Mexico's economic system and political structure in post-World War II

Mexico in the 20th and into the 21st Century -- Economic History and Prognosis

Post-World War II Mexico

What type of economic system is it? How does it operate?

Lazaro Cardenas, president from 1934 to 1940, began to solidified his party's popularity by instituting land distribution programs to poor Mexicans and nationalizing the oil industry, a policy that continued in the post-war economic. The Mexican economic system at this time was thus marginally capitalist but with strong socialist overtones. ("Mexico: History in Brief," Country Overview: The Economist, 2003)

How does the economic system relate to the political structure?

A single political party, the Institutional Revolutionary Party (PRI), dominated Mexico's modern political history. The party combined populism and patronage in a potent rhetorical and policy mix and held on to power for more than 70 years. ("Mexico: History in Brief," Country Overview: The Economist, 2003)

How does it relate to the social structure?

The popularity of PRI was due, in large degree, to its image as a worker's party, and drew its support from the considerable class divisions of the haves and the have-nots that had existed within Mexico. ("Mexico: History in Brief," Country Overview: The Economist, 2003)

What does the economic system mean to a poor family?

Although far from perfect, at this time the economic lot of the poor seemed to be improving, compared to the past century of economic class oppression.

How do history and economics interrelate?

Government policy encouraged rapid population and quick-burning economic growth, partly for historical reasons. Mexicans believed that the 19th Century seizure of Mexican territories stretching from Texas to California by the United States would have been impossible had they not been so sparsely populated. (Dillon, 1999)

What is the prognosis for the future?

During this period, the economy was expanding, although social unrest created great anxiety in the nation.

If you were a Peace Corps worker advising the government, what would your advice be?

Increase educational initiatives to the rural poor; increase investments in technology and infrastructure, and target national companies, rather than focusing on importing wealth. Birth control and educating women could decrease population growth, as the short-term benefits of increased population will not outweigh later social costs.

What are the prospects of an American company seeking to establish operations under that economic system?

American companies were regarded in a hostile fashion, given the past history between the two nations.

Mexico in the 1970's

What type of economic system is it? How does it operate?

Socialist-capitalist. Having relied heavily on oil for foreign-exchange earnings in the late 1970s, manufacturing quickly became the main source of export earnings.

How does the economic system relate to the political structure?

The PRI remained in power.

How does it relate to the social structure?

Class tensions remained between 'haves' and 'have-nots,' in perceived and real terms.

What does the economic system mean to a poor family?

During the late 1960s, as Mexico's postwar economic boom began to slow, the population figures of the poor began to alarm experts. (Dillon, 1999)

What does it mean to a middle class family? And a wealthy family?

There was less money to go around, as well, in the nation, towards all classes.

What does the economic system mean to a corporation?

Manufacturing company's deployment of cheaper labor in Mexico caused this sector to be highly favored during this period

What is the makeup of the capital base, labor base, and land base?

More service oriented than agriculturally based, as in the decade before.

Who controls the capital and land markets?

Still largely state controlled.

How do history and economics interrelate?

Politically, PRI was still dominant and there was still a great deal of hostility to U.S. economic dominance. Socially, however, there was a reversal during this period as women's attitudes about birth control began changing as women became more formally educated and entered the professional workforce. They began ignoring the government and the Roman Catholic hierarchy's advice and many women in the 1960s and early 1970s were buying contraceptives on the black market. As a result, the government's new offer of family planning services began satisfying a repressed demand, and Mexican families began changing dramatically. (Dillon, 1999)

What is the prognosis for the future?

In 1970, for every 100 Mexican workers there were 100 dependents, mostly children and a few retired people. The prognosis was uncertain, as much of the labor force was either elderly