Newly Industrializing Countries (NICs)

1. Newly Industrializing Countries (NICs) • Improving records of political stability and legitimacy • GDP >$5000 but <$10,000-15,000 • Emerging Democratic transitions: Choice • Rapid economic growth driven by free market policies • Shift to export-led industrialization • Many undertaking “import substitution”--instead of exporting raw materials, they encourage entrepreneurs to make goods at home • Investing in infrastructure, urbanizing countries • Foreign investment key to growth, MNCs • EX: Argentina, Brazil, India, Peru, Philippines, Mexico, South Korea, Turkey, South Africa, Taiwan, Sri Lanka,Venezuela, etc. About 33 NICs in all. • Bureaucracy another key: Chile success story • Social development/infant mortality rates • Some form regional trading blocs: Mercosur (Argentina, Bolivia, Chile, Brazil, Paraguay, Uruguay • Dependency theory explains lack of some development

2. Necessary Conditions for Modernization • Expansion of Bureaucracy • Growth of State welfare function • Increase in the burden of taxation • An increase in the political activities of citizens

3. Sufficient Conditions for Legitimacy • Elections (peaceful transfer of power) • Economic well-being • Foreign recognition (right of legation allows govt’s to recognize or not) • Foreign support, esp. economic investment • Historical tradition/longevity • Ideology • Charismatic leadership • Nationalism, national identity, symbols • Political participation/mobilization • Role of Military is subdued; civilian control • Satisfaction with system • Sense of Efficacy and Sense of Representation • Shared mass political culture • Socialization process through media/schools/religion • Supportive public opinion • Tolerance of opposition (best example: UK) • Written constitution/ respect for the Rule of Law • Think of how many of these the early U.S. had!!!!!

4. Mexico

5. Mexico: Demographics • 3 X the size of Texas • Population: 108 million • 60% Mestizo 30% Indian 9% Caucasian • 89% nominally Roman Catholic • Life Expectancy: 72.4 men/78 women • Mix of US Constitutional theory and civil law • Federal Republic, 31 states + Federal District of Mexico City (also financial, cultural, educational capital) • 14% of US exports go to Mexico • GNP Per capita: $10,700 • Poorest 10% make only 1.6% of income • Average length of schooling: 5 years

6. More Demographics • Age structure:0-14 years: 32.3% (male 17,298,964; female 16,617,728)15-64 years: 63.1% (male 32,217,513; female 33,932,603)65 years and over: 4.6% (male 2,145,252; female 2,695,931) (2003 est.) • Median Age:total: 23.8 yearsmale: 22.9 yearsfemale: 24.6 years (2002) • Population growth rate: 1.2% (2004 est.) • Net migration rate:-2.65 migrant(s)/1,000 population (2003) • Religions: nominally Roman Catholic 89%, Protestant 6%, other 5% • Languages: Spanish (official), Nahuatl, and other regional Indigenous languages • Literacy:total population: 92.2%male: 94%female: 90.5% (2003 est.)

7. Geographic Influences • Mountains and desert make communication and transportation difficult • Varied climates: desert to tropical rain forest • Plentiful natural resources, including oil • 2000 mile border with US—dependency issues, also migration, etc. • 1.8% population growth creates challenges • Rapid growth in urban areas

8. History • 731 Mayan Empire reaches highest point • 1193 Aztec Empire established • 1325 Aztecs establish Mexico City • 1480 Mayan civilization decimated by disease • 1521 Cortes conquers Mexico for Spain • 1821 Mexico declares independence from Spain • 1846 Mexico war with the US--lose California and much of the US west • 1857: New Constitution with Bill of Rights • 1864-67: Emperor Maximilian • 1876-1911: Porfirio Diaz dictatorship • 1910-20 Mexican revolution against dictator Diaz • 1917 Zimmerman telegram, new Constitution,, weakens Church • 1929 PNR/PRI founded • 1934 Lazaro Cardenas elected President and revived social revolution, organized labor, instituted land reform and expropriated foreign-owned property.

