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Mexico: Revolution and Reform. Technocratic populist corporatism. Common issues in Latin America. Inflation Population Foreign debt Political Instability Income Inequality Poverty Corruption Militarism. History.

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mexico revolution and reform

Mexico: Revolution and Reform

Technocratic populist corporatism

common issues in latin america
Common issues in Latin America
  • Inflation
  • Population
  • Foreign debt
  • Political Instability
  • Income Inequality
  • Poverty
  • Corruption
  • Militarism
history
History
  • Cortez and the colonial conquest 1519: Classic mercantilism with providing Spain with gold and silver. Enrichment of the Spaniards and impoverishment of the natives.
  • Jesuits introduced Catholicism: the Church became a great land owner
  • Independent since 1821(military dictatorships, Diaz in particular)
  • Revolution of 1910 (Pancho Villa): Who controls Mexico: Foreigners or the Church or both?
  • 20th century Mexico has advanced in some ways but also stayed the same in other ways: Persistent corruption and completed industrialization are the examples
development strategy
Development strategy
  • Legacy of colonialism and foreign domination
  • Import substitution with an extensive state sector emerging as a result of oil industry nationalization (1938). Tremendous toll on domestic consumers and internal income
  • 1982 nationalization of the banking industry( as a result of the national default) and launched the “lost decade”
reforms of the 1990s
Reforms of the 1990s
  • Salinas elected in 1988. He faced a serious economic deterioration with political radicalization. Enormous indebtedness.
  • Salinas’s predecessor de la Madrid tried to fight debt with privatization selling SOE which continued into the 1990s(parastatals)
  • Relaxing restrictions of FDI
  • The currency crisis of 1994 (tequila effect)
  • Zedillo comes to power in the midst of PRI orchestrated elections and following a series of assassinations of contending candidates
nafta
NAFTA
  • An impetus to current account adjustment after Clinton’s bailout of Mexico $40 bn in bonds.
  • Income inequality is widening: 40% lives on less than $2 a day (38 mn people)
  • Maquiladora and emigration
  • Corn production and import competition
agriculture
Agriculture
  • Vast estates (encomiendas using slave labor) with increasing debt peonage and later becoming haciendas
  • Ejidos or agricultural communes liable for taxes and forced to convert to Catholicism were allowed to stay on their traditional lands (limiting and conditioning mobility) The initial reform in 1857. With P. Diaz establishing his dictatorship in 1885 the emphasis on industrialization and foreign investment side-tracked rural reform and widened the gaps in income
  • Constitution of 1917 was redistributing haciendas to peons and re-established ejidos. !920-1930 surge in populism and communalism. Political backlash from the opposition (Cardenas left and Aleman initiated indusry led import substitution) Agriculture is de-emphasized and forsaken. An accent on maquiladora (border industrialization project)
  • Ranchos and haciendas have become virtually one type of land tenure
  • Duality of agricultural development