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Is 2020 the year that México will flourish from an emerging country to a developed one? Let´s check the facts:

Analyzing the context of our world economic situation we read the experts just talking about bad news with a pessimistic attitude about our financial future predicting a global crisis that will take us years to recover from it. But in the middle of this hurricane México is stand and walking.

Let´s check the current situation of the country:

 

The facts:

 

1.- In a smart movement Mexican President Andrés Manuel López Obrador protected the informal economy injecting capital to the poorest families through public social welfare programs warranting the field production, keeping the country out from a possible civil war (hunger & anger are not a good mix and with tequila it gets worst) and avoiding an economic collapse. It is important to consider that due to the politics followed by government limiting expenses and having the public debt growth under GDP growth the country has a macroeconomic stability.

 

2.- It is not the first time that millennials entrepreneurs have heard about economic crisis in this country, in fact we grew up listening our parents talking about how the country passed from one crisis & currency devaluation to another during decades.  And guess what? Life and business always keep going. In addition, México has developed an amazing entrepreneurship environment last years with programs everywhere preparing us to start, grow and accelerate our companies provided by the public, private or a mix of both sectors. We are already on the business world and we won´t surrender because of a #cybervirus. Thanks to the popularity of networking groups like BNI, with interrelated groups around the country, we have learned the importance of work in team.

 

3.- México is worldwide commercially interconnected with international trade treaties and agreements with different regions as the TLCAN with United States and Canada; different integrations with most of the Latin American countries, personally I would love to have one with Brazil, I am sure we could do an amazing work together; The Trans-Pacific Partnership (TPP)  collaborating with American, Asian and Oceania countries; The free trade agreement with the European Union; and the list continue... Our good relationships will all the nations have  putted us in a strategic situation for international cooperation for development.

 

The challenges:

 

1.- If the current administration is capable to introduce new business models that increase the formal economy, that is the taxable economy, respecting the procurement of equal opportunities for all the society members like the cooperative model already tested in the rural communities; it can be an Economy Booster!

 

2.- If ghe Public sector and its organizations in all their levels local, regional and federal understand the needs and requirements to support and incentivize the small and medium business that are more than 95% of the total companies in the country, generate more than 70% of the formal jobs and contribute with more than the half of the GDP,  it will be guarrantied the development in the short and long terms of the nation.

 

3.-Federal government and power groups must conciliate their views and understand that the synergy effect imply “ALL working on favor of ALL”  facilitating the evolution from an oligopoly system to a free market.

  

According with government declarations this is a “transitory crisis”, I agree! Remember the mortal H1N1 virus who had its origin in México years ago and didn´t do a lot? Well it looks that it worked as a mental vaccine against the current “virus”, when the human mind think the body is well… Yes, it is!

Walking or running this country will have a fast recovery from this situation!

Are you ready to invest in Mexico? In Flor de Piedra we can connect you with the experts in real state and eco friendly business that will introduce you to our Paradise.

Think in Paradise think in xico.

 

Juan Luis @FlorDePiedraEarth

 

 

 

 

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