OECD Policy Advice and Mexico's Economic Development

Introduction

Globalization has driven a wide increase in the number of international organizations that provide aid, assistance, and cooperation frameworks around the world. Among the many organizations of this type, the Organisation for Economic Co-operation and Development (OECD) has become an important player on the international scene given its nature as an advisory body. Mexico is among the countries that have benefited from the policy advice provided by the OECD and continues to receive support aimed at improving economic and social well-being.

Following the 2008–2009 recession that affected states around the world, Mexico was severely hit, largely due to its dependency on exports and its close commercial ties with the United States. More precisely, it is considered that "80% of exports go to the U.S." (Schwellnus, 2011, p. 6). Therefore, regardless of the efforts Mexico had undertaken up to that point, the recession clearly affected the country — particularly from the standpoint of dependency on foreign markets, whether through exports or direct trade ties with the United States.

Given that during the 2008–2009 crisis the Mexican economy proved relatively sensitive to the economic downturn in the neighboring United States, further action needs to be taken to ensure greater sustainability of the Mexican economy (Schwellnus, 2011). However, measures must be addressed simultaneously at the political, economic, and social levels.

Political Environment and Civic Trust

One of the most important aspects of a society's well-being is the political environment. Despite a series of episodes of political unrest in Mexico, one of the main strategies for maintaining political stability is cultivating citizens' trust in the political class. According to OECD statistics, "In Mexico, only 38% of people say they trust their political institutions, much lower than the OECD average of 56% and the lowest rate in the OECD area" (OECD, n.d.). This figure highlights clear public mistrust in political representatives. Therefore, at the political level there is an evident need for a strategy that would build greater confidence in state authorities. Moreover, this mistrust in state structures is also reflected in weak enforcement of the rule of law. A need for greater transparency and more consistent enforcement of existing laws is essential for rebuilding citizen confidence.

Unlike in many other OECD countries, the younger generation in Mexico is increasingly interested in playing an active role in society by exercising the right to vote. According to OECD statistics, this younger generation is more engaged in actively influencing the political structure through elections. Although this represents a positive momentum, it should be built upon to foster a stronger civil society.

Economic Strategies and Export Diversification

In terms of economic strategies, it is essential that Mexico becomes less dependent on exports channeled through the United States and instead secures a wider range of foreign markets for its products. A positive development is the increasing production of more specialized goods. However, new export markets should be actively sought in order to reduce reliance on the United States and strengthen the overall resilience of the Mexican economy.

Conclusion

The transfer of knowledge, of policy-making practices, and of development strategies is one of the most important aspects of cooperation at the global level. In principle, the rules of economics tend to apply — with particular tailoring for the specificities of each country — to a defined set of economic models. Therefore, international cooperation of the kind conducted within the OECD is beneficial for countries such as Mexico because it provides essential input on economic strategies, political approaches, means of civic engagement, and social well-being.

Indeed, there is no exact formula for transforming a developing country into a developed one. Even so, it is important for countries such as Mexico to benefit from the experience of others. Furthermore, participation in international discussion forums is crucial for the exchange of ideas and for creating new partnerships, regardless of their nature.

References

OECD (2011). Education at a glance: Country note Mexico. Retrieved from http://www.oecd.org/mexico/48667287.pdf

OECD (n.d.). Better Life Index: Civic engagement. Retrieved from http://www.oecdbetterlifeindex.org/topics/civic-engagement/

Schwellnus, C. (2011). Macroeconomic and structural policies to further stabilise the Mexican economy. OECD Economics Department Working Papers, No. 906. OECD Publishing.