Geo Unit VI

Running Head: UNIT V ESSAY

Unit V Essay

Mexico

Mexico is a country situated in Southern America and it has one of the largest Spanish speaking populations in the world. It has a population of 122 million people with a GDP per capita of $10,000. It is therefore regarded as an upper middle income country which is substantiated by its $1.26 trillion GDP. It is therefore the 15th largest economy in the world and is ranked 11th due to its level of purchasing power parity. The country has a high degree of economic disparity while a large percentage of its GDP originates from the informal economy. Public debt accounts for nearly half of the GDP. The government of Mexico has been considered as one of the most corrupt governments in the world. Thus, the GDP of the country has suffered and most recently has experienced a 9% GDP hit in 2014 (Chong & Wantchekon, 2014).

Corruption has compromised the competitive nature of the country. First, due to the country’s geographical location, it has been a hub for organized crimes and drug trafficking. Due to the high levels of corruption, the police agencies have been unable to nab the drug cartels. This has contributed to high levels of insecurity in the area that poses as a threat to the locals, tourists and investors. The other effect of corruption is from government agencies requiring bribes from investors before issuing them with a business license. This contributes to the harsh business conditions faced by investors. In the judiciary system, corruption shows its ugly face as well since only 20 % of the cases obtain a guilty verdict since the judge’s integrity has been exchanged for money (Paras, 2013). This rot has contributed to lack of faith in the rule of law and has posed a threat to many international companies setting shop in the country.

Solution

It would be helpful if the country through the help of its government officials reformed the institutions that given the country. This would mean the creation and development of clear cut policies which when implemented give clear guidelines regarding what should be followed by a government official when faced with certain circumstances. This should be followed up by an integrity policy for which government officials are bound to follow failure to which they lose their position in office. In this way, the institutionalized reforms will be able to be carried out even after a government official leaves office. The integrity policy will ensure that the politicians are clean before and after office. They themselves will have an obligation to refrain from corrupt acts and will instigate harsh reprimands for their subordinates who do not follow suit. In this way, the country will be able to conduct is operations in a corrupt free manner (Olivia, 2015).

Conclusion

Globalization has increased the need for counties to increase competitiveness. For Mexico, corruption has become a threat to this required level of competitiveness. It is through institutional reforms and a mandatory integrity policy for government officials which will ensure that there are sufficient checks and balances that prevent such misbehavior. It would also be necessary for the public to be sensitized on the harmful consequences of them engaging in corrupt activities either through the receipt and giving out of a bribe. In this way, corruption will not only be dealt with from an institutional front but also in a personal way.

References

Paras, Pablo G. (2013). The Power of Perceptions: How Social Capital is being impacted by Crime and Corruption in Mexico. University of Connecticut: Doctoral Dissertation. (2014, January 18). Retrieved February 28, 2017, from http://www.socialcapitalgateway.org/content/phdthesis/paras-pablo-g-2013-power-perceptions-how-social-capital-being-impacted-crime-and-c

Chong, A., De La O, A. L., Karlan, D., & Wantchekon, L. (2014). Does corruption information inspire the fight or quash the hope? A field experiment in Mexico on voter turnout, choice, and party identification. The Journal of Politics, 77(1), 55-71.

Oliva, P. (2015). Environmental regulations and corruption: Automobile emissions in Mexico City. Journal of Political Economy, 123(3), 686-724.