Assessment and Recommendations
I. Recent Trends and Short-Term Prospects
-The current economic cycle in perspective
-The economy is slowing down
-The labor market has improved
-The disinflation process reversed in 1998
-The external balance has deteriorated
-The short-term outlook
II. Economic Policies
-Overview
-Monetary policy: Coping with external shocks
-Fiscal policy: Adjusting to lower oil prices
-Economic policy for 1999-2000 and longer-term considerations
III. The Tax System: A Need for Strengthening the Revenue Raising Capacity
-The economic and social context influencing the design of the tax system
-Broad features of the Mexican tax system
-Main issues for strengthening the tax system
-Conclusion and options for further reform
IV. Implementing Structural Reform: A Review of Progress
-Developments in the banking sector
-Progress in reforming the social security system
-Enhancing human capital and other labor market issues
-Increasing product market competition
Annex I. Summary of tax reform measures, 1987-98
Annex II. Main issues in the tax mix discussion in OECD countries in the 1990s
Annex III. The statutory tax regime, 1998