Mexico  

Although Mexico’s foreign direct investment is very low by global standards, the country has high availability of productive physical capital per worker. In 2007, the unemployment rate was low at 3% of the workforce, and inflation rates were moderate at 4%. Average net interest margins point to a moderately inefficient banking sector, but a low rate of loan defaults indicate a thorough vetting process prior to loan agreements. Mexico’s domestic savings rate is near the global average at 24% of GDP. But household expenditure as a percentage of GDP, is the eighth highest rate, signifying a fairly strong domestic market. Mexico’s raw material export concentration levels are low and terms of trade remain moderate with its trading partners.

With only eight formal business start up procedures, and over 306,000 new businesses registered in 2007, Mexico ranks among the top 30 for entrepreneurship. In terms of value added within the service industry, the country also ranks within the top 20 in the global community at 69% of GDP. However, despite Mexico’s strong performance on internet infrastructure as measured by bandwidth, the number of secure internet servers remains very low at 10 per one million people. In addition, access to personal computers is severely limited with only 14 units per 100 citizens. Nonetheless, Mexico performs well in ICT exports as well as high-tech exports. Mexico’s R&D expenditure as a percentage of its GDP is less than 1%, placing the country 51st out of 104 for this measure. But, the country does enjoy a high level of royalty receipts, ranking 25th on this variable.

Ranking in the top 40 with respect to political rights and slightly lower regarding civil liberties, Mexican citizens enjoy moderately high levels of freedom to participate in political processes and express their beliefs. There is a high level of competition among rival parties in elections to the executive branch, and positions in both the executive and legislative branches are assigned via free and fair democratic elections. However, the country’s system of checks and balances is only moderately strong, which contributes in part to the absence of an independent judiciary in Mexico. Furthermore, political stability is very low, with the last major regime change occurring less than 15 years ago.

Although Mexico scores extremely high on primary enrolment rates at 98%, with gender equity, classroom sizes are large with a teacher to student ratio of one to 28. Secondary education enrolment rates are lower at 87%. Mexicans have an even lower enrolment rate in higher education of only 26%. Mexico scores well on gender equity, with an average of 99 girls to 100 boys enrolled at the primary and secondary levels. The Mexican workforce is well educated with high levels of both secondary and tertiary education per average worker - 5.3 years and 3.7 years, respectively. But educational expenditure per student in Mexico is low by global standards at less than $3,000.

Mexicans enjoy a relatively long health-adjusted life expectancy of 65 years, with 86% indicating satisfaction with their personal health.* More than three in four respondents report that they feel well rested, indicating a good quality of life, while one out of four indicate having health problems.* While 73% of respondents are satisfied with the water quality*, Mexico’s access to sanitation ranks just 63rd. Mexico ranks around the international median for number of doctors and nurses per capita and only 5% of Mexican citizens are undernourished. At the same time, infant mortality rates remain high at 30 deaths per 1,000 live births, and there is a dearth of hospital beds, leaving the country in 77th place on this variable.

Mexico faces significant problems related to social groups with a history of discrimination or other grievances, and human flight due to dangerous conditions. State-endorsed terror – including political violence and imprisonment – is also a significant concern, with the country ranking 71st on this variable. Mexico suffered casualties due to civil conflicts in 2008, and has a high homicide rate of about 11 deaths per 100,000 capita. However, other personal safety concerns are average by global standards, with 17% of Mexican respondents having had personal or household property stolen from them and 12% having been victims of assaults or muggings in 2008.* Only 55% of respondents report feeling safe walking alone at night, which is a fairly low proportion relative to other countries in the Index.*

Political participation is considered to be free and fair, with Mexican citizens enjoying freedom of political choice and the legal right to change the laws and officials that govern them. The quality of regulation of economic and commercial activity is strong, with the country ranking 44th on this variable, but bureaucratic quality and effective implementation of policies are just average by global standards. Although two-thirds of Mexican citizens have confidence in the country’s military, confidence in the judicial system and in the honesty of election is dismal at just 38% and 31%, respectively.* This low confidence is expected, given that enforcement of the rule of law is weak in Mexico, with the country ranking 70th on this variable. Alarmingly, at least seven out of 10 respondents think that both local businesses and local government are corrupt.*

Mexico’s performance across variables of personal freedom falls uniformly below the international average. Mexicans enjoy only moderate freedom of movement, religion, and speech. Approximately three out of five respondents believe that Mexico is a good place for ethnic minorities and immigrants.* Almost threequarters of Mexican citizens claim to be satisfied with their freedom of choice in their own daily lives, placing the country 54th in this measure.*

While less than one in six Mexicans trust others, 89% believe they can rely on family and friends to assist them in time of need.* Mexicans are highly religious, regularly attending religious services and participating in strong religious support networks. More than two-thirds report being a member of a religious organisation. Only 22% of Mexican citizens donated money in 2008, while an even lower share engaged in volunteer work.* However, 46% of individuals in Mexico claim they have helped a stranger, which is about average by global standards.* Mexico is missing data on membership questions and importance of friends.

* Data taken from the Gallup World Poll

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