POLITICS IN MEXICO LUIS ESTRADA Spring quarter 2005
Mexican Economic Miracle, After expropriation of oil, WWII was a factor (attracting investment and multiplying clients After expropriation of oil, WWII was a factor (attracting investment and multiplying clients ISI: Import Substitution Industrialization (attracting external capital). Peso is ‘undervalued’ ISI: Import Substitution Industrialization (attracting external capital). Peso is ‘undervalued’ Raw materials in exchange of capital goods Raw materials in exchange of capital goods
Mexican Economic Miracle, Exchange and interest rates are stable, just as inflation Exchange and interest rates are stable, just as inflation GDP growth of 6% annually on average GDP growth of 6% annually on average Rural to Urban Rural to Urban
Mexican Economic Miracle, It became clear that the industries that had been built could only survive in the free-market with strong protectionism and tariffs It became clear that the industries that had been built could only survive in the free-market with strong protectionism and tariffs Stagnant industries and agriculture. Decreased productivity Stagnant industries and agriculture. Decreased productivity
Mexican Economic Miracle, Large deficits are financed through external borrowing Large deficits are financed through external borrowing Before devaluating, inflation rises Before devaluating, inflation rises ‘Shared’ Development ‘Shared’ Development Solution in the ’70s: Oil (more borrowing) Solution in the ’70s: Oil (more borrowing) Oil Crisis, prices drop: bankruptcy Oil Crisis, prices drop: bankruptcy Concentration of wealth in fewer people Concentration of wealth in fewer people
Labor Organizations
Destape (Revelation) Tapado (possible successor) Tapado (possible successor) Member of the Revolutionary Family Member of the Revolutionary Family Candidate acclaimed by unanimity Candidate acclaimed by unanimity
Manuel Avila-Camacho
Miguel Alemán
Adolfo Ruiz-Cortines
Adolfo López-Mateos
Gustavo Díaz-Ordaz
Luis Echeverría
José López-Portillo