By: Richard Miles
Why doesn’t Mexico have a knowledge economy? Alejandro Ruelas-Gossi from the University of Miami Business School explains Mexico’s maquiladora economy, whereby U.S.-owned plants use cheap labor to assemble sophisticated products designed and engineered somewhere else. Global competition keeps those low-skill wages perpetually low. Arguing for a “Race to the Top” strategy, Ruelas-Gossi says that until Mexico joins the countries that “know” rather than “do” it will not truly join the ranks of the developed world. We ask how Mexico intends to get there without research and development partnerships with foreign universities and business labs. Finally, Ruelas-Gossi says U.S. policies and presidents are not the most important factors driving long-term economic trends in Mexico.
Guest: Alejandro Ruelas-Gossi