9. Mexican History Cont’d • 1941-1945    World War II. After Pearl Harbor, declared war on the Axis. U.S.-Mexican friendship cemented. Bracero program. • 1946: Miguel Alemán elected first civilian President since Madero in 1911. • 1968: Mexico City Olympics • 1982 Peso crisis, debt default • 1983-present: Neoliberal reforms • 1989: PAN wins Governorship of Baja California • Aug 12, 1992:   Mexico joined the U. S. and Canada in NAFTA, effective January 1, 1994. • 1994:  Ernesto Zedillo Ponce de Leon inaugurated President of Mexico. Zapatistas in Chiapas revolt. Represent Amerindians who are not getting the economic improvements of the North. • 1995    Mexican banking crisis. With U. S. aid the Mexican economy recovers. • 2000 Vicente Fox the first non-PRI President of Mexico (43% vote but gridlock with Congress of the other party) • 2006 Felipe Calderon (PAN) wins narrow victory as President

10. Eras of Mexican History and Key Pts • Colonialism (1519-1821): led to cultural heterogeneity, Catholicism, economic dependency • Independence/New country (1821-1911): instability, rise of the military, domination by US, struggle between Liberal Democrats and Conservatives • Porfiriato (1876-1911): Stability, authoritarianism, foreign investment, economic growth, gap between rich and poor, cientificos • Coup of 1910 ends Diaz reign

11. 1911-Present Mexico • Early 20th Century: Patron Client system emerges—to support rebels who want power • Constitution of 1917 brings some stability • Cristeros Rebellion of 1920s: Priests killed, liberals see them as threat, so they strip voting rights • Calles brings together caudillos in 1929 to form PRI: Presidency on rotating basis, sexenios

12. Presidents of Mexico • 1934–1940: Lázaro Cárdenas • 1940–1946: Manuel Ávila Camacho • 1946–1952: Miguel Alemán Valdés • 1952–1958: Adolfo Ruiz Cortines • 1958–1964: Adolfo López Mateos • 1964–1970: Gustavo Díaz Ordaz • 1970–1976: Luis Echeverría Álvarez • 1976–1982: José López Portillo • 1982–1988: Miguel de la Madrid Hurtado • 1988–1994: Carlos Salinas de Gortari • 1994–2000: Ernesto Zedillo Ponce de León • 2000–2006: Vicente Fox Quesada (PAN) • 2006--? : Felipe Calderon (PAN)

13. Lazaro Cardenas (1934-1940) • Redistributed land • Nationalized industry and created PEMEX • Investment in infrastructure and public works • Encouragement of peasant and union organizations • Concentration of power in the Presidency • Import substitution industrialization (high tariffs) • Peaceful transition of power • By 1946, Aleman changes these policies, starting the Pendulum Theory • By 1980s, Mexico embraces neoliberalism: free markets, balanced budgets, privatization, free trade, and limited government

14. Historical Traditions • Authoritarianism • Populism • Power plays/divisions among the elite (even late 20th Cty: politicos v. tecnicos) • Instability and legitimacy issues—as late as 1994 a major Presidential candidate was assassinated

15. The Executive Branch • ONE 6-year term. No Vice-President. Current President: Felipe Calderon • Vacancy: if vacant in first 2 years, must be new election. If in final 4 years of term, Congress chooses a President • Appoints 21-member Supreme Court (Senate must confirm) • Supreme executive power is exercised by the President of the United Mexican States. The President is elected by direct vote under the Electoral Law. • The Executive may appoint and remove freely the secretaries of the Cabinet, diplomatic agents and high-level employees of the Treasury, and to appoint and remove freely all other employees of the Union whose appointment or removal is not otherwise provided for in the Constitution or by law (art. 89, section II of the Constitution). • The Executive shall also have the power to: appoint ministers, diplomatic agents, and consuls-general with the approval of the Senate; to appoint with the approval of the Senate, the colonels and other high-ranking officers of the army, navy, and air force, and the high-level employees of the Treasury; to appoint the other officers of the army, navy and air force as provided by law; to appoint with the approval of the Senate the Attorney-General of the Republic; to direct diplomatic negotiations and make treaties with foreign submitting them to the ratification of the federal Congress; to appoint the ministers of the Supreme Court of Justice and submit such appointments, leaves of absence, and resignations to the approval of the Chamber of senators, or to the Permanent Committee

