Mexico Political and Economic Change

Sara Shonkwiler

Colonial Rule Under Spain (1519-1821)● Racial class system created status

differences between natives and the Spanish

● Authoritarian rule under Spanish Government: viceroy ruled Mexico as the personal representative of the King of Spain

● Mercantilist system: controlled by Spain and served Spanish interests, had a great wealth of natural resources

Miguel Hidalgo -- Rebellion 1810-1821● Rebellion against Spain 1810● At first supported by liberals, but

eventually gets out of control ● Rebellion crushed -- Hidalgo executed● Eleven years later (1821) Mexico gains

independence from Spain● New country lacks stability with 36

presidents serving in just 20 years

Problem Immediately Following Independence● Instability: Low legitimacy because the new

government did not have the power or control of the monarchy

● Control of Military: Instability allowed military commanders (like General and President Santa Anna) to exercise control

● Domination: Mexican American War, Gadsden Purchase, Treaty of Guadalupe Hidalgo -- Mexicans lose large amounts of land to United States

● Military and Liberals clashed over how to run new country

Mexican American War 1846 - 1848● United States realizes that Mexico

lacks strong governmental control● United States in a period of

expansionism and pushes south of the Texas border

● Mexico loses Texas, New Mexico, Arizona, California, Utah and some of Colorado (Treaty of Guadalupe Hidalgo)

Constitution of 1857● Democratic principles● Brings liberal president, Benito Juarez,

to power● Juarez popular with ordinary citizens

and elite because of his military background

Maximilian (1864-1867)● Take over by European powers (mainly

French)● Maximilian put in authoritarian

command of Mexico● Executed three years later and Juarez

comes to back to power, but Mexico continues to lack stability

“The Porfiriato” (1876-1911)● Military coup by Porfirio Diaz● Political stability under his

authoritarian government● Economic growth and increased

foreign investment● As country begins to develop the gap

between the rich and poor grows (most Mexicans still poor)

Mexican Revolution

● Political instability

● Diaz ousted by elites who were bothered by his greed

● Patron-client system: during the rebellion popular political/military strongmen (such as Emiliano Zapata and Pancho Villa) formed patron-client systems

● Constitution of 1917: structure of democratic government, three branches, competitive elections

● Following Constitution violence continued with political assassination into the 1920s

Separation of Church and State

● Cristeros Rebellion: rebellion led by priests against federal regulation of church-affiliated school and church services

● Liberals thought churches were conservative

● Priests not allowed to vote● Federal restrictions of church-

affiliated schools● Suspended religious services

Partido Revolucionario Institucional (PRI)● Brought Caudillos under one big

political party in 1929● Stability, brought conflicting leaders

together● Pass around the presidency after each

sexenio (six-year term)● Other leaders given influential

governmental positions

Partido Revolucionario Institucional (PRI)● Mexicanization: glorified Mexican

history and culture instead of trying to imitate Europeans or North Americans

● One-party rule: not illegal for other parties to run, but never significant opposition

● State and party were essentially merged and the president was extremely powerful

Cardenas Upheaval (1934-1940)

● Lazaro Cardenas second PRI president● Listened to peasants● Political Changes:

○ Redistributed land: large landowners and foreigners lost land, put into ejidos (small collective farms) for peasants

○ Nationalization: PEMEX created, got rid of big foreign business owners, state control of many industries

Cardenas Upheaval (1934-1940)

○ Public works: Government built roads, provided electricity and public services

○ Union Organizations: Cardenas encouraged the development of peasant and union organizations with leaders in the president’s cabinet

○ Power of Presidency: President became more powerful and stable, he let go of power at the end of sexenio allowing for peaceful transition of power

Import Substitution Industrialization● High protective tariffs: makes local

goods cheaper than foreign made goods

● Government nationalized important industries: individuals had relatively little money so government promoted industrialization

● Government subsidized certain industries

State Corporatism● Under Cardenas the government

remained state corporatist

● The president determined who represented different groups to the government

Miguel Aleman● Conservative● Encouraged entrepreneurship and

foreign investment● Following him was a socialist Cardenas

like president● Pendulum Theory: Mexican government

shifted from socialist reforms to free-market economic development depending on the times

1968 Olympics● Student protests about lavish

expenditures on the olympics● Mexican Army fired on peaceful

protestors, killing around 400● Regime pushed too far● Students of that generation wanted

reforms to authoritarian government

Tecnicos (1970s)● Educated, business leaders take

control of government

● Moderate, free-market politics

1985 Earthquake● Government responded inadequately● “Self-help” organizations set up in

Mexico City to help the poor

● Organizations created base for leftist party, PRD

Neoliberalism (1980s)● Free markets● Balanced Budgets● Privatization● Free Trade● Limited Government Intervention in

the Economy

Early 1990s - PRI Loses Dominance● Cuauhtemoc Cardenas challenges PRI

candidate Carlos Salinas in presidential election

● Salinas wins in supposedly fraudulent election and has little public support in office

