Newly Industrializing Countries Newly Industrializing Countries (NICs)(NICs) Improving records of political stability and legitimacyImproving records of political stability and legitimacy

GDP >$5000 but <$10,000-15,000GDP >$5000 but <$10,000-15,000 Emerging Democratic transitions: Choice Emerging Democratic transitions: Choice Rapid economic growth driven by free market Rapid economic growth driven by free market

policiespolicies Shift to export-led industrializationShift to export-led industrialization Many undertaking “import substitution”--instead of Many undertaking “import substitution”--instead of

exporting raw materials, they encourage exporting raw materials, they encourage entrepreneurs to make goods at homeentrepreneurs to make goods at home

Investing in infrastructure, urbanizing countriesInvesting in infrastructure, urbanizing countries Foreign investment key to growth, MNCs Foreign investment key to growth, MNCs EX: Argentina, Brazil, India, Peru, Philippines, EX: Argentina, Brazil, India, Peru, Philippines,

Mexico, South Korea, Turkey, South Africa, Taiwan, Mexico, South Korea, Turkey, South Africa, Taiwan, Sri Lanka,Venezuela, etc. About 33 NICs in all.Sri Lanka,Venezuela, etc. About 33 NICs in all.

Bureaucracy another key: Chile success storyBureaucracy another key: Chile success story Social development/infant mortality ratesSocial development/infant mortality rates Some form regional trading blocs: Mercosur Some form regional trading blocs: Mercosur

(Argentina, Bolivia, Chile, Brazil, Paraguay, Uruguay(Argentina, Bolivia, Chile, Brazil, Paraguay, Uruguay Dependency theory explains lack of some Dependency theory explains lack of some

developmentdevelopment

Necessary Conditions for ModernizationNecessary Conditions for Modernization

Expansion of BureaucracyExpansion of BureaucracyGrowth of State welfare functionGrowth of State welfare function Increase in the burden of taxationIncrease in the burden of taxationAn increase in the political activities An increase in the political activities

of citizensof citizens

Sufficient Conditions for LegitimacySufficient Conditions for Legitimacy Elections (peaceful transfer of power)Elections (peaceful transfer of power) Economic well-beingEconomic well-being Foreign recognition (right of legation allows govt’s to Foreign recognition (right of legation allows govt’s to

recognize or not) recognize or not) Foreign support, esp. economic investmentForeign support, esp. economic investment Historical tradition/longevityHistorical tradition/longevity IdeologyIdeology Charismatic leadership Charismatic leadership Nationalism, national identity, symbolsNationalism, national identity, symbols Political participation/mobilizationPolitical participation/mobilization Role of Military is subdued; civilian controlRole of Military is subdued; civilian control Satisfaction with systemSatisfaction with system Sense of Efficacy and Sense of RepresentationSense of Efficacy and Sense of Representation Shared mass political cultureShared mass political culture Socialization process through media/schools/religionSocialization process through media/schools/religion Supportive public opinionSupportive public opinion Tolerance of opposition (best example: UK)Tolerance of opposition (best example: UK) Written constitution/ respect for the Rule of LawWritten constitution/ respect for the Rule of Law Think of how many of these the early U.S. had!!!!!Think of how many of these the early U.S. had!!!!!

MexicoMexico

Mexico: DemographicsMexico: Demographics

• 3 X the size of Texas3 X the size of Texas Population: 108 million 60% Mestizo 30% Indian 9% Caucasian60% Mestizo 30% Indian 9% Caucasian 89% nominally Roman Catholic89% nominally Roman Catholic Life Expectancy: 72.4 men/78 womenLife Expectancy: 72.4 men/78 women Mix of US Constitutional theory and civil lawMix of US Constitutional theory and civil law Federal Republic, 31 states + Federal District of Federal Republic, 31 states + Federal District of

Mexico City (also financial, cultural, educational Mexico City (also financial, cultural, educational capital)capital)

14% of US exports go to Mexico14% of US exports go to Mexico GNP Per capita: $10,700GNP Per capita: $10,700 Poorest 10% make only 1.6% of incomePoorest 10% make only 1.6% of income Average length of schooling: 5 yearsAverage length of schooling: 5 years

More DemographicsMore Demographics• Age structure:

0-14 years: 32.3% (male 17,298,964; female 16,617,728)15-64 years: 63.1% (male 32,217,513; female 33,932,603)65 years and over: 4.6% (male 2,145,252; female 2,695,931) (2003 est.)

