Published On: Thu, Jun 26th, 2014

Mexico is finally beginning to unlock its true potential as an Economic Powerhouse (Larry Fink)

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Larry D. Fink is Chairman and Chief Executive Officer of BlackRock, Inc.  He has led the firm since its founding in 1988, keeping client centric solutions and innovation at the forefront of his leadership. 

Mr. Fink is frequently sought after by government leaders, policy makers and some of the world’s largest organizations for guidance on how to navigate the increasing complexities of the global financial markets. He was named “CEO of the Decade” by Financial News in 2011 and has been named one of the “World’s Best CEO’s” by Barron’s for seven consecutive years.

This is an article published by Mr. Larry Fink on his LinkedIn Influencer page:

A couple of weeks ago, I visited Mexico City—one of my favorite cities in the world. It’s a remarkable place, not least because of the food, the museums, and the culture, but also because of the incredible economic changes taking place in Mexico right now—both in the capital and all around the country.

Every time I visit, I think the same thing: if I were starting my career, especially if I lived in a nation where I couldn’t explore my full potential, I’d try my luck in Mexico. Why? Because Mexico is finally beginning to unlock its true potential as an economic powerhouse.

At the heart of this potential lies a sweeping set of reforms. These initiatives include significant changes to move more businesses out of the informal economy, lower the cost of borrowing and modernize the financial sector, educate and train Mexico’s young workforce, and reduce corruption. Perhaps the most important initiative, a key priority of President Enrique Peña Nieto, has been reforms to the energy sector.

For decades, Mexico’s energy sector has been a national monopoly. The policies now working their way through Mexico’s Congress will kill the monopoly and open development  to foreign investment. It’s difficult to underestimate the importance of this reform. Mexico has huge energy reserves, but hasn’t had the ability to truly capitalize on them. The important thing to remember is that for all of Mexico’s problems, it is a functioning democracy, and the capital from energy investment will flow to other sectors of the economy far more effectively than in an autocratic oil state.

Mexico City

Mexico City

What sets Mexico apart from many other emerging economies is that it has the combination of some key factors for success: a diverse set of resources and industries, its proximity to the world’s largest economy, a relatively stable currency, and—critically—a proactive, democratic government.

To be clear, I remain bullish on the U.S., and the May jobs numbers are further proof that the U.S. economy is on the right track. But we could learn a thing or two from our neighbors—in particular, the Mexican government’s willingness to take bold steps in order to foster long-term growth.

My enthusiasm about Mexico isn’t without reservations—the government has yet to actually put many of these reforms in place, the drop in GDP growth from 2012 to 2013 is cause for concern, and from an investment perspective, Mexico is a less sure bet in the medium term than some Asian economies.

But ultimately this comes down to potential. Over the next few decades, capital is going to flow more effectively in Mexico, the workforce will become better trained, and it will be easier and easier to do business. It’s the ideal environment for both entrepreneurs and established companies.

So if you’re beginning your career, do you want to make a mark?  Do you want to be part of something exciting, dynamic, and big?  Ve a México.

The opinions expressed here are current as of June 2014, and are subject to change.  Reliance upon information in this article is at the sole discretion of the reader.

Source: http://www.businessinsider.com/

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