AN ALTERNATIVE STRATEGY FOR EQUITABLE GROWTH - WITH SPECIAL REFERENCE TO MEXICO

This paper formulates a framework of development strategy emphasizing productive employment and equitable distribution in a labor surplus economy. Taking Mexico as a case, the paper evaluates its past and current development strategies and explores their implications for future developments using the framework of such a strategy. It is argued that in the present context of the Mexican economy, reliance on a strategy emphasizing economic growth alone will not alleviate the problems of employment and poverty. An equitable, growth-sustaining strategy for structural reforms needs to include three elements: the shift in production within the modern, leading sector toward more competitive, labor-intensive, high-value added and diversified activities; the development of the lagging, backward sector based on the concept of collective self-reliance; and the articulation of linkage in productive and marketing structures between the leading and lagging sectors.