16. 2006 Mexican Election

17. Yellow= PRD Blue=PAN 2006 Mexican Presidential Election

18. Chamber of Deputies (500) 3 year term No consecutive terms 300 elected directly by single-member districts 200 elected proportionally The powers of the congress include the right to pass laws, impose taxes, declare war, approve the national budget, approve or reject treaties and conventions made with foreign countries, and ratify diplomatic appointments. Under 1 party rule, strong desire to please the President and win executive appointments Senate (161) 6 year term/No consecutive terms 4 per state plus federal district The Senate was doubled in size to 128 members, with one of each state's four seats going to whichever party comes in second in that state. 2 winners and a loser (minority with most votes) from each district. Political parties register a list with two candidates. The largest minority senate seat is awarded to the candidate heading the list of the political party which gained the second highest number of votes in the district in question. The remaining 32 senators are elected by proportional representation through a system of lists voted on in a single national multi-slate district. Mexican Legislative Branch

19. Judicial Branch • There are three levels of federal courts under the Supreme Court of Justice: twelve Collegiate Circuit Courts, each with three magistrates; nine Unitary Circuit Courts, each with six magistrates; and sixty-eight District Courts, each with one judge. Federal judges for the lower courts are appointed by the Supreme Court of Justice. • The Federal Judicial is ruled by the Supreme Court of Justice of the Nation, which is formed by 11 ministers designated by proposal of the President and approval vote of two thirds of the members of the Senate. The Judicial Branch of the 32 States is ruled by their own Superior Court of Justice. • Circuit court magistrates and district court judges serve terms of six years, after which, should they be confirmed in their posts or promoted to higher office, they may be removed from office only under the circumstances and in accordance with the procedures established by law. • Judicial review since 1994

20. Mexican Supreme Court • The judicial branch of the Mexican government is divided into federal and state systems. Mexico's highest court is the Supreme Court of Justice, located in Mexico City. • It consists of twenty-one magistrates and five auxiliary judges, all appointed by the president and confirmed by the Senate or the Permanent Committee. • In order to appoint judges to the Supreme Court of Justice, the President of the Republic is required to submit a list of candidates for the consideration of the Senate. After interviewing the candidates, the Senate then designates the judge who will fill the vacancy in question. • Supreme Court judges serve terms of 15 years, and they may be removed from office only under the circumstances set out in Title Four of the Constitution, and, upon completion of their term, shall be entitled to a retirement benefit.

21. Political Culture • Most important: Profound distrust of the state/government. Mexicans have a far more negative view of their political system than their U.S. counterparts. • Most Mexicans favor democracy over authoritarianism. When compared to U.S. respondents, Mexicans are far more likely to define democracy in terms of equality than freedom. Religion very important though. • Corporatist structure: central authoritarian rule that allows input from interest groups outside of government • Mexican men express far more interest in politics than women do. Interest in politics increases with education & income. 47% of university students are female, 16% of Congress is(14% US) • A serious problem confronting Mexico's attempt to construct a stable democracy are the very low levels of political efficacy • Unlike Communist regimes, which actively promoted political mobilization, Mexico under the PRI was an authoritarian regime that sought to contain and limit popular participation in politics.

