ABSTRACT
Since 1982 Mexico—the world's largest debtor and one of the largest oil exporters—has been trying to cope first with a debt crisis and then with an oil crisis. Mexico announced that it would be unable to meet maturing principal and interest payments on its massive foreign debt. In 1983 and 1984, Mexico was widely praised as the symbol of successful adjustment to the debt crisis. In 1986, the collapse of oil prices again plunged Mexico into financial and economic crisis. The Mexican government and political elites may be prepared to make a sustained effort at reforming the economy. The concept of "adequate" growth, defined relative to the growth rate of the population and the labor force, is an important one to understand. The Mexican government's International Monetary Fund -sanctioned stabilization program anticipates 3.5 percent growth in 1987, and creditors have committed to making additional funding available if the growth rate is lower.
