Is this Mexico’s chance to shine?

June 30, 2014

06/24/14 The Guardian

120px-Flag_of_Mexico_(1)Less than two years into Enrique Peña Nieto’s presidencyMexico is implementing an ambitious structural-reform package designed to lift its economy out of a multidecade low-growth trap and create new opportunities for its citizens. The reforms involve restructuring economic sectors once deemed politically untouchable and are backed by constitutional amendments and a bold legislative agenda.

Indeed, thanks to the “pact for Mexico”, much of this agenda has the support not only of Peña Nieto’s government but also of the two main opposition parties. This unique arrangement will be tested soon as the reforms begin to bite, and the outcome could have important and lasting consequences for efforts to implement structural reforms elsewhere around the world.

Such reforms are never easy to initiate and are usually difficult to complete. Politicians advocate them when they are in opposition but rarely embrace and sustain them when in government. The reason is simple: front-loaded costs and back-loaded benefits make structural reforms politically perilous.

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Analysis: Most U.S. funds missed Mexico gains, Brazil drop in 2012

January 2, 2013

Reuters, 1/2/2013

120px-Philippine-stock-market-boardThe two biggest financial markets in Latin America swapped their long-held roles in 2012, with Mexico surging ahead and Brazil lagging, catching many U.S. fund investors in the region off guard. Stocks in Brazil, which had benefited over the past decade from a fast-growing consumer class and Chinese buying of commodities, suffered as the government increased regulation of key sectors of the economy and Asian demand waned. In the third quarter of 2012, Brazil’s economy grew only 0.9 percent from a year earlier, while Mexican growth was 3.3 percent.

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