22. Political Culture • The country has very low levels of participation in politics, party membership, and political activism. Multiparty system has replaced one-party system. • Universal adult suffrage, voting mandatory (not enforced) • Main cleavages: Ethnicity (Amerindian v. Mestizo), Class, Region (urban/rural and north/south). All of these tend to be reinforcing. • Patron-clientelism: system of cliques based on personal characteristics and charismatic leadership—network of these camarillas • CFE (Federal Election Commission was created as independent regulatory body: Campaign finance laws, media coverage more comprehensive, international election observers, election monitoring by opposition party members too • Fox used PAC to help get elected, has pushed rule of law, pluralism, decentralization, election reform, and anti-narcotics measures

23. Corporatism in Mexico • Def’n: A system of representing citizen’s interests where the government allows certain groups privileged access in return for their loyalty. Opposite of interest group liberalism (interest group pluralism) • Democratic Pluralism is European: benefits working class • Mexican Corporatism, though, is based on 4 sectors of society that all got a seat at the table when policy was being formulated. Workers Peasants Middle Class Military • Military: Has grown in power since 1990, was always under civilian control. Stops drugs and supresses uprisings. • Slowly going away….BUT • Corruption still flourishes. Kickbacks required to get things done. • Social welfare still a problem—unequal access to education, healthcare. PROGRESA helps keep kids in school rather than working. Fox wants microloans for poor entrepreneurs • Environmental degradation rampant/lack of “environmental justice” (Mexico City air pollution, etc) • Ejidos in rural areas grow because of government land grants • Clientelism has 3 problems: 1) May be fake with only small payouts to labor 2) Excludes important groups (Catholic church, big businessmen) 3) rigidity (allocations should change over years)

24. Major Political Parties • PAN: the National Action Party– the right-wing party of incumbent President Vicente Fox This party believes in political professionalism and free enterprise. Among its members are an number of Roman Catholic radicals who believe the party should impose Catholic morality as law. Embraces the main peasant organization (CNC) and main labor union (CTM). Younger voters, students, more educated northerners and westerners in general. Regional autonomy, supports private religious education • PRI: the Institutional Revolutionary Party– in power, under different names, at the local, state, and national levels for most of the 20th century.For the current legislative period (2003–2006), still the largest party in both chambers of Congress. • PRD: the Party of the Democratic Revolution– Born as a Democratic Front in the 1988 elections. Its candidate then, Cuauhtémoc Cárdenas, lost the 1988 presidential election under dubious circumstances, and thus the party consolidated itself. It is currently in power in the Federal District (until 2006 under MayorAndrés Manuel López Obrador). • PVEM: the Green Ecological Party of Mexico

25. Political Economy of Mexico • PRI followed the strategy of Import Substitution Industrialization • High tariffs protect local goods from imports • Government ownership of industries (oil, railroads, banks, airlines) • Government subsidies to key industries (subsidized workers with housing, food, healthcare to keep labor costs down for domestic industries) • Since 1983, neoliberal: free trade, free markets, competition, subsidies abolished. NAFTA. • But 40% of population below poverty line

26. Foreign Policy • Mexican foreign policy has focused primarily on the United States, its northern neighbor, largest trading partner, and the most powerful actor in hemispheric and world affairs. • Traditionally, Mexico's foreign policy has been considered leftist, prorevolutionary, and nationalistic • Mexico has played a minor role in international affairs through most of its history. • Mexico's role in international affairs was limited until the 1970s, mainly because of the country's need to concentrate on domestic issues, particularly on internal stability and economic growth. • Mexico soon became the principal supplier of oil to the United States after the 1973 energy crisis. • Mexico has maintained an independent oil policy, however, refusing to join the Organization of the Petroleum Exporting Countries (OPEC) during the 1970s, but participating in the Organization of Latin American Petroleum Exporting Countries (OLAPEC) during the 1980s. • Joined WTO in 1986

