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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 - PowerPoint PPT Presentation
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Public Policy in Mexico
Caroline MorelockGrant Harris Ryan Campbell
An Overview of Mexico’s Economy Through The Years Betwe
en 1940 and
1960 economic
prosperity in Mexico was boomi
ng. This
period was
know as
“The Mexic
an Miracl
e”
By the early 1970s things starte
d going downh
ill
By 1987, Mexic
o’s debt was over $107
billion, makin
g it one of
the most
indebted
countries in the
world.
Economic
Reform
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
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
Shanty Town
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.
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
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
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
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
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
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
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
Factions in Mexico
Factions are called CamarillasBased on personal ties of trustThey determine who rises through
the political ranks of the political system
Members are from diverse political, professional, ideological, and criminal backgrounds
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
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