16-Mar-2023 , Updated on 3/17/2023 9:22:25 AM
Why does Mexico have a lower growth rate and development as compared to United States of America
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Mexico and the United States of America are neighboring countries with very different levels of economic development and standards of living. While the United States is one of the wealthiest countries in the world, Mexico also has a lower growth rate and development.
We will explore some of the reasons why Mexico has a lower growth rate and development than the United States.
One of the primary reasons why Mexico has a a lower growth rate and development than the United States is due to economic factors. Mexico has a less developed economy than the United States, with a GDP per capita of approximately 1.27 Lakh crores as compared to the US GDP per capita of approximately 23.32 Lakh crores. This disparity is largely due to differences in industry, as the United States has a more diversified economy with a larger service sector, while Mexico relies heavily on exports of raw materials and manufactured goods.
Another factor that contributes to the lower standard of living in Mexico is the education system. Education is essential for economic development, but Mexico has a lower literacy rate and a higher dropout rate compared to the United States. According to the World Bank, in 2018, the literacy rate in Mexico was above 90% while in the United States it was 79%. The quality of education in Mexico is also lower compared to the United States, with fewer resources and lower teacher salaries.
Infrastructure is another factor that affects the economic development in Mexico. The country has a less developed infrastructure compared to the United States, particularly in rural areas. For example, many rural areas in Mexico lack basic infrastructure such as paved roads, running water, and electricity. This lack of infrastructure hinders economic development and makes it difficult for people in these areas to access essential services and resources.
Political instability and corruption are also factors that contribute to the lower growth rate and development in Mexico. Mexico has a history of political instability, including government corruption, which has hindered economic growth and development. Corruption has also contributed to the unequal distribution of wealth in Mexico, with the richest 10% of the population holding more than 40% of the country's wealth.
In conclusion, the lower growth rate and development in Mexico compared to the United States is due to a combination of economic, educational, infrastructure, and political factors. While progress has been made in recent years to address some of these issues, there is still much work to be done to improve the standard of living in Mexico. By addressing these factors and promoting economic development, education, and political stability.
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