Is Mexico a third-world country? Many Mexicans and policy-makers repeatedly ask this question. Despite the World Bank classifying Mexico as an upper-middle income nation, the increased rate of social disparities makes many doubt the status.
In 2023, Mexico will have over 40% of its population living in poverty, not forgetting the enormous gap between the rich and the poor.
Despite the disparities, many people do not believe Mexico is a ‘third-world country. But relatively an emerging economy. Investopedia defines an emerging economy as one transitioning to a developed economy. It has some attributes of a developed economy but does not meet the standards fully.
What is a Third World Country?
Have you ever thought about where the word Third World emerged from initially? Guess what? It has nothing to do with a country’s economic status. The word “Third World” was used during the Cold War.
Countries aligned with NATO and the US were categorized as ‘First World .’Those that aligned with Russia were referred to as ‘Second World .’While the rest of the population, about three-quarters of the world, was considered ‘Third World.’
So the idea of a ‘Third World Country’ remains outdated and really can’t accurately describe a nation’s economic index.
In the current world, when you mention Third World countries, the majority link it to a nation’s instability, poverty index, starvation, and unemployment rates.
Is Mexico a Third World Country?
Mexico could be doing better in terms of unemployment and poverty rates. But again, you cannot compare it with other underdeveloped nations such as Haiti, Benin, Burundi, and Cambodia.
These are impoverished nations whose citizens cannot afford three meals daily.
Instead, Mexico is categorized with other countries with similar development levels, such as Brazil, Turkey, and India. These countries enjoy a dynamic economy, large industries, and massive social programs.
But again, they cannot be viewed as developed countries because of high inequality levels at the socio-economic scale, lack of security, and inequality in infrastructural development in different cities.
So, why do Many Consider Mexico a Third World Country?
America has played a significant role in many assuming Mexico is a Third World Country. How exactly?
America’s pop culture and Hollywood movie industry has presented Mexico was as a poor economy. According to the United States, Mexico has many dirty road pueblos, poor infrastructure, slums, and Spanish-speaking cowboys that specialize in crime, drug selling, abuse, and prostitution.
Mariana Lange noted that at some point, Hollywood admitted to adding filters during post-production when filming a movie in Mexico.
Why? To convince the audience of a city and country with depleted infrastructure, old and crime-labeled are things every day in western movies.
Yes, indeed, Mexico could be better. Like any other country, including America, you can spot broken sidewalks, imperfect electrical wirings, or a great apartment near an old deserted one. But just assuming that Mexico lacks infrastructure and technology is further from the truth.
It’s not true that Mexico does not have money and cannot be an investment hub.
Mexico’s Gross Domestic Product (GDP)
The World Bank indicated that Mexico had a GDP of $1272.84 billion in 2021, representing about 0.57% of the world economy.
This was an increase from $1090.52 billion in 2020. The figures show that Mexico is far from being a Third World country.
GDP measures the national income and output of a country’s economy. GDP equals the total expenditures of final goods and services; a country produces within a stipulated time.
These figures show a stable economic country.
Graph Showing Mexico GDP 2014-2021
Mexico’s GDP Variables in 2020 and 2021
| Type of GDP | 2021 | 2020 | ||
| Overall GDP | 1272.84B (USD) | 1090.52B (USD) | ||
| GDP per Capita | 9525.41B (USD) | 9147.05B (USD) | ||
| GDP per Capita PPP | 19086.10B (USD) | 18327.99B (USD) | ||
| GDP from Utilities | 247685.00M (MXN) | 282058.00M (MXN) | ||
| Transport GDP | 1241817.00M (MXN) | 1279976.00M (MXN) | ||
| Services GDP | 11680804.87M (MXN) | 11702159.98M (MXN) | ||
| Public Administration GDP | 694085.03 (MXN) | 717235.51 (MXN) | ||
| Mining GDP | 843255.00 (MXN) | 864429.00 (MXN) | ||
| Manufacturing GDP | 3103448.00(MXN) | 3037568.00 (MXN) | ||
| Construction GDP | 1070553.00(MXN) | 1075691.00 (MXN) | ||
| Agriculture Industry GDP | 538125.51 (MXN) | 631719.87 (MXN) |
In 2022, the purchasing power for Mexico’s GDP is estimated at $2.487 trillion. Purchasing power includes the informal economy, so this indicates that Mexico is performing better even in the informal sector.
Reasons Why Mexico is not a Third World Country
- Mexico’s Infrastructure
Most of Mexico’s cities are modern and developed, with water and electricity amenities, making it easier for the inhabitants. In 2019, the Mexican government pledged over $44 million US dollars to improve the country’s infrastructure.
This was mostly supposed to enhance the country’s manufacturing industry. Other targeted areas were information technology, energy investments, and transportation.
These added millions to the economy remain noticeable as Mexico’s economy continues to grow. Mexico has become competitive at a global scale, with the country encouraging local and foreign investors to join the economy.
The infrastructure has made manufacturing in Mexico likable, with investors looking at the country as a favorable location, cost-effective, and with affordable skilled labor.
- International and Local Airports
Mexico has both local and international airports, with traffic meeting the global scale requirements. Mexico has a great heritage and locations of historical significance, and with good airports, it is easier to visit those places.
The Capital of Mexico, Mexico City, is a populous city thriving under excellent infrastructure. Mexico City serves as a transit point for travelers headed to different destinations in North America.
Over 30 international and domestic airlines serve the airport reaching maximum operating capacity. The Aeropuerto Internacional serves government, commercial, and military aircraft. Big airlines such as Delta, Volaris, Aeromexico, Air France, Air Canada, and British Airways access it.
