This essay will discuss Mexico's transition to neoliberalism. This economic change includes the economic climate that led to the shift to neoliberalism, the context of neoliberal policy, and the economic and social impacts it has had. By exploring the origins of neoliberalism in Mexico and the reasons for its implementation, one can gain deeper insight into political and socioeconomic patterns. Furthermore, the discussion of neoliberalism provides insight into the inequality and large income gaps that exist among the population, as well as the immense effects it has had on industries such as agriculture and the political implications shown by such effects. Neoliberalism is an economic approach that promotes a laissez-faire model of trade (Edmonds-Poli & Shirk, 253). This economic model, widely supported by many Western economists, is based on three fundamental principles: stabilization, structural adjustment and trade liberalization. (Edmonds-Poli & Shirk, 254) Neoliberalism is a method of restructuring the economy and the first step is to stabilize the tax supply. This occurs through a decrease in government spending, which leads to an overall decrease in employment, public services and access to credit, while simultaneously increasing interest rates and the cost of imports (Edmonds-Poli & Shirk, 254). The next element of neoliberalism is structural adjustment which focuses on the shift from the public to the private sector. This change is intended to minimize government involvement, which in turn stimulates competition in an open market economy to create a more efficient private sector (Edmonds-Poli & Shirk, 254). Finally, trade liberalization aims to increase foreign investment and exports by reducing trade restrictions, such as tariffs... easily controlled by foreign investors to operate in an open, globalized market. Works Cited David Bacon, “Displaced People: NAFTA's Most Important Product,” NACLA Report on theAmericas vol. 41, no. 5 (September/October 2008): 23-27.Edmonds-Poli, Emily, and David A. Shirk. Contemporary Mexican politics. Lanham, Maryland: Rowman&Littlefield Publishers, Inc., 2009. 100-108,252-258,276-278,282-285. Print Elisabeth Malkin, “NAFTA's Promise Unfulfilled,” New York Times, March 24, 2009. Elisabeth Malkin, “Did NAFTA Actually Help Mexico?” New York Times, December 10, 2009.Hamilton, Nora. Mexico: political, social and economic evolution. New York: Oxford Press, 2011. 101-135. PrintLa Botz, Dan. Democracy in Mexico. Cambridge, MA: South End Press, 1995. 118-119.Print