Mexico and The World Bank: Rebuilding a Country :: Essays Papers

Mexico and The World Bank: Rebuilding a Country The 1994/1995 financial crisis in Mexico affected me in a very personal way. My family is from Mexico City, and my dad owns a small private firm that specializes in manufacturing tools. After the devaluation, I not only watched my father struggle with the failing economy and lack of business growth opportunities, I also witnessed a country begin to sink deeper into poverty and despair. There are many reasons for the devaluation, but one of the main ones is probably the â€Å"poor savings rates and the low rate of investment (only saved 19 percent of GDP from 1980-1994)† (Bloomburg). Low levels of social development and high levels of poverty consistently served as a drag to economic growth and reform measures. Next fall I am going to spend a quarter in Washington D.C. completing an internship at the World Bank. I am going to work in the Latin American department, so I will have the opportunity to deal very closely with the Bank’s strategies and projects in Mexico. Therefore I have decided to research the relationship between the World Bank and Mexico. The World Bank is one of the world’s largest sources of development assistance. It is not really a bank, but rather a specialized agency comprised of 184 member countries. Along with several other institutions, the Bank provides low-interest loans, interest-free credit and grants to developing countries. The Bank has provided assistance to Mexico for over 5 decades, and projects loans totaling $5 billion to Mexico up to the year 2005. Mexico holds the second largest share of the Bank’s portfolio, which totals to a whopping 11.1 billion dollars (9.4 % of total portfolio). The Bank works alongside Mexican authorities and officials and both regional and municipal levels to lay out plans and devise strategies that will hopefully help to build up the Mexican economy and social welfare. The Bank currently runs 31 active projects with a net commitment of $5.4 billion. Today Mexico is defined as a middle-income country, although many of its residents continue to survive off less than 1 or 2 dollars per day. Those who live on less than $1 per day do not have access to sufficient food or clean water. Income per capita is $5070 (the highest in Latin America). Mexico and The World Bank: Rebuilding a Country :: Essays Papers Mexico and The World Bank: Rebuilding a Country The 1994/1995 financial crisis in Mexico affected me in a very personal way. My family is from Mexico City, and my dad owns a small private firm that specializes in manufacturing tools. After the devaluation, I not only watched my father struggle with the failing economy and lack of business growth opportunities, I also witnessed a country begin to sink deeper into poverty and despair. There are many reasons for the devaluation, but one of the main ones is probably the â€Å"poor savings rates and the low rate of investment (only saved 19 percent of GDP from 1980-1994)† (Bloomburg). Low levels of social development and high levels of poverty consistently served as a drag to economic growth and reform measures. Next fall I am going to spend a quarter in Washington D.C. completing an internship at the World Bank. I am going to work in the Latin American department, so I will have the opportunity to deal very closely with the Bank’s strategies and projects in Mexico. Therefore I have decided to research the relationship between the World Bank and Mexico. The World Bank is one of the world’s largest sources of development assistance. It is not really a bank, but rather a specialized agency comprised of 184 member countries. Along with several other institutions, the Bank provides low-interest loans, interest-free credit and grants to developing countries. The Bank has provided assistance to Mexico for over 5 decades, and projects loans totaling $5 billion to Mexico up to the year 2005. Mexico holds the second largest share of the Bank’s portfolio, which totals to a whopping 11.1 billion dollars (9.4 % of total portfolio). The Bank works alongside Mexican authorities and officials and both regional and municipal levels to lay out plans and devise strategies that will hopefully help to build up the Mexican economy and social welfare. The Bank currently runs 31 active projects with a net commitment of $5.4 billion. Today Mexico is defined as a middle-income country, although many of its residents continue to survive off less than 1 or 2 dollars per day. Those who live on less than $1 per day do not have access to sufficient food or clean water. Income per capita is $5070 (the highest in Latin America).