A New Industrial Vision for the Future of Mexico
12:28 10/09/2024 - PesoMXN.com
Mexico needs a comprehensive industrial strategy tailored to the current economic reality, one that addresses the multiple challenges the country faces. According to the Mexican Institute for Competitiveness (IMCO), a policy that aligns with the national context should create favorable conditions to strengthen local businesses and improve their integration within global production chains.
The IMCO report indicates that over the past two decades, the added value of exports in the manufacturing sector has remained stagnant. In 2003, it accounted for 40.2% of the value of that production, and in 2022, it barely reached 40.4%. "Despite some progress in international trade and the creation of millions of related jobs, our supplier companies have struggled to consolidate, and exports have largely depended on imported intermediate goods," the study states. They point out that Mexico has opted for a trade liberalization policy rather than an industrial strategy focused on the development of key sectors. In this context, they suggest creating a strong, well-structured industrial policy to promote strategic industries, supported by pillars such as innovation, digitalization, productive integration, and access to financing. There is also a need to modernize physical infrastructure, consider environmental sustainability, strengthen the rule of law, as well as make advancements in fiscal and trade matters, and enhance human talent. "Implementing an industrial policy represents an opportunity to revitalize manufacturing, stimulate growth, and achieve higher levels of economic development that benefit the population," concludes IMCO.
In times of constant change and globalization, it is crucial for Mexico to realign its focus toward developing a robust industrial policy. This can help not only to reduce dependence on imported goods but also to create a more competitive and sustainable business ecosystem that fosters innovation and inclusive economic growth. Investment in infrastructure and human talent is key to achieving these goals and making Mexico a strong player in the global economy.
