The Benefits of Globalization: Why More for South Korea than Mexico?

Abstract

ABSTRACT This article examines the arguments for globalization and analyzes Mexico’s “maquiladora experience,” which indicates that globalization alone does not bring about a higher standard of living. The primary reason that Mexico has not benefitted as much as might be expected from globalization has to do with the poor quality of its governance, referring especially to public administration. This assertion is supported by a comparison of Mexico and South Korea. In explaining South Korea’s greater success, Political Elasticity (PE) theory is introduced, suggesting that political power needs to become elastic in two meanings of this word: a “rubber band” meaning (referring to the ability of leaders to delegate power without losing or diminishing it) and “a balloon meaning” (having to do with the ability of leaders to reliably influence the behavior of the general public). Based upon studies of rural and industrial development, South Korea is shown to be more politically elastic than Mexico. This article concludes by examining the lessons that Mexico can learn from Korea’s experience.