Mexico and Latin America conditioned by external vulnerability

Abstract

This paper analyzes how the globalization process and the stability macroeconomic policies have removed the control of money from the government, and the consequent loss of control about the economic policy. This situation hampered the endogenous process of accumulation. Latin American economies are dependent on external variables. Countries with better comparative advantages in the agriculture and mineral sectors have grown more than the others; nonetheless all of them are vulnerable to the external shocks. They do not have anti-cycle policies to confront the external adversity. It is necessary to regain the control of the money, of the economic policy, in order to regulate the external and financial sector in favor of the productive sector, the employment and the internal market, diminishing the external vulnerability.