The Mexican paradox: an excellent student flunks the exams

For more than two decades, the Mexican government has closely followed the prescriptions of the international financial authorities with respect to controls on fiscal and trade deficits.

In addition, Mexico's manufactured exports amount to those of more than all the other Latin American countries combined. Even so, these achievements have meant very little in terms of the pockets of the people. Of all the nations in Latin America, except for Venezuela, Mexico has the least growth of per capita income.

The Elusive Quest for Prosperity in Mexico, a new book by Santiago Levy, a senior IDB official, tries to explain the  paradox.