UNAM Expert: Mexico Needs Transversal Economic Policy to Boost Competitiveness

Mexico's economy faces significant challenges in competing with global powers and multinational corporations, according to Raúl Vázquez López, a researcher at the National Autonomous University of Mexico's (UNAM) Institute of Economic Research. He advocates for a more "transversal" economic policy to foster economies of scale, which can enhance competitiveness by reducing per-unit production costs.

Vázquez López emphasized the need to cultivate human capital in generic technologies, such as computing, artificial intelligence, and infrastructure-related engineering. This strategic development would allow Mexico to adapt these skills across various sectors, moving beyond the specialized, often lower-wage, models of past decades. He pointed to the Industry 4.0 revolution, characterized by the fusion of digital and biological technologies and advanced automation, as a key area where generic technologies can be leveraged.

This proposed model, which has seen success in countries like China, Germany, and the Netherlands, focuses on developing human capabilities for tasks requiring higher knowledge content. This, in turn, would lead to a more qualified workforce, generating higher incomes and better wages. The researcher suggested that Mexican migrant workers with specialized engineering or computing degrees could find better-paying opportunities in these higher-skilled fields, rather than primarily in the service sector, where many currently work in the United States.

The expert highlighted that the automotive and aerospace industries, where Mexico has established clusters like the one in Querétaro, are prime examples of high-tech sectors. By developing human skills and capacities in generic technologies, Mexico can strengthen its position in these and other advanced industries. The UNAM noted that globally, the automotive and electronics sectors dominate trade, placing Mexico in a critical position to adapt its economic strategy.

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The challenge for small and medium-sized economies like Mexico's is to seek strategies to compete with large world powers and with multinational companies that are predominantly owned by developed economies.