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How to escape the peripheral trap? : the case of Mexico and the U.S.

Publication at Faculty of Social Sciences |
2008

Abstract

The dichotomy between centre and periphery remains analytically valid to this day, especially with respect to the world economy. Czech Republic and other Central European countries have sought to become part of Europe's central economy after 40 years of their politically induced peripheral position.

Mexico underwent similarly dramatic changes in its political and economic orientation when it discarded the state-centred nationalist economic model and embraced economic liberalization in the late 1980s and throughout the 1990s. Its explicit goal was to become integrated to the North American economic centre, which would guarantee economic as well as social development.

The article first looks at the evolving position of Mexico in the world economy and then it describes the reasons for the radical opening of the economy and high hopes associated with the program. Subsequent failures and disillusionments are presented, which demonstrate the difficulties of the periphery-centre transition.

The concluding section offers as a possible explanation the lack of interest of the U.S. in helping Mexico in the process as well as the dismantling of the state apparatus, which then did not provide the necessary education and infrastructure. The findings provide useful insights for all countries seeking to achieve a more central position within the world economy, including Central and Eastern Europe.

The results can be used in the combination with similar case studies and could eventually lead to better understanding of the periphery-centre transition.