ABSTRACT
Mexico has had a serious economic crisis since 1982. Inflation, which has been fought successfully in the past, has caused terrible distortions in the economy as it has increased from less than 5 percent annually to more than 130 percent in only a few years. Mexico is a large debtor and must sustain economic growth by exporting in a time of protectionism. Notwithstanding the country’s high deficit and indebtedness, new investments and fresh financial support are essential for Mexico’s development. The maquiladoras or in-bond industries on Mexico’s borders have been an excellent program and many Mexicans can find employment with them instead of entering the United States illegally in search of jobs. Mexico and the United States have ideological discrepancies in foreign policy. The Mexican point of view regarding Central America favors peaceful settlement of the civil wars supported by the great powers, whose practice of sending weapons only assures death and destruction.
