The current tortilla crisis in Mexico, profiled in today’s Chicago Tribune, may create a major set-back to Calderon’s efforts to promote trade without government intervention.
Tortillas are the staple of Mexican diet. Corn prices have soared worldwide as the demand for Ethanol (a corn based product) has increased. Corn, or maize, first originated in Mexico, but due to this surge in prices has made tortillas too expensive for the majority of Mexicans who make less than $5 a day. Today the cost of one kilogram of tortillas is roughly $1.36. This includes only the tortilla itself and nothing more which would provide adequate nutritional value. For this reason, a majority of Mexicans are scrambling for new ways to find sustenance.
While the average Mexican can no longer afford to purchase their normal 4 tortillas a day, as the Tribune states, “multinational companies have flourished from soaring corn prices.” This has stifled the efforts to create a flourishing middle class of entrepreneurs in Mexico and created resentment in some circles. It will be interesting to see how the Calderon administration can effectively solve this problem.
If the majority of the poor feel alienated, the chances of reforms succeeding in the long-term will certainly be jeopardized. Calderon will have to figure out how to address market inefficiencies and secure human rights, such as access to food, while simultaneously promoting economic and democratic reforms.
Published Date: February 01, 2007