Mexican President Andrés Manuel López Obrador says the neoliberal model is set to fail. He spoke on Friday.
He claims it creates inequality and social issues. He made these comments during his Fifth Annual Report.
His government focuses on helping the poor first. He believes this approach creates social peace.
Obrador said material gains without justice are unsustainable. He noted that unequal wealth distribution causes problems.
His alternative model began in December 2018. This model aims to boost family incomes first.
Obrador said this encourages both local and foreign investment. It also supports economic growth and jobs.
Corruption has no place in his government, he stressed. “Corruption has harmed Mexico the most,” he said.
Despite the pandemic and conflicts in Eastern Europe, 5 million people were left in poverty between 2018 and 2022.
Mexico’s economy grew by 3.1% in 2022. Experts predict it will grow by 3.0% in 2023. But they expect a slowdown to 1.6% in 2024 due to trends in the U.S.
Neoliberalism has been debated in Mexico for years. It gained prominence in the late 20th century. Critics say it widens the wealth gap.
Supporters claim it boosts the economy. Obrador’s focus on “humanism” is a notable shift. It aims to prioritize social justice and welfare.
Corruption has been a big issue in Mexican politics. Previous administrations faced numerous scandals.
Obrador’s anti-corruption stance is part of his appeal. Mexico has a history of inequality that its policies aim to address.
Economic trends in the U.S. often influence Mexico’s economy.
The neoliberal model promotes free markets and limited government intervention. It became popular globally in the late 20th century.
Critics argue it increases income inequality and neglects social welfare.