Political and Economic Change in Mexico

1. Political and Economic Change in Mexico Danielle Barilla, Isabel Hennes, Annie Bartholomew

2. Political Overview • Over time, Mexico has experienced authoritarian governments first under the colonial control of Spain, and then under military dictatorships during the 19th century. • The 19th century also saw populist movements influenced by democratic impulses, accompanied by violence, bloodshed, and demagoguery. • The first decades of the 20th century saw an intensification of violence as the country sank into chaos, and the political system was characterized by serious instability and rapid turnover of political authority. • Stability was regained by resorting to authoritarian tactics that remained in place until the latter part of the century.

3. Economic Overview • For most of its history, Mexico’s economy was based on agriculture, along with other primary sector activities such as mining. • Mexico was strongly influenced by the industrialization of its northern neighbor, the United States, starting in the late 1800s. • Under the dictatorship of Porofirio Diaz, US business interests were encouraged to develop in Mexico, and a strong dependency on the US economy was put in place. • Mexican nationalists have reacted against US participation in the Mexican economy at various times since those days, so that anti US sentiments have become one dynamic of political and economic interactions.

4. Economic Overview (cont.) • During the late 20th century, Mexico industrialized rapidly, with its rich natural resource of oil serving as the wind that drove the economic expansion. • Mexico has struggled since then to break its dependency on one product, especially after the sudden drop in oil prices during the early 1980s sent the Mexican economy into a tailspin. • Today, Mexico has moved rapidly from an agricultural society to an industrial one, and even some ways toward post-industrialism.

5. Colonialism 1519 - 1891

6. Colonialism • From 1519 to 1821, Spain controlled the area that is now Mexico. • The people born in Spain were on top and the native Amerindians were on the bottom in an elaborate social status hierarchy. • Colonialism left several enduring influences: • Cultural heterogeneity – Even though status differences between natives and Spanish were clearly drawn, the populations soon mixed, particularly since Spanish soldiers were not allowed to bring their families from Spain to the New World.

7. Colonialism (cont.) • Catholicism – Spanish Catholic priests settled far and wide as they converted the population to Christianity. • Economic dependency – The territory was controlled by Spain, and served the mother country as a colony, but the Spanish never realized the extent of Mexico’s natural resources.

8. Independence/New Country 1810 - 1911

9. Independence/New Country • A Mexican priest named Miguel Hidalgo led a popular rebellion against Spanish rule in 1810. • After 11 years of turmoil, Spain finally recognized Mexico’s independence in 1821 • Stability and order did not follow independence, with a total of 36 presidents serving between 1833 and 1855. • Important influences during this period were: • Instability and Legitimacy Issues – When the Spanish left, they took their hierarchy with them, and reorganizing the government was a difficult task.

10. Independence/New Country (cont.) • Rise of the Military – The instability invited military control. • Domination by the United States – The U.S. challenged Mexican land claims and by 1855, had lost half of its territory to the United States. • What is now Texas, New Mexico, Arizona, California, Utah, and part of Colorado fell under U.S. control after the Treaty of Guadalupe Hidalgo was signed in 1948. • Liberal vs. Conservative Struggle – The constitution of 1857 was set up on democratic principles.

11. The “Porfiriato” 1876 - 1911

12. The “Porfiriato” • Porfirio Diaz staged a military coup in 1876 and instituted himself as the president of Mexico with a promise that he would not serve more than one term of office. He ignored that pledge and ruled Mexico for 34 years. • He brought with him cientificos(a group of young advisors that believed in bringing scientific and economic progress to Mexico). • Influences of the “Porfiriato” are: • Stability – With Diaz, the years of chaos came to an end, and his dictatorship brought a stable government.

13. The “Porfiriato” (cont.) • Authoritarianism – There was no sharing of political power beyond an elite group of leaders. • Foreign Investment and Economic Growth – They encouraged entrepreneurship and foreign investment, resulting in a growth of business and industry. • Growing gap between the rich and the poor – Many of the elite became quite wealthy and led lavish lifestyles, but most people in Mexico remained poor.

14. The Chaos of the Early 20th Century

15. The Chaos of the Early 20th Century • In 1910, conflict broke out as reformers sought to end the Diaz dictatorship. • The Revolution of 1910 began with a movement by other elites to remove Diaz from office. • In their success, they set off a period of warlordism and popular uprisings that lasted until 1934. • The influence of this era include: • Patron-client system – caudillos(political/military strongmen from different areas of the country) rose to challenge one another for power. Many caudillos were assassinated and many followers were violently killed in the competition among the leaders.

16. The Chaos of the Early 20th Century (cont.) • Constitution of 1917 – the constitution did not bring an end to the violence in Mexico, but it did set up a structure for a democratic government. • Conflict with the Catholic Church – Liberals saw the church as a bastion of the conservatism and put laws in place that forbid priests to vote, restricted church-affiliated schools, and suspended religious services. The priests rebelled. • The establishment of PRI(A new “umbrella” party) – institutionalized the revolution by stabilizing conflict between leaders. Other parties could still run candidates, but the umbrella agreement precluded them from winning.

17. The Cardenas Upheaval 1934 - 1940

18. The Cardenas Upheaval • Lazaro Cardenas began a sexino(six year term)that stabilized Mexican politics. • The strategy of state led development that Cardenas followed is called import substitution industrialization(employs high tariffs to protect locally produced goods from foreign competition, government ownership of key industries, and government subsidies to domestic industries) • Through Cardenas charisma, he brought many changes: • Redistribution of land – Land was taken away from big landlords and foreigners and redistributed as ejidos(collective land grants) to be worked by the peasants.

19. The Cardenas Upheaval (cont.) • Nationalization of industry – Foreign business owners were kicked out of the country, and much industry was put under the control of the state. • Investments in public works – The government built roads, provided electricity, and created public services that modernized Mexico. • Encouragement of peasant and union organizations – welcomed the input of groups into the government. • Concentration of power in the presidency – Cardenas stabilized the executive branch and peacefully gave up his power.

20. The Emergence of the Tenicos and the Pendulum Theory

21. The Emergence of the Pendulum Theory • Miguel Aleman became president after Cardenas left office. • He set the Pendulum Theoryin place. • Aleman set Mexico on a path of economic development through liberalization and foreign investment. • Aleman was followed by a president who went back to the Cardenas-style reform. • This set off a back and forth effect (socialist reform to free-market reform) known as the Pendulum Theory.

22. The Emergence of the Tecnicos • As Mexico reached the 1970s, the pendulum appeared to stop. • A new generation of tenicos(business oriented leaders) took control of the government and the PRI with a moderate, free-market approach to politics. • By the 1980s, Mexico practiced neoliberalism, a strategy that calls for free markets, balanced budgets, privatization, free trade, and limited government intervention in the economy.

23. Current Event http://www.economist.com/news/americas/21567941-new-president-believes-he-has-broad-political-agreement-change-his-country

24. Mexico’s new government:With a little help from my friends • As President Enrique Peña Nieto of Mexico gave his first speech as the leader of his nation, masked youth were breaking the windows of banks and hotels just around the corner from his inaugural address. • President Nieto is the first President elected from the PRI party since 2000, after ruling for about 7 decades. • The authoritarian regime this party advocates attracts many protests. • With opposition to the President, many wonder how the president will be successful, and how Mexico’s government and economy will change over the next 6 years.