Mexico: The plan and the current situation

Two disequilibria are intertwined in the Mexican economy: incomplete modernization of institutions and production, and external imbalances that have made the country unable to service its external debt. In a context of liberalization, this combination has been conducive to sharp depredations, as evidenced by recent events. The success of the adjustment exercise will depend on the progress of the retooling and expansion of production. This article analyses the main objectives of the National Development Plan for 1995-2000 and the policies that have been implemented to realize them, and shows that the current situation is a patchwork of progress and setbacks.