It does have problems, yes, the government for one, a culture of corruption, a "caste system" mentality, a lack of focus on community (which leads to awful habits like littering).
The media reports constantly show Mexico's problems, which to be fair it does have, but Mexico has come a long way in the last 25 or 30 years. The average standard of living has risen considerably. I would say the average citizen is more aware of the wider world outside their little community. That's just my experience.