As a strategy to undercut competition in the international marketplace, a government can devalue its money so that prices of its exported goods are cheaper. With the devaluation of the peso, for example, it takes fewer U.S. dollars to buy Mexican products sold in pesos. The flip side is that imported goods become more expensive for Mexicans. Unfortunately, as described earlier, many countries have abandoned basic industries and agriculture which support the population, and must import basic goods. Poor people have been pushed to the brink of starvation as the cost of goods rises and wages are supressed.
Privatization is one of the most popular and controversial economic policies.
Privatizers want governments to abandon their roles as owners, regulators and providers. Mexican privatization is credited with creating a handful of billionaires in just a few years. Corporations have been allowed to privately decide how to regulate themselves on issues ranging from environmental and worker safety to price controls and wages. The privatization philosophy discourages government from providing even basic assistance like food, shelter and medical care. Privatization has resulted in the rich getting richer, with income disparities doubling worldwide in the last 30 years.