Students and faculty learning about Microfinance at Rockefeller College of Public Affairs and Policy, SUNY Albany
I've just analyzed the map with corresponding locations of microfinance loans. After completing my research paper on the effects of NAFTA and Mexico, I feel the need to stress more frequent donations through microfinance to our neighbor in the South for a few reasons:1) NAFTA opened up the borders to increased drug trade, black market distribution of goods, and new means of getting these goods across the border. I think by loaning more money to Mexico, specifically the Maquiladora, the socio economic effects could be immense. It would be a disaster for the recent rise in crime against Americans in Mexico to continue increasing. We need to take a diplomatic step to halt this. We should start treating Mexico more like a neighbor we care about, and less like a third world country that doesn't mean anything to us. It seems too often that Mexico gets caught in between being a developed unskilled superpower (joining the likes of Canada and the US in NAFTA) but without the overall sustainable growth through developed sectors that Canada and the US have attained.2) By strengthening the Mexican economy through small business loans, we create jobs in Mexico for Mexicans. Those two or three US jobs that are outsourced to Mexican workers hungry for work can be replaced with US workers. The result of this strengthens the US economy and eases border tensions.3) Mexicos biggest problem that corresponded with the failures of NAFTA in the early 2000s is outsourcing. Their unskilled labor market that makes 1 or 2 US dollars a day has been surpassed by Chinese labor markets willing to do the same labor for 5 to 10 US cents per day. By microfinancing Mexican small businesses, it will create Mexican jobs that cannot be outsourced by a foreign CEO such as man US or European companies have.