The Enclave Economy: Foreign Investment and Sustainable Development in Mexico's Silicon ValleyForeign investment has been widely perceived as a panacea for developing countries--as a way to reduce poverty and kick-start sustainable modern industries. The Enclave Economy calls this prescription into question, showing that Mexico's post-NAFTA experience of foreign direct investment in its information technology sector, particularly in the Guadalajara region, did not result in the expected benefits. Charting the rise and fall of Mexico's "Silicon Valley," the authors explore issues that resonate through much of Latin America and the developing world: the social, economic, and environmental effects of market-driven globalization. In the 1990s, Mexico was a poster child for globalization, throwing open its borders to trade and foreign investment, embracing NAFTA, and ending the government's role in strengthening domestic industry. But The Enclave Economy shows that although Mexico was initially successful in attracting multinational corporations, foreign investments waned in the absence of active government support and as China became increasingly competitive. Moreover, the authors find that foreign investment created an "enclave economy" the benefits of which were confined to an international sector not connected to the wider Mexican economy. In fact, foreign investment put many local IT firms out of business and transferred only limited amounts of environmentally sound technology. The authors suggest policies and strategies that will enable Mexico and other developing countries to foster foreign investment for sustainable development in the future. Kevin P. Gallagher is Assistant Professor of International Relations at Boston University and Senior Researcher at the Global Development and Environment Institute at Tufts University. He is the author of Free Trade and the Environment: Mexico, NAFTA, and Beyond and other books. Lyuba Zarsky is a Consultant and Senior Research Fellow at the Global Development and Environment Institute. She is a contributing editor of Investment for Sustainable Development: Balancing Rights and Rewards. |
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... Trade and the Organization for Economic Cooperation and Development , had negotiated the North American Free Trade Agreement , and was a strong advocate for global trade liberaliza- tion at the World Trade Organization . When World War ...
... trade liberalization , and a commitment by industry not to raise prices and by trade unions not to press for wage increases above inflation ( Lustig 1998 ) . The policies related to the pacts reduced inflation from an annual rate of ...
... Trade - Related Investment Measures ( TRIMS ) and Trade in Intellectual Property Rights ( TRIPS ) . Both TRIMS and TRIMS limit the ability of Mexico to impose perfor- mance requirements on foreign investors . TRIPS also creates ...
Contents
Introduction | 1 |
The Emergence of Mexicos Enclave Economy | 43 |
A Profile of the | 71 |
Copyright | |
7 other sections not shown