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Nathaniel Brown

Pols 2200

04/5/2019

The Economy and Democracy: Nigeria-Mexico

One of the leading developing countries in Africa is Nigeria. The economy is described as a

mixed economy, emerging market and middle-income. Nigeria is ranked as the 27th largest

economy in the world in terms of GDP, and the largest economy in Africa. The biggest sectors of

revenue for the country, comes from Oil, Agriculture, and its growing financial market such as

banking. (Reuters, 2014)

Trade in Nigeria is a big deal with approximately $34.2 Billion of goods being imported

from the United States, and $46.68 Billion of goods being exported from Nigeria. The demand

for Oil makes it one of Nigeria’s leading exports,with India being the main purschaser of oil.

Foreign Investment continues to be a big deal in the country, because it helps stimulate the

economy and create jobs for the people of Nigeria and therefore helps the economy grow and

helps the unemployement rate go down. (OPEC,2010)

Overall, Nigeria is a developing country with various resources of income at its disposal,

and it has the opportunity to lead itself into safer and stronger country within the region.

Nigerians still have low living standards compared to western countries and the people have less

disposable income to spend. Nigerians also have a low literacy rate that can affect the workforce,

because most people don’t have the necssary skills and therefore companies who are looking to

hire, have no choice but to outsource their labor. The inadeqaute living standards can have more

of an effect because most workers can miss work for sickness with lack of healthcare.

(OPEC,2010)
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Corruption is another big factor the country faces, along with it developing its economy.

Corruption has increased because of the amount of money being invested in Nigerias economy

from foreign countries to help build its infrasructure and create a better life for its people.

Corruption is big specifically in the political arena, where the most corrupt agency in the country

is the Nigerian Police and the Political Parties of Nigeria. The People who are elected by the

people are usally the individuals getting richer off the aid coming in along with all governemnt

related agencys.

Nigeria is expected to become more developed over the next decade and with the amount

of corruption that occurs from its elected officials, Nigeria will either stall in its progress or it

will begin civil unrest as a result. The Institutions of Nigeria are supposed to work for the people,

and advance their interest before anything else. Nigeria is considered a Democracy but from the

looks from an outsider, it is failing and it will have drastic impacts not only for the people of

Nigeria but for the entire region as a whole and the people who are stealing from the future

Nigeria will be responsible for the death of democracy with their country.

Mexico

The Economy of Mexico is the 15th largest economy in the world and one of the best

economies for a developing country that has a sense of stability. Mexico has a large amount of

trade agreements compared to various developing nations around the world, such as the largest

of trade agreements called (NAFTA) North American Free Trade Agreement. This agreement

has been beneficial for its economy since coming into effect in 1994, and has allowed mexico to

expand its infrastructure such as ports, railroad, telecommunciations and electricity. The
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agreement among the United States, Canada and Mexico has been responsible for 90% of its

exports and 55% of imports. (CIA,2006)

The labor force consists of approximettly 52.8 Million and the GDP of Mexico is about

$2.1 Trillion. Mexico is considered to be established as an upper middle-income country.

Although, Mexico has managed to create a stable economy that has huge benefits for its future,

Mexico also has to deal with Poverty. The Poverty rate currently sits at 2% on the national

poverty line and its biggest factors of poverty, consists of lack of education and malnutrition.

Mexico. (CIA,2006)

Mexico has managed to reform some of its social services throughout the country and has

started privatizing certain sectors. Mexico has started to make an attempt to provide more access

to Universal Healthcare, Jobs, and Education. Overall, Mexico’s 12 trade agreements are

beneficial to its people and gives Mexico an advantage in the Latin Community and has shown

its dedicated to compete with other world economies. (CIA,2006)

Although, Mexico has growing economy and has started to expand social services among

its people, Corruption has been an issue throughout all regions and has made citizens become

angry and concerned about it. Citizens don’t trust their elected officials as much and police

because they are easily paid off by peope with connections. One of the reasons for corrupton in

mexico is Clientelism. The (PRI) Institutional Revolutionary Party came to power in 1929 and

maintained power until 2000. This one party state rule allowed for bribes and various corruption

among officials and agencies, because the elites would sell bribes to its people in exchange for

support. (Estevez,2015)

This type of corruption has escalated in the country to include the cartels that run certain

regions through bribery and extortion of elected officials that do not comply with certain orders
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that are given from the cartel. This corruption has managed to infiltrate all aspects of mexican

government. Mexico unlike other developed countries have a diffent sense of the way politics

proceeds when corruption is presented to the public. The public is the strongest force of within

the country and has the power to demand resignatons or ask for investigations for various

governmental officials. (Estevez,2015)

Mexico has a simlar system to the United States and therefore has resulted in seperation

of powers and with each agency competing for relevance, The people have shown that they are

not scared of the cartel by holding demonstrstions in public and that alone defines the strength in

the Democracy in Mexico. Mexico might be corrupt but democracy is more stronger there than

other various developing nations that seem to struggle for democracy. (Estevez,2015)

Conclusion

Nigeria and Mexico have different histories and that alone has been a main reason on

why one country over the other has an advantage in terms of developing their economy. Nigeria

has shown that it is capable of creating new infrastructure and the ability to make its case to the

world on why it is best to invest in their country and hire its workers. Mexico has also shown a

similar path, that consists of large trade agreements with large nations that build factories in its

country and employs millions of people and in return stimulates the economy to grow. Another,

problem both countries face is the fact that corruption is everywhere and its stealing money from

its its people. The constant mishandling of money must stop because it is hurting the institutions

created to put the people first and failed democracy can open a door to civil unrest and dictators.
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References

“Contact CIA.” The World Factbook,

web.archive.org/web/20160530152006/https://www.cia.gov/library/publications//the-world-

factbook/rankorder/2095rank.html.

“Contact CIA.” The World Factbook,

web.archive.org/web/20160530152006/https://www.cia.gov/library/publications//the-world-

factbook/rankorder/2095rank.html.

Estevez, Dolia. “Mexican President's Popularity Drops Amid Corruption Scandals,

Disappointing Economy.” Forbes, Forbes Magazine, 27 Aug. 2015,

www.forbes.com/sites/doliaestevez/2015/08/27/mexican-presidents-popularity-drops-amid-

corruption-scandals-disappointing-economy/#42b917da4c43.

“Nigeria.” OPEC, www.opec.org/opec_web/en/about_us/167.htm.

“Report for Selected Countries and Subjects.” International Monetary Fund,

www.imf.org/external/pubs/ft/weo/2010/01/weodata/weorept.aspx?sy=2007&ey=2010&scsm
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&grp=0&a=&pr.x=21&pr.y=11.

“UPDATE 2-Nigeria Surpasses South Africa as Continent's Biggest Economy.” Reuters,

Thomson Reuters, 6 Apr. 2014, www.reuters.com/article/nigeria-gdp/update-2-nigeria-

surpasses-south-africa-as-continents-biggest-economy-idUSL6N0MY0LT20140406.