I want to talk about a topic that I consider important at the moment: The vision of globalization and its relation to productivity.
We see in the mass media, that our country fell from position in productivity, that fell in competitiveness, that increased procedures to open and operate profitable businesses compared to the rest of the countries of the world.
Every day we receive signs that Mexico is becoming less competitive in this area, and nothing happens. We see the Chinese dragon that has been sweeping the consumer markets, with goods and services at very low prices and all we say is:
"Well, no way" What are we going to do? If they have almost free labor and also operate with subsidies, who can compete with them?
With this type of reasoning, we must prepare for the worst, which is yet to come.
So far this year, political events have left much to be desired, as the dimes and diretes are the order of the day: structural reforms and counter-reforms between the Federal Government and the State Governments and the Congress of the Union, putting interests first supporters of the best interests of La Nación.
Serious errors in the art of managing internal and external politics, which hurts all citizens equally.
Every time the country falls in its levels of competitiveness, it stops investing in new companies. Investors withdraw their capital and leave Mexico to move to other countries. The consequence is the high unemployment that we suffer at the national level, and that I will comment on later.
We refuse to understand that we are immersed in a globalized world, with less and less significant tariff barriers.
And then we did not find the reason why our Gross Domestic Product does not even reach half of the 7% announced by Vicente Fox at the beginning of the presidential term.
There is much more to do. We exist thinking people and we have tasks that involve all of us, so we cannot sit around waiting for the fatal destiny that our own apathy and indifference with which we act brings us.
When we speak of globalization, we are referring to the opening of free trade and the breaking of trade barriers. All companies that manufacture the same products compete globally.
This should compel us to be highly creative and productive in offering consumers more than what our overseas competitors offer.
It can be: better quality products or reflected in an expedited, friendlier and highly efficient service. Improving the production process implies that workers and employers permanently acquire and update their knowledge, their abilities and skills, and especially their positive attitudes.
This will necessarily result in Mexican products being recognized and valued worldwide for their quality and price, thus achieving higher production, which contributes to the creation of more sources of employment with better wages, for a better standard of living for the population.
1.- General Agreement on Tariffs and Trade
The process of Globalization of the World Economy began 100 years ago, contemporary capitalism has been divided into four phases: the first, concluded with the start of the 1st. World War and was distinguished by the rise of the world economy; the second, included the period between wars (1914-50), with commercial and financial autarky prevailing; the third saw the institutions created in Bretton Woods (1944-45) being born, in these years world trade and international capital flows were restored; finally, the stagflation cycle (slow growth with high inflation) where the world monetary order was abandoned (1973).
This cooperation was formalized through the monetary system known as BRETTON WOODS, which consists of a series of agreements signed by 44 countries (including Mexico).
At Bretton Woods, New Hampshire in 1944.
The US dollar occupied a key position in the postwar exchange market: it was set at the rate of $ 35 per ounce of gold, and the other currencies set their exchange rate according to the dollar; Fixed system that lasted more than 20 years, but in the mid-sixties, the supply of dollars began to exceed the demand due to overspending by the US government.
Thus was born the International Monetary Fund (IMF) and The World Bank (WB), as well as the creation of the General Agreement on Tariffs and Trade (GATT). Through these institutions, world trade and capital flows were restored, generating greater interdependence between the various economies of the world.
2.- Free Trade Agreements
Since 1995, the GATT has been replaced by The World Trade Organization (WTO), which is a multilateral body at the same level as the International Monetary Fund and the World Bank. This organization seeks to deepen the process of trade liberalization between participating nations, so that it contributes more to stimulating world economic growth.
Among its objectives are: the liberation of agricultural trade, the elimination of protectionist measures other than tariffs and quotas, and the strengthening of mechanisms for the resolution of trade disputes between nations.
Likewise, it seeks to expand its radius of action to the exchange of financial services, capital movements and technology, and environmental measures related to international trade. Currently, Mexico has celebrated more than 30 Free Trade Agreements with different countries.
The first was with Canada and the United States (Trilateral Free Trade Agreement) 11 years ago.
3.- World Economy
Globalization seems to be the hegemonic model of economic and social development. No country is left out of this tendency of articulation between societies and the world economy.
In the last decade of the last century, the wealth generated exceeded the best previous periods in economic history.
In the same way, the perverse effects of globalization (capital volatility, financial flow of drug trafficking, chain bank failures, strong increase in exclusion and poverty, widening the inequality gap and regions in involution of development) are affecting to all the economies and societies of the globe.
The idea of globalization seems to be the one that will dominate the world for the next 25 years. Its length and depth are reflected in the integration of financial and capital flows, increased trade, and technology transfer. In the last 30 years, wealth, exports, new modes of production, labor structures, investments and the articulation of economies and societies, have shown unprecedented growth.
Thus, three quarters of world trade is carried out between these countries, which in turn are the origin of two thirds of world direct investment.
