Comparative Financial Analysis Of The Mexican Rural Sector

Abstract

The development of the Mexican rural sector is vital because it is the source of raw materials needed for production in the manufacturing sector. Thus, it is indeed important that its development follow that of the industrial sector. The main objective of the present research is to evaluate the growth of the rural sector during the presidential term of Felipe Calderon (2007-2012) and to discover the lights and shadows that revolve around this suffering sector of the Mexican economy. The analyzed statistical evidence shows an important lag and stagnation of the development of the rural sector since 1960 in Mexico. Additionally, a decrease in the contributions of the rural sector to the entire economic development in Mexico in 2012, compared to the one registered 33 years ago (in 1979), is considered. The statistical evidence supports the conclusion that the Mexican rural sector has not been able to show any progress, regardless of the noble governmental initiatives and efforts. Financial government resources should not only be directed to pay salaries and subsidies, but through a more effective leadership, the agricultural government agencies could try to increase investment in infrastructure, development, and application of new technologies set in the context of civic responsibility, ethics, and a sustainable development approach.