Question

What Mexico Should Do to Become a developed country?

how do we stimulate socially inclusive industrial development so that we become a “developed country” in the next 15 years?

Answer 1

Mexico should take a slew of measures to become a developed country.

* Savings rate - Mexico should increase their savings rate. If a country didn't save much how will it invest . And investment is needed to spur gdp.

* Technology- Most of growth and development theories has predicted that long run development of country depends upon technology . Thus investment must be taken to increase human capital and R&D in economy.

* Institutions- Efficacy of policy depends upon how effective the institutions are in country . Bureaucracy and corruption makes a policy ineffective and yhus leads to policy paralysis.

To stimulate socially inclusive industrial development the planners should move from totalitarian planing to democratic and inclusive planning. State must not undertake all factors of production into their hands instead they must allow both the public sector and private sector to work together. Government must play the role of facilitator instead of regulator .