Roger Thayer Stone Center For Latin American Studies

Tulane University

How can 'Mexico Cluster' Countries Foster Economic Growth? Response by Dr. Nora Lustig

May 12th, 2011

In the May 5, 2011 edition of the Latin America Advisor, published by the Inter American Dialogue, Samuel Z. Stone Professor of Latin American Economics Nora Lustig responds to the question: “How can ‘Mexico Cluster’ Countries Foster Economic Growth?”

A recent study by the Inter-American Development Bank concluded that, as a region, Latin America is recovering from the financial crisis in two distinct clusters.  Countries that are net exporters with relatively strong ties to emerging markets and low dependence on remittances, as exemplified by Brazil, are ‘very well positioned’ in the new global environment.  Conversely, economies with much stronger ties to industrialized countries, as illustrated by Mexico, are experiencing slower growth.  How can countries belonging to the ‘Mexico cluster’ catch up to their ‘Brazil cluster’ counterparts?  What trade and economic policies should those governments implement to encourage faster growth?”  

Dr. Lustig’s response to this question begins on page 3 and continues on page 4 in this edition of the Latin America Advisor.

Any comments or questions can be directed to Dr. Lustig.