Median Age:total: 23.8 yearsmale: 22.9 yearsfemale: 24.6 years (2002)

Population growth rate:Population growth rate: 1.2% (2004 est.) 1.2% (2004 est.) Net migration rate:Net migration rate:-2.65 migrant(s)/1,000 population -2.65 migrant(s)/1,000 population

(2003)(2003) Religions:Religions: nominally Roman Catholic 89%, Protestant 6%, nominally Roman Catholic 89%, Protestant 6%,

other 5%other 5% Languages:Languages: Spanish (official), Nahuatl, and other regional Spanish (official), Nahuatl, and other regional

Indigenous languagesIndigenous languages Literacy:Literacy:

total population: 92.2%total population: 92.2%male: 94%male: 94%female: 90.5% (2003 est.)female: 90.5% (2003 est.)

Geographic InfluencesGeographic Influences

Mountains and desert make communication Mountains and desert make communication and transportation difficultand transportation difficult

Varied climates: desert to tropical rain Varied climates: desert to tropical rain forestforest

Plentiful natural resources, including oilPlentiful natural resources, including oil 2000 mile border with US—dependency 2000 mile border with US—dependency

issues, also migration, etc.issues, also migration, etc. 1.8% population growth creates challenges1.8% population growth creates challenges Rapid growth in urban areasRapid growth in urban areas

HistoryHistory 731 Mayan Empire reaches highest point 1193 Aztec Empire established 1325 Aztecs establish Mexico City 1480 Mayan civilization decimated by disease 1521 Cortes conquers Mexico for Spain 1821 Mexico declares independence from Spain 1846 Mexico war with the US--lose California and much of

the US west 1857: New Constitution with Bill of Rights 1864-67: Emperor Maximilian 1876-1911: Porfirio Diaz dictatorship 1910-20 Mexican revolution against dictator Diaz 1917 Zimmerman telegram, new Constitution,, weakens

Church 1929 PNR/PRI founded 1934 Lazaro Cardenas elected President and revived 1934 Lazaro Cardenas elected President and revived

social revolution, organized labor, instituted land reform social revolution, organized labor, instituted land reform and expropriated foreign-owned property.and expropriated foreign-owned property.

Mexican History Cont’dMexican History Cont’d 1941-1945    World War II. After Pearl Harbor, declared war on the 1941-1945    World War II. After Pearl Harbor, declared war on the

Axis. U.S.-Mexican friendship cemented. Bracero program.Axis. U.S.-Mexican friendship cemented. Bracero program. 1946: Miguel Alemán elected first civilian President since Madero 1946: Miguel Alemán elected first civilian President since Madero

in 1911.in 1911. 1968: Mexico City Olympics1968: Mexico City Olympics 1982 Peso crisis, debt default 1983-present: Neoliberal reforms 1989: PAN wins Governorship of Baja California Aug 12, 1992:   Mexico joined the U. S. and Canada in NAFTA, Aug 12, 1992:   Mexico joined the U. S. and Canada in NAFTA,

effective January 1, 1994.effective January 1, 1994. 1994:  Ernesto Zedillo Ponce de Leon inaugurated President of 1994:  Ernesto Zedillo Ponce de Leon inaugurated President of

Mexico. Mexico. Zapatistas in Chiapas revoltZapatistas in Chiapas revolt. Represent Amerindians who . Represent Amerindians who are not getting the economic improvements of the North.are not getting the economic improvements of the North.

1995    Mexican banking crisis. With U. S. aid the Mexican 1995    Mexican banking crisis. With U. S. aid the Mexican economy recovers.economy recovers.

