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RUSSIA and Mexico: A comparison of the economies
Raśl Escalante comments on the comparison between the Mexican and Russian economies made by Cameron Sawyer and Christopher Jones; "Although Salinas is reputed to have left the helm in late 93/early 94, he was still in office while the crisis brewed. There was significant pressure on the peso at least since Colosio was murdered in late March. The international reserves fell from 40+ billion US to17 billion in 8 months or so. Perhaps the exchange rate should have been freed earlier Other than size, I see a lot of parallels between the economic and social woes of Russia and Salinas' Mexico, not the least of them being oil. Salinas had to contend with very low prices, while his predecessors like Lopez Portillo tried to ride the oil boom, a little like Putin today Debt refinancing also had a foreign debt component: the recently pre-paid Brady bonds. the trend to refinance old foreign debt has been kept up as Mexico's credit rating has improved, and our payment profile is dramatically better than it was 9 years ago. Another close parallel: education is currently underfinanced in Mexico and that, i believe, is the most important investment a society like ours can make".
Ronald Hilton - 6/30/03