Combines the financial and diplomatic history of Mexico to present a treatise on the financial status of a debtor country and a political history of diplomatic negotiations between Mexico and her creditors.

Excerpt from National Debt of Mexico: History and Present Status At two former periods in the history of Mexico the financial policy of the government has played an important part in its destiny. In 1861, Mexico's foreign financial difficulties were largely instrumental in bringing about the intervention in its affairs by the triple alliance of Great Britain, ace and Spain pursuant to the Treaty of London of October 31, 1861. This alliance afterwards developed into the so-called French invasion, from which sprang the short-lived Second Empire of Mexico established by Napoleon hi. In 1885, the reduction and consolidation of its debt and the adoption of a definite financial program restored its national credit abroad, attracted foreign capital, and started Mexico on the road to the most prosperous period of its history. And now at the beginning of 1919, after seven years of revolution, the future welfare of Mexico once more depends, to a large extent, upon the degree of wisdom and foresight with which its financial policy is developed. In 1862, Manuel Payno, Minister 'of Finance, at the request of President Juarez, wrote a history of the Mexican debt with the evident purpose of showing that intervention was determined upon by Great Britain, France and Spain in order to collect the debts due its citizens. About the Publisher Forgotten Books publishes hundreds of thousands of rare and classic books. Find more at www.forgottenbooks.com This book is a reproduction of an important historical work. Forgotten Books uses state-of-the-art technology to digitally reconstruct the work, preserving the original format whilst repairing imperfections present in the aged copy. In rare cases, an imperfection in the original, such as a blemish or missing page, may be replicated in our edition. We do, however, repair the vast majority of imperfections successfully; any imperfections that remain are intentionally left to preserve the state of such historical works.

Today Mexico is viewed as a success story in the management of economic adjustment and structural reform. Inflation is under control, capital and foreign investment are returning, and out growth has increased. Mexico's recovery, however, has been neither smooth nor rapid. In mid-1982, Mexico was in deep economic crisis compounded by an unfavorable international environment. Mexico was saddled with a large foreign debt, world interest rates were high, commercial banks had stopped lending, and the price for oil was dropping. Conditions at home were no better with rampant inflation, increasing capital flight, and chaos in financial and foreign exchange markets. To confront internal imbalances and accommodate adverse external conditions, Mexico adjusted its consumption and output, then sought new ways to foster growth. The crisis and adjustment imposed great hardship and demanded enormous discipline on the part of the government. This was accomplished without serious political or social disruption. In this book, Nora Lustig analyzes Mexico's economic evolution from the outset of the debt crisis in 1982 until the sweeping reforms began to bear fruit in the early 1990s. She explains the causes of the 1982 economic crisis and why it took Mexico "so long" to restore stability and growth. She also explores the question of the social costs of economic crisis and adjustment, and why the process may have been easier for Mexico than other debt-ridden countries. A discussion of the emerging role of the state in Mexico and the country's new outward-oriented development strategy is followed by an analysis of its search for greater economic integration with the United States and Canada. Selected by Choice as an Outstanding Book of 1992