2000 Vicente Fox the first non-PRI President of Mexico (43% vote but gridlock with Congress of the other party)

2006 Felipe Calderon (PAN) wins narrow victory as President

Eras of Mexican History and Key Eras of Mexican History and Key PtsPts

Colonialism (1519-1821): led to cultural Colonialism (1519-1821): led to cultural heterogeneity, Catholicism, economic heterogeneity, Catholicism, economic dependencydependency

Independence/New country (1821-1911): Independence/New country (1821-1911): instability, rise of the military, domination instability, rise of the military, domination by US, struggle between Liberal by US, struggle between Liberal Democrats and ConservativesDemocrats and Conservatives

Porfiriato (1876-1911): Stability, Porfiriato (1876-1911): Stability, authoritarianism, foreign investment, authoritarianism, foreign investment, economic economic growth, gap between rich and growth, gap between rich and poor, cientificospoor, cientificos

Coup of 1910 ends Diaz reignCoup of 1910 ends Diaz reign

1911-Present Mexico1911-Present Mexico

Early 20Early 20thth Century: Patron Client system Century: Patron Client system emerges—to support rebels who want emerges—to support rebels who want powerpower

Constitution of 1917 brings some stabilityConstitution of 1917 brings some stability Cristeros Rebellion of 1920s: Priests killed, Cristeros Rebellion of 1920s: Priests killed,

liberals see them as threat, so they strip liberals see them as threat, so they strip voting rightsvoting rights

Calles brings together caudillos in 1929 to Calles brings together caudillos in 1929 to form PRI: Presidency on rotating basis, form PRI: Presidency on rotating basis, sexeniossexenios

Presidents of MexicoPresidents of Mexico 1934–1940: Lázaro Cárdenas 1940–1946: Manuel Ávila Camacho 1946–1952: Miguel Alemán Valdés 1952–1958: Adolfo Ruiz Cortines 1958–1964: Adolfo López Mateos 1964–1970: Gustavo Díaz Ordaz 1970–1976: Luis Echeverría Álvarez 1976–1982: José López Portillo 1982–1988: Miguel de la Madrid Hurtado 1988–1994: Carlos Salinas de Gortari 1994–2000: Ernesto Zedillo Ponce de León 2000–2006: Vicente Fox Quesada (PAN) 2006--? : Felipe Calderon (PAN)

Lazaro Cardenas (1934-1940)Lazaro Cardenas (1934-1940) Redistributed landRedistributed land Nationalized industry and created PEMEXNationalized industry and created PEMEX Investment in infrastructure and public worksInvestment in infrastructure and public works Encouragement of peasant and union Encouragement of peasant and union

organizationsorganizations Concentration of power in the PresidencyConcentration of power in the Presidency Import substitution industrialization (high tariffs)Import substitution industrialization (high tariffs) Peaceful transition of powerPeaceful transition of power By 1946, Aleman changes these policies, starting By 1946, Aleman changes these policies, starting

the Pendulum Theorythe Pendulum Theory By 1980s, Mexico embraces neoliberalism: free By 1980s, Mexico embraces neoliberalism: free

markets, balanced budgets, privatization, free markets, balanced budgets, privatization, free trade, and limited governmenttrade, and limited government

Historical TraditionsHistorical Traditions

AuthoritarianismAuthoritarianismPopulismPopulismPower plays/divisions among the elite Power plays/divisions among the elite

(even late 20(even late 20thth Cty: politicos v. Cty: politicos v. tecnicos)tecnicos)

Instability and legitimacy issues—as Instability and legitimacy issues—as late as 1994 a major Presidential late as 1994 a major Presidential candidate was assassinatedcandidate was assassinated

The Executive BranchThe Executive Branch ONE 6-year term. No Vice-President. Current President: Felipe CalderonONE 6-year term. No Vice-President. Current President: Felipe Calderon Vacancy: if vacant in first 2 years, must be new election. If in final 4 years Vacancy: if vacant in first 2 years, must be new election. If in final 4 years

of term, Congress chooses a Presidentof term, Congress chooses a President Appoints 21-member Supreme Court (Senate must confirm)Appoints 21-member Supreme Court (Senate must confirm) Supreme executive power is exercised by the President of the United Supreme executive power is exercised by the President of the United

Mexican States. The President is elected by direct vote under the Electoral Mexican States. The President is elected by direct vote under the Electoral Law.Law.

The Executive may appoint and remove freely the secretaries of the The Executive may appoint and remove freely the secretaries of the Cabinet, diplomatic agents and high-level employees of the Treasury, and Cabinet, diplomatic agents and high-level employees of the Treasury, and to appoint and remove freely all other employees of the Union whose to appoint and remove freely all other employees of the Union whose appointment or removal is not otherwise provided for in the Constitution appointment or removal is not otherwise provided for in the Constitution or by law (art. 89, section II of the Constitution).or by law (art. 89, section II of the Constitution).

