The Strategic Importance of Microindustry in Mexico

Official statistical data for 1982-1987 are used to illustrate the different types of microindustry prevailing in the Mexican productive organization, pointing out the role of artisan workshops in many regions where family consumption needs determine ways of production. The recent Federal Law for the Promotion of Microindustry is examined, & the need to adapt its applicability to regional particularities -- eg, artisan work & certain types of informal sector enterprises -- is emphasized. It is argued that to promote microindustry, or small firms, policy making has to be selective, but must not reproduce the conventional criteria of private banks or typical cost-benefit analysis based on comparative advantages. A promotional scheme is advocated that would assure the compatibility of social & economic efficiency. 1 Appendix. Modified AA