lunes, 26 de noviembre de 2012

New neoliberal policies in Mexico



Santiago Benitez Salazar
Modern Political Thought

The government of Mexico is trying to improve its economy by reducing trade barriers. Since 1994 the government has attempted to establish that kind of policies and last Friday started a program where they reduced the rate of taxes that they receive from commerce (exports and imports) and specifically in the market of food. For example the tax rate received was 21.7% and now it is 14.2%. In a future this tax is going to be lower because the program says that this reduction will be gradually. In 2017 is going to be 4.2%.
There are a lot of products that are important for Mexican citizens, that going to be greatly benefited by this policy: The tax rate for Wheat was 67% and now it’s going to be 15%, Potatoes from 245% to 75% and powdered milk from 63% to 45%. In the notice we can seen that Lorenza Martinez (Member of government economic issues) argue that government is making this policies in response to the bad results that Mexico is obtaining in competitiveness. Mexico is the 8th in the ranking of more protectionist countries in some branches like food and chemical products.
One of the bases of neoliberalism is the “Markey Fundamentalism”. For Neoliberal thinkers free markets promote efficiency in almost all the branches but not only that, markets can solve every problem instead of government intervention. For the case in Mexico the neoliberal debate is an important topic in public agenda. The ones that promoted the policies since 1994 say that neoliberalism has been good. For some other groups neoliberalism not only has failed but has been an obstacle to Mexico`s growth. For example few days ago #YoSoy132 movement made an announcement where they said that neoliberalism has been a drag in Mexico`s growth. The truth is that a real neoliberalism hasn’t been established in Mexico. Corruption, mismanagements, and policies that only benefit the welfare of the elite have accompanied the word “Neoliberalism” in Mexico, but paradoxically there are concepts against neoliberalism bases.
Establishing neoliberalism policies only in order to follow international tendencies is a stupid policy. Those new kinds of neoliberal policies are going to work? The answer is “who knows” anybody can predict future even the best neoliberal thinker. However there are lots of facts that we can mention. The first one is that the food market is especially important and sensitive by the main reason that people need food to survive and because poor people cannot have access to a lot of food basic products because of their prices. What if this open economy leads the prices to increase at levels in which more people every time have difficulty to access to food? There will be a food crisis. On the other hand neoliberals can defend their position by saying that national producer will be benefited because they will have access to better prices and can export their products in more easier way. But there is experience in Mexico in that. Enterprises are not able to compete with international practices. So, is a bad neoliberal policy? The answer is no. however like almost all neoliberalism in Mexico is misapplied. First Mexico needs deeper reforms and then that kind of neoliberal policies can give good results.

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