SAN ANTONIO, May 21 - Mexico stands out in the world arena for its remarkable population, social structure, biodiversity, geography, cuisine and history.
Cutting-edge technological projects, the latest technological developments, industrial modernization, avant-garde cultural and artistic expression co-exist in Mexico with pre-Hispanic traditions preserved by various ethnic groups.
The diversity of languages and the existence of legal institutions that respect native customs and traditions make Mexico a diverse country.
The difficult challenges imposed by organized crime have galvanized the notion that only Mexico’s society as a whole (government, all kinds of institutions, grass root organizations, companies and trade organizations) will be able to mend Mexico’s society.
It is paradoxical that in the midst of such problems Mexico has been able to foster an enviable and stable economic climate, which not even some industrialized countries have been able to achieve.
Mexico’s successful fiscal policies, in particular in matters of tax collection revenues, are of interest to investors in Mexico. Mexico’s Department of Finance and Public Credit claims that tax revenues have increased at an unprecedented rate during the last 30 years. Tax revenues increased by two percentage points of Gross Domestic Product (GDP), of which one percentage point was added during the last five years.
Additionally, as already noted by many analysts, Mexico is now a country with a sizeable middle-class that drives growth in Mexico’s domestic market. The growth of Mexico’s middle class, which has been largely ignored by Mexico’s domestic press and the international press, impacts greatly Mexico’s public finances, given the corresponding increase in the tax base and increase private investment in the economy.
While the country fights to win back the atmosphere of safety that it used to enjoy, the country’s economic institutions continue to strengthen and consequently spearhead Mexico’s economic growth.
Dr. Mario Melgar-Adalid is a member of Mexico’s National System of Researchers (SNI). He is a Law researcher at UNAM’s Institute of Juridical Research and currently an Of Counsel at Cacheaux, Cavazos & Newton, L.L.P. in San Antonio. He writes a regular column for CCN's monthly Mexico Report, which also appears in the Guardian. To view all previous versions of the CCN Mexico Report, go to: http://www.ccn-law.com/