Mexico’s Most Critical Problems are Also Our Own

September 25, 2010  |   Mexico Politics and Policy

August 15, 2010 By Paul Crist  Mexico’s once growing middle class is under attack from above and below, and the stress is showing up in the shrinking numbers who can claim middle class status.  This trend predates the current economic crisis, but has been greatly exacerbated by it.  Middle class Mexicans face a political and economic system stacked in favor of the super-rich above them, while from below they face kidnappings and robbery by desperate and angry criminal poor. Predation from Above: Despite modest progress, entrenched crony capitalism where bribery is the rule and who-you-know counts for more than knowledge, hard work or risk-taking, remains the order of the day in Mexico.  Leaders from across the spectrum of Mexican politics must accept the majority of blame, although there is culpability north of the Mexican border as well.  Progress toward political transparency and economic liberalism has been incremental in some areas, nonexistent in others.  Privatization of formerly government-controlled industries have enriched a handful of wealthy and politically connected Mexicans, as well as a fair number of politicians.  As a popular Mexican saying goes “un político pobre es un pobre político,” (“A poor politician is a poor politician”). Mexican consumers pay higher prices for a lower quality of service and reduced availabil­ity of goods.  The state-corporatist system of price supports, subsidies, and special-interest tax exemptions gives an unfair advantage to wealthy and well-connected businessmen while restricting competition and obstructing eco­nomic growth.  Of course, the most critical result of anticompetitive policies for Mexican