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Mexico

Explore Mexico's economic journey from "The Mexican Miracle" to the economic crisis, reforms, persistent issues, and current growth. Delve into foreign policy challenges like drug trafficking, immigration, Maquiladora, and NAFTA. Learn about domestic ethnic issues, democratization efforts, and Mexico's legacy as a model for development.

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Mexico

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  1. Mexico Public Policy

  2. Policies & Issues • The Economy • Foreign Policy • Ethnic Rebellions • Democratization

  3. THE ECONOMY

  4. “The Mexican Miracle” • Between 1940-1960, economic growth of more than 6% per year • industrial production by 9% • improved health, education, literacy, infant mortality, life expectancy

  5. Problems • Gap between RICH & POOR • Ignoring ideals of revolution: equality, social justice • Bottom 40% earning under 11% of wages • Rapid and unplanned urbanization • Urban shantytowns w/out electricity, water, sewage • Poor highway planning, infrastructure • pollution

  6. “the Crisis” • Borrowed heavily – unrealistic reliance on oil prices • 1982 world oil bust • Prices plummeted • By 1987, Mexico’s debt = $107 billion • one of highest worldwide • 70% of entire GNP

  7. Reform • Begun by Miguel de la Madrid 1982 • Cuts in government spending • Jobs cut, subsidies canceled, public enterprises eliminated • Debt reduction • Gov’t pays ca. $10 billion/year in interest payments on debt • Privatization • 1990 banks privatized, IBM, HP, Wang set up shop, duty-free imports on components

  8. Persisting Issues • Income inequality, urban planning, pollution • 2004, 4.1% economic growth (Fox shot for 7%) • Still 40% or more in poverty • “Oportunidades” – anti-poverty program providing free benefits and pensions for elderly and children

  9. FOREIGN POLICY ISSUES

  10. Drug Trafficking • Increasingissues / corruptionwithgovernmentofficials • 2005 – raid onprisonLa Palma fromdruglords • Fox unabletoadvance • Cardenas“warondrugs” – usingarmy and federal agents, cleaning up policeforce • Results: violence, assassinations, competitionbetweendrugrings

  11. Immigration Policy • Fox-Bush relations • Focus on guest worker status, amnesty, increase visas (fell through with 9/11 + opposed in Congress) • Offer to tighten border against illegal emigration • 2006 U.S. bill for 700 miles of border fencing • Under Calderon • Denounced “wall” • Work on giving Mexicans incentives to STAY (working?)

  12. Maquiladora & NAFTA • Maquiladora • 1960s createdmanufacturingzone in North • U.S. companies in Mexico, duty-free componentstoexportfinishedgoods • NAFTA • 1995 free tradeagreement w/Mex,US,Can • U.S criticizedforavoidingemploymentbenefits • Freerflow of labor and goods, reducedtariffs • Manyskeptical of benefitsforMexico (findarticle) GATT/WTO Mexicojoined in 1986

  13. Domestic Issues

  14. Ethnic Issues • 1994 EZLN (Zapatista NationalLiberation Front) in Chiapas • In protestto NAFTA… continuation of exploitationbylandowners and PRI bosses • Captured 4 towns, demandedjobs, land, housing, food, health, education, independence, democracy, justic, peace • 2006 Oaxaca • Ethnichostilitiestowardwealthy and government, particularly PRI • * issuetodaywith PRI and PAN/PRD “deals” for Oaxaca leadership

  15. Democratization • Tradition of authoritarianism vs. economicmodernization, populism, democraticrevolutionary impulses • CFE – Federal ElectionCommission • Independentregulatorybodyforelections • Financerestrictions, int’lwatchteams, electionmonitoringbyoppositionmembers • Transition of powerto PAN • Becoming more of a liberal democracy • Obrador challenginglegitimacy of elections

  16. MEXICO’S LEGACY • NATIONAL PRIDE • NATURAL RESOURCES • RECORD OF PROGRESS An model for development?

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