Since 1995, the growth of trade and foreign investment has reached historic levels: world trade doubled its growth, that of the industrialized countries almost quadrupled, and that of the least industrialized economies doubled.
4.- Pacific-South Basin boom
In a sense, in Mexico the 21st century began in 1989. The story was ahead of its time. The world is no longer configured on the East-West or North-South axes. To be prepared and face international competitiveness, the 6-lane super highway between Coatzacoalcos and Salina Cruz is planned.
There will be a deep draft dock in Salina Cruz, to receive large maritime cargoes.
In this way, Mexico will be able to compete with the Panama Canal (currently the only way to cross from the Gulf of Mexico to the Pacific Ocean and vice versa). With the Salina Cruz-Coatzacoalcos multimodal transport transismic project.
5.- ISO-9000 quality
The international standards classified as voluntary on quality systems of the ISO 9,000 series are already a basic requirement for achieving productive efficiency in companies and participation in international markets.
These systems have been adopted by more than 60 countries as their own standards, in Europe as 29,000, in the United States as ANSI / ASQC, in Mexico under the designation of MNX CC 1 to 6.
This certification is the verification, through objective evidence, by a certifying body (non-governmental), recognized in international markets and without interest to the parties of compliance with the requirements of the applicable ISO 9,000 standard.
This is possible if two key principles are met: that of voluntariness in its adoption; and, that of the credibility and reliability of the certifying body.
In practice, when buyers establish it as a requirement in their orders or contracts, certification simply becomes a contractual obligation that the supplier may or may not accept.
The problem of not participating in this international agreement, is that any good or service that does not have the “ISO 9,000 quality” seal (guarantee that the good or service is what it says it is and that it meets the specifications for which it was done), it simply will not be a guarantee for end consumers and consequently it will be self-displaced from world trade.
6.- Central Bank
Since 1925, it has been the country's central bank (Banco de México). By constitutional mandate it is autonomous in the exercise of its functions and in its administration. Its priority objective is the issuance and control of the national currency and to ensure the stability of its purchasing power.
The most important accounts are:
- Balance of payments Foreign trade Movement of capital Balance of goods and services Balance of capital Errors and omissions Bank of Mexico reserve
Balance of payments.
They are the international economic relations of a country that are maintained with the rest of the world and cover commercial, economic and financial aspects. They manifest specifically in the following phenomena:
a) Foreign trade, and
b) The movement of capital
Foreign trade
Within foreign trade, imports and exports of goods and services are taken into account, these transactions are reflected in the country's balance of payments, which I explain later.
Capital Movement
Capital movements mainly include foreign direct investment and external indebtedness, which can be: public or private.
Merchandise and Services Balance
The long-term balance of goods and services and capital movement stand out for their importance. Also called current account balance, which integrates the line of export and import of goods and services.
Import is not bad, when it comes to acquiring long-term capital goods, since it allows us to produce goods and services and generate wealth. The import of Consumer Goods is bad, when we are not able to produce even the goods and services we Consume.
The goods and services balance is directly related to the Gross Domestic Product (GDP).
And why is GDP so important? Because it refers to the generating capacity of economic resources of each productive unit. First we produce for self-consumption and we use Surpluses to exchange with other productive entities to cover needs and satisfiers.
The serious problem that Mexico has is that its gross domestic product is very low (2.5%) on average in the last 5 years because of our compatriots who go to work abroad (23 million) and who send remittances for 17 MMD; To date, we are 45 million economically active residents; We have an unemployment rate of 3.0%, that is, that there are 1.35 million Mexicans unemployed nationwide in that sector.
Disheartening figures that indicate that we are not self-sufficient to produce the necessary goods and services that the population demands, consequently, we find ourselves in the painful need to import more goods and services, because we are not capable of producing them, which leads us to increase our Debt with the outside.
If we add this phenomenon to the external and internal debt of our country, you can already imagine why, in addition to borrowing, our external debt is greater. Let me explain: If I consume MORE goods and services than I am capable of Producing, my exchange with third parties makes me a Debtor of these suppliers.
Capital Balance
Within the long-term capital movement, also called the capital balance, two lines stand out for their importance:
a) Foreign direct investments and, b) Foreign credits.
All business requires Investment and Financing, depending on whether it is equity or external capital. If the own capital is not enough, I resort with third parties to financing or credit with their respective cost (interest), or to those third parties I turn them into my partners and I reduce my financial costs, as an operational strategy, making them partners in the losses and profits future.
In our country, we can make the similarity of the external debt with countries that lent us and that in addition to the inescapable commitment to reimburse them their capital in the agreed term, we have to pay them an interest for the financing that they have granted us. However, I can negotiate with them to reduce our debt, selling their own assets, so that those creditors change the debt for foreign direct investment (as in the case of banks) making them our partners, acquiring the right to speak and vote in the decisions that are made in the future in the assets that they have acquired in property.