In Cancun, Quintana Roo has the most international passenger traffic. The two parallel runaways, in use simultaneously, make it the busiest.
Guadalajara airport, also known as Miguel Hidalgo y Costilla Guadalaraja, is the third busiest. It serves domestic and international passenger terminals and a cargo terminal. The airport connects to many US and Europe cities.
- Modern Healthcare Facilities
Recently, Mexico has improved many areas of its healthcare system despite falling below the ‘Organization for Economic Cooperation and Development OECD countries. The country’s mortality rate has reduced by about 12% but is still high among the OECD nations.
With a fragmented healthcare system, the Mexican government has supported many families to get the best healthcare.
The Mexican Institute of Social Security (IMSS) covers the employed population, which takes care of private-sector workers and their families.
IMSS covers over 57 million Mexican population, making it the most significant health insurance provider. The employer, employee fees, and the federal government fund it.
On the other hand, ‘The Mexican State’s Employees Social Security and Social Services Institute’ (ISSSTE) looks after public-sector employees and families.
The federal government and employees contribute towards it, catering to the 12 million population. Also, States in Mexico have developed health and retirement schemes for their staff.
The insurance companies and healthcare providers also have hospitals and clinics catering to the private sector. Lastly, the federal government has invested in social programs targeting citizens, not in any of the above healthcare schemes.
Some big hospitals in Mexico compete with top hospitals in Europe regarding infrastructure, doctors, and equipment.
4. Entertainment Spots in Mexico
If you want to move to Mexico and are worried about a boring lifestyle with no entertainment, then you are wrong. Mexico has some of the best and most affordable movie theaters.
You pay less to watch a movie in Mexico than in the US, with retired individuals enjoying more significant discounts. The country has museums, concerts, exhibitions, and events alongside eateries.
In 2022, Mexican’s entertainment and media industry was at $22 billion, increasing by 10.6%.
Reasons Why Mexico is Considered a Third World Country?
- Basic Rights Violation
Mexico is yet to realize human rights, hence the emerging economic status. Despite being a significant regional and global player with substantial economic success, and global politics, the country faces substantial social and environmental challenges still facing developing countries.
Currently, ‘Human Development Index’ (HDI) ranks Mexico at position 86 from the 196 assessed. The federal government has tried to invest in social programs to reduce households living in extreme poverty.
World Bank data shows that 2% of Mexico’s population lives on less than $1.9 daily.
Mexico is yet to eliminate the structural causes of poverty. Using the multidimensional index analysis, about 40% of the population still lives in poverty.
This shows extreme inequality in wealth, with massive differences among different population groups.
- Violence against Women
Despite signing the human rights treaty, Mexico has failed to implement them consistently.
In particular, violence again women is on the rise. In response, the country has categorized women’s murder “femicide” as a crime in various Mexican cities.
- Internal Security Threats
The current Mexican President has prioritized improving the rule of law by fighting crime and corruption. He understands that crime is fought by enhancing youth employment, reducing inequality, and addressing past wrongs.
Mexico’s democracy has many shortcomings, including criminal gangs, no rule of law, and legal uncertainty. The President has introduced a new strategy to end corruption, injustices, and human rights abuses.
Hopefully with the reforms and initial policy responses, a new era will emerge.
- Corruption
Corruption ranks highly among the political hierarchy, administration, and judiciary groups. The challenge includes a few of the corrupt facing the justice system and prosecuted. In 2022, impunity rates were estimated at 98%.
The country has experienced a decrease in ‘Corruption Perceptions Index’ (CPI), as reported by Transparency International, ranking number 130 out of 180 countries.
- Organized crime
Over the years, Mexico’s federal government has been crumpling with organized crime that has affected internal security. The US drug market industry is facilitated virtually by Mexico. In some country parts, drug cartels control armed and organized crime groups. This has jeopardized security plans, as police officers are killed or bribed.
The Mafias influence politics and campaign for leaders they prefer, including influencing the police and private sector. Mexico’s security forces clash with organized criminal groups, leading to loss of life and property.
Two thousand eighteen reports indicated 28,000 people lost their lives in Mexico because of deliberate killings and organized crime, with over 35,000 missing.
They include journalists reporting on crime and drug cartels. The links politicians share with organized crime groups put the risks of whistle-blowers and reporters at risk. ‘Reporters Without Borders (RWB) ranked Mexico at 144 out of 180 countries in World Press Freedom. It shows how far the country is from achieving human rights.
- Increased Migration
Security and poverty are made worse by increased migration in Mexico. The country is transit in nature and a recipient to many migrants migrating from Central America that later try to enter the US.
This tense situation along the US and Mexico border has created a political and humanitarian issue. Mexico has to clash with cartels forming at the border to take advantage of the migrants, and some are used as mules to transport drugs to the US.
According to the definition, Mexico is a third-world country. But it’s not quite so simple.
But using GDP, economic index, and World Bank report, the country is far from being a third world. Mexico enjoys a thriving economy, with the GDP increasing yearly for the past five years.
The country has an excellent infrastructure and low infant mortality rates and stands out as a great investment hub.
However, the current government must work to reduce increasing cases of corruption, insecurity, crime rates, and drug cartels that drag the country back to third-world status.
Mexico still needs to catch up in safeguarding the rights of journalists and reporters. When these issues are solves, Mexico will join the developed country status.
Hi I’m Shannon!
Hi, I’m Shannon and I’m a Canadian who fell in love with Mexico on my first trip to Puerto Vallarta when I was a young adult.
That started a 30 year love affair with this country which led to marrying my Mexican husband and building a home in Mexico. And now I have even a stronger connection to this gorgeous and complex country.
