Mexico: Political and Economic Liberalization?

February 9

“Poor Mexico,

so far from God,

so close to the United States.”

- Porfirio Díaz, Mexican President, 1876-1911

The Mexican Revolution, 1910-20 Dictatorship of Porfirio Díaz, 1876-1911 The revolution was precipitated by demands for

liberal democracy (against the ‘re-election’ of Díaz). However, it soon generated demands for social revolution and dissolved into a civil war.

Pancho Villa led an army of small ranchers and workers in northern Mexico.

Emilio Zapata led peasants in central and southern Mexico demanding agrarian reform.

Mexican Constitution, 1917

Lázaro Cárdenas: The Revolution Revitalized Cárdenas, president 1934-40 Mobilized and incorporated peasants and

workers into political system via the PRI. Introduced significant agrarian reform,

redistributing some 40-50 million acres of land.

Much of this land was distributed as ejidos or communal land holdings.

Nationalized the oil industry – PEMEX.

The PRI: The Revolution TamedPRI: Institutional Revolutionary Party – the governing

party of Mexico, 1929-2000. The origins of the PRI date back to 1929, though it

was only named the PRI in 1946.While elections were held regularly, the outcome was

a foregone conclusion. Outgoing Presidents would designate their successor

as leader of the PRI.“The Perfect Dictatorship”The PRI was able to sustain itself in power through a

skillful use of corporatism, clientelism, patronage, corruption, co-optation, fraud and repression.

PRI and the labour movement Fidel Velázquez served as the head of the

Confederation of Mexican Workers (CMT) from 1941 to 1997.

Closely tied to the PRI, the CMT kept a tight rein on the labour movement, disciplining or expelling militants and cooperating with employers and the state.

Independent unions and activists were repressed.

Repression

Hundreds of student protesters were massacred shortly before the 1968 Olympics in Mexico City.

Maquiladoras

Since 1965, Mexico has encouraged the development of assembly plants in the northern border region.

These plants were allowed to import equipment, materials and parts without paying duties. The finished products would then be exported.

Companies are attracted by cheap labour. Mexico gains foreign investment and jobs.

The Debt Crisis, 1982

Economic growth slowed in the 1970s. Buoyed by new oil discoveries and facilitated by

easy access to credit, the Mexican state undertook extensive spending programs.

By the early 80s, the Mexican state faced a combination of declining oil prices, major international recession and soaring interest rates. The result was the debt crisis.

Mexico announced that it could not pay the interest on its foreign debt. Brazil soon followed.

The Shift to Neoliberalism

Presidents Miguel de la Madrid (1982-88) and Carlos Salinas (1988-1994) embraced neoliberalism.

Mexico joined GATT in 1986. NAFTA signed in 1993 and comes into effect in

1994. The central bank was given greater independence. The public sector was reduced through

privatizations. A constitutional amendment was passed to allow

ejidos to be broken up and sold to individual owners.

The Decline of One Party Dominance In 1988, the PRI lost its two-thirds majority in

the Chamber of Deputies. In 1997, the PRI lost its majority in the

Chamber. In 2000, the PRI lost the presidency. In 2006, the PRI finished third in the

presidential and congressional elections. However, in 2009 the PRI finished first in the

congressional elections.

The EZLN: The Zapatistas

Zapatista National Liberation Army Emerged on January 1, 1994 seizing control

of four towns in the southern state of Chiapas.

Prominent spokesperson: Subcomandante Marcos.

The PAN: Vincente Fox and Felipe Calderón The PAN: National Action Party, a conservative party has

emerged as the most successful alternative to the PRI

Fox, former CEO of Coca Cola in Mexico elected President in 2000. His power was limited by PAN’s lack of a majority in Congress.

Calderón narrowly elected President in 2006, though there were allegations of election irregularities and massive protests.

The PRD

The PRD: Party of the Democratic Revolution, a moderate leftist party is the third major party.

PRD members have been elected governors of a number of states and mayor of Mexico City.

The PRD finished second in the presidential and congressional elections of 2006.

Mexican Democracy

Mexico now has competitive elections and is no longer dominated by one party. Mexico is considered an “electoral democracy” and designated as ‘free’ by Freedom House.

However, there are still many allegations of electoral irregularities.

The judicial system remains weak and corrupt. Corruption remains significant throughout the political system. The human rights situation remains problematic. The police act

arbitrarily and dissent is suppressed. Journalists are subject to intimidation and violence. Drug cartels have significant regional strongholds. President

Calderón has targeted the cartels, resulting in significant violence and death (more than 2000 dead in 2006, more than 2500 dead in 2007, more than 6000 dead in 2008).

Repression

“In April 2006, a large demonstration in the town of San Salvador Atenco led to clashes between police and protesters that left two people dead, more than 200 arrested, and legal controversies over police conduct and harsh prison sentences against protesters.”

Freedom in the World, 2009

Repression

“An even more serious crisis occurred in Oaxaca, where an attempt by Governor Ulises Ruiz of the PRI to forcefully disperse protesters resulted in the deaths of several demonstrators. In the following months, protesters demanding Ruiz’s resignation engaged in occasional shootouts with paramilitaries associated with the governor, causing over a dozen deaths. Fox avoided sending in federal police until late October, when the situation reached a boiling point with the death of a U.S. journalist.”

Freedom in the World, 2009

Mexico under NAFTA

Financial crisis, 1994. “Mexico’s economy grew at an annual per capita rate of only 1.6

percent between 1992 and 2007.” “since 2000–2001 Mexico has been losing business, particularly

to China, and China has moved ahead of Mexico as the second largest exporter to the United States. According to some estimates, over half of Mexican exports to the United States are ‘under threat’ from Chinese exports.”

“informal employment…accounted for a remarkable 57 percent of the economically active population in 2004, up from 52 percent in 1992”

Video: Maquilapolis: City of Factories “Explores the environmental devastation and

urban chaos of Tijuana's assembly factories and the female laborers who have organized themselves for social action.”

Video available from York library.