The Executive shall also have the power to: appoint ministers, diplomatic The Executive shall also have the power to: appoint ministers, diplomatic agents, and consuls-general with the approval of the Senate; to appoint agents, and consuls-general with the approval of the Senate; to appoint with the approval of the Senate, the colonels and other high-ranking with the approval of the Senate, the colonels and other high-ranking officers of the army, navy, and air force, and the high-level employees of officers of the army, navy, and air force, and the high-level employees of the Treasury; to appoint the other officers of the army, navy and air force the Treasury; to appoint the other officers of the army, navy and air force as provided by law; to appoint with the approval of the Senate the as provided by law; to appoint with the approval of the Senate the Attorney-General of the Republic; to direct diplomatic negotiations and Attorney-General of the Republic; to direct diplomatic negotiations and make treaties with foreign submitting them to the ratification of the make treaties with foreign submitting them to the ratification of the federal Congress; to appoint the ministers of the Supreme Court of Justice federal Congress; to appoint the ministers of the Supreme Court of Justice and submit such appointments, leaves of absence, and resignations to the and submit such appointments, leaves of absence, and resignations to the approval of the Chamber of senators, or to the Permanent Committeeapproval of the Chamber of senators, or to the Permanent Committee

2006 Mexican Election2006 Mexican Election

2006 Mexican Presidential 2006 Mexican Presidential ElectionElection

Yellow= PRDYellow= PRD Blue=PANBlue=PAN

Mexican Legislative BranchMexican Legislative Branch Chamber of Deputies (500)Chamber of Deputies (500)

3 year term3 year term No consecutive termsNo consecutive terms 300 elected directly by 300 elected directly by

single-member districtssingle-member districts 200 elected proportionally200 elected proportionally The powers of the congress The powers of the congress

include the right to pass include the right to pass laws, impose taxes, laws, impose taxes, declare war, approve the declare war, approve the national budget, approve national budget, approve or reject treaties and or reject treaties and conventions made with conventions made with foreign countries, and foreign countries, and ratify diplomatic ratify diplomatic appointments. appointments.

Under 1 party rule, strong Under 1 party rule, strong desire to please the desire to please the President and win President and win executive appointmentsexecutive appointments

Senate (161)Senate (161) 6 year term/No consecutive terms6 year term/No consecutive terms 4 per state plus federal district4 per state plus federal district The Senate was doubled in size to 128 The Senate was doubled in size to 128

members, with one of each state's four members, with one of each state's four seats going to whichever party comes seats going to whichever party comes in second in that state. in second in that state.

2 winners and a loser (minority 2 winners and a loser (minority with most voteswith most votes) from each district. ) from each district. Political parties register a list with two Political parties register a list with two candidates.candidates.

The largest minority senate seat is The largest minority senate seat is awarded to the candidate heading the awarded to the candidate heading the list of the political party which gained list of the political party which gained the second highest number of votes in the second highest number of votes in the district in question.the district in question.

The remaining 32 senators are elected The remaining 32 senators are elected by by proportional representationproportional representation through a system of lists voted on in a through a system of lists voted on in a single national multi-slate district. single national multi-slate district.

There are three levels of federal courts under the There are three levels of federal courts under the Supreme Court of Justice: twelve Collegiate Circuit Supreme Court of Justice: twelve Collegiate Circuit Courts, each with three magistrates; nine Unitary Circuit Courts, each with three magistrates; nine Unitary Circuit Courts, each with six magistrates; and sixty-eight District Courts, each with six magistrates; and sixty-eight District Courts, each with one judge. Federal judges for the lower Courts, each with one judge. Federal judges for the lower courts are appointed by the Supreme Court of Justice. courts are appointed by the Supreme Court of Justice.

The Federal Judicial is ruled by the Supreme Court of The Federal Judicial is ruled by the Supreme Court of Justice of the Nation, which is formed by 11 ministers Justice of the Nation, which is formed by 11 ministers designated by proposal of the President and approval designated by proposal of the President and approval vote of two thirds of the members of the Senate. The vote of two thirds of the members of the Senate. The Judicial Branch of the 32 States is ruled by their Judicial Branch of the 32 States is ruled by their own Superior Court of Justice.own Superior Court of Justice.

