Mexicos Economic Policies (Essay Sample)

MEXICO’S ECONOMIC POLICIES
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State capitalism in Mexico entailed an economic policy that was implemented to promote growth. These policies were reliant on the government’s actions to encourage and facilitate private investments. The import substitution industrialization policy sought to promote domestic industry in making products that were being supplied by foreign companies. Therefore, such a policy aimed at encouraging local companies to make products for the domestic market.
A significant percent of Mexico’s resources, including petroleum, land, railroad network, and mining were in the control of foreign investors; the economic wealth derived from these resources benefited alien enterprises. However, after the 1910 revolution, the government adopted state capitalism through a strategy that depended on the government’s support in encouraging private investments while reducing the risk incurred by entrepreneurs. For instance, critical resources such as land were largely owned and managed by the state; hence, reducing the risks involved in agricultural production for farmers.
Mexico integrated import substitution industrialization through promoting the development of industries that would supply the country with products that were previously imported. Initially, the items that were being produced were simple items such as clothing, processed food and shoes; however, as the country progressed, local production adva...