Us mexico border essay

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Mexico's banking system is a remarkably well-developed one. The central bank, the Bank of Mexico, is an independent agency of the government that performs the traditional functions of a central bank. Specifically, it dictates to member banks the amount of money they must keep in reserve and it regulates the nation's money supply. In 1982, in the wake of Mexico's recession and in an effort to contain the flight of capital out of Mexico, the nation's private banks were nationalized by the government. All banks were privatized again by 1992 and as of 1999 there were 39 commercial banks operating in Mexico. As of 1994, the government has allowed Canadian and . banks to open branches in Mexico. Although the banking system is no longer in a state of crisis, the fact remains that all is not well with the Mexican banking system. Bad loans are the critical problems facing Mexican banks. The government has intervened here by setting up a fund to take over the bad debts of banks. This fund had absorbed US$89 billion of debt as of 1999. It is becoming clear that only a small fraction of these debts will be recovered by the government. The matter of what to do with these loans has become an issue of political negotiation.

While net undocumented migration from Mexico may have ceased, legal immigration continues apace. Over the past 10 years, the United States experienced million entries by legal immigrants and million entries by temporary workers from Mexico. These migrants increasingly circulate back and forth in response to changing conditions and opportunities in each country, while undocumented migrants are paradoxically the ones who are trapped north of the border, unable to return to Mexico for fear of not being able to return to family, friends, and lives in the north. Rather than attempting to repress migration that occurs as a natural consequence of ongoing economic integration in North America, a more reasonable policy would be to bring the flows aboveboard and manage them in ways that benefit both countries, while protecting the rights of citizens on both sides of the border.

Us mexico border essay

us mexico border essay


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