Circuit court magistrates and district court judges serve Circuit court magistrates and district court judges serve terms of six years, after which, should they be confirmed terms of six years, after which, should they be confirmed in their posts or promoted to higher office, they may be in their posts or promoted to higher office, they may be removed from office only under the circumstances and in removed from office only under the circumstances and in accordance with the procedures established by law.accordance with the procedures established by law.

Judicial review since 1994Judicial review since 1994

Judicial BranchJudicial Branch

Mexican Supreme CourtMexican Supreme Court

The judicial branch of the Mexican government is divided The judicial branch of the Mexican government is divided into federal and state systems. Mexico's highest court is into federal and state systems. Mexico's highest court is the Supreme Court of Justice, located in Mexico City. the Supreme Court of Justice, located in Mexico City.

It consists of twenty-one magistrates and five auxiliary It consists of twenty-one magistrates and five auxiliary judges, all appointed by the president and confirmed by judges, all appointed by the president and confirmed by the Senate or the Permanent Committee. the Senate or the Permanent Committee.

In order to appoint judges to the Supreme Court of Justice, In order to appoint judges to the Supreme Court of Justice, the President of the Republic is required to submit a list of the President of the Republic is required to submit a list of candidates for the consideration of the Senate. After candidates for the consideration of the Senate. After interviewing the candidates, the Senate then designates interviewing the candidates, the Senate then designates the judge who will fill the vacancy in question.the judge who will fill the vacancy in question.

Supreme Court judges serve terms of 15 years, and they Supreme Court judges serve terms of 15 years, and they may be removed from office only under the circumstances may be removed from office only under the circumstances set out in Title Four of the Constitution, and, upon set out in Title Four of the Constitution, and, upon completion of their term, shall be entitled to a retirement completion of their term, shall be entitled to a retirement benefit.benefit.

Political CulturePolitical Culture

Most important: Profound distrust of the state/government. Most important: Profound distrust of the state/government. Mexicans have a far more negative view of their political Mexicans have a far more negative view of their political system than their U.S. counterparts.system than their U.S. counterparts.

Most Mexicans favor democracy over authoritarianism. Most Mexicans favor democracy over authoritarianism. When compared to U.S. respondents, Mexicans are far more When compared to U.S. respondents, Mexicans are far more likely to define democracy in terms of equality than likely to define democracy in terms of equality than freedom. Religion very important though.freedom. Religion very important though.

Corporatist structure: central authoritarian rule that allows Corporatist structure: central authoritarian rule that allows input from interest groups outside of governmentinput from interest groups outside of government

Mexican men express far more interest in politics than Mexican men express far more interest in politics than women do. Interest in politics increases with education & women do. Interest in politics increases with education & income. 47% of university students are female, 16% of income. 47% of university students are female, 16% of Congress is(14% US)Congress is(14% US)

A serious problem confronting Mexico's attempt to construct A serious problem confronting Mexico's attempt to construct a stable democracy are the very low levels of political a stable democracy are the very low levels of political efficacy efficacy

Unlike Communist regimes, which actively promoted Unlike Communist regimes, which actively promoted political mobilization, Mexico under the PRI was an political mobilization, Mexico under the PRI was an authoritarian regime that sought to contain and limit popular authoritarian regime that sought to contain and limit popular participation in politics.participation in politics.

Political CulturePolitical Culture The country has very low levels of participation in politics, party The country has very low levels of participation in politics, party

membership, and political activism. Multiparty system has membership, and political activism. Multiparty system has replaced one-party system.replaced one-party system.

