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Mexican Military

Mexican Military. Up to 1930, military leaders dominated Mexican politics. PRI era instituted a civilian-controlled military. Today, military is heavily involved in drug wars. Some concern about corruption Does not intervene in Mexican politics. Mexico: What Type of Regime?.

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Mexican Military

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  1. Mexican Military • Up to 1930, military leaders dominated Mexican politics. • PRI era instituted a civilian-controlled military. • Today, military is heavily involved in drug wars. • Some concern about corruption • Does not intervene in Mexican politics

  2. Mexico: What Type of Regime? Authoritarian in 20th century under PRI. Which of the following apply to Mexico TODAY? RATE MEXICO IN THE FOLLOWING CATEGORIES (1=Excellent; 5=Poor) • Political Rights and Civil Liberties • Competitive Elections • Rule of Law • Civil Society • Civic Culture • Capitalism • Independent Judiciary • Civilian-controlled Military EMERGING/TRANSITIONAL DEMOCRACY

  3. Mexican Economic Development: 1940-2006

  4. “The Mexican Miracle” • 1940-1980 • Remarkable growth • Annual Avg. GDP Growth=6.5% • Reasons for Success • Government stability • Oil Revenue • Emphasis on Industrialization • Subsidies for domestic industries • Import Substitution • High tariffs • Nationalization of industry. • Oil, railroad, electricity, & thousands of companies.

  5. Parastatal • Company or agency owned (or partially owned) by the government. • Usually private sector companies in the U.S. • By 1980, the government controlled over 1,000 firms. • PEMEX (Mexican Petroleum) • Net worth of $415 billion • Employs approx 140,000

  6. Mexican Debt Crisis, 1980s-90s • Heavy borrowing to industrialize • Gambled on high oil prices • 1980s: Prices DROPPED • Import Substitution=Industrial inefficiency • Uncompetitive in global market • Runaway Inflation: 1987=159% Total Debt 1970=6 billion 1982=80 billion 1976=26 billion 1987=107 billion (70% of GNP)

  7. Bailout of 1995 • International investors withdrew $5 billion from Mexican market. • Lacked ability to pay debt. • Borrowed $50 billion from IMF and the U.S.

  8. PRI Becomes Market-Oriented New policies of Late ‘80s through ‘90s. • Debt Reduction • Austerity Measures • Cut deficit in half in 3 years. • Raised taxes • Reduced social services • Privatization • Sold parastatals • Only about 100 left today.

  9. Opening Up the Economy • Protectionism to neoliberalism • Import substitution to structural adjustment • Allow FDI. • 1986: Joined General Agreement on Tariffs and Trade (GATT) • Precursor to WTO. • Diversified exports (not just oil) • 1992: Signed North American Free Trade Agreement (NAFTA)

  10. North American Free Trade Agreement (NAFTA) • United States, Mexico and Canada • Eliminate tariff barriers • Greatly reduce other barriers (i.e., licensing fees and quotas for foreign companies)

  11. Maquiladoras • Foreign-owned factories in Mexico. • Goods are imported to Mexico. • Made in Mexico. • Then exported. • Largely located in North

  12. Zapatistas • State of Chiapas • Indigenous Mayan farmers Concerns • Abject poverty • Few elite controlled arable land (seized ejidos) • NAFTA • Ended ejidos • PRI “Democracy” • No self-rule • Elite land owners and PRI

  13. Zapatistas • Zapatista Army of National Liberation (EZLN) • Subcomandante Marcos • January 1, 1994 (NAFTA enacted) • EZLN seized 6 towns • Mexican army clashed with EZLN • Cease fire after 12 days • Approx. 200-400 died. • 2001: 400,000 marched on Mexico City • Few goals realized

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