Mexico Political and Economic Change

1. Mexico Political and Economic Change Sara Shonkwiler

2. Colonial Rule Under Spain (1519-1821) • Racial class system created status differences between natives and the Spanish • Authoritarian rule under Spanish Government: viceroy ruled Mexico as the personal representative of the King of Spain • Mercantilist system: controlled by Spain and served Spanish interests, had a great wealth of natural resources

3. Miguel Hidalgo -- Rebellion 1810-1821 • Rebellion against Spain 1810 • At first supported by liberals, but eventually gets out of control • Rebellion crushed -- Hidalgo executed • Eleven years later (1821) Mexico gains independence from Spain • New country lacks stability with 36 presidents serving in just 20 years

4. Problem Immediately Following Independence • Instability: Low legitimacy because the new government did not have the power or control of the monarchy • Control of Military: Instability allowed military commanders (like General and President Santa Anna) to exercise control • Domination: Mexican American War, Gadsden Purchase, Treaty of Guadalupe Hidalgo -- Mexicans lose large amounts of land to United States • Military and Liberals clashed over how to run new country

5. Mexican American War 1846 - 1848 • United States realizes that Mexico lacks strong governmental control • United States in a period of expansionism and pushes south of the Texas border • Mexico loses Texas, New Mexico, Arizona, California, Utah and some of Colorado (Treaty of Guadalupe Hidalgo)

6. Constitution of 1857 • Democratic principles • Brings liberal president, Benito Juarez, to power • Juarez popular with ordinary citizens and elite because of his military background

7. Maximilian (1864-1867) • Take over by European powers (mainly French) • Maximilian put in authoritarian command of Mexico • Executed three years later and Juarez comes to back to power, but Mexico continues to lack stability

8. “The Porfiriato” (1876-1911) • Military coup by Porfirio Diaz • Political stability under his authoritarian government • Economic growth and increased foreign investment • As country begins to develop the gap between the rich and poor grows (most Mexicans still poor)

9. Mexican Revolution • Political instability • Diaz ousted by elites who were bothered by his greed

10. Patron-client system: during the rebellion popular political/military strongmen (such as Emiliano Zapata and Pancho Villa) formed patron-client systems • Constitution of 1917: structure of democratic government, three branches, competitive elections • Following Constitution violence continued with political assassination into the 1920s

11. Separation of Church and State • Cristeros Rebellion: rebellion led by priests against federal regulation of church-affiliated school and church services • Liberals thought churches were conservative • Priests not allowed to vote • Federal restrictions of church-affiliated schools • Suspended religious services

12. Partido Revolucionario Institucional (PRI) • Brought Caudillos under one big political party in 1929 • Stability, brought conflicting leaders together • Pass around the presidency after each sexenio (six-year term) • Other leaders given influential governmental positions

13. Partido Revolucionario Institucional (PRI) • Mexicanization: glorified Mexican history and culture instead of trying to imitate Europeans or North Americans • One-party rule: not illegal for other parties to run, but never significant opposition • State and party were essentially merged and the president was extremely powerful

14. Cardenas Upheaval (1934-1940) • Lazaro Cardenas second PRI president • Listened to peasants • Political Changes: • Redistributed land: large landowners and foreigners lost land, put into ejidos (small collective farms) for peasants • Nationalization: PEMEX created, got rid of big foreign business owners, state control of many industries

15. Cardenas Upheaval (1934-1940) • Public works: Government built roads, provided electricity and public services • Union Organizations: Cardenas encouraged the development of peasant and union organizations with leaders in the president’s cabinet • Power of Presidency: President became more powerful and stable, he let go of power at the end of sexenio allowing for peaceful transition of power

16. Import Substitution Industrialization • High protective tariffs: makes local goods cheaper than foreign made goods • Government nationalized important industries: individuals had relatively little money so government promoted industrialization • Government subsidized certain industries

17. State Corporatism • Under Cardenas the government remained state corporatist • The president determined who represented different groups to the government

18. Miguel Aleman • Conservative • Encouraged entrepreneurship and foreign investment • Following him was a socialist Cardenas like president • Pendulum Theory: Mexican government shifted from socialist reforms to free-market economic development depending on the times

19. 1968 Olympics • Student protests about lavish expenditures on the olympics • Mexican Army fired on peaceful protestors, killing around 400 • Regime pushed too far • Students of that generation wanted reforms to authoritarian government

20. Tecnicos (1970s) • Educated, business leaders take control of government • Moderate, free-market politics

21. 1985 Earthquake • Government responded inadequately • “Self-help” organizations set up in Mexico City to help the poor • Organizations created base for leftist party, PRD

22. Neoliberalism (1980s) • Free markets • Balanced Budgets • Privatization • Free Trade • Limited Government Intervention in the Economy

23. Early 1990s - PRI Loses Dominance • Cuauhtemoc Cardenas challenges PRI candidate Carlos Salinas in presidential election • Salinas wins in supposedly fraudulent election and has little public support in office • PRI loses several gubernatorial elections