Universal adult suffrage, voting mandatory (not enforced)Universal adult suffrage, voting mandatory (not enforced) Main cleavages: Ethnicity (Amerindian v. Mestizo), Class, Region Main cleavages: Ethnicity (Amerindian v. Mestizo), Class, Region

(urban/rural and north/south). All of these tend to be reinforcing.(urban/rural and north/south). All of these tend to be reinforcing. Patron-clientelism: system of cliques based on personal Patron-clientelism: system of cliques based on personal

characteristics and charismatic leadership—network of these characteristics and charismatic leadership—network of these camarillascamarillas

CFE (Federal Election Commission was created as independent CFE (Federal Election Commission was created as independent regulatory body: Campaign finance laws, media coverage more regulatory body: Campaign finance laws, media coverage more comprehensive, international election observers, election comprehensive, international election observers, election monitoring by opposition party members toomonitoring by opposition party members too

Fox used PAC to help get elected, has pushed rule of law, Fox used PAC to help get elected, has pushed rule of law, pluralism, decentralization, election reform, and anti-narcotics pluralism, decentralization, election reform, and anti-narcotics measuresmeasures

Corporatism in MexicoCorporatism in Mexico Def’n: A system of representing citizen’s interests where the government Def’n: A system of representing citizen’s interests where the government

allows certain groups privileged access in return for their loyalty. allows certain groups privileged access in return for their loyalty. Opposite of interest group liberalism (interest group pluralism)Opposite of interest group liberalism (interest group pluralism)

Democratic Pluralism is European: benefits working classDemocratic Pluralism is European: benefits working class Mexican Corporatism, though, is based on 4 sectors of society that all got Mexican Corporatism, though, is based on 4 sectors of society that all got

a seat at the table when policy was being formulated. a seat at the table when policy was being formulated. Workers Peasants Workers Peasants Middle Class MilitaryMiddle Class Military

Military: Has grown in power since 1990, was always under civilian control. Military: Has grown in power since 1990, was always under civilian control. Stops drugs and supresses uprisings. Stops drugs and supresses uprisings.

Slowly going away….BUTSlowly going away….BUT Corruption still flourishes. Kickbacks required to get things done.Corruption still flourishes. Kickbacks required to get things done. Social welfare still a problem—unequal access to education, healthcare. Social welfare still a problem—unequal access to education, healthcare.

PROGRESA helps keep kids in school rather than working. Fox wants PROGRESA helps keep kids in school rather than working. Fox wants microloans for poor entrepreneursmicroloans for poor entrepreneurs

Environmental degradation rampant/lack of “environmental justice” Environmental degradation rampant/lack of “environmental justice” (Mexico City air pollution, etc)(Mexico City air pollution, etc)

Ejidos in rural areas grow because of government land grantsEjidos in rural areas grow because of government land grants Clientelism has 3 problems: 1) May be fake with only small payouts to Clientelism has 3 problems: 1) May be fake with only small payouts to

labor 2) Excludes important groups (Catholic church, big businessmen) 3) labor 2) Excludes important groups (Catholic church, big businessmen) 3) rigidity (allocations should change over years)rigidity (allocations should change over years)

Major Political PartiesMajor Political Parties PAN: the PAN: the National Action PartyNational Action Party– the right-wing party of – the right-wing party of

incumbent President incumbent President Vicente Fox Vicente Fox This party believes in This party believes in political professionalism and free enterprise. Among its political professionalism and free enterprise. Among its members are an number of members are an number of Roman Catholic Roman Catholic radicals who radicals who believe the party should impose Catholic morality as law. believe the party should impose Catholic morality as law. Embraces the main peasant organization (CNC) and main Embraces the main peasant organization (CNC) and main labor union (CTM). Younger voters, students, more educated labor union (CTM). Younger voters, students, more educated northerners and westerners in general. Regional autonomy, northerners and westerners in general. Regional autonomy, supports private religious educationsupports private religious education

PRI: the PRI: the Institutional Revolutionary PartyInstitutional Revolutionary Party– in power, under – in power, under different names, at the local, state, and national levels for different names, at the local, state, and national levels for most of the 20th century.most of the 20th century. For the current legislative period For the current legislative period (2003–2006), still the largest party in both chambers of (2003–2006), still the largest party in both chambers of Congress.Congress.

PRD: the PRD: the Party of the Democratic RevolutionParty of the Democratic Revolution– Born as a – Born as a Democratic Front in the 1988 elections. Its candidate then, Democratic Front in the 1988 elections. Its candidate then, Cuauhtémoc Cárdenas, Cuauhtémoc Cárdenas, lost the 1988 presidential election lost the 1988 presidential election under dubious circumstances, and thus the party under dubious circumstances, and thus the party consolidated itself. It is currently in power in the consolidated itself. It is currently in power in the Federal Federal District (until 2006 under MayorDistrict (until 2006 under Mayor Andrés Manuel López Andrés Manuel López Obrador)Obrador)..

