Mexico – Wealthier Than You Think

MexicoAs an American, it’s easy to think of Mexico as our poor and violent neighbor. And while there may be significant poverty and violence south of the border, it pays to take a step back and think of Mexico in a global context rather than a local one.

Mexico is always in the shadow of its wealthier and more powerful neighbor, in a way that hides how wealthy and powerful it really is. If Mexico were located anywhere else in the world, it would be perceived as a major international power. Adjusted for purchasing power, Mexico has the 11th largest economy in the world. Fareed Zakaria’s blog recently pointed out that although Mexico has a higher adjusted per capita income ($15,300) than Brazil ($11,700), China ($8,500) and India ($3,700), these other countries are always in the international economic limelight. Apparently the bad press has affected domestic sentiments as well – Mexicans see themselves as worse off than residents in these other countries even though Mexicans are significantly wealthier. Also, the Mexican economy continues to grow even as most of the advanced economies of the world has slowed to a standstill.

Mexico is the Scottie Pippen of international geopolitics – not a superpower but definitely a power to be reckoned with, and constantly in the shadow of the superstar teammate. There are of course those who say Pippen was as good as he was because he played with Jordan. The same can be said of Mexico’s wealth and power being aided by a close economic relationship with the US – but that’s a whole other blog post.

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One thought on “Mexico – Wealthier Than You Think

  1. 2 things one… the devil here lies in the details… Lots of money, but evenly distributed?

    and 2… regarding NAFTA… I’m not sure it actually benefited MOST Mexicans… the hardcore economics are way too complicated for me, but let’s not make the typical mistake of thinking “all money that comes into the country is good for the country”

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