This essay will discuss Mexico's transition to neoliberalism. This economic change includes the economic climate that led to the shift to neoliberalism, the neoliberal policy context, and the economic and social impacts it had. By exploring the origins of neoliberalism in Mexico and the reasons for its implementation, it is possible to gain a deeper insight into the political and socio-economic models. Furthermore, the discussion of neoliberalism provides insight into the significant inequalities and income gaps that exist within the population, as well as the immense effects on sectors such as agriculture and the policy implications of these effects. Neoliberalism is an economic approach that promotes a free pass. make a business model (Edmonds-Poli & Shirk, 253). This economic model, widely supported by many Western economists, is based on three main principles: stabilization, structural adjustment and trade liberalization. (Edmonds-Poli & Shirk, 254) Neoliberalism is a method to restructure the economy and the first step is to stabilize the fiscal supply. This occurs through a decrease in government spending, leading to an overall decrease in employment, public services and access to credit, while simultaneously increasing interest rates and the cost of imports (Edmonds-Poli & Shirk , 254). The next element of neoliberalism is structural adjustment which focuses on the shift from the public to the private sector. This change aims to minimize government involvement, which in turn stimulates competition in an open market economy to create a more efficient private sector (Edmonds-Poli & Shirk, 254). Finally, trade liberalization aims to increase foreign investment and exports by lowering trade restrictions, such as tariffs...... middle of paper ......sm in democracies like the United States , the Mexican economy seemed too vulnerable and easily controlled by foreign investors to operate in an open, globalized market. Works Cited David Bacon, "Displaced People: NAFTA's Most Important Product", NACLA Report on theAmericas vol. 41, no. 5 (September/October 2008): 23-27. Edmonds-Poli, Emily and David A. Shirk. Contemporary Mexican Politics. Lanham, Maryland: Rowman & Littlefield Publishers, Inc., 2009. 100-108,252-258,276-278,282-285. Print Elisabeth Malkin, “Nafta's Promise, Unfulfilled,” New York Times, March 24, 2009. Elisabeth Malkin, “Did Nafta Really Help Mexico? New York Times, December 10, 2009. Hamilton, Nora. Mexico: political, social and economic evolution. New York: Oxford Press, 2011. 101-135. PrintLa Botz, Dan. Democracy in Mexico. Cambridge, MA: South End Press, 1995. 118-119.Print