During a presentation at the event titled, "Equality and Competition for High Growth in Mexico," Ortiz cited a recent study by investment bank Goldman Sachs, which claims Mexico could be the world´s sixth largest economy by 2050 - if it has economic stability, favorable conditions for private investment, technological development and hardy institutions.

"We are only doing well in stability," Ortiz said at the forum held in Mexico City. "In everything else we are very behind."

Ortiz, who directs Mexico´s monetary policy, said that repeated financial crises over the last 48 years have resulted in GDP growth of only 1.8 percent annually.

"If we hadn´t committed errors in monetary policy ... and had instead carried out reforms like in Chile, Mexico would have a per capita annual GDP of 18,000 dollars, instead of 8,000 dollars," he said.

He said the economic stability of 1996 to 2006 had paid dividends however, citing 2.8 percent annual per capita GDP growth during the period.

´EXTREMELY EXPENSIVE´

Speaking at the same event, Michael Waltan, an expert on international development at Harvard University, said that electricity is high cost and low quality in Mexico, while telecommunications are "extremely expensive." He said the two main beneficiaries of the lack of economic competition are big companies and highly protected unions.

Carlos Elizondo, a researcher at the Center for Economic Research and Training (CIDE), a Mexico City think tank, called on President-elect Felipe Calderón to take specific steps such as making state-run energy companies more efficient, reducing the power of unions and reviewing and modifying a recently approved broadcast law.

The bill, approved by Congress in April, has been widely criticized - critics say it disproportionately helps television networks Televisa and TV Azteca.

Meanwhile, Eduardo Pérez Motta, head of the Federal Competition Commission (CFC), said that judicial authorities have granted excessive protection to big companies, which have paid large sums of money to lawyers to block regulations that could stimulate competition and economic growth. He said this was the case in telecommunications - dominated by Telmex - energy and banking.