POLITICS IN MEXICO LUIS ESTRADA Spring quarter 2005.

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Presentation transcript:

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