What is Shared Development? Goals, positives and negatives

It is about the equitable distribution of the income of a nation, first implemented by the president of Mexico Luis Echeverría in 1976. It is then that the national development scheme of the Mexican State was strongly benefited by this new economic system.

Every contemporary Spanish-speaking citizen must know this terminology in order to critically analyze the executive branch. So if you want to know more about what the concept of shared development is about and in which regions of the world it has been implemented, be sure to read the following article.

Development

The term of development is known as the evolutionary process in which the human being experiences changes at the social, spiritual and economic levels that they should improve their environment, in other definitions it is related to the meaning of evolution.

In short, what development seeks is to be able to achieve the optimization of the different areas that directly involve the human being. The coverage of the basic needs of the individual is inherent to the state in which the latter develops.

From a humanistic point of view, the term development must be implemented to refer to the freedom that human beings have to be able to build their life project based on the economic and social possibilities of a country.

It is then, that from a political point of view, implementing the term of development can benefit or harm the inhabitants of a country depending on the objectivity with which it is treated.

For his part, Luis Echeverría, had very good arguments in his theory of shared development that allowed him to reach the presidency and be able to implement it in the Mexican economy of the time.

Shared development model

The main cause of the implementation of this economic plan in Mexico was the periods of crisis that the country was going through at the beginning of the 70s.

This forced the government to limiting much of the national budget to public service, without taking into account that this act would bring great economic consequences and would cause more impoverishment to citizens.

During this period of crisis, the World Bank, the Inter-American Development Bank and the International Monetary Fund helped the countries in crisis of the decade.

The conditions for the aid of these entities was the reduction of public expenses, which, as we mentioned previously, would cause the decline of the economies, mainly the Mexican one.

The first world helped the Latin economies that consumed its products, but were the producers of their raw materials.

Esto helped the growth of Latin economies and to a certain point, to become independent from the budgets of the World Bank, the Inter-American Development Bank and the International Monetary Fund.

The discovery of oil in Venezuela and Mexico helped them to strengthen their economies in the exploitation of their gross domestic product.

Objectives of the model

It mainly had popular objectives that sought to strengthen agreements with the different social classes of the Mexican population, while other countries implemented different methods to avoid the crisis, Mexico, implemented shared development. Among the main objectives of this economic model are:

  • Reduce the debt of the Republic.
  • That the State had almost absolute control of the different private economies to stop any economic imbalance.
  • That the labor sector was part of all sectors of production.
  • Offer a better quality of life to the population.
  • Increase the profits of the labor sector by equitably distributing the dividends of the Republic.

Positive aspects

This economic model definitely did not achieve the stated objectives victoriously. However, some positive exceptions can be made that helped Mexican society at the time:

  • The opening of the INFONAVIT Institute (Institute of the National Housing Fund for Workers), which made it possible for the workers to buy houses or remodel others already acquired.
  • Educational reform based on learning new trades.
  • Opening of new universities and education centers media with admission to all audiences.
  • The National Plan for Adult Education.
  • Teaching Spanish to the different indigenous ethnic groups.

Negative aspects

Definitely, this economic model did not reach all the objectives that were set, among the negative aspects of the implementation of this model we find the following:

  • The increase in external debt.
  • Increase in the unemployment rate.
  • The dollar was devalued with an additional 6%.
  • There was exchange control that made foreign currency scarce.

Failure of shared development as an economic measure

In short, it was not a proposal that was based on concrete examples to ensure its success.

In 1976, the Mexican economy reached the end point of a crisis that increased poverty and poor quality of life for citizens.

The density of the population was also a factor that directly affected the control that this economic model intended to implement to the different investment and progress agents.

Generally speaking, shared development was nothing more than a very poor solution and lacking in tools That made the Mexican economy of the time a serious problem with respect to the other Latin American countries and the external debts that were increasingly large.

This development proposed objectives that were mostly not met, so the shortage of good medical services, food, sanitary measures and other public services were the cause of the economic collapse of the government of Luis Echeverría.

Linked to corruption and the need to provide quick solutions to a town that had a very high population density and different needs that were distinguished thanks to social marginalization.

Economy of mexico

Today it is the first largest economy in Latin America, it is based on the free export market, becoming the thirteenth largest economy in the world with a gross domestic product budget of 13 trillion dollars.

Despite being a stable economy that allows anyone to get rich, it raises social controversies thanks to the extremes of poverty and wealth that are experienced throughout its lands, especially in the southern areas of Mexico, they are more affected by impoverishment.


3 comments, leave yours

Leave a Comment

Your email address will not be published. Required fields are marked with *

  1. Responsible for the data: Miguel Ángel Gatón
  2. Purpose of the data: Control SPAM, comment management.
  3. Legitimation: Your consent
  4. Communication of the data: The data will not be communicated to third parties except by legal obligation.
  5. Data storage: Database hosted by Occentus Networks (EU)
  6. Rights: At any time you can limit, recover and delete your information.

  1.   Jose Colmenares said

    Thank you for an important communication that serves as an example and comparison to our country at this time.

  2.   Max galarza said

    Thanks for the information, I infer that the shared development model was applied in Ecuador during the last decade in the so-called progressive Latin American governments and likewise the results of this recipe, positive and negative, are very similar except for the control of the exchange rate set. that the country has been dollarized since 2000.
    The story is the best teacher, we should learn more from her.
    Best regard
    Max Galarza, MSc

  3.   noah pasillas said

    Important information, it hurts that corruption continues, and inequality continues to shine, each time making it more difficult to grow job development with average wages.