27. NAFTA • United States felt that a free-trade accord would open the Mexican economy and incorporate it into a North American trading bloc. Mexican President Salinas didn’t want neoliberal reforms destroyed by future Mexican Administrations. • On June 11, 1990, the two governments agreed in principle to negotiate a "comprehensive free-trade agreement" • Not only did it eliminate tariff barriers, but also "import quotas, licenses, and technical barriers" to the free flow of goods, services, and capital between the two nations. • In 1992 NAFTA was approved by the legislatures of Mexico, theUnited States, and Canada to take effect on January 1, 1994. • Proof: GDP increase, Mexican economy hurts when US does

28. Maquiladoras • In 1965, Mexico initiated its National Border Industrialization Program to help develop the infrastructure of its northern border, create employment and provide a means of transferring technology into the country. • The Maquiladora Program, as it has come to be known, allowed foreign manufacturers to temporarily import duty free machinery, tools, equipment, replacement parts and raw materials necessary to assemble and manufacture products for re-export outside of the country. • There are over one million Mexicans working in over 3,000 maquiladora manufacturing or export assembly plants in northern Mexico, producing parts and products for the United States. • Guadalajara- “Mini Silicon Valley”

29. Maquiladoras • Mexican labor is inexpensive and courtesy of NAFTA, taxes and custom fees are almost nonexistent, which benefit the profits of corporations. Most of these maquiladora lie within a short drive of the U.S.-Mexico border. • Maquiladoras are owned by U.S., Japanese, and European countries and some could be considered "sweatshops" composed of young women working for as little as 50 cents an hour, for up to ten hours a day, six days a week. However, in recent years, NAFTA has started to pay off - some maquiladoras are improving conditions for their workers, along with wages • Since its inception, the Maquiladora Program has undergone many changes, the most significant of which was necessitated by ratification of the North American Free Trade Agreement between Canada, the United States and Mexico, which became effective on January 1, 1994 ("NAFTA"). • Article 303 of that agreement required that by January 1, 2001, Mexico permit all of a Maquiladora's production to be sold in Mexico, and further restricted the duty relief given by Mexico on goods used in the Maquiladora process.

30. Problem: Chiapas • On January 1, 1994, the Zapatista Army of National Liberation a heretofore unknown group, suddenly overran several towns in Chiapas as a protest to NAFTA—which they saw as furthering PRI goals • The overwhelming military response forced the rebels into the mountains, but the rebels' demands for reform reminded the country that recent economic improvements had failed to reach many in the lower classes or in the impoverished south. • With all eyes focused on the presidential campaign and the uprising in Chiapas, few noticed the worsening economy in 1994. • A rising deficit in the current account made the economy increasingly vulnerable to shifts in external capital flow—bad for poor peasant farmers

31. Learning Objectives After mastering the concepts presented in this chapter, you will be able to: • Understand the key moments of the historical formation and evolution of Mexico. • Discuss the evolution of Mexican political system and define the role of the following political leaders: Antonio Lopez de Santa Anna, Porfirio Diaz, Lazaro Cardenas, Vicente Fox, Miguel de la Madrid • Recognize the importance of Mexican social diversity, economic challenges and the specification of the political system. • Comprehend the role of political parties in Mexico and understand the ideological differences among the following: PRD, PRI, PAN • Understand the factors which contributed to the patron-client relationships in Mexican political system. • Define the specifications of the political culture in Mexico.

32. Learning Objectives After mastering the concepts presented in this chapter, you will be able to: • Recognize challenges of political participation under the PRI dominance in Mexico. • Understand the functions of the key institutions of the Mexican state. • Discuss the role of presidential domination, judicial weakness and legislative ineffectiveness in Mexican state. • Comprehend the challenges of Mexican federal system. • Define Mexican corporatism and corruption. • Understand Mexico’s key public policy developments. Recognize the role of Miguel de la Madrid in implementing public policy reforms thus repairing the debt crisis in Mexico in 1980s. • Discuss the challenges of the US-Mexican relations, including the immigration reform.