PVEM: the PVEM: the Green Ecological Party of MexicoGreen Ecological Party of Mexico

Political Economy of MexicoPolitical Economy of Mexico

PRI followed the strategy of Import Substitution PRI followed the strategy of Import Substitution IndustrializationIndustrialization

High tariffs protect local goods from importsHigh tariffs protect local goods from imports Government ownership of industries (oil, Government ownership of industries (oil,

railroads, banks, airlines)railroads, banks, airlines) Government subsidies to key industries Government subsidies to key industries

(subsidized workers with housing, food, (subsidized workers with housing, food, healthcare to keep labor costs down for domestic healthcare to keep labor costs down for domestic industries)industries)

Since 1983, neoliberal: free trade, free markets, Since 1983, neoliberal: free trade, free markets, competition, subsidies abolished. NAFTA.competition, subsidies abolished. NAFTA.

But 40% of population below poverty lineBut 40% of population below poverty line

Foreign PolicyForeign Policy Mexican foreign policy has focused primarily on the United States,

its northern neighbor, largest trading partner, and the most powerful actor in hemispheric and world affairs.

Traditionally, Mexico's foreign policy has been considered leftist, prorevolutionary, and nationalistic

Mexico has played a minor role in international affairs through most of its history.

Mexico's role in international affairs was limited until the 1970s, mainly because of the country's need to concentrate on domestic issues, particularly on internal stability and economic growth.

Mexico soon became the principal supplier of oil to the United States after the 1973 energy crisis.

Mexico has maintained an independent oil policy, however, refusing to join the Organization of the Petroleum Exporting Countries (OPEC) during the 1970s, but participating in the Organization of Latin American Petroleum Exporting Countries (OLAPEC) during the 1980s.

Joined WTO in 1986

NAFTANAFTA United States felt that a free-trade accord would open

the Mexican economy and incorporate it into a North American trading bloc. Mexican President Salinas didn’t want neoliberal reforms destroyed by future Mexican Administrations.

On June 11, 1990, the two governments agreed in principle to negotiate a "comprehensive free-trade agreement"

Not only did it eliminate tariff barriers, but also "import quotas, licenses, and technical barriers" to the free flow of goods, services, and capital between the two nations.

In 1992 NAFTA was approved by the legislatures of Mexico, the United States, and Canada to take effect on January 1, 1994.

Proof: GDP increase, Mexican economy hurts when US does

MaquiladorasMaquiladoras In 1965, Mexico initiated its National Border In 1965, Mexico initiated its National Border

Industrialization Program to help develop the infrastructure Industrialization Program to help develop the infrastructure of its northern border, create employment and provide a of its northern border, create employment and provide a means of transferring technology into the country. means of transferring technology into the country.

The Maquiladora Program, as it has come to be known, The Maquiladora Program, as it has come to be known, allowed foreign manufacturers to temporarily import duty allowed foreign manufacturers to temporarily import duty free machinery, tools, equipment, replacement parts and free machinery, tools, equipment, replacement parts and raw materials necessary to assemble and manufacture raw materials necessary to assemble and manufacture products for re-export outside of the country. products for re-export outside of the country.

There are over one million Mexicans working in There are over one million Mexicans working in over 3,000 maquiladora manufacturing or export over 3,000 maquiladora manufacturing or export assembly plants in northern Mexico, producing assembly plants in northern Mexico, producing parts and products for the United States. parts and products for the United States.

Guadalajara- “Mini Silicon Valley”Guadalajara- “Mini Silicon Valley”

MaquiladorasMaquiladoras Mexican labor is inexpensive and courtesy of NAFTA, taxes and Mexican labor is inexpensive and courtesy of NAFTA, taxes and

custom fees are almost nonexistent, which benefit the profits of custom fees are almost nonexistent, which benefit the profits of corporations. Most of these maquiladora lie within a short drive of corporations. Most of these maquiladora lie within a short drive of the U.S.-Mexico border. the U.S.-Mexico border.

