A Prescription For Dealing With Mexico's Economic Crisis

by Ricardo Valenzuela

Mexico needs a general recovery plan, Mexico needs a "New Deal", but, based on the history of the United States, it must not be Keynesian, statist, or paternalistic, much less should it be nationalist or revolutionary. Mexico needs a New Deal but with market overtones, or the true promotion of development. Mexico needs to start a serious process of deregulation of the economy, a true liberalization. It needs to continue its process of privatizing state enterprises that have not yet been put up for sale, such as Federal Commission of Electricity, Railroads, and, very specially, conclude the true privatizing of the ejido (community land owned by the government) in order to make it productive. A drastic and total reform of Federal Labor Law that will make development possible without affecting workers is also required.

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