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Public Policy in Mexico

Caroline Morelock Grant Harris Ryan Campbell . Public Policy in Mexico . An Overview of Mexico’s Economy Through The Years . The Mexican Miracle . Between 1940 and 1960 Mexico’s economy grew as a whole by more than 6% a year

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Public Policy in Mexico

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  1. Caroline Morelock Grant Harris Ryan Campbell Public Policy in Mexico

  2. An Overview of Mexico’s Economy Through The Years

  3. The Mexican Miracle • Between 1940 and 1960 Mexico’s economy grew as a whole by more than 6% a year • During this time industrial production and manufacturing both rose, however agriculture production dropped. • All this growth occurred without much inflation, unlike other Latin American economies at that time

  4. Problems from the Mexican Miracle • A growing gap between the rich and the poor from such rapid economic growth • From 1940-1980 Mexico’s income distribution was among one of the most unequal of all LCDs • The bottom 40% of the total population only earned 11% of wages • Rapid and unplanned urbanization led to many of Mexico’s major cities to become “urban nightmares” • Millions of people lived in shantytowns • Traffic was among the worst in the world • Pollution from all of the cars and factories made Mexico City’s air unsafe to breathe

  5. Shanty Town

  6. The Beginning of the Downward Spiral • Mexico’s rapid economic growth was largely due to their oil • When the price of oil dropped in 1982, Mexico’s economic prosperity went down too • By 1987, Mexico’s debt was over $107 billion, making it one of the most indebted countries in the world.

  7. Economic Reform • President Miguel de la Madrid began a reform program in Mexico when he came into office in 1982 • The program was continued by later presidents Salinas and Zedillo. • It was one of the most dramatic economic turnarounds in modern history

  8. How The Reform Worked • Sharp cuts in government spending • Thousands of jobs were cut, subsidies to government agencies were cut, and hundreds of public enterprises were eliminated • The US agreed to reduce interest rates on loans and allowed longer terms for them to be repaid. • However, Mexico still pays around $10 billion a year on interest payments • The government privatized many public enterprises, especially those costing public money

  9. Effects of the Reform • Today, Mexico’s economy is not nearly as dependant on oil production • Income inequality, urban planning and pollution are still big problems • In 2004 the economy grew by 4.1%, but about 40% of the population is still below the poverty line

  10. Trade Agreements • Since the mid-1980s Mexico has entered trade agreements and organizations to globalize its economy and to get out of debt • GATT/WTO- General Agreement on Tariffs and Trade/ World Trade Organization • NAFTA- North American Free Trade Agreement • The Zapatistas, an ethnic group in Mexico, protested the signing of the NAFTA treaty

  11. Foreign Policy with the US • Mexico’s foreign policy is concerned with the US more than any other country • The Maquiladora District • Lining the boarder between Mexico and the US this is a manufacturing zone that accounts for over 20% of Mexico’s industrial labor. • The US also uses this zone for their industry and have been criticized for not abiding by employment or environmental regulations

  12. Foreign Policy with the US (cont.) • Immigration policies • President Vincent Fox really wanted to reduce tension between the US and Mexico concerning immigration and pushed for an immigration initiative that had a guest worker program • US President George W Bush was in favor of Fox’s plan, but after the 9/11 attacks the plan fell through due to security risks. • In 2006 President Bush signed a bill allowing 700 miles of fencing to be put up on the boarder. • Current President Felipe Calderón strongly disagreed with the idea of a fence

  13. Drug Trafficking • Drug trafficking has been a major problem between Mexico and the US • The drug trade led to much of the corruption that is seen in Mexico today • Felipe Calderón has really been committed to the war on drugs during his presidency • The US has stepped in by sending in members of the CIA and helped track down prominent drug traffickers

  14. Factions in Mexico • Factions are called Camarillas • Based on personal ties of trust • They determine who rises through the political ranks of the political system • Members are from diverse political, professional, ideological, and criminal backgrounds

  15. Democracy in Mexico • One of the most important indications of democracy in Mexico is the development of clean, competitive elections • The IFE (Instituto Federal Electoral)- regulatory body to safeguard honest elections • Election reforms from the IFE include: • Campaign finance restrictions • Critical media coverage • International watch teams • Election monitoring by opposition party members

  16. Population Issues • Since the 1940s Mexico’s standard of living has greatly improved • Infant mortality rates, literacy and life expectancy have improved as well • There is a wide gap between the rich and the poor, even though there has been a growing middle class in the north

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