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Pastimes : Plan Colombia -- Ignore unavailable to you. Want to Upgrade?

To: Thomas M. who wrote (20)	4/2/2003 8:34:36 AM
From: Thomas M.	Read Replies (1) \| Respond to of 49

Dean Baker comments on Mexico, highlighting the inability of the American press to comprehend the damage our imperial economic policies have had on Latin American countries. We want these countries to run their economies for to benefit us (and their own elite), and we will resort to violence if necessary (as in the case of Colombia). Trade Brings Riches, but Not to Mexico's Poor by Mary Jordon and Kevin Sullivan The Washington Post, March 22, 2003, Page A10 This article reports on the fact that the percentage of Mexicans who live below the poverty line has not changed in the last 20 years. The article characterizes this fact as a "paradox," noting the large expansion of trade during this period. There is nothing paradoxical about this situation. Data from the World Bank show that Mexico's economy has stagnated since 1980, with per capita GDP growth averaging less than 0.5 percent annually. By comparison, per capita GDP growth averaged 3.9 percent annually in the two decades from 1960 to 1980. Given the sharp slowing of growth associated with Mexico' policies of the last two decades, it should not be a surprise that there has been no reduction in the poverty rate. At several points the article refers to trade as though it were a measure of prosperity. There is no direct link between trade and prosperity, just as there is no direct link between a firm's sales and its profits. While rising sales usually are associated with rising profits, a firm may increase sales by selling its products at below cost. In this case, rising sales would be associated with losses. Similarly, Mexico's growing trade in the last two decades has been associated with stagnation, not healthy growth. At one point the article asserts that the economic policies implemented over the last two decades were "intended to create prosperity for all." It is not clear that this was the intention. Many of the people who designed and implemented these policies managed to get very rich as a result, while the country as a whole suffered. It is possible that the outcome is exactly what was intended, with those in power implementing policies that were designed for their own benefit. The article presents no evidence that this was not the case.