THE REDEFINITION OF THE MEXICAN STATE: ESSENTIAL PUBLIC POLICIES FOR THE DEVELOPMENT OF MEXICO

This paper draws on Iniguez-Montiel (2010, 2011a, 2014), providing a summary ofthe main research findings as well as making policy recommendations directly followingfrom them. Particularly, the study discusses the income-distributional andgrowth-enhancing policies that are required to create a virtuous cycle of inclusivedevelopment in Mexico. Moreover, it is argued that, for the Mexican economy todevelop and grow at considerably higher (potential) rates and, eventually, succeed inreducing and eradicating absolute poverty, the intervention of the state is indispensable.However, based on the successful experiences of the East-Asian economies (WorldBank, 1993) and an overall assessment of more than three decades of developmentoutcomes for Mexico as an open-market economy, the paper suggests the urgentredefinition of the Mexican state as an impartial referee that “leads the market” andlooks after the interests of the entire population, so that Mexico can grow at its fullpotential and a truly inclusive model could ever become part of the Mexican society