
The economic system in Mexico is a little bit different than in the US and in Canada and it continues to evolve. The law in Mexico is based primarily on Napoleonic law rather than the Civil Law, of the US. I can’t speak to the economic system or the legal Canada so much because I’m from the US, but I believe the US and Canada might be more similar than the US and Mexico or Canada and Mexico.
Mexico is getting more and more capitalistic. When we first moved here, there was considerable talk about the disparity between the lower classes and the upper classes and there wasn’t that much of a middle class. Now the middle class is expanding rapidly in Mexico. There’s so much entrepreneurialism! You’re seeing lots of people opening businesses; anything from small Laundromats to artisinal bakeries to little bars and restaurants to financial services and shipping. And this is not just in the resort areas; the growth is palpable in urban areas as well. It’s a very, very exciting time in Mexico to see more and more people self-starting and experiencing the fulfillment and standard of living associated with owning and operating a business.
Entrepreneurialism is being encouraged and nurtured by the government and by the banks. You’re seeing personal loans and business loans being granted on levels that didn’t happen before. It’s a really exciting time to be here as you see society embracing opportunity that maybe we didn’t see so much of 10 or 15 years ago.
I believe that some of the reasons things have changed in Mexico is on account of the age of information that we live in; the Internet and media. With information comes knowledge. People can see opportunity —and this is not just for Mexico - this is all over the world. Folks can envision what they might achieve if they take steps A, B, and C . . . leading them to success. In the past, when someone wasn’t aware of what they could have or what they could accomplish then they weren’t necessarily going to take the steps to do it. But when you see great accomplishments being made in the world – you get motivated.
Also, the availability of credit is changing across the board in Mexico. Just 10 or 15 years ago hardly anyone had a credit card, and mortgages were pretty much unheard of. Today, nearly everyone has a credit card. Car loans are available and they’re getting more attractive in terms of the interest rates. Ten to 15 years ago, perhaps 1 or 2% of the population would have had a home mortgage. Now we’re up to about 15% of the population.
It’s no secret that Mexico has had issues with its banking industry at several different times, with peso devaluations, etc. As the peso stabilized, the banking industry had a lot of work to do to gain the trust of the Mexican population. Now, we see the results of those efforts. We see people using banks and leverage, we see credit offered through a variety of sources, and you see the concept of leverage catching on whereas previously it was looked at as something to be wary of.
(Pastries being baked in a traditional oven, Sonora, Mexico, pictured.)