A recent New York Times article highlights the increasing value of the Mexican peso and its impact on the private sector. Although it seems that Mexican consumers would benefit with a stronger currency, exporting entrepreneurs competing within the global economy are threatened.
Small-scale entrepreneurs, such as Mr. Hernandez owner of a metal-stamping company, are left to deal with lower demand for their goods due to a higher price for Mexican currency to pay them with. The rise of the peso leads to negative consequences for export entrepreneurs such as a decrease in marginal profits, which tends to have a negative impact on the job market.
Can small-scale entrepreneurs become engaged with their government to intervene? Although economic fluctuations cannot be controlled, it is through collective organization that small-scale entrepreneurs can strengthen and increase their participation in policymaking so that central banks give their concerns proper consideration and perhaps even respond.
Strategies for Policy Reform, Volume 2 Engaging entrepreneurs in Democratic Governance, emphasizes the importance of collective action and increased participation in coalitions. Collective organization strengthens the role of entrepreneurs in policymaking process, while also strengthening democratic governance. Policy reform created by proactive engagement of today’s entrepreneurs will lead the way for future entrepreneurs.
Published Date: February 24, 2011