Mexico : The Remaking of an Economy

Hailed by Choice as ''a concise, exceptionally clear exposition of the transformation of Mexican economic policy since 1982,'' and selected as one of the magazine's outstanding books, the first edition of Mexico: The Remaking of an Economy was published at the height of ''Mexico-optimism.'' In 1992, most analysts and observers viewed Mexico as a model reformer among developing nations. Two years later, however, Mexico was on the verge of a financial collapse; indeed, even before the crisis of 1995, Mexico's performance was lackluster. Nora Lustig updates the original book and analyzes the possible explanations for Mexico's relative slow growth in the early nineties and the causes of the peso crisis at the end of 1994. In addition to describing the financial rescue package, she examines why the recession in 1995 was so sharp despite sizeable international assistance, the factors behind Mexico's relatively swift recovery, the evolution of poverty and inequality in Mexico, and the relationship between economic openness and inequality. Finally, Lustig highlights Mexico's economic prospects in coming years. Besides contributing to our understanding of a traumatic experience in Mexico's recent history, Lustig's analysis yields helpful insights for other reforming economies around the globe.

Today Mexico is viewed as a success story in the management of economic adjustment and structural reform. Inflation is under control, capital and foreign investment are returning, and output growth has increased. Mexico's recovery, however, has been neither fast nor smooth, and the social costs the country has borne for the past several years have been very large. In 1982, Mexico faced a severe balance-of-payments crisis. Rampant inflation, capital flight, and a collapse of economic activity were the consequences of an overexpansionist fiscal policy and adverse external conditions. For the next five years, the Mexican government struggled to restore stability and growth without success. Falling oil prices and lack of adequate external financing made these goals extremely difficult to achieve. With the implementation of the Economic Solidarity Pact, inflation was finally brought down in 1988. However, fiscal discipline and far-reaching reforms notwithstanding, growth did not follow. To convince investors to put their capital in Mexico required something more. Initiatives such as the reprivatization of the banking system and the pursuit of a free trade agreement with the United States finally produced the observed turnaround starting in 1990. In this book, Nora Lustig tells the story of adjustment and reform in Mexico from the onset of the debt crisis in 1982 through the early 1990s when the sweeping reforms began to bear fruit. The author looks closely at the social costs of adjustment and who bore the greatest share. In addition, she explores the characteristics of the new development strategy and analyzes the motivations and potential consequences of Mexico's search for greater economic integration with the United States.

Today Mexico is viewed as a success story in the management of economic adjustment and structural reform. Inflation is under control, capital and foreign investment are returning, and out growth has increased. Mexico's recovery, however, has been neither smooth nor rapid. In mid-1982, Mexico was in deep economic crisis compounded by an unfavorable international environment. Mexico was saddled with a large foreign debt, world interest rates were high, commercial banks had stopped lending, and the price for oil was dropping. Conditions at home were no better with rampant inflation, increasing capital flight, and chaos in financial and foreign exchange markets. To confront internal imbalances and accommodate adverse external conditions, Mexico adjusted its consumption and output, then sought new ways to foster growth. The crisis and adjustment imposed great hardship and demanded enormous discipline on the part of the government. This was accomplished without serious political or social disruption. In this book, Nora Lustig analyzes Mexico's economic evolution from the outset of the debt crisis in 1982 until the sweeping reforms began to bear fruit in the early 1990s. She explains the causes of the 1982 economic crisis and why it took Mexico'so long'to restore stability and growth. She also explores the question of the social costs of economic crisis and adjustment, and why the process may have been easier for Mexico than other debt-ridden countries. A discussion of the emerging role of the state in Mexico and the country's new outward-oriented development strategy is followed by an analysis of its search for greater economic integration with the United States and Canada. Selected by Choice as an Outstanding Book of 1992 "Today Mexico is viewed as a success story in the management of economic adjustment and structural reform. Inflation is under control, capital and foreign investment are returning, and out growth has increased. Mexico's recovery, however, has been neither smooth nor rapid. In mid-1982, Mexico was in deep economic crisis compounded by an unfavorable international environment. Mexico was saddled with a large foreign debt, world interest rates were high, commercial banks had stopped lending, and the price for oil was dropping. Conditions at home were no better with rampant inflation, increasing capital flight, and chaos in financial and foreign exchange markets. To confront internal imbalances and accommodate adverse external conditions, Mexico adjusted its consumption and output, then sought new ways to foster growth. The crisis and adjustment imposed great hardship and demanded enormous discipline on the part of the government. This was accomplished without serious political or social disruption. In this book, Nora Lustig analyzes Mexico's economic evolution from the outset of the debt crisis in 1982 until the sweeping reforms began to bear fruit in the early 1990s. She explains the causes of the 1982 economic crisis and why it took Mexico "so long" to restore stability and growth. She also explores the question of the social costs of economic crisis and adjustment, and why the process may have been easier for Mexico than other debt-ridden countries. A discussion of the emerging role of the state in Mexico and the country's new outward-oriented development strategy is followed by an analysis of its search for greater economic integration with the United States and Canada."--Publisher's description "Burma has been thrown back to an earlier, more nakedly brutal period of dictatorial excess. Since being defeated overwhelmingly in the 1990 elections, the State Peace and Development Council, a steely military junta despite its name, has repressed dissent, detained Nobel Laureate Aung San Suu Kyi and her colleagues, and violated the human rights and civil liberties of countless Burmese."--BOOK JACKET. "What to do about Burma is a difficult question. This World Peace Foundation book provides an understanding of why answers are hard and a ready solution is not at hand. Its chapters, written by a number of the world's leading authorities on Burma, discuss the country's history and political culture, its economic and trade prospects, the power of the army, ethnic relations, its educational and health crises, and the drug trade."--Jacket Since Burma's current military rulers took power in 1989, this pivotal, troubled, and bitterly divided Southeast Asian nation has rejected important opportunities for political and economic liberalization. This book examines the origins and consequences of Burma's current policies from military, political, social, and economic perspectives--and analyzes Burma's stand with regard to the United States and other Western countries.