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Mexico

Mexico. Public Policy. Policies & Issues. The Economy Foreign Policy Ethnic Rebellions Democratization. THE ECONOMY. “The Mexican Miracle”. Between 1940-1960, economic growth of more than 6% per year industrial production by 9%

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Mexico

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  1. Mexico Public Policy

  2. Policies & Issues • The Economy • Foreign Policy • Ethnic Rebellions • Democratization

  3. THE ECONOMY

  4. “The Mexican Miracle” • Between 1940-1960, economic growth of more than 6% per year • industrial production by 9% • improved health, education, literacy, infant mortality, life expectancy

  5. Problems • Gap between RICH & POOR • Ignoring ideals of revolution: equality, social justice • Bottom 40% earning under 11% of wages • Rapid and unplanned urbanization • Urban shantytowns w/out electricity, water, sewage • Poor highway planning, infrastructure • pollution

  6. “the Crisis” • Borrowed heavily – unrealistic reliance on oil prices • 1982 world oil bust • Prices plummeted • By 1987, Mexico’s debt = $107 billion • one of highest worldwide • 70% of entire GNP

  7. Reform • Begun by Miguel de la Madrid 1982 • Cuts in government spending • Jobs cut, subsidies canceled, public enterprises eliminated • Debt reduction • Gov’t pays ca. $10 billion/year in interest payments on debt • Privatization • 1990 banks privatized, IBM, HP, Wang set up shop, duty-free imports on components

  8. Persisting Issues • Income inequality, urban planning, pollution • 2004, 4.1% economic growth (Fox shot for 7%) • Still 40% or more in poverty • “Oportunidades” – anti-poverty program providing free benefits and pensions for elderly and children

  9. FOREIGN POLICY ISSUES

  10. Drug Trafficking • Increasingissues / corruptionwithgovernmentofficials • 2005 – raid onprisonLa Palma fromdruglords • Fox unabletoadvance • Cardenas“warondrugs” – usingarmy and federal agents, cleaning up policeforce • Results: violence, assassinations, competitionbetweendrugrings

  11. Immigration Policy • Fox-Bush relations • Focus on guest worker status, amnesty, increase visas (fell through with 9/11 + opposed in Congress) • Offer to tighten border against illegal emigration • 2006 U.S. bill for 700 miles of border fencing • Under Calderon • Denounced “wall” • Work on giving Mexicans incentives to STAY (working?)

  12. Maquiladora & NAFTA • Maquiladora • 1960s createdmanufacturingzone in North • U.S. companies in Mexico, duty-free componentstoexportfinishedgoods • NAFTA • 1995 free tradeagreement w/Mex,US,Can • U.S criticizedforavoidingemploymentbenefits • Freerflow of labor and goods, reducedtariffs • Manyskeptical of benefitsforMexico (findarticle) GATT/WTO Mexicojoined in 1986

  13. Domestic Issues

  14. Ethnic Issues • 1994 EZLN (Zapatista NationalLiberation Front) in Chiapas • In protestto NAFTA… continuation of exploitationbylandowners and PRI bosses • Captured 4 towns, demandedjobs, land, housing, food, health, education, independence, democracy, justic, peace • 2006 Oaxaca • Ethnichostilitiestowardwealthy and government, particularly PRI • * issuetodaywith PRI and PAN/PRD “deals” for Oaxaca leadership

  15. Democratization • Tradition of authoritarianism vs. economicmodernization, populism, democraticrevolutionary impulses • CFE – Federal ElectionCommission • Independentregulatorybodyforelections • Financerestrictions, int’lwatchteams, electionmonitoringbyoppositionmembers • Transition of powerto PAN • Becoming more of a liberal democracy • Obrador challenginglegitimacy of elections

  16. MEXICO’S LEGACY • NATIONAL PRIDE • NATURAL RESOURCES • RECORD OF PROGRESS An model for development?

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