Equity and growth are central concerns for development in Mexico. Specific inequalities in income, power, wealth, and status create and sustain economic institutions and policies that perpetuate these inequalities and promote poor economic performace. 'No Growth without Equity? Inequality, Interests, and Competition in Mexico' presents a novel analysis showing why more equality is necessary to increase economic growth. The authors analyze the causes of persistent inequality and weak growth in Mexico, despite major changes associated with NAFTA and democratization, and draw implications for policy design. The book involves an innovative synthesis of work on overall links between equity and growth, and carefully grounded analysis in specific areas. The issues are of intense interest to policy debate in Mexico and to the development community in Latin America and elsewhere.
MICHAEL WALTON is Visiting Senior Fellow, Centre for Policy Research, Delhi, and a Lecturer in International Development at Harvard University's Kennedy School of Government SANTIAGO LEVY is Vice President for Sectors and Chief Economist for the Inter-American Development Bank. He was General Director of the Instituto Mexicano del Seguro Social from 2000 to 2005
PART I:CONCEPTS AND INTERNATIONAL EXPERIENCE Equity and Development: Political Economy Considerations; F. Bourguignon and S. Dessus Saving Growth from Unequal Influence; R. Rajan The Political Economy of Equality and Growth in Mexico: Lessons from the History of the United States; J. Robinson PART II: THE INTERACTIONS BETWEEN EQUITY, INSTITUTIONS AND GROWTH IN MEXICO The Inequality Trap and its Links to Low Growth in Mexico; I. Guerrero, L. Felipe Lopez Calva and M. Walton Perverse equilibria: unsuitable but durable institutions; C. Elizondo PART III: EQUITY AND CORE INSTIUTIONS IN MEXICO: SOCIAL SECURITY, THE LABOR MARKET AND BANKING Social Security Reform in Mexico: For Whom?; S. Levy Mexican Labor Markets: Power, Protection and Productivity; W. Maloney Why Banks Don't Lend: The Mexican Financial System; S. Haber PART IV: HOW UNEQUAL STRUCTURES HURT COMPETITION IN MAJOR SECTORS Competition and Equity in Telecommunications; R. del Villar Priorities for Telecommunications Reform in Mexico; R. Noll The Governance of Mexico's Petroleum Industry; A.Lajous