Financialization in Mexico - Dr. Gregorio Vidal

272 JOURNAL OF POST KEYNESIAN ECONOMICS
Figure 4 Number of unemployed, underemployed, informal, and available
but inactive workers in Mexico
Source: INEGI, 2010b.
deterioration of public-sector institutions and ever increasing capital
outflows and a sharp polarization of wealth.
We cannot predict the future of financialization. We certainly do not
believe that it can be considered a politically sustainable regime of accumulation,
and based on what has happened in Mexico over the past
thirty years, we are inclined to believe that it does not have much future.
Extrapolating from the Mexican case, we can point to four severe limitations
of the financialized regime of accumulation: (1) it is extremely
difficult to govern, (2) it is given to ever greater financial crisis, (3) it
does not offer medium- to long-term profitability for private-sector companies,
and (4) especially for peripheral countries, it creates conditions
that systematically impede development. All of this is not to say that this
regime of accumulation will not continue to exist in the coming years,
yet if it does, because of its inherent economic flaws, its corresponding
political regime will have to be ever less democratic.
REFERENCES
Aglietta, M. Macroéconomie Financière. 1. Finance, Croissance et Cycles. Paris: La
Découverte, 2001.