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Adelita ODellMorrow December 2009

Economics of the Coffee Crisis in Mexico

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Research presentation of the coffee crisis in Mexico

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Page 1: Economics of the Coffee Crisis in Mexico

     

 

Adelita  O’Dell-­‐Morrow  December  2009  

 

Page 2: Economics of the Coffee Crisis in Mexico

¡ Mexico  has  heavy  dependency  on  coffee  ¡  Collapse  of  the  International  Coffee  agreement  

¡  Coffee  market  unfamiliar  with  Free-­‐market  economy  

 

Page 3: Economics of the Coffee Crisis in Mexico

¡  Poverty    ¡ Malnutrition  ¡ Migration  ¡  Narco-­‐farmers  and  traffickers  ¡  Revolution  in  state  of  Chiapas    

Page 4: Economics of the Coffee Crisis in Mexico

¡ Mexico’s  general  income  drops    70%  ¡  Impoverishment  rises  39-­‐43%  ¡  Gini  coefficient  rises  ¡  Growers    receive  less  of  the  Total  revenue  less  ¡  Coffee  growers’  debt  ¡  Cycle  of  poverty  

Page 5: Economics of the Coffee Crisis in Mexico
Page 6: Economics of the Coffee Crisis in Mexico

¡  10-­‐12%  of  Mexicans  are  malnourished  ¡  Rural  and  coffee-­‐growing  regions  most  effected  

¡  Food  costs  rise  ¡  Child  population  effected  most  

§  Infant  mortality  §  Child  size  

Page 7: Economics of the Coffee Crisis in Mexico

¡  Growers  take  drastic  measures  out  of  desperation  

¡  Coffee  crisis  triggers  increase  in  drug  crops  §  Coffee  growers  switch  crops  §  Drug  crop  cultivation  levels  increase  1989  

¡ Major  supplier  to  U.S.  §  Producing  heroin,  methamphetamine  §  Smuggling  cocaine  

Page 8: Economics of the Coffee Crisis in Mexico

¡  Drug  gangs  and  cartels  increase  ¡  Torture,  kidnapping,  rape,  murder  increase  ¡  Law  enforcement  becomes  inactive  

Mexican  Drug  Tunnel  

Page 9: Economics of the Coffee Crisis in Mexico

¡  Triggered  by  unemployment  ¡  Veracruz  has  drastic  numbers  migrating  ¡  Communities  disintegrate  ¡  Families  loose  men  ¡  Risking  death  to            cross  U.S.  Border  

Page 10: Economics of the Coffee Crisis in Mexico

¡  Hardest  hit  by  coffee  crisis  ¡  Poverty  triggers  revolution  ¡  Zapatista  Army  of  National  Liberation  (EZLN)  ¡  Life  worsens  

§ More  deaths  § More  malnutrition  

Page 11: Economics of the Coffee Crisis in Mexico

¡  Unemployment  ¡  Poverty  ¡ Malnutrition  ¡  Looking  for  other  options  

§  Drug  trade  § Migration  

¡  Zapatista  rebel  in  Chiapas