Would Mexico Be an Economic Superstar Without Corruption?
Mexico is a country with a convenient geographical location, which gives it a good opportunity for economic development. The country has rich deposits of minerals and metals, including precious ones. The climate favors the development of tourism. But Mexico is still far from becoming an economic superstar. And one of the suggestions is that corruption prevents it from economic growth. So let us try to find out if it is the major cause.
Firstly, let us turn to statistics. According to a study by a Mexican Competitiveness Institute and the Center of Research and Teaching in Economics, “44% of businesses in Mexico acknowledged having paid a bribe” (Casar, 2015). The number is highly significant. Almost every second chief executive officer breaks the law in a varying degree. No doubt, the economic situation of the country could greatly improve if businesses and entrepreneurs did not violate the law.
Secondly, as we know it is impossible to have economic prosperity without security. And according to the Overseas Security Advisory Council (OSAC), the crime rating in Mexico is critical (2015). What is more, the Global Peace Index counted that violence costs 22% of GDP, whereas corruption causes 9% lack of GDP (2015). Furthermore, the country has a low rating in terms of fundamental rights and security. It cannot but hamper the economic progress.
So the answer to the matter in question could be the following: not only corruption prevents Mexico from becoming an economic superpower. Though the country has all the necessary natural resources, it has to improve in the field of law, thus creating a positive environment for economic development.
Casar M. A. ( 2015, May 20). México: Anatomía de la Corrupción. Instituto Mexicano para la Competitividad. Retrieved from http://imco.org.mx/politica_buen_gobierno/mexico-anatomia-de-la-corrupcion/
Global Peace Index. (2015). Institute for Economics and Peace, 12. Retrieved from
Miller B. (2015). Mexico 2015 Crime and Safety Report: Mexico City Retrieved from https://www.osac.gov/pages/ContentReportDetails.aspx?cid=17114