Wednesday, September 18, 2019

Quora: Why can’t Mexico be the new China, given the cost advantages to cheap manufacturing and proximity to the US?

Neo YI, B.A. Economics, Nanchang University (2012) answered.

My brother married a Mexican girl last year and I stayed there for weeks.

My trip to Mexico is one of the best memories of my life. I was intoxicated by the ubiquitous art of Mexico.

But I also see the economic differences between Mexico and China.

I think the inequality between the rich and the poor is a problem. At a certain stage in the development of any society, the rich will begin to abandon the poor. So the security and infrastructure of the rich communities are good, while the poor communities are much worse than the rich communities because of the lack of help.

The Chinese government is working very hard to help the poor. The Chinese government has a precise poverty alleviation policy. Every member of the Communist Party is responsible for a poor family and helps them find ways to develop their careers and make money and become rich.

In Mexico, as in the United States, there are many police in rich places and there are no police in poor places. In turn, the more chaotic places in China, the more police forces the government will deploy to maintain law and order. In my hometown, a small, 300 000 population, underdeveloped town, there was no murder in 2018. As a matter of fact, I have a cousin who is a policeman. He is very upset because he can hardly come across a theft. It's hard for him to get promoted.

In China, the police are the most reliable people. But I was blackmailed by the police in Mexico.

The security and stability of the social environment are essential to economic development. If the Mexican government can tilt more social resources and policies towards the poor and narrow the gap between the rich and the poor, there will certainly be better development.

But then again, Mexico is really beautiful. Mexicans are happy, unlike the Chinese, always worried about the future.

I miss my Mexican friends. Hope can be there again.

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