Review of Bordering on Chaos: Mexico's Rollercoaster Journey to Prosperity

Andres Oppenheimer in his text Bordering on Chaos: Mexico's Rollercoaster Journey to Prosperity, examines the problems of Mexico's political and economic development. Overall, Oppenheimer attempts not only to identify the specific issues that have impacted events in Mexico, but also to examine these events in terms of the perception of Mexican citizens. This unique perspective of life in Mexico provides a more integral understanding of the specific problems that are impacting average citizens on a day-to-day basis.

While it is evident that Oppenheimer identifies a number of political and economic problems that occurred in the 1990s, it is evident that there are a few issues that standout as paramount to the social and economic strife that plagued Mexico during this period. One of the most pertinent events covered by Oppenheimer includes the December 1994 devaluation of the Mexican peso, caused primarily by actions taken US Federal Reserve to increase interest rates. As noted by Oppenheimer, the Fed's decision to raise interest rates made it difficult for Mexico to effectively manage its debt. As a result these problems, the value of the peso dropped drastically. Oppenheimer notes that this event had detrimental impacts on the ability of the Mexican economy to function in both a domestic and international capacity. In the context of domestic problems caused, Oppenheimer notes that the situation had such a crippling effect on individual citizens that it prompted increased illegal immigration to the United States. This is because conditions in Mexico became overwhelming impact on citizens: "The gross domestic product was expected to drop by 7 percent in 1995...; interest rates in recent months had hit 100 percent...; more than ten thousand businesses had shut down...; and the unofficial employment rate had reached 50 percent" (p. 313). In an international context, the situation spurred considerable distrust on the part of prospective investors and increased hostilities between Mexico and many of its foreign investors.

While the devaluation of the Mexican currency had a profound impact on the overall development, Oppenheimer identifies another source of trouble for Mexican citizens: the ruling class elite in Mexico. The wealthy of Mexico not only escaped the currency devaluation unscathed, this group as a collective whole enabled the United States to exploit the Mexican worker. This coupled with the fact that the wealthy of the country did little to improve conditions in Mexico during the currency devaluation had a huge impact on the ability of the Mexican citizen to garner any sense of stability overall. "...Because of the lure of rising interest rates in the United States, foreign reserves had plummeted from $29 billion in February to $17 billion in April. Yet the Salinas government kept churching out rosy financial projections" (p. 143-4).

With no economic infrastructure to support Mexico's development and no consideration for the poor conditions by the wealthy, Mexico disintegrated into a country of crime and chaos. In short, the events of 1994 served as the impetus for the collapse of Mexico.

Even though Oppenheimer's analysis clearly identifies the specific instances that lead to the decline of Mexico, it is evident that the problems that resulted in 1994 did not just suddenly "appear." Rather, the underlying problems that led to the downfall of the country had deep historical roots. Overall, Mexico had been a country build on a façade. The government worked so hard to hide the problems of the country that it collected more debt, in an effort to keep the shinny veneer of the country prominent. The events that took place ion 1994 only served as a catalyst to bring about the inevitable. The response of the ruling elite was the same as it had always been: ignore the problem and it will go away.

Quinones' View of Mexico

Although the portrait of Mexico portrayed by Oppenheimer is quite formidable, Sam Quinones in his text True Tales from Another Mexico: The Lynch Mob, the Popsicle Kings, Chalino and the Bronx provides another story about what promulgated the decline of Mexico in the 1990s. While Oppenheimer focuses on the broader political and economic problems that were occurring in the country during this time period, Quinones makes the argument that the infiltration of organized crime had a detrimental impact on the development of society. Quinones argues that because this part of society is rarely seen in the mainstream it is often overlooked by scholars examining the development of Mexico in the 1990s.

Overall, the picture painted by Quinones about life in Mexico is quite compelling. Violence, drug trafficking and organized crime are all examined in graphic detail by Quinones. Although Quinones employs a narrative style to provide the reader with a clear understanding of what was occurring in Mexico during the 1990s, the "factual" information provided by the author demonstrates a horrific view of what daily life was like for average citizens. This picture is both grim and horrifying. As reported by Quinones, this "other" side of Mexico is one that continues to contribute to the overall decline of the country, even in the wake of changes in politics and government.

Personal Reflection on the Situation in Mexico

Clearly, both Oppenheimer and Quinones provide notably different views on the reasons for Mexico's problems in the 1990s. Generally described, the viewpoint presented by Oppenheimer is one that considers more prevalent macroeconomic pressures facing the country, while the viewpoint supported by Quinones supports more microeconomic pressures as the reason for the current problems in the country. Both authors make a compelling case that accurately reflects all of the problems that are currently occurring in the country. With this in mind, clearly identifying the central cause for the chaos that erupted in Mexico in the 1990s is a difficult task.

In an effort to make some argument about the principle problem facing Mexico in the 1990s, it seems reasonable to draw some parallels to Mexico in the 1990s and the United States in the 1980s. During the 1980s, the United States faced a number of daunting macroeconomic problems. The national debt had reached unprecedented levels and the economy of the United States had collapsed creating an urban underclass. Crack cocaine became a menace to the safety and well being of all individuals and the gap between the rich and the poor grew more extensively. When this situation is transposed onto Mexico in the 1990s, similar parallels can be seen.

With the realization that such notable similarities can be seen between the United States in the 1980s and Mexico in the 1990s, it is evident that the solution to the problem could lie in an analysis of how the United States was able to overcome its problems in the 1980s. When one looks back on the specific changes that prompted improvement for the US in the 1990s, it is evident that the improvement of macroeconomic factors had a clear impact on the ability of the US to eventually become more stable. Under President Clinton, the US government was able to eliminate its foreign debt and balance the budget. In addition, unemployment rates dropped and the economy strengthened. The period from 1993 to 1998 was the longest sustained period of economic growth in the history of the United States. Additionally, as the economy improved, crime rates fell.

When this data is placed in the context of Mexico in the 1990s, it seems reasonable to argue that the most pressing issues facing Mexico stem from its mismanagement of the economy. High external debt and the inability of the Mexican government to manage this debt have served as the impetus for the decline of both Mexico's economy and its society. With this in mind however, it is evident that the country can recovery. With proper leadership, Mexico can balance its budget and bring prosperity to its people. When this occurs, the underworld of criminal activity that is reported by Quinones should abate. Crime appears to become exacerbated in times of economic strife. As such, if Mexico can improve its economy, it will have hope for repairing many of the social ills that have developed in recent years.

References

Oppenheimer, A. (1998). Bordering on Chaos: Mexico's Rollercoaster Journey to Prosperity. Canada: Little Brown and Company.

Quinones, S. (2001). True Tales from Another Mexico: The Lynch Mob, the Popsicle Kings, Chalino and the Bronx. New Mexico: University of New Mexico Press.