When Mexico declared virtual bankruptcy in 1982, the country’s persistent economic crisis became the center of debate for Mexicanists on both sides of the border. Since then, an impressive literature on the causes and consequences of the economic debacle has emerged. Miguel Ramírez has made a substantial contribution to this literature. His book successfully matches political and economic history to present a comprehensive view of the origins of the crisis. He uses a wealth of social and financial data to illustrate the deep costs Mexico’s crisis imposed on its people, and then concludes with recommendations for a new long-term growth strategy.
Admirable in its attempt to avoid economic jargon or complex econometric arguments, the book nonetheless makes liberal use of the latest quantitative sources. It includes financial, economic, and social indicators published by agencies of the Mexican government and international authorities as well as secondary sources. Presented mostly in time series, these indicators contribute to a coherent argument about Mexican growth from 1940 to the 1980s.
Much of Ramírez’s argument rests on the standard view that the Mexican government’s financial authorities behaved irresponsibly throughout the 1970s. While the author shows great sensitivity to the difficulties inherent in Mexico’s industrial take-off after 1940, he shares with others the view that government deserves much blame for the present impasse, but not too much credit for past successes. In this regard, the book’s most original contribution is its analysis of the banking sector’s contribution to Mexican growth and the limitation of that sector before and after 1970. On the other hand, an overemphasis on internal financial factors may lead Ramírez to underestimate the role of the international economic environment during the period of growth from 1940 to 1970 and the difficult years after 1970. Nonetheless, his unique analysis of financial factors and their linkages to socioeconomic performance have made this a solid and indispensable contribution to the literature on Mexico’s crisis.
