AN ALTERNATIVE STRATEGY FOR EQUITABLE GROWTH - WITH SPECIAL REFERENCETO MEXICO

This paper formulates a framework of development strategy emphasizing productive employment and equitable distribution in a labor surplus ec onomy. Taking Mexico as a case, the paper evaluates its past and curre nt development strategies and explores their implications for future d evelopments using the framework of such a strategy. It is argued that in the present context of the Mexican economy, reliance on a strategy emphasizing economic growth alone will not alleviate the problems of e mployment and poverty. An equitable, growth-sustaining strategy for st ructural reforms needs to include three elements: the shift in product ion within the modern, leading sector toward more competitive, labor-i ntensive, high-value added and diversified activities; the development of the lagging, backward sector based on the concept of collective se lf-reliance; and the articulation of linkage in productive and marketi ng structures between the leading and lagging sectors.