Mexic o s development in comparative perspective
This presentation is the property of its rightful owner.
Sponsored Links
1 / 29

Mexic o’s Development in Comparative Perspective PowerPoint PPT Presentation


  • 48 Views
  • Uploaded on
  • Presentation posted in: General

Mexic o’s Development in Comparative Perspective. Historical experience of colonialism and neo-colonialism 1st wave of imperial expansion (15 th -18th C) Colonized by Spain Cortes 1519 Spanish Controlled land Extracted silver.

Download Presentation

Mexic o’s Development in Comparative Perspective

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


Mexic o s development in comparative perspective

Mexico’s Development in Comparative Perspective

  • Historical experience of colonialism and neo-colonialism

    • 1st wave of imperial expansion (15th-18th C)

      • Colonized by Spain

        • Cortes 1519

        • Spanish

          • Controlled land

          • Extracted silver

"ENTRANCE OF CORTEZ INTO MEXICO," depicting the first meeting of Cortes and Montezuma, November 8, 1519. Color lithograph,1892.


Mexic o s development in comparative perspective1

Mexico’s Development in Comparative Perspective

  • Independence from Spain 1821

Mexican Independence, mural by Diego Rivera.


Mexic o s development in comparative perspective2

Mexico’s Development in Comparative Perspective

  • “The Porfiriato”

    • Porfiro Diaz (1876-1910)

    • Foreign investment

    • Infrastructure development

      • railroad

    • Benefitted mainly wealthy, upper class


Mexic o s development in comparative perspective3

Mexico’s Development in Comparative Perspective

  • “The Porfiriato”

  • Neo-colonialism

    • De-nationalization

      • By 1911, US companies owned

        • 40% of land

        • 50% of oil industry

        • Controlling interests in main export sectors

      • Foreign repatriation of profits


Mexic o s development in comparative perspective4

Mexico’s Development in Comparative Perspective

  • “The Porfiriato”

  • “Dependence”

    • “One-way” trade partner concentration

    • Commodity concentration

    • Growing inequality


The struggle to overcome dependenc e

The Struggle to Overcome Dependence

  • Revolution of 1910

    • Disgruntled members of elite

      • Those excluded by Porfirio Diaz

    • Landless peasants

      • Rebel leader Emiliano Zapata

    • Workers

      • Pancho Villa


The struggle to overcome dependency

The Struggle to Overcome Dependency

Constitution of 1917

Limited power of foreign investors

Called for agrarian reform

Established rights of workers


The struggle to overcome dependency1

The Struggle to Overcome Dependency

Two different sources of ideas have informed development strategy since “The Porfiriato”

Statist

Neo-liberal


The struggle to overcome dependenc e1

The Struggle to Overcome Dependence

  • PRI: Institutional Revolutionary Party 1929-

    • Cardenas (1934-1940)

    • Pursued statist strategy

      • Land redistribution—ejidos

      • Nationalized oil industry—1938

      • Established state-run oil company—PEMEX

      •  video clip


Pemex national oil company of mexico symbol of statist strategy

Pemex—National oil company of MexicoSymbol of Statist Strategy


The struggle to overcome dependency2

The Struggle to Overcome Dependency

Statist strategy

ISI: Import substituting industrialization

What is it?


The struggle to overcome dependency statist strategy

The Struggle to Overcome Dependency:Statist strategy

ISI: Import substituting industrialization

Substitute local production for imports

Develop the capacity to produce goods locally that were imported from abroad in the past


The struggle to overcome dependency statist strategy1

The Struggle to Overcome Dependency:Statist strategy

  • Domestic market supplied by

    • State-owned enterprises

      • Capital intensive industries

        • steel, petrochemical

      • 1940-1970, ~40% of fixed capital investment from government

    • Foreign direct investment

      •  limited to 49% stake

      • But still big increases in US investment

    • Local private enterprises


The struggle to overcome dependency statist strategy2

The Struggle to Overcome Dependency:Statist strategy

State supported private investors

Subsidized credit

Kept wages down

Protected local market for new industries

Tariff barriers

Licensing requirements


The struggle to overcome dependency statist strategy3

The Struggle to Overcome Dependency:Statist strategy

State supported private investors

Protected local market for new industries

Tariff barriers

Licensing requirements

 Why might licensing be considered bad policy?

