiladora make up 20% of Mexico`s labor force.
Trade Agreements
GATT/WTO (1986) -The General Agreement on Tariffs and Trade- Attempted to promote an increase in free trade among countries.- This agreement created the World Trade Organization (WTO) - Mexico has now begun to export goods besides oil, and has started to trade with a variety on different countries besides the United States.
Trade Agreements
NAFTA Main goal: integrate the economies of Mexico, Canada and the United States by reducing restrictions and eliminating tariffs so companies have more freedom to expand. Negatives for Mexico: Mexico could be “overshadowed” by the United States, and these two countries have gotten into political battles over road transport.
Immigration Policy
NAFTA does not allow a free flow of labor across borders.
Vicente Fox proposed an immigration policy including guest worker programs, amnesty for illegal immigrants, increase in issued visas, and movement to an eventual open border.
Fox`s plan would have let Mexicans work in the United States legally and offered green cards to illegal immigrants living in the United States.
Fox assured he would prevent additional illegal immigration by tightening the Mexican border
Immigration to US
“Building Blocks”Article on free trade by The Economist.
http://www.economist.com/news/finance-and-economics/21568717-regional-deals-are-only-game-town-supporters-free-trade-are-they-any