Mexico has undergone major changes over the past two decades, as its political system shifted from one dominated by a single official party to a highly competitive democracy, and its economy opened up dramatically to global competition. These changes have produced significant dislocations in Mexican society, including high out-migration and a spiral of drug-trafficking related violence. However, signs are that Mexico has now set the foundations for future success. Average income has grown significantly, violence is plateauing, and out-migration has dropped dramatically. There are potential pitfalls ahead, but the country’s future looks far brighter today than it did a decade or two ago. If Mexico continues to grow and deepen its democratic process, these changes will have a profound effect on the United States, its neighbor to the north, as well.