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I am among the very few Mexicans who have an advanced
educaon, career and life experiences in other countries,
and have come back to my nave land. But since I work for
a mulnaonal company, I now consider myself more of a
global cizen. Many people I knowhave askedwhy I decided
to come back to Mexico aer living around the world for
many years. My answer is that we live in a unique country!
We don’t realize how marvelous Mexico is or appreciate
everything about it unl we are a part of it.
Mexico at a glance
Mexico is the 15th largest economy in the world and fourth
biggest in the Americas, just behind the United States, Brazil
andCanada. GDPper capita, on theother hand, is 65th in the
world. So looking on the bright side, we have huge upside
for growth. As a country, we need to find our voice and tell
theworldwhat we do, andwhat we are capable of achieving.
Mexico is strategically located, benefi#ng from1,250 shared
miles of border with the U.S. and access to two oceans. We
also hold 12 free trade agreements with 46 countries. From
a logiscs standpoint, every company thatwants to sell to the
biggest markets in the world, should come toMexico.
Right above Central America, our country has a variety of
climates and altudes, which provide the right condions
for growing almost any agricultural product. Our land is also
very rich inminerals, helping to raisepoultry, ca$le, hogs, and
other proteins that provide the world with high-quality meat
products.
Mexico is the 12th largest producer of commodies globally,
13th in agriculture, 11th in ca$le growing, and 17th in
seafood. It exports about $60 billion of agro food products
annually, mainly to the U.S.A. We are the No. 1 avocado
producer in theworld, and among the top greenpepper, lime
and strawberry growers. Further, innovaon connues to
spur producon growth. We are also one of the five biggest
car manufacturers in the world.
Mexico also enjoys cultural diversity. While Spanish is the
main language, there are 68 other disnct, indigenous
languages spoken, and our history goes back to before the
14th century. We have developedmixed tradions frompre-
Hispanic and Spanish origins.
Our peso is the fih most traded currency on the Chicago
Mercanle Exchange, just aer the U.K.’s pound, the euro,
the Japanese yen and the Australian dollar. So with all of
this, Mexico is beginning to establish itself as an economic
powerhouse.
Yet, while Mexico has improved condions for opening
and operang new businesses, there is significant room
for change. Eighty percent of local GDP is generated by
companieswith less thanfive employees and two thirds of all
startups fail within three years. Entrepreneurs simply lack the
resources to develop their products and services.
Addionally, there is an “outside-the-system” economy in
Mexico that diverts significant profits to pares not subject
to taxes, weakening the country’s financial posion. The
challenge is to register and tax non-paying enes to improve
the naon’s infrastructure and services. Mexico is also
vulnerable to foreign exchange rate fluctuaons.
Thenhowcanwe getmore internaonal companies to invest
inMexico?
Despite thesechallenges,wecancompete for capital andgive
long-term certainty to investors – but Mexicomust do be$er
leveraging its strategic locaon; “Outside-the-system”
players need to pay their fair share; and exports must
increase. Of course it’s easier said than done, but
everything is possible by focusing on the right goals.
And as Mexico’s economic momentum builds, so will
its prosperity.
A VISION OF MEXICO
THIS ARTICLE IS INTENDED TO BE READ BY GLOBAL INVESTORS, CEOS, CFOS AND OTHER FINANCIAL DECISION
MAKERS, AND IS FROM THE PERSPECTIVE OF A MEXICAN NATIONAL WHO HAS HAD THE OPPORTUNITY TO LIVE
ABROAD
By JOSE JAIME DIAZ GONZALEZ DE LA CAMPA, Member of
Naonal Technical Commi$ee of Integral Risk Administraon
of IMEF, the Mexican IAFEI Member Instute
20
MEXICO