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Public Policy

Public Policy

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Public Policy

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  1. Public Policy Madison Samuels, Andrew Kendall, Megan Glova, Lauren Dunlap

  2. HDI,GDP, GNI Andrew Kendall

  3. Human Development Index • Based on a formula that takes into account the three factors of longevity (life expectancy at birth), knowledge (literacy and average years of schooling), and income (according to PPP). • Mexico’s literacy rate is 86.9% for men and 85.3% for women. • Mexico’s life expectancy is 73.25 for men and 79 for women. HDI

  4. Gross Domestic Product • GDP is the monetary value of all the finished goods and services produced within a country's borders in a specific time period. • Usually calculated on an annual basis. • Official Exchange rate: $1.163 trillion • GDP per capita (PPP): $15,300 GDP

  5. Gross National Income • GNI is the gross domestic product (GDP) plus net receipts of primary income (employee compensation and investment income) from abroad. • The latest value for GNI in Mexico was $1,012,540,000,000, as of 2010. GNI

  6. Problems and Reforms Madison Samuels

  7. Growing Gap Between Rich and Poor • Grew due to rapid economic growth • 1940-1980 Mexico had one of the most unequal income distribution of all the LDs • The bottom 40% never making more than 11% of the total wages • Has become a little less of a problem but still an important one Mexico’s Problems

  8. Rapid and Unplanned Urbanization • Major cities (The Fed District, Guadalajara, etc) became overpopulated disasters • Millions of people without sewers, electricity, or running water • Bad highway planning • No mass transit • Among the worst traffic in the world • Dirty air unsafe to breathe Problems Continued

  9. President Miguel de la Madrid started dramatic reforms which continued through Salinas and Zedillo’s presidency • Sharp cuts in government spending • Austerity plan reducing government spending • Job cuts • Subsidies to government agencies removed • Eliminated hundreds of public enterprises Reform

  10. Debt Reduction • US devised a plan that allowed more generous repayment terms and gave loans a reduced interest rate • Mexico still suffers from debt • Average of $10 billion of interest payments a year Reforms continued

  11. Privatization • Economic power of Madrid’s government were reduced • Privatized many public enterprises • Special laws and cheap labor made US companies invest in Mexico

  12. Felipe Calderon, president starting in 2006, created a reform to give PEMEX (Mexican petroleum company) “greater budget autonomy” and to intensify the oil industry’s regulations • Also allowed PEMEX private contractors and contracting of refining • Legislature opposed because they believed Calderon was trying to privatize PEMEX Attempted Energy Reform

  13. Population Issues Lauren Dunlap

  14. 114 million people • Most populous Spanish-speaking country in the world • Population growth has slowed significantly to approximately 1.1% • Population is still increasing • Gaps in population between: • Urban and Rural • North and south Population Background

  15. 75% of entire population lives in the cities or along the coasts • 21 million living in or close to it • Urbanizing rapidly • Shifting from rural to urban has disrupted traditional politics in Mexico, including the patron-client system Urban Population

  16. More prosperous than south • many involved in trade with the United States • Middle class with high education • Expanding faster than south Northern Population

  17. Less influenced by urban areas and the United States • Lower incomes than in the North • Typical adult only has about 6 years of schooling (compared to the north’s 8 years) Southern Population

  18. Gap between North vs. South and Urban vs. Rural divide the population • Incomes of the poorest half of the population are growing faster than the average • Population issues are effecting the economy Population Issues Summary

  19. Foreign Affairs Meghan Glova

  20. After the 1982 crisis, it became obvious that a policy was needed to encourage an increase in Mexican exports and open markets to foreign goods. Foreign Policy

  21. After 1982, Mexican private industries were encouraged to produce goods to export, tariffs were reduced (and even eliminated), and there were loosened restrictions on foreign property ownership Foreign Policy Continued

  22. In the 1960`s a manufacturing zone was established south of the United States border in Northern Mexico. The workers in this maquiladora district produced a majority of their goods for United States consumers. Maquiladora

  23. In 1995, Mexico, the United States and Canada signed the North American Free Trade Agreement (NAFTA) to eliminate free trade barriers in the three countries. Now, those working in the maquiladora make up 20% of Mexico`s labor force. Maquiladora and NAFTA

  24. GATT/WTO (1986) • The General Agreement on Tariffs and Trade • Attempted to promote an increase in free trade among countries. • This agreement created the World Trade Organization (WTO) • Mexico has now begun to export goods besides oil, and has started to trade with a variety on different countries besides the United States. Trade Agreements

  25. NAFTA Main goal: integrate the economies of Mexico, Canada and the United States by reducing restrictions and eliminating tariffs so companies have more freedom to expand. Negatives for Mexico: Mexico could be “overshadowed” by the United States, and these two countries have gotten into political battles over road transport. Trade Agreements

  26. NAFTA does not allow a free flow of labor across borders. • Vicente Fox proposed an immigration policy including guest worker programs, amnesty for illegal immigrants, increase in issued visas, and movement to an eventual open border. • Fox`s plan would have let Mexicans work in the United States legally and offered green cards to illegal immigrants living in the United States. • Fox assured he would prevent additional illegal immigration by tightening the Mexican border Immigration Policy

  27. Immigration to US

  28. “Building Blocks”Article on free trade by The Economist.