Mexico, 1940-76
Did the Revolution end in 1940?
What do you mean by Revolution? Social Security
instituted, a little, under Cárdenas. It has grown since. Other goals of the Revolution
were slowly implemented after 1940. The Partido Revolucionario Institucional (PRI) was
created in 1946 from the Partido de la Revolución Mexicana. The Revolution was supposedly
institutionalized. In fact, the PRI became the conservative force in Mexican politics
until the end of the century but convinced the Mexican public and many scholars (domestic
and foreign) that it was liberal or even leftist. The presidents since 1940 have been
good, grey Tom Deweys, administrators, not leaders. They have implemented benefits for the
people and democratic reforms only when they had to do so.
Political System Since 1940
Party concentrated in National Committee in Mexico City
(the Distrito Federal). The power of the President of Mexico is greater than the power of
the US president. Competition for the presidency can be fierce. Until late in the 20th
century, it was done behind closed doors. An incumbent president tried to discourage
futurism, the constant speculation as to who his successor would be. The decision began to
be made a year or such before election. The President announced the designated one, the
"El Tapado." The majority view is that politicians of the party and a good many
of the ex-presidents choose candidate. The minority view is that big business is involved.
The size of party has brought forth complaints. In 1965, Carlos Madrazo was appointed head
of the party. He made public statements that sympathized with idea of size too big and
that nominations should be made at local level. Seemed to argue that the party be
democratized. Those who had power refused to consider the idea. Madrazo died in an
airplane crash that year.
Mexico enjoyed considerable economic success. It had an
average 6% growth rate in its Gross National Product for 27 yrs, what is often called the
"Mexican Miracle." Both industry and agriculture grew but the agricultural
sector grew more in the export sector. By the 1970s, Mexico had to import some basic
foodstuffs. The governments have been sensible about diversifying exports. The tourist
trade brings hundreds of millions of dollars. No other country approaches Mexico. It has
brought a trade balance, i.e. makes up for the imbalance of imports over exports. Tourism
includes border transactions.
Great care was taken with fiscal transactions under the
leadership of Antonio Ortiz Mena, Secretary of Treasury from 1958 until 1970. He
approached finances conservatively and with great discipline. His successor, Hugo B.
Margaín, tried to follow similar policies but President Luis Echeverría fired him in
1973 and replaced him with his childhood friend, José López Portillo. Echeverría went
on a spending and borrowing spree. Although López Portillo was initially more cautious
when he became president in late 1976, he so mismanaged the economy that Mexico was
defaulting on its debt in 1982. In the 1940-54 period (WWII and the Korean War), Mexico
suffered high inflation but brought it under control. It was not until the oil price
revolution of 1973-74 and Echeverría's attempt to buy favor with a spending spree that
inflation again became a problem.
To protect the average person, the government used
selective price controls. CEIMSA, succeeded by CONASUPO, controlled the price of rice,
sugar, tortillas, and other basic foods by buying crops and selling them to processors at
a loss. CONASUPO developed subsidized retail stores, some on trucks, so that the poor
might have access to basic household goods. When discussing inequitable income
distribution, one has to remember that there is also imputed income.
The armed forces get only about 10% of national budget, a
measure of the ability to reduce power of military.
Business in Mexico worried a lot that government
autonomous organizations meant or will mean the end of private enterprise. This has not
been the case. The government used them as a yardstick and to do things that private
enterprise can't or won't do. The problem has been that there is no inherent economic
check on state enterprises; they grow because people want jobs and power and wealth. They
can easily be corrupted. Commercial activity has always been disparaged in Latin America.
It has been called exploitive. This cry became fainter in Mexico. There has been the
growth of department stores. There was considerable Mexicanization of ownership in stores,
mines, and others enterprises.
Public housing was confined to the big cities because
urban areas are more politically dangerous to a regime; it is more visible and, thus, more
helpful to prove the government is doing something.
The bureaucracy is much like the rest of Latin America.
More corrupt, less well-trained, and less efficient than in US. This is partly result of
problem of unemployment. Compartmentalization of bureaucracy is encouraged by President.
PRONAF (national frontier program) was begun in 1950,
promoted by Chambers of Commerce. Its purposes were to try to reduce the economic
dependence of the northern border on the US and integrate it into Mex economy, and to
clean up the northern border region. It has been very successful but has produced its own
problems as people have flocked to the northern border faster than the government can
build infrastructure.
The government made an effort to decentralize economy, especially industrial
activity. Have tried to move or start industry in areas other than the Distrito Federal
but without much success. The DF is the center of political and economic power with the
best transportation connections in the country.
