Why is Mexico still poor?

 Why is Mexio poor?

To understand the answer to this question, we have to understand Mexico's Geography and it's relationship with the United States of America.

Mexico lies in North America with the USA to its North. While Panama and the caribbean islands lie to its South.

Geographically, it is easy to see why Mexico is poor. The country is made of Desert wastelands in its North, the mountains in the east and west, and it's jungles in the south. All of these factors limit it's trading capabilities and economic growth, making it difficult for the Mexican currency to grow.

POVERTY IN MEXICO VIOLATES THE COUNTRY’S OWN CONSTITUTION

But we have seen countries with much harsher Geography grow into bustling economies. 

So why is it that Mexico is so limited in its capacity?

To understand this, let us now look at the political aspect.

All Mexicans know that before the 1846–8 war with the United States, the land which is now Texas, California, New Mexico and Arizona was part of Mexico.

The conflict led to half of Mexico’s territory being ceded to the USA. However, there is no serious political movement to regain the region and no pressing border dispute between the two countries.

Throughout most of the twentieth century they squabbled over a small piece of land after the Rio Grande changed course in the 1850s, but in 1967 both sides agreed the area was legally part of Mexico.

By the middle of the 21st century Hispanics are likely to be the largest ethnic group in the four US states listed above, and many will be of Mexican origin. There may eventually be Spanish-speaking political movements on both sides of the US–Mexican border calling for reunification, but tempering this would be the fact that many US Latinos will not have Mexican heritage, and that Mexico is unlikely to have anything approaching the living standards of the United States.

The Mexican government struggles to control even its own territory. So it will not be in a position to take on any more in the foreseeable future. Mexico is destined to live in the USA’s shadow and as such will always play the subservient role in bilateral relations. It lacks a navy capable of securing the Gulf of Mexico or pushing out into the Atlantic, and so relies on the US navy to ensure the sea lanes remain open and safe.

Thus, Mexico has no ideological territorial ambitions and instead concentrates on trying to develop its limited oil-producing industry and attracting more investment into its factories. Besides, Mexico has enough internal problems to cope with, without getting into any foreign adventures.

Perhaps none greater than its role in satisfying the Americans’ voracious appetite for drugs.

The Mexican border has always been a haven for smugglers, but never more so than in the last twenty years. This is a direct result of the US government’s policy in Colombia, 1500 miles away to the south.

It was President Nixon in the 1970s who first declared a 'War on Drugs'.

However it's wasn't until the early 1990s that Washington took the war directly to the Colombian drug cartels closing down a number of air and sea routes for drug trade between Colombia and the USA.

The cartels responded by creating a land route – up through Central America and Mexico, and into the American Southwest. This in turn led the Mexican drug gangs to get in on the action by facilitating the routes and manufacturing their own produce. The multibillion-dollar business sparked local turf wars, with the winners using their new power and money to infiltrate and corrupt Mexican Police and military and get inside the political and business elites.

MEXICO LONG RUN DRUG WAR

Throughout history, successive governments in Mexico City have never had a firm grip on the country.

Now, the drug cartels have paramilitary wings which are as well armed as the forces of the state, often better paid, more motivated, and in several regions regarded as a source of employment by the members of the public.

The vast sums of money made by the gangs now swill around the country, much of it being washed through what appear on the surface to be legitimate businesses.

The overland supply route is firmly established, and the demand in the USA shows few signs of diminishing. All Mexican governments try to keep on the right side of their powerful neighbour and have responded to American pressure by waging their own ‘War on Drugs’.

But Here lies a conundrum. Mexico makes its living by supplying consumer goods to America, and as long as Americans consume drugs, Mexicans will supply them After all, the idea here is to make things which are cheap to produce and sell them at prices higher than those in legal trade.

So, as we have now seen, Geography alone is not the reason Mexico's growth is restricted. It is this complex web of political dilemmas and Drug wars, that is holding Mexico back from a giant player at the world stage.