Mexico has failed

[Louis Proyect <lnp3@xxxxxxxxx>]

At 07:37 AM 9/12/00 -0400, you wrote:
>"NAFTA accelerated a trend that started in 1982, when a financial crisis
>forced Mexico to open up its economy to domination by U.S. finance and
>industry.
>
>Since then, living standards have fallen as the country has shifted from
>protecting independent industry to become an adjunct of the U.S. economy.
>Maquiladoras are now spreading from the border region to southern Mexico,
>where wages are even lower."
>---------------------
>if available to support the above statements, i would like sources that show
>stats for yearly per capita income by quintile/decile for mexico and/or the
>maquiladora mexican states since the advent of NAFTA.
>
>thanks for your help.
>
>norm

Los Angeles Times, November 1, 1999, Monday, Home Edition

COMMENTARY

By ROBERTO BLUM, Roberto Blum is a professional associate with CIDAC, a
Mexico City, public policy think tank

MEXICO CITY: The North American Free Trade Agreement has been such a
success for Mexico--exports have grown from less than 6% of its gross
domestic product in the late 1980s to 30% in just 10 years--that President
Ernesto Zedillo has continued to deepen the export-led growth strategy. The
many economic groups that benefited from this strategy now form powerful
political blocs, which have pushed for the free-trade agreements Mexico has
signed or is negotiating with its southern neighbors and the European Union.

Though there are some political groups that claim that export-led growth
has not benefited the majority of Mexicans, almost everyone recognizes that
the 1994-95 crash would have been much worse and the recovery slower
without NAFTA. However, even the clear success of NAFTA has not weakened
the traditional reluctance of Mexico to strengthen its ties with the United
States. The U.S. is still considered the "dangerous giant of the North"
whose "every cold becomes pneumonia in Mexico." Thus the geopolitical
desire to establish free-trade agreements with other countries. Mexico's
long and traumatic history with the U.S. requires building checks and
balances to its enormous power. Mexico has finally resolved to work to
sustain economic growth and achieve social justice but, at the same time,
continue to build new bridges with other countries.

If the amount of wealth produced and the well-being of its people measure
national success, Mexico HAS FAILED. In 1910, the year that the Mexican
Revolution began, the per capita income of Mexicans was 27% of that of the
Americans. However, 120 years before, Mexicans were enjoying the equivalent
of 78% of U.S. per capita. Today, it has dropped to only 7%. Today, the
number of Mexicans living under the poverty line (46 million) is three
times that of the total population living in 1910.

The greatest part of the 19th century was catastrophic for Mexico.
International wars and domestic revolutions plagued the country until 1876,
when Porfirio Diaz became president of Mexico. Diaz was able to pacify the
nation and began a slow process of national reconstruction. He successfully
promoted economic growth through exports and foreign investment. However,
the newly created wealth was not distributed among the population. A few
families grew enormously wealthy while most Mexicans were barely able to
survive, but Diaz's greatest failure was not preparing the country for an
orderly process of succession.

This century has not been much better for Mexico. It has been able to
sustain economic growth only during 40-odd years in that time. Its per
capita income tripled in 100 years while that of other nations multiplied
by seven, eight or even 20 times. Income distribution did improve from the
late 1950s to the beginning of the crises of the 1980s, but since then it
has greatly deteriorated.


Louis Proyect

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