Mexico Debt Crisis

Satisfactory Essays

Economic growth in Mexico is in just about World Bank interests. Mexico is one of the many countries that suffered as a result from getting an assistance. The debt crisis in early 1950s, the country received from the IMF and World Bank is just to pay its debt back to the international commercial banks. The IMF serves only for wealthy countries and voting power is determined by the amount of money that each country contributes into the IMF's quota system. The World Bank only extend loans if Mexico agree to accept the structural adjustment programs (SAPs) which are not democratically decided upon the people of the debtor in Mexico. The Children at Work in Mexico, still one of the project that created problems to receive its assistance. The IMF or World Bank blocked the government from …show more content…

These debts have piled up so many. Therefore, the economies of Mexico should grow at an incredible rate in future by promoting social class of workers. I believes that international financial institutions should consistently provide assistance with an objective, unbiased and responsible manner to Mexico. Because most countries in the world is using the interest of the capitalist powers in which United States has also played dominant role. It costs a lot of time and money to start a business in Mexico. I do believe it is possible if the Mexico government turn discourages the corruption in Mexico and encourages entrepreneurship and raising minimum wage for the educated people in future. Mexico’s government should use certain fiscal policy in order to avoid the downturn in country economy. The country should promote sizable interest rate cut by the central bank and targeted support by the government in various parts of the education sector in order to become a global

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