 Neo-liberal critique of ISI


The struggle to overcome dependency statist strategy4

The Struggle to Overcome Dependency:Statist strategy

State supported private investors

Protected local market for new industries

Tariff barriers

Licensing requirements

Why might licensing be considered bad policy?

 Neo-liberal critique of ISI : “rent-seeking”


Mexico e2 80 99s development in comparative perspective

Statist Strategy Looks Successful through 1970s

Economic Growth in Mexico

(percent increase or decrease)


Mexico s patrimony the oil industry

Mexico’s patrimony—the oil industry

Growing dependence on oil exports (80% by 1982)

Growing foreign debt (86 billion US dollars by 1982)

Price volatility: price per barrel of oil

1978: $13

1981: $33

1982: $26

mid-1980s: $12

2007: >$60

2008: <$100

Debt crisis and pressure from IMF prompted change in development strategy


The struggle to overcome dependency3

The Struggle to Overcome Dependency

Two types of development strategy since “The Porfiriato”

Statist

ISI: Import substituting industrialization

Liberal

EOI: export-oriented industrialization


The struggle to overcome dependency neo liberal strategy

The Struggle to Overcome Dependency: Neo-liberal Strategy

  • Neo-Liberal strategy

    • Privatize state-owned enterprises

    • Except PEMEX

      • National patrimony

Carlos Slim Helu, the telecom tycoon who pounced on privatization of Mexico's national telephone company in the 1990s, became world’s richest man in 2010.


The struggle to overcome dependency neo liberal strategy1

The Struggle to Overcome Dependency: Neo-liberal Strategy

EOI: export-oriented industrialization

What is it?

Why might neo-liberals prefer this strategy?


The struggle to overcome dependency neo liberal strategy2

The Struggle to Overcome Dependency: Neo-liberal Strategy

EOI: export-oriented industrialization

Promote exports to core markets through

Reduced tariff barriers to allow imports of machinery and inputs to make products for export

Tax breaks for factories that export their products

Subsidized credit for factories that export


The struggle to overcome dependency neo liberal strategy3

The Struggle to Overcome Dependency: Neo-liberal Strategy

  • EOI: export-oriented industrialization

    • Joined NAFTA 1992

    • Shift to comparative advantage

      • Fruits and vegetables

      • More labor-intensive products

        • In export-processing plants (maquiladoras)

          • Consumer electronics

          • Garments, etc.


The struggle to overcome dependency4

The Struggle to Overcome Dependency

  • NAFTA—free trade

    • Hurt Mexican agriculture in 1990s

      • US

        corn 7 tons/hectare

      • Mexico

        corn <2 tons/hectare

      • Chiapas

        corn .5 tons/hectare

    • Subsidies to US farmers

      • > $15 billion, 2010

      • Corn—biggest recipient


Report finds few benefits for mexico in nafta november 19 2003

Report Finds Few Benefits for Mexico in Nafta,November 19, 2003

“As the North American Free Trade Agreement nears its 10th anniversary, a study from the Carnegie Endowment for International Peace concludes that the pact failed to generate substantial job growth in Mexico, hurt hundreds of thousands of subsistence farmers there and had ''minuscule'' net effects on jobs in the United States.


Western farmers fear third world challenge to subsidies september 9 2003

“Western Farmers Fear Third-World Challenge to SubsidiesSeptember 9, 2003

“The world’s wealthiest nations give more than $300 billion of subsidies to their farmers every year, more than the gross national product of sub-Saharan Africa.”


British band coldplay seeks fair trade in mexico associated press september 6 2003

“British band Coldplay seeks fair trade in Mexico” Associated Press, September 6, 2003

“Coldplay came to meet with a corn growing cooperative and discuss its belief that opening agricultural markets to free trade drives small farmers out of business.

“Mexican corn producers struggle to compete with imports from expansive, government-subsidized U.S. farms


The struggle to overcome dependency5

The Struggle to Overcome Dependency

Neither statist nor liberal strategies fully overcome dependency


Dependency theory competition within the periphery

Dependency Theory: Competition within the Periphery

“China’s Eating Mexico’s Lunch”


  • Login