● PRI loses several gubernatorial elections

1990 - Creation of IFE● Instituto Federal Electoral (IFE):

responsible for organizing and overseeing federal elections in Mexico

● Public, autonomous, independent agency

● What IFE does:○ Prepare, organize, conduct and watch federal

elections○ Revision and adjustment of electoral geography○ Maintains the rights of parties and political groups○ Creates civic educational programs

1990 - Creation of TRIFE● Tribunal Federal Electoral (TRIFE):

The Electoral Tribunal oversees all rulings by electoral authorities, the Constitution, and the laws that come from the Constitution

TRIFE Responsibilities○ Dissents against results for national election○ Appeals against the rulings/acts of the

federal electoral authority○ Trials of electoral review that could be

significant○ Trials for citizens’ electoral rights○ Can order no electoral laws that violate

Mexican Constitution

1994 - NAFTA ● North American Free Trade

Agreement● Trade agreement between United

States Canada and Mexico● Salinas, the Mexican President,

proposed NAFTA● Mexico gains: access to U.S. markets,

stability in economy, and ensures Salinas’ neoliberal reforms are kept

1994 - NAFTA (continued)● NAFTA included:

○ Requirement that countries reduce their tariffs

○ Rules of Origin: stopped foreign countries from investing in Mexico just to export tax-free to the U.S.

○ Ways to resolve disputes between countries○ Protection for foreign investors

1994 - Effects of NAFTA● Trade between the United States and

Mexico dramatically increases● Since NAFTA, Mexico’s exports have

become more varied and are now less dependent on oil

● Mexico depends more on the United States

● Mexico’s biggest export -- immigrants not included in agreement

1994 - Chiapas Uprising ● Indian peasants who rose up immediately

following the signing of NAFTA● Chiapas extremely poor● NAFTA makes it harder for them to compete● Zapatista National Liberation Army --

organized the uprising● Chiapas were afraid that cheap American

corn would replace their agriculture economy which lacked the technology of American imports

1994 - Colosio Assassinated● Colosio: PRI presidential candidate● Supported by PRI political machine● Rumor that foreign minister Camacho

would run for president - previous president Salino said that Colosio was the PRI candidate

● Camacho was dealing with Chiapas uprising eventually stated he would not run

● Colosio was assassinated

1994 - Peso Collapses● Salinas stimulated economy in the

short run, but caused long run instability

● Investors cautious to invest in Chiapas area with uprising occurring

● Increased spending● Hyperinflation (1985-1993)● Debt loads● Low oil prices

Short run factors in Peso Crisis?● Chiapas uprising and Colosio assassination

made investors more cautious● Fixed exchange rate system: reacting to

investors caution accepted pesos and gave back dollars, but had limited supply of dollars → forced government to devalue the peso

● Government tried to roll over debt, but investors unwilling to buy it

1994 - Zedillo Wins Presidency● After Colosio assassinated there are

few choices left for president● Cabinet members excluded because of

rule that presidential candidate cannot have held public office for the six months leading up to their offices

● Zedillo, the former Educational minister, is picked by Salino

Zedillo Presidency● Last PRI President● Colosio’s campaign manager → became

president after Colosio was assassinated● Zedillo continued many of Salino’s

(former president’s) policies● He tried to restore public confidence

(which was shattered by Salino’s fraudulent election and several scandals during his administration)

Sources● http://www.marxists.org/history/etol/newspape/socialistvoice/ChiapasPR47.html● http://www.ustr.gov/trade-agreements/free-trade-agreements/north-american-free-trade-agreeme

nt-nafta● http://articles.latimes.com/2012/jun/17/world/la-fg-mexico-colosio-film-20120617● https://www.frbatlanta.org/.../J_whi811.pd..● http://www.nytimes.com/1994/12/29/world/a-year-to-forget-1994-leaves-mexico-reeling.html● http://www.pbs.org/itvs/storm-that-swept-mexico/the-revolution/faces-revolution/lazaro-cardenas/● http://www.pbs.org/itvs/storm-that-swept-mexico/the-revolution/faces-revolution/emiliano-zapata/● http://www.pbs.org/itvs/storm-that-swept-mexico/the-revolution/faces-revolution/porfirio-diaz/● http://www.britannica.com/EBchecked/topic/289313/Institutional-Revolutionary-Party-PRI● http://www.nndb.com/people/816/000095531/● http://www.history.com/topics/mexican-american-war● http://www.britannica.com/EBchecked/topic/181196/Constitution-of-1857● http://www.heritage-history.com/?c=read&author=noll&book=mexico&story=juarez● http://www.britannica.com/EBchecked/topic/370459/Maximilian● http://www.history.com/this-day-in-history/emperor-of-mexico-executed● http://mexicanhistory.org/Diaz.htm● http://www.biography.com/people/porfirio-d%C3%ADaz-40907● http://edsitement.neh.gov/feature/mexican-revolution-november-20th-1910● http://online.wsj.com/news/articles/SB10001424052748703740704575095704065365166● http://www.britannica.com/EBchecked/topic/656219/Ernesto-Zedillo● http://www.ife.org.mx/portal/site/ifev2/Internacional_English/

What happened in 1994? and how has Mexico changed since then?● List major events in Mexico in 1994

(split into economic and political change)

● How has Mexico changed as a result of these major events?