E/CN.4/1503
Annex II page 39
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123. Mexico's immense oil wealth has received wide recognition in recent months, particularly since the Bay of Campeche was declared the richest offshore oilfield in the world and onshore fields were found to have an even higher potential yield than hitherto suspected. In September 1980, proven reserves of petroleum and gas stood at 60 100 million barrels and potential reserves at 250 000 million barrels, placing Mexico second only to Saudi Arabia in its documented reserves. In addition, Mexico is rich in silver, fluorite, mercury, lead, manganese, zinc and other minerals and hydrocarbons. In 1978 important deposits of phosphates were discovered in Baja California and the government hopes that the proven uranium reserves of 8 500 to 12 000 tons will make Mexico the world's third largest producer.
124. These recent reassessments
reassessments and discoveries have helped pull the economy out of the crisis
out of the crisis situation in which it found itself in 1976. During the last five years, the highest priority has been given to the country's economy: in 1976 the public foreign debt then stood at $ 20 billion and the current balance of payments deficit was $ 3.4 billion. Largely due to a 22 per cent growth in the petroleum and petrochemicals sector, improvements in the steel, motor and other industries and an important upsurge in tourism, the economy has, in recent years, experienced much healthier growth. As a consequence, hundreds of thousands of new jobs have been created, for example in the petrochemical plants, of which 69 had been built by 1980 while plans were in hand to increase the number to 145 by 1982.
125. Despite these positive trends, however, Mexico still has a large foreign debt, and an inflation rate which exceeds the level of wage rises by quite a perceptible margin. If unem- ployment has officially been reported to be running at no more than about 6 per cent, underemployment is much higher and with at least 700 000 young people coming onto the job market every year, the pool of available labour continues to grow. With regard to social security, though about 38 million people covered by the system by the end of 1979, there is still no unemployment benefit, a fact which obviously points to the anxiety of the average unemployed Mexican to find work somehow.
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126. The World Bank's assessment of per capita GNP in Mexico for 1979 was $ 1 640, a sixth of that in the United States ($10 630). Whereas the majority of Mexicans are apparently quite content to remain at home, the combination of under-provision of jobs, high inflation and an appreciable income disparity with Mexico's northern neighbour
to leads large numbers point that they are ready to cut their ties with home, at least temporarily, to try their chances in the United States.
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