On December 20, 1994, in an effort to make Mexican products more competitive, the Mexican president, Ernesto Zedillo Ponce de Len, devalued the Mexican peso. Unfortunately, attempts to keep the peso at a devaluation of only 15% failed. Weight dropped nearly forty percent (Roberts, 1). It rose from 3.5 to almost 7.5 pesos per dollar before stabilizing. The devaluation not only shocked the Mexican economy, but also the rest of the world. Why should the world now risk its money to save Mexico? Why not just let the Mexican economy and government collapse? To calm these shockwaves, US President Bill Clinton, acting on his executive order, organized an aid package of approximately $49.5 billion (US$20 billion, US$17.5 billion dollars from the International Monetary Fund, $10 billion from the BIS, $1 billion Consortium of Latin American Countries, $1 billion Canada) to Mexico (Department of State, 78). This move could make globalization a friend or foe in Mexico's case. Friend, because it opens up opportunities for foreign countries and companies to further expand their economies and influence. Enemy, because the economic problems of a country are the economic headache of the world. Unfortunately, the latter situation appears to prevail. The Mexican government is broke, citizens are disgruntled, rebels are angered, and opposition leaders are gaining influence. All of these are ingredients to make a bad situation worse: without money or influence, the Mexican government is bound to be overwhelmed. Mexico in recent years has gone from a totally corrupt and controlling government to a more democratic, privatized and deregulated one. government. This opened Mexico to greater economic prosperity. Everything from the government… to the middle of the paper… associated with the rewards, then one day we will be able to create a perfect globalized economy and avoid further economic catastrophes. This could mean that financial catastrophes could occur on a global scale, as in the case of the Mexican peso crisis, but in this sense it also means that financial rewards will flourish with greater magnitude. Works cited “United States aid package to Mexico.” Editorial. US Department of State. February 6, 1995: 78 - 79.Charles Lane. "Who Lost Mexico." The New Republic. February 20, 1995: 16 - 18.Tim Zimmerman. “The art of the deal.” US News & World Report.February 13, 1995: 57 - 61.Gary McWilliams. “A BORDER TOWN FEELS THE MEASURE OF THE WEIGHT.” Business Week. March 6, 1995: America Online.Paul Craig Roberts. “MEXICO: DO NOT BLAME SALINAS FOR ZEDILLO'S MISTAKES”. Working week. March 4, 1996: America Online.