Background and Historical Context
Bretton Woods, a remote location in New Hampshire, USA, remains significant 82 years after the 1944 International Conference. To reach it today, one must fly to Boston, Massachusetts, and drive along Route 93, passing through Manchester (the state’s largest city), Concord (the capital), and continuing for two more hours until arriving at the Washington Hotel. From there, one can enjoy a breathtaking view of Mount Washington.
During July 1944, delegates from 44 nations, including John Maynard Keynes, gathered in Bretton Woods to establish a new international economic order. The conference resulted in the creation of Bretton Woods institutions—the World Bank and International Monetary Fund (IMF)—and the adoption of the US dollar as the global reserve currency.
In 1971, President Richard Nixon announced a temporary abandonment of the gold standard and fixed exchange rates, initiating a devaluation process that shifted the parity from 35 to 42 dollars per ounce and introduced a flexible exchange rate system.
Current Economic Shifts and Global Impact
Fifty-five years after Nixon’s announcement, we are witnessing the emergence of a new international economic order in 2026, with Mexico being an integral part of these transformations. Economic factors driving changes in Venezuela, Mexico, Greenland, Cuba, and Iran are shaping political landscapes, much like ocean currents influence coastal regions.
In the case of Venezuela, the United States seems to have resolved essential matters. Iran remains a separate issue due to its geostrategic importance, similar to the Ukraine conflict. Both are expected to dominate discussions for an extended period, as the future of the ayatollah regime is still uncertain.
Greenland might find a less embarrassing solution for Denmark through joint investment and resource exploitation, along with increased US military presence at the Pituffik base.
Mexico’s Delicate Situation
Mexico faces a complex strategic situation, attempting to modernize the North American Free Trade Agreement (NAFTA) while clinging to ideological stances that have long since become obsolete. The agreement, in effect since 1994 and crucial for all three economies—especially Mexico’s—requires renewal amidst a prolonged economic downturn, dwindling public and private investments, and an external debt nearing 55% of the GDP with a public deficit of 4%.
Mexico must prioritize actions that benefit the nation, rather than engaging in counterproductive measures like sending free oil to Cuba during domestic shortages. Such actions strain public resources, reflected in the growing external debt and public deficit.
The United States, through President Trump’s statements and Secretary of State Marco Rubio’s announcements, aims to end the Cuban regime during his second term. Ignoring these signals could lead Mexico to catastrophic consequences, such as losing its investment-grade status, currency devaluation, and increased debt financing costs.
Mexico’s Role in the New International Order
As the world evolves, Mexico must clearly define its role in this new international order. Will it safeguard Mexican interests—12 million of whom reside in the US—and maintain a mutually beneficial bilateral relationship exceeding $800 billion in trade? Or will it continue to worship ideological relics from 1968?
*The author holds the Microfinance Postgraduate position at UNAM.