Errors and Omissions
The item of errors and omissions is due to the fact that many times the accounts of the Central Bank do not check, when counting the existing reserve, for any error or lack, or, in many cases, for smuggling and drug trafficking that derives in American Dollars. and that it is very high in our country.
In other words, they are movements of importation of assets that are not “registered” and that do not pay taxes at customs, and therefore, this information is not officially available. The serious thing is that every time we buy a “fayuca” good or service, we promote someone's unemployment, because if the national industry sells less, it is forced to reduce its expenses and costs; And the first thing she does is lay off employees.
Banco de México Reserve
Currently the reserve of the bank of Mexico deposited in the International Monetary Fund is 60,000 MDD.
However, we must take into account that our external debt with that fund is 200,000 MDD and that discounting our reserves, we have a REAL debit balance of 140,000 MDD.
If we calculate at a conservative interest rate of 5.0% annualized, it gives us an interest of 7,000 MDD per year, or the amount of 583.33 MDD per month (cost of servicing the external debt).
7.- Informed Companies
Another important item is communications: via satellite, Internet, television, mass media, cell phones, Etc., which thanks to technological advances, allows us to find out almost instantly that relevant events are taking place around the world and at costs that are very accessible to anyone.
Consequently, the mass media is playing a very important role in the life of today's societies.
Well, the information is used and manipulated, as best suits the interests of the owners of those media or the paid guidelines issued by the government itself.
8.- Technological boom
Technological research has advanced by leaps and bounds, and what was new yesterday is obsolete today. Science fiction is now reality and fate has already surpassed us in our own reasoning capacity.
Technology is advancing rapidly throughout the world, especially in the countries of the first world. The problem for countries like Mexico is that the government allocates a very meager budget for research and technology.
Consequently, we find ourselves in the need to import this technology at very high costs, which in most cases is unattainable and consequently takes us out of international competition.
9.- Multi-Cultural Lifestyles
First of all, let's analyze the concept "Culture", according to the dictionary of the author Aguilar editorial Martín Alonso, says: "Improvement of physical, intellectual and moral powers." And we understand its meaning: having and possessing customs, traditions, history, ways of life, fashions, styles, habits, and permanent inheritances.
Within the globalized environment exposed, it is logical to understand that in the face of the peoples' approach by means of communications through the mass media, cell phones and the Internet, we have the opportunity to "know" the customs, traditions and fashions of other places in the world. world.
In our case, due to the emigration of our people mainly to the United States of America, due to the "lack" of opportunities in Mexico, we also have this approach with that culture.
Unfortunately, when they return to their places of origin, they have "appropriated" the external influences of the places they have known, and thus, we see countrymen eating sandwiches, hamburgers or hot dogs.
Wearing combinations of typical Mexican clothing with "jin" or cholos, or we see dancers dancing with tennis instead of huaraches, countrymen with manes and ponytails, with leather jackets and boots "renegade", and other fashions.
That they somehow distort our own culture and that from now on, we will have to accept them as valid by influence.
I would appeal that we do not forget our roots, our customs, traditions, our ways of life and our history, which have allowed us a nationalist identity and which have cost us a lot of sacrifices and blood.
10.- Ideological Renaissance
This topic refers to the dynamics and inertia of the vertiginous life that we live and that does not allow us time to reflect on the ethical and moral values of human beings.
Currently we are more than 5 billion individuals in the world, and each time we lose more awareness of human relationships and of dealing with our fellow men; 90% of the programs on television deal with issues of violence, drug trafficking or sex.
Our young people are so used to it that they are no longer surprised or tempted to see the underprivileged, nor to the improper ways of obtaining things. How far will we go before stopping and reflecting on it?
It is urgent to rescue our human values through educational institutions, to realize the social distortions due to the excess of human beings focused solely on materialism.
Coupled with the problem of existentialism, which minimizes many humans who feel they are nothing and depressed, commit suicide by feeling like ants and useless on this planet, or participate in massacres without any justification, just to attract attention and say "hey, I'm here".
11.- Conclusions
Given this panorama, what can we do? Strengthening competitiveness and the internal market must be the main strategies to make Mexico the country we want.
There is a symbiosis between strengthening competitiveness, the internal market and national well-being.
Strengthening competitiveness would translate into an expansion of national production, especially in the agricultural sector, which would generate more jobs and make it possible to increase the purchasing power of workers.
The multiplier effect of this greater purchasing power based on competitiveness is the fundamental element of strengthening the internal market.
The Vicente Fox Government's National Development Plan (2001-2006) indicates that the vision of Mexico in 2005 involves consolidating a country of high global competitiveness, with equitable, inclusive, stable, dynamic and sustained economic growth, which create the conditions to improve the level of well-being in society and, at the same time, allow Mexico to become linked to globalization and be able to take advantage of the tools offered by the new economy.
As a promise from a Fox government that used these arguments only to win votes, it leaves much to be desired; Because today, we are very far from these proposed and not fulfilled conditions, which do not allow us the standard of living that the Mexican population deserves. Thank you so much.
