Alejandro Ibarra-Yunez

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On December 1, Enrique Pena Nieto will assume office as Mexico’s new president — returning the long-ruling Institutional Revolutionary Party (PRI) to power after a dozen years in opposition.

Awaiting him — amid drug wars, public safety challenges, immigration issues with the U.S. — is an overarching challenge: helping his country break out of what economists call the “middle income trap.” In this “trap,” a developing country advances to the point where it cannot compete either with lower wage economies in manufacturing or with more advanced economies in high skill innovation. It’s stuck somewhere in the middle between.

Charting an escape from the middle income trap is at least as urgent as drug wars and immigration problems.…  Seguir leyendo »