Comments on: In the wake of Trump’s tariff chaos, Mexico’s economy needs a rethink: A perspective from our CEO, Part 3

By: PATRICK O'HEFFERNAN

PATRICK O'HEFFERNAN — Mon, 28 Apr 2025 22:32:42 +0000

Very good analysis. A few additional points. Overdevelopment, especially catering to Expats and tourists, is already limiting some development. AB&B and other rental platforms must be regulated or there will be both an economic and social backlash like there is ow in Barcelona. Second, water is a problem throughout much of the country, as is wastewater treatment. Plants do get built but they don’t get properly operated or maintained. A perfect example is the Lerma-Santiago river where over 300 treatment plants were built and the pollution is higher than ever because there is no legal control of point-source pollution, estimated by CONAGUA at 4000 points of discharge, the majority of them illegal and uncontrolled. This pollutes groundwater, sickens children, and limits downstream water users like Guadalajara. Until enforcement is a priority there will be no solution to the Mexicans water crises. This will require legal changes, managerial discipline and money – all of which are in short supply. Another critical area you touched on is community integration. It is critical that local government, realtors and the NPO sectors work together to build bi-cultural organizations, events, and relationships. Chapala and Ajijic have made strong strides in this direction, building on the foundation laid down by the visionary woman Neill James 50 years ago. Local organizations like the Lakeside Little Theatre (LLT is the the oldest and largest English-language theater in Mexico), the Lake Chapala Society and other Expat organizations have launched major efforts to offer programs that help integrate with the two communities and to make facilities and assets available to Mexican organizations. One example is Luis Sanchez who was recruited last year for a lead part in LLT’s production of Jesus Christ Superstar, which launched his Mexican musical career – he is now in the Broadway-level production Malinche in Mexico City. Another is the bilingual Semanario Laguna/Lakeside News newspaper and news organization -the only bi-lingual newspaper in Jalisco and only one of 3 in Mexico. Both Mexicans and Expats use it for language instruction and to learn what the other community thinks is important. As you rightly say, more Americans and other Expats will come to Mexico and bring money and skills with them. If Mexico can figure out how to create an integrated tapestry from the immigration, it will do well indeed.

By: Paul Crist

Paul Crist — Mon, 28 Apr 2025 18:25:59 +0000

In reply to eb@adavisglobal.com.

Well, the government to the north needs to address the demand issue. As long as there is demand, Mexico cannot get the supply issue resolved.

And the issue of demand for the US is very complex. Addiction is largely a disease of desperation. Until the US underclass problem is addressed, a product of deindustrialization, declining real wages, loss of hope and belief in the “American Dream” in which every generation expected to do a bit better than their parents did, and the egregious state of addiction and mental health care available… the US won’t get the demand problem under control.

By: Paul Crist

Paul Crist — Mon, 28 Apr 2025 18:17:06 +0000

In reply to Observer.

While I agree with you – the quality of education needs to be significantly improved – and having lived in Mexico for over 20 years, I am always struck by how many university graduates are working as waiters and other service jobs. Lawyers, computer engineers, biologists… Mexico is actually turning out more college graduates than it can employ in their professions. Now, could the universities do a better job of preparing these kids? Of course! But we need more demand for high-skilled professionals, engineers, medical and other scientific researchers… Investment is a big piece of what’s missing.

By: Paul Crist

Paul Crist — Mon, 28 Apr 2025 18:07:12 +0000

In reply to rkstrand@cruzio.com.

It was going to be a point of departure for a budget cruise line owned and operated by Vidanta, the mega complex just across the state line in Nayarit. The idea was to create a cruise line that would be affordable to middle class Mexicans (and there are millions in the region, especially in Guadalajara). They even bought – or perhaps leased? – a ship. But I think the idea went south with the COVID pandemic and it has not been revived. It does seem like a great idea.

By: abq.mel@gmail.com

abq.mel@gmail.com — Sun, 27 Apr 2025 16:32:13 +0000

Valid commentary here …. two big elephants in the room. Lack of personal security outside ‘the gates”.
Environmental degradation from new development ignored.
Extreme economic inequality with lacking social safety nets.
Mexico was a nicer place to travel to fifty years ago 🙁

By: Anne Glennie

Anne Glennie — Fri, 25 Apr 2025 15:36:04 +0000

Excellent series Travis. I didn’t want to jump the gun on parts 1 and 2 as a few others, assuming you were referring just to foreigners, but part 3 made it sound so. My belief is that if all of the above are also accessible for Mexican nationals, it’s a great plan. Top two things standing in the way: 1. Security. 2. Education. If those improve, I think Mexico’s potential could skyrocket!

By: eb@adavisglobal.com

eb@adavisglobal.com — Wed, 23 Apr 2025 21:01:01 +0000

I’ve been providing tourist insurance into Mexico for 30 years. I’ve seen the middle class become stronger and seen growth throughout the country in all areas.

The tourists are still coming to Mexico because they know the country. However, If Mexico wants to increase their tourism business they have to solve the problem of the Elephant in the room. Cartels and drug trafficking.
These problems need to be solved from the top down and I hope these new administrations on both sides are willing to do what is necessary to tackle this problem seriously.

By: David Goadby

David Goadby — Wed, 23 Apr 2025 02:57:35 +0000

A stimulating series. In addition to the fundamental priorities of significant necessary improvements in public safety, education & infrastructure, Mexico must begin to wean itself off its “branch plant” based manufacturing sectors. In that regard, continuously touting foreign investment is a double-edged sword. For as long as American, Chinese & European owned corporations continue to primarily dominate those sectors within Mexico, Mexico will not control its own economic destiny. The Chinese manufacturing model has been emblematic of how that works. Mexico could not survive as a service-based economy, no matter how diversified within those sectors. Today’s global trade & economic challenges virtually demand that Mexico now enters a period of economic revolution, vs. evolution. Mexico has come a commendably long way since the original initiation of NAFTA, and subsequently the USMCA, but it can clearly no longer depend upon such agreements to support its own future economic growth.

By: smalley57@mac.com

smalley57@mac.com — Tue, 22 Apr 2025 23:00:14 +0000

Infrastructure, infrastructure, infrastructure!!! Water is a huge issue! Living in southern Baja, not Cabo, there is so much building going on without providing the necessary infrastructure. In Cabo the massive hotels keep going up and it’s not cheap to stay there, but where’s the water going to come from. Where I live we have to truck our water in that comes from aquifers. What happens when those dry up?

By: Jennifer Flower

Jennifer Flower — Tue, 22 Apr 2025 17:57:53 +0000

Good series, I agree with a lot. Just a note, if AI infrastructure comes in, it will draw heavily on water resources. Power too, but I still have hopes that dedicated solar can be built for it. Knowing how things go, though, I wouldn’t be surprised if there’s a huge drain on power too.