[PEN-L:5052] Re: Brits> NZ too

[M Schettino <mschetti@xxxxxxxxx>]

About thatcherism, reaganomics, and similar beasts, I think any
comments would be incomplete without mention to Salinomics, or
whatever you would call the economic policy exerted in Mexico in the
last 8 years.

As far as it seems, the most important failure of this kind of
programs have appeared in Mexico, with the corresponding devaluation
and economic crisis. Privatization, deregulation, trade opening,
anything you could say of Thatcher's or Reagan's policies were used in
Mexico with the following results:

	1995 forecasts		1994

GDP growth	-4%		3.5%
Inflation	42%		5%
INterest Rates
(Average)	50%		15%
March		110%		12%
UNemployment	5.3%		3.4%
Underemploym.	30%		27%
Pesos per USCy	6.7		3.5
Real Wage
growth		-20%		3%


Besides, market concentration in the recently privatized industries is
complete: Phone, One company; Banks, 3 banks 60% market, etc.

AS in the other cases you mention, government officials always promise
long-run (or mid-term at least) advantages in exchange of the
short-run sacrifices. A last comment, internal savings in Mexico
dropped seriously in the period analyzed.

Hope you find it interesting, I find it threatening,

Macario