The Economy of Mexico Can Be Stronger: Carlos Slim

Author: Aura Hernández

Date: January 13, 2024

Source: Excelsior

In order for Mexico to boost its growth and translate this into benefits for the population, it is necessary for the country to generate equality of opportunities and security among people, increase investment, and above all, take advantage of its proximity to the United States, stated the president of Fundación Telmex, Carlos Slim Helú.

“In the last 40 years, despite having extraordinary political stability (…) and also socially, we have not had the desirable economic development,” he explained while participating in the 2024 Economic Perspectives Seminar at the Instituto Tecnológico Autónomo de México (ITAM).

This is because, according to the Mexican businessman, the economic growth of the country has averaged less than 2% in the last three decades, although there have been significant actions such as the North American Free Trade Agreement.

In fact, Slim Helú described said treaty as “average” because it only caused Mexico’s trade with the United States to grow sevenfold in 30 years, while during that same period, the northern neighbor increased its trade with China 11.9 times.

This is largely due to the phenomenon of globalization, which focused on buying or manufacturing wherever it was cheapest.

In recent times, the relationship between the United States and China has changed, and the phenomenon has focused more on regionalizing the manufacturing of products, which the founder of Grupo Carso sees as an opportunity for Mexico to attract American investments.

“The United States cannot continue buying from its political enemy, and now it has to do many of the things it used to buy because they were cheaper,” he emphasized.

This is observed mainly in industries such as processor manufacturing, where the United States seeks to stop depending on Asia.

The Mexican businessman sees a great opportunity for American companies to start locating their manufacturing in Mexico, where the cost of labor is more efficient.

GETTING OUT OF UNDERDEVELOPMENT

On the other hand, Slim Helú considered that a country leaves the state of underdevelopment when it surpasses the barrier of $15,000 per capita.

“In America, they are breaking it, on average, because Chile was breaking it and went backwards; Panama is doing very well,” he specified.

For Mexico to also get out of underdevelopment, he considered that it is necessary to boost investment, integrate more into the region, work with the United States, and promote temporary work.

IMPROVING OPPORTUNITIES

He also considered that the issue should not be about generating equality, but promoting a minimum level of well-being in the population and ensuring that everyone has opportunities for education and training, as well as security in areas such as health or retirement.

“What we have to seek is not equality, but to lift those who are below, those who are outside the basic basket, train them, and give them job opportunities,” he added.

In this sense, he considered the increases in the minimum wage in recent years as positive, which has even been supported by the business sector.

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