GO 357GO 357The Political Economy of The Political Economy of

RegionalismRegionalism

Walter HatchWalter Hatch

Colby CollegeColby College

Mexico in NAFTAMexico in NAFTA

MEXICOMEXICO

What’s happening in USA What’s happening in USA backyard?backyard?

The Latin Left TurnThe Latin Left Turn

BrazilBrazil• Luiz Inácio Lula da Silva (2003)Luiz Inácio Lula da Silva (2003)

ArgentinaArgentina• Néstor Kirchner (2003)Néstor Kirchner (2003)

UruguayUruguay• Tabaré Vázquez (2005)Tabaré Vázquez (2005)

BoliviaBolivia• Evo Morales (2006)Evo Morales (2006)

ChileChile• Michelle Bachelet (2006)Michelle Bachelet (2006)

Two ExceptionsTwo Exceptions

Colombia (Uribe)Colombia (Uribe) Mexico (Calderon)Mexico (Calderon)

Presidential Election CrisisPresidential Election Crisis

Mexico City, July 2006

Obrador

Calderon

Chiapas CrisisChiapas Crisis

Oaxaca CrisisOaxaca Crisis

Mexico: Some BackgroundMexico: Some Background

Independence from Spain in 1821Independence from Spain in 1821 War with US (1846-48)War with US (1846-48) Revolution (1910-21)Revolution (1910-21) PRI (1929)PRI (1929)

• Cardena (1934)Cardena (1934)• Pemex (1938)Pemex (1938)• El Milagro MexicanoEl Milagro Mexicano

Economic CrisesEconomic Crises

1968, 1976, 1982, 19941968, 1976, 1982, 1994 BOP deficitBOP deficit Peso collapsePeso collapse Multilateral bailoutMultilateral bailout Weak investor confidenceWeak investor confidence

US-Mexico Economic TiesUS-Mexico Economic Ties

Bracero program (1942-64)Bracero program (1942-64)• Temporary contract laborTemporary contract labor• 50,000 farmworkers in 194550,000 farmworkers in 1945

Border Industrialization Program Border Industrialization Program (1965)(1965)• Tax breaks for maquiladoraTax breaks for maquiladora• 25% of Mexico’s GDP25% of Mexico’s GDP• 50% of manufacturerd exports50% of manufacturerd exports

NAFTANAFTA

Maquila-izing MexicoMaquila-izing Mexico Chasing investors (FDI)Chasing investors (FDI)

Carlos SalinasCarlos Salinas