Mexico in the 20th and

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. What does it mean to a middle class family? And wealthy families? In contrast, the relatively small middle and upper classes of Mexico encountered a great deal of social difficulty during this period, although the middle class saw something of an upturn in their economic prospects.

What does the economic system mean to a corporation? Nationalized oil policies made this a hostile period for both national and international manufacturing companies, combined with protectionist trade policies. What is the makeup of the capital base, labor base, and land base? The government and a few wealthy companies largely held the capital base. The capital base was similarly concentrated, and the labor and land base was predominantly agricultural in its composition. Who controls the capital and land markets? The government, overall, determined the administration of both sectors.

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.