During the National Banking Convention, the co-author of ‘Why Nations Fail’ discussed the critical role of institutions in economic development. Using the border cities of Nogales, Arizona, and Nogales, Sonora, as examples, he emphasized the need for stronger institutional defenses against authoritarian tendencies. He expressed concerns about the global rise of populism, which threatens to weaken inclusive institutions. In Mexico, recent years have seen a rollback of some regulatory institutions, raising questions about long-term impacts. While acknowledging political changes under leaders like Andrés Manuel López Obrador and Claudia Sheinbaum, he stressed the importance of a dynamic private sector in driving job creation, innovation, and shared prosperity. The government’s role should be to ensure fair competition and promote inclusivity. For Mexico to thrive, collaboration between the public and private sectors is essential.
— new from El Financiero
