This book examines the relationship between equity and growth in Mexico. It looks at how specific inequalities in power, wealth and status have created and sustained economic institutions and polices that both tend to perpetuate these inequalities and are sources of inefficiencies and lack of dynamism in the economy.

The central thesis is that Mexico's poor growth performance over the last twenty five years is intimately linked to inequity

PART I:CONCEPTS AND INTERNATIONAL EXPERIENCE Equity and Development: Political Economy Considerations; F. Bourguignon and S. Dessus Saving Growth from Unequal Influence; R. Rajan The Political Economy of Equality and Growth in Mexico: Lessons from the History of the United States; J. Robinson PART II: THE INTERACTIONS BETWEEN EQUITY, INSTITUTIONS AND GROWTH IN MEXICO The Inequality Trap and its Links to Low Growth in Mexico; I. Guerrero, L. Felipe L¿pez Calva and M. Walton Perverse equilibria: unsuitable but durable institutions; C. Elizondo PART III: EQUITY AND CORE INSTIUTIONS IN MEXICO: SOCIAL SECURITY, THE LABOR MARKET AND BANKING Social Security Reform in Mexico: For Whom?; S. Levy Mexican Labor Markets: Power, Protection and Productivity; W. Maloney Why Banks Don't Lend: The Mexican Financial System; S. Haber PART IV: HOW UNEQUAL STRUCTURES HURT COMPETITION IN MAJOR SECTORS Competition and Equity in Telecommunications; R. del Villar Priorities for Telecommunications Reform in Mexico; R. Noll The Governance of Mexico's Petroleum Industry; A.Lajous