STRUCTURAL CHARACTERISTICS OF THE MEXICAN ECONOMY 63 as well as processing (Redclift 1987). Consequently the initial reaction of multmadonas was adverse (Meissner 1987) but subsequently agribusiness interests were accommodated and gave SAM their seal of approval (Redclift 1987). Subsidies to the food processing industry, where agribusiness is dominant was obviously the cost of accommodation and therefore the criticism of people like Reddift, that whereas the analysis of the problem in SAM documents was correct it was considerably diluted when the policies were framed. 17. Whereas any macro-economics primer would tell one that subsidies constitute a part of consumption expenditure as they do not enhance the productive capacity of the economy. 19. Other includes leather and leather production, manufacturing and repair of metal products. 20. The total does not add up to 100 because of the existence of a category called 'other' which accounts for about 2 per cent of total imports. 21. Ideally, the import intensity should be arrived at by using current values for both imports and GDP. Unfortunately, current values for GDP was not available and therefore, I decided to construct an index for unit value of imports and deflate the import figures with that, so as to approximate volume movements. I of course realise that terms of trade movements have not been taken care of, yet I do not think that the exercise is an illegitimate one and makes some economic sense. For getting at the import intensity of the manufacturing sector import of intermediate and capital goods have been deflated using the same index of unit value of imports, which is permissible given the fact that 90 per cent of the imports fall into these two categories. 22. It is not at all dear as to why deviation from international prices should be taken as an indicator of ineffidency it is neither a necessary or a sufficient condition for ineffidency. After all the vector of international prices reflects a certain structure of comparative advantage, a certain international division of labour, and it does not follow that every country's economic goals are achievable by being a part of that international division of labour. 23. For getting at export ratios again a deflated export value has been used. The deflator is the index of the unit value of exports. This is of course a far more problematic exerdse than the one carried out on imports. For in the case of exports the bundle of goods being dealt with is far more varied ranging from wheat to automobiles. Also, in this period oil emerged as a major component of exports, in fact towards the latter part swamping everything else. Therefore, the unit value would hardly be representative. The reasons foe yet sticking to it is much the same as with imports, lack of current GDP figures. REFERENCES Bergsman, J. (1980): 'Income Distribution and Poverty in Mexico', World Bank Staff Working Paper, No. 395. Carr, B. (1986): 'The Mexican Economic Debacle and the Labor Movement: A New Era or More of the Same?' In 'Modern Mexico: State, Economy and Social Conflict' ed. by N. Hamilton and T. Harding, Beverly Hills, Sage Publications. Cockrdft, J.D. (1983): 'Mexico', New York, Monthly Review Press. ECLA, (various issues): 'Economic Survey of Latin America and the Carribean', Santiago, Economic Commission on Latin America and the Caribbean. Fitzgerald, E.V.K. (1985): 'The Financial Constraint on Relative Autonomy: The State and Capital Accumulation in Mexico, 1940-82' in 'The State and Capital Accumulation in Latin America' ed. by C. Anglade and L. Fortin, London, Macmillan. Gereffi, G. and P. Evans (1982): 'Foreign Investment and Dependent Development: Comparing Brazil and Mexico', Latin American Research Review. Grindle, M. (1985): 'Rhetoric, Reality, Self-suffidency: Recent Initiatives in Mexican Rural Development', Journal of Developing Areas, 19, January. Hamilton, N. (1986): State-Class Alliances and Conflicts: Issues and Actors in the Mexican Economic Crisis' in Hamilton and Harding (1986). -.——and T. Harding (1986): 'Modern Mexico: State, Economy and Social Conflict, eds., Beverly Hills, Sage Publications.