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Political and Economic Change in Mexico . Neil Davey. Overview. 1519-1821: Spanish Colonialism 1821: Independence and 1824: 1 st Constitution 1864-1867: Second Mexican Empire - Habsburg Monarchy (France) 1876-1911: Porfirio Diaz’s Dictatorship 1910-1920: Mexican Revolution - PowerPoint PPT Presentation
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Political and Economic Change in Mexico
Neil Davey
Overview• 1519-1821: Spanish Colonialism• 1821: Independence and 1824: 1st
Constitution• 1864-1867: Second Mexican Empire -
Habsburg Monarchy (France)• 1876-1911: Porfirio Diaz’s Dictatorship• 1910-1920: Mexican Revolution• 1929: Formation of the PRI• 1934-1940: Lazaro Cardenas Presidency• 1983-Present: Neoliberal Reform
Pre-Colonial Mexico• 200-900: Classic Era, 900-1520: Post-
Classic– Height of Mexican Civilization–Mayas in Yucatan and Aztecs in
Tenochtitlan
Causes of Colonization
• Desire to spread Christianity• To gain personal wealth (gold/silver)• To find new trading routes and partners• Political expansion of the Spanish
Empire• Overpowering natives was not too
difficult
1519-1821: Spanish Colonialism
• Hernan Cortes set sail in 1519– Captured Tenochtitlan in 1521– Rule by viceroy under Spain; little
autonomy– Conversion to Catholicism
• Haciendas given to Spanish colonists• Mestizaje: racial mixing • Strict racial hierarchy and great inequality• Silver mines fueled Spanish economy
1810-1821: Mexican War
of Independence• Napoleon invaded Spain• Priest Miguel Hidalgo
began independence movement with liberals, peasants, and mestizos
• Post-war period marked by instability– Elite conservatives vs.
liberals–Monarchy or
democracy?
Post-war Independence
• 36 presidents between 1833 and 1855• Difficulty obtaining legitimacy• Rise in military control due to
instability• Treaty of Guadalupe Hidalgo: US
control of ~50% of Mexican lands after Mexican-American war in 1848
• The French invaded in 1864–Maximilian von Hapsburg was
emperor– Liberals removed French by 1867
1876-1911: Porfiriato Era
Political Change• Porfirio Diaz became dictator in
1876 after staging a coup d’etat and defeating Emperor Maximilian
• As President of Mexico, ruled 34 years– Authoritarian rule; cracked down
on opposition– Strict control of the army– Instability came to an end
temporarily– Increased US dependency
1876-1911: Porfiriato Era
Economic Change• Diaz was a proponent of modernization• Promoted industrialization and foreign
investment• Foreign investment in Mexican mining sector• Cientificos: technocratic advisors to Diaz• The poor lived on a very low standard
because of huge focus on commerce- Peasants were impoverished - Great inequality resulted - Led to the Mexican Revolution
1910-1920: Mexican Revolution
• Elite Mexicans wanted to overthrow Diaz• Francisco Madero called for revolution• Caudillos: Military strongmen– Emiliano Zapata led rebels in the South– Pancho Villa led rebels in the North
• Diaz steps down in 1911; Madero is president• Victoriano Huerta overthrows Madero in a plot
organized by US ambassador Henry Lane Wilson
• Huerta forms a military dictatorship, the US is upset, and bloodshed continues
End of the Revolution• Huerta is replaced by Venustiano Carranza
in 1914, who rules until 1920• 1917: Constitution of Mexico established
democratic political institutions• Cristeros Rebellion: Conflicts with Catholic
Church in the 1920s• Partido revolucionario institucional (PRI) is formed in 1929
1934-1940: The Cardenas Sexenio
Political Change• Lazaro Cardenas was a PRI president
• Sexenio (six year term) with big changes: state corporatism– Presidency became much
stronger; primary institution of the government
– Patron-clientelism ensued as labor and peasant organizations were sponsored by the gov’t
– System of one-party rule by the PRI was accentuated
1934-1940: The Cardenas Sexenio
Economic Change• Sexenio that significantly transformed the
Mexican economy: import substitution industrialization– Huge focus on domestic workers– Nationalization of industry (PEMEX)– Investment in public works– Support of the peasantry through
redistribution of land from landlords to peasants
Import Substitution Industrialization
• Replacing foreign imports with increased domestic production
• Reduction of foreign dependency by increasing tariffs
• Protects national industries • Mexicanization – devotion to Mexico
without attempting to appease foreign nations
Russia, China, and Mexico
• Does the Mexican Revolution sound familiar?• All 3 revolutions characterized by violent
and sudden changes• Russia (1917), China (1911), and Mexico
(1910) all transformed from authoritarian rule to “one-party” state
• Socialist ideals followed revolutions (Communist Party, Cardenas economic policy)
• Mexico did liberalize and democratize more
Pendulum Theory• Miguel Aleman, president
after Cardenas, rejected socialist reforms and encouraged foreign investment
• Next president shifted back to Cardenas-style reforms–Modernization vs.
dependency• Tecnicos: Educated business
leaders who took control of the PRI in 1970s
Mexican Miracle and Crisis
• Sustained economic growth and minimal inflation during PRI years 1940-1970
• PRI dominated all politics during this time• 1968 Olympics massacre and 1985 Mexico
City Earthquake showed PRI weaknesses• 1982 and 1994 economic crises• Partido de la Revolucion Democratica (PRD) was formed in 1989
Modern Reforms• Liberalization in economy, free trade, and increased foreign investment • Globalization: Mexico began to integrate
into global economy; signed North American Free Trade Agreement (NAFTA) on Jan. 1st, 1994
• Neoliberalism: free markets, privatization, limited government involvement since 1983
• Formation of Federal Electoral Institute (IFE) in 1990 to ensure fair elections
• Election of 2000: Won by Vicente Fox (PRD), first non-PRI president in seven decades
Political Crisis of 1994• President Carlos Salinas’ term ends in 1994• PRI candidate Luis Colosio is assassinated– Ernesto Zedillo is handpicked by Salinas
and wins 1994 election• Zapatista Army of National Liberation:
revolutionary leftist group based in Chiapas, Mexico’s southernmost state– Zapatistas against neoliberal reforms and economic globalization
Economic Crisis of 1994
• Government finances of past two decades, low oil prices, and hyperinflation
• Attempt by Zedillo to increase exports• Sudden devaluation of the peso in
December 1994• The Chiapas Rebellion worried investors– Larger risk premium on Mexican assets
• Peso crashed as a result of the floating exchange rate
Current Statistics• Gini Index (World Bank, 2012):
• PPP: $1.748 USD– 11th largest economy in the world (Iran
and Nigeria are smaller)• GDP growth: 3.6% and Inflation: 3.9%• GDP by sector: 3.9% Agriculture, 32.6%
Industry, 63.5% Services• Primary export partner: US (78%)
UK Iran Russia China Mexico Nigeria34.0 38.3 40.1 47.0 48.3 48.8