Updated 10:24 AM EDT, Thu, Jun 04, 2020

Mexico Economy: Without Corruption, Can the Country Become the Next Economic Superpower?

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Mexico has been the subject of both political and economic turmoil for decades now. The country is losing billions of dollars to corruption that could be used to generate the country's economy, which has remained stagnant over the past years.

According to Quartz, corruption costs the country to lose a staggering $890 billion pesos a year ($53 billion). That amount accounts for 5% of the country's GDP. This is per a report with the Mexican Institute for Competitiveness (IMCO in Spanish.) Additionally, IMCO reported that the aforementioned amount would contribute significantly to the country's educational fund, as well as alleviate poverty in the country.

Sadly, as staggering as the numbers are, this has become a blinding reality in the country, as told by Ary Naim, Mexico Manager of World Bank's International Finance Corporation. "Mexico has not made any progress in this area in recent years." Naim said of the figures that puts the scale of corruption at 9% of GDP.

The subject of corruption has become a controversial issue in the country. However, as controversial as the topic is, it has become a glaring and prevalent part of life in the country. In fact, as per a report with Mexico News Daily, IMCO says that . the federal Attorney General "couldn't care less about corruption." IMCO also states that federal authorities don't allocate enough resources to combat corruption.

Corruption in Mexico makes the country less competitive both globally and economically. In fact, IMCO says that about 60% of entrepreneurs say that corruption in one way or another becomes part of their business dealings. The report adds that because of this, businesses cannot really profit much as many of these entreprenuers have lost out to their competitors who resort to paying bribes or used their influence in one way or another to gain clientele.

According to IMCO, such corrupt business practices have prevented Mexico from  enjoying improvements such as increase in global investment, growing research and development, and as well as improved international trade.

Imco's International Competitiveness Index 2015 listed Mexico as No. 36 of 43 countries. The country had managed to garner the number 32 spot in 2006 but has fallen soon after and has remained among the bottom since then. This puts the country in a precarious position below Brazil, China and South Africa.

"Corruption is not a problem exclusive to Mexico, but impunity is," IMCO's director Juan Pardinas.

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