Letter to our readers.

Now that some of the pieces have fallen into place--fiscal reform, the U.S. economic recovery, investment grade--so too have the first indications of what 2002 might hold.

And there are also new developments on the political front, beginning with President Vicente Fox himself. After going out of his way to avoid political conflict during his first year in office, there are growing indications that his administration is now on the political offensive, and roughing it up with the opposition.

Which is just as well, because all three main political parties are far too busy duking it out among themselves for upcoming leadership elections, to put up a decent fight. In any case, the prevailing factions will eventually determine Fox's chances to negotiate future reforms in Congress, as well as their own party's fate in mid-term Congressional elections further down the road.

In the meantime, this month's issue of BUSINESS MEXICO focuses on Mexico's economic future. In our two-part cover story you will find an insightful overview of the current economic environment by top analysts, and useful predictions of things to come.

Next, and in light of U.S. President George W Bush's upcoming visit to Monterrey on March 22, is "Back on track?, a fascinating look at the present state of U.S.-Mexico relations, featuring exclusive interviews with U.S. Ambassador Jeffrey Davidow and U.S. Ambassador to the United Nations John Negroponte. The significance of Bush visit is evident--it is the first clear indication that Washington is ready to resume its bilateral agenda with Mexico, since it was abruptly put on hold after last year's terrorist attacks.

Also this month, is a spotlight on the fate of Mexico's textile industry, in light of China recent inclusion in the World Trade Organization, and a Special Report on Mexico's booming office real estate market.

Matthew Gower

Editor