U.S. Economic Strategy in Shaping Mexico - Living Happily Ever NAFTA.
Abstract
The U.S. Shaping of the Mexican economy appears to be a viable strategy to reduce the likelihood of border conflicts and future crises. Nevertheless, even with overwhelming U.S. economic power, the opportunities for both Mexico and U.S. economic growth are constrained. Because the U.S. government does not completely control all instruments of its economic power, the roles of the private sector, the free enterprise system, and cooperation with other competing nation states threaten to make U.S. economic policy both unwieldy and even counterproductive. Given these potential threats, how can the U.S. government effectively shape Mexico's economy in pursuit of its own interests? This paper discusses how the U.S. addresses this question in Mexico where several current and pending crises are subject to influences inimical to, or at least in competition with, United States security interests. Based on the economic underpinnings of U.S. national strategy, the focus of hemispheric relations is now on a "free trade" doctrine. This paper analyzes both U.S. and Mexico's interests and discusses how free trade theory both supports and inhibits pursuit of those competing interests. The dynamic of "shaping" Mexico's economy proves to be much more a political process than an economic one.
Document Details
- Document Type
- Technical Report
- Publication Date
- May 09, 1998
- Accession Number
- ADA345628
Entities
People
- Thomas P. Kelly
Organizations
- United States Army War College