The New Forms of Economic Dominance in Latin American Economies in the Globalised Era: A Glance at Mexico’s Financial System

In this paper, we discuss whether economic backwardness in Latin American countries is due to financial limitations (currency weakness and reduced liquidity) or a result of productive structural imbalances. To answer this question, we briefly review the main concepts in Latin American Dependency theories. We then examine the main features of globalisation and internationalisation in the late 20th century, and the Post-Keynesian explanation of economic subordination. Finally, we review the Mexican balance of payments and the main components of the Mexican financial system, including the central bank. We conclude that Mexico’s subordinate position is due to historic productive structure dependence and foreign capital intervention that, in the period of globalisation and internationalisation, added financial instability to economic backwardness, thus impeding the financial and productive systems from fully developing.