Tuesday, January 29, 2013

Mexico Rising

Almost by default when talking about Mexico the focus turns to cartels, drugs and violence. No doubt, its been a dreadful six years since the start of the campaign to rid the country of the narcotraficantes and related corruption.  But, behind all that a lesser known fact is Mexico's startling economic rise from the shadows.  In the past two years Mexico has suddenly become one of the most dynamic economies in the world, some estimate it will outpace Brazil by 2022.

Mexico: The New China, a NYT opinion piece by Chris Anderson, former editor of Wired, provides some key insights on how Mexico, and the US, will very likely continue to thrive.

Money quote:

The notion that Mexico offers only cheap labor is just plain off the mark. Mexico graduates some 115,000 engineering students per year — roughly three times as many as the U.S. on a per-capita basis. One result is that some machine specialists are typically easier to find in TJ (Tijuana) than in many big American cities. So, for that matter, are accountants experienced in production economics and other highly skilled workers.
What all these pieces add up to is a model — one that might hold the long-sought answer for how American manufacturers can compete with those in China, India and the next generation of economic powerhouses. That’s because the TJ template isn’t so much about outsourcing as it is quicksourcing. And that’s also the way to create thousands of good jobs in the United States.

Link to article Mexico: The New China.