24. 1990 - Creation of IFE • Instituto Federal Electoral (IFE): responsible for organizing and overseeing federal elections in Mexico • Public, autonomous, independent agency • What IFE does: • Prepare, organize, conduct and watch federal elections • Revision and adjustment of electoral geography • Maintains the rights of parties and political groups • Creates civic educational programs

25. 1990 - Creation of TRIFE • Tribunal Federal Electoral (TRIFE): The Electoral Tribunal oversees all rulings by electoral authorities, the Constitution, and the laws that come from the Constitution

26. TRIFE Responsibilities • Dissents against results for national election • Appeals against the rulings/acts of the federal electoral authority • Trials of electoral review that could be significant • Trials for citizens’ electoral rights • Can order no electoral laws that violate Mexican Constitution

27. 1994 - NAFTA • North American Free Trade Agreement • Trade agreement between United States Canada and Mexico • Salinas, the Mexican President, proposed NAFTA • Mexico gains: access to U.S. markets, stability in economy, and ensures Salinas’ neoliberal reforms are kept

28. 1994 - NAFTA (continued) • NAFTA included: • Requirement that countries reduce their tariffs • Rules of Origin: stopped foreign countries from investing in Mexico just to export tax-free to the U.S. • Ways to resolve disputes between countries • Protection for foreign investors

29. 1994 - Effects of NAFTA • Trade between the United States and Mexico dramatically increases • Since NAFTA, Mexico’s exports have become more varied and are now less dependent on oil • Mexico depends more on the United States • Mexico’s biggest export -- immigrants not included in agreement

30. 1994 - Chiapas Uprising • Indian peasants who rose up immediately following the signing of NAFTA • Chiapas extremely poor • NAFTA makes it harder for them to compete • Zapatista National Liberation Army -- organized the uprising • Chiapas were afraid that cheap American corn would replace their agriculture economy which lacked the technology of American imports

31. 1994 - Colosio Assassinated • Colosio: PRI presidential candidate • Supported by PRI political machine • Rumor that foreign minister Camacho would run for president - previous president Salino said that Colosio was the PRI candidate • Camacho was dealing with Chiapas uprising eventually stated he would not run • Colosio was assassinated

32. 1994 - Peso Collapses • Salinas stimulated economy in the short run, but caused long run instability • Investors cautious to invest in Chiapas area with uprising occurring • Increased spending • Hyperinflation (1985-1993) • Debt loads • Low oil prices

33. Short run factors in Peso Crisis? • Chiapas uprising and Colosio assassination made investors more cautious • Fixed exchange rate system: reacting to investors caution accepted pesos and gave back dollars, but had limited supply of dollars → forced government to devalue the peso • Government tried to roll over debt, but investors unwilling to buy it

34. 1994 - Zedillo Wins Presidency • After Colosio assassinated there are few choices left for president • Cabinet members excluded because of rule that presidential candidate cannot have held public office for the six months leading up to their offices • Zedillo, the former Educational minister, is picked by Salino

35. Zedillo Presidency • Last PRI President • Colosio’s campaign manager → became president after Colosio was assassinated • Zedillo continued many of Salino’s (former president’s) policies • He tried to restore public confidence (which was shattered by Salino’s fraudulent election and several scandals during his administration)

36. Sources • http://www.marxists.org/history/etol/newspape/socialistvoice/ChiapasPR47.html • http://www.ustr.gov/trade-agreements/free-trade-agreements/north-american-free-trade-agreement-nafta • http://articles.latimes.com/2012/jun/17/world/la-fg-mexico-colosio-film-20120617 • https://www.frbatlanta.org/.../J_whi811.pd.. • http://www.nytimes.com/1994/12/29/world/a-year-to-forget-1994-leaves-mexico-reeling.html • http://www.pbs.org/itvs/storm-that-swept-mexico/the-revolution/faces-revolution/lazaro-cardenas/ • http://www.pbs.org/itvs/storm-that-swept-mexico/the-revolution/faces-revolution/emiliano-zapata/ • http://www.pbs.org/itvs/storm-that-swept-mexico/the-revolution/faces-revolution/porfirio-diaz/ • http://www.britannica.com/EBchecked/topic/289313/Institutional-Revolutionary-Party-PRI • http://www.nndb.com/people/816/000095531/ • http://www.history.com/topics/mexican-american-war • http://www.britannica.com/EBchecked/topic/181196/Constitution-of-1857 • http://www.heritage-history.com/?c=read&author=noll&book=mexico&story=juarez • http://www.britannica.com/EBchecked/topic/370459/Maximilian • http://www.history.com/this-day-in-history/emperor-of-mexico-executed • http://mexicanhistory.org/Diaz.htm • http://www.biography.com/people/porfirio-d%C3%ADaz-40907 • http://edsitement.neh.gov/feature/mexican-revolution-november-20th-1910 • http://online.wsj.com/news/articles/SB10001424052748703740704575095704065365166 • http://www.britannica.com/EBchecked/topic/656219/Ernesto-Zedillo • http://www.ife.org.mx/portal/site/ifev2/Internacional_English/

37. What happened in 1994? and how has Mexico changed since then? • List major events in Mexico in 1994 (split into economic and political change) • How has Mexico changed as a result of these major events?