Poverty and Inequality in Mexico after NAFTA: Challenges, Setbacks and Implications

Abstract

This article analyzes the progress obtained in diminishing poverty and inequality in Mexico during the post-NAFTA years ranging from 1994 to 2007, and how it pertains to the broad critical debate surrounding poverty-gap reduction in the context of regional and international economic integration and trade liberalization. Specifically, the article discusses the evolution of Mexican rural and urban poverty, income and regional disparities, as well as the role of government spending after the enactment of NAFTA and within the framework of economic liberalization marked by expanded international trade and investment, particularly with the United States.