Maquiladoras are owned by U.S., Japanese, and European Maquiladoras are owned by U.S., Japanese, and European countries and some could be considered "sweatshops" composed countries and some could be considered "sweatshops" composed of young women working for as little as 50 cents an hour, for up to of young women working for as little as 50 cents an hour, for up to ten hours a day, six days a week. However, in recent years, NAFTA ten hours a day, six days a week. However, in recent years, NAFTA has started to pay off - some maquiladoras are improving has started to pay off - some maquiladoras are improving conditions for their workers, along with wagesconditions for their workers, along with wages

Since its inception, the Maquiladora Program has undergone many Since its inception, the Maquiladora Program has undergone many changes, the most significant of which was necessitated by changes, the most significant of which was necessitated by ratification of the North American Free Trade Agreement between ratification of the North American Free Trade Agreement between Canada, the United States and Mexico, which became effective on Canada, the United States and Mexico, which became effective on January 1, 1994 ("NAFTA").January 1, 1994 ("NAFTA").

Article 303 of that agreement required that by January 1, 2001, Article 303 of that agreement required that by January 1, 2001, Mexico permit all of a Maquiladora's production to be sold in Mexico permit all of a Maquiladora's production to be sold in Mexico, and further restricted the duty relief given by Mexico on Mexico, and further restricted the duty relief given by Mexico on goods used in the Maquiladora process.goods used in the Maquiladora process.

Problem: Chiapas On January 1, 1994, the Zapatista Army of National

Liberation a heretofore unknown group, suddenly overran several towns in Chiapas as a protest to NAFTA—which they saw as furthering PRI goals

The overwhelming military response forced the rebels into the mountains, but the rebels' demands for reform reminded the country that recent economic improvements had failed to reach many in the lower classes or in the impoverished south.

With all eyes focused on the presidential campaign and the uprising in Chiapas, few noticed the worsening economy in 1994.

A rising deficit in the current account made the economy increasingly vulnerable to shifts in external capital flow—bad for poor peasant farmers

Learning ObjectivesLearning Objectives

After mastering the concepts presented in this chapter, you will be able to:After mastering the concepts presented in this chapter, you will be able to: Understand the key moments of the historical formation and evolution Understand the key moments of the historical formation and evolution

of Mexico.of Mexico. Discuss the evolution of Mexican political system and define the role Discuss the evolution of Mexican political system and define the role

of the following political leaders: Antonio Lopez de Santa Anna, of the following political leaders: Antonio Lopez de Santa Anna, Porfirio Diaz, Lazaro Cardenas, Vicente Fox, Miguel de la MadridPorfirio Diaz, Lazaro Cardenas, Vicente Fox, Miguel de la Madrid

Recognize the importance of Mexican social diversity, economic Recognize the importance of Mexican social diversity, economic challenges and the specification of the political system. challenges and the specification of the political system.

Comprehend the role of Comprehend the role of political partiespolitical parties in Mexico and understand in Mexico and understand the ideological differences among the following: PRD, PRI, PANthe ideological differences among the following: PRD, PRI, PAN

Understand the factors which contributed to the Understand the factors which contributed to the patron-clientpatron-client relationships in Mexican political system.relationships in Mexican political system.

Define the specifications of the Define the specifications of the political culturepolitical culture in Mexico. in Mexico.

Learning ObjectivesLearning Objectives

After mastering the concepts presented in this chapter, you will be able to:After mastering the concepts presented in this chapter, you will be able to: Recognize challenges of Recognize challenges of political participationpolitical participation under the PRI under the PRI

dominance in Mexico. dominance in Mexico. Understand the functions of the key institutions of the Mexican Understand the functions of the key institutions of the Mexican statestate. . Discuss the role of presidential domination, judicial weakness and Discuss the role of presidential domination, judicial weakness and

legislative ineffectiveness in Mexican state. legislative ineffectiveness in Mexican state. Comprehend the challenges of Mexican Comprehend the challenges of Mexican federalfederal system. system. Define Mexican corporatism and corruption.Define Mexican corporatism and corruption. Understand Mexico’s key public policy developments. Recognize the Understand Mexico’s key public policy developments. Recognize the

role of role of Miguel de la MadridMiguel de la Madrid in implementing public policy reforms in implementing public policy reforms thus repairing the debt crisis in Mexico in 1980s.thus repairing the debt crisis in Mexico in 1980s.

Discuss the challenges of the US-Mexican relations, including the Discuss the challenges of the US-Mexican relations, including the immigration reform.immigration reform.