The economic problem, which was far from obvious, was that import substitution had concentrated income in the upper 10 per cent of the population, so that domestic demand had begun to stagnate.
This is by no means an exhaustive list of the candidates for poor economic performance. For the moment, let us look at the period leading up towhen the French withdrew from Mexico. Until the late s, foreign borrowing was considered inconsequential, even if there was some concern on the horizon that it was starting to rise.
While none of this is likely to cease, it is nevertheless the case that there has been a large increase in the volume of trade between the NAFTA partners.
By and large, the figure from through is around 23 percent, which is certainly higher than rates achieved during the nineteenth century, but nothing like what was recorded after By the time he had decamped in exile to Paris, precious metals accounted for less than half of all exports.
This may well have represented a reversal of trends in the nineteenth century, when some argue that property income contracted in the wake of the Insurgency . We have no idea how important this phenomenon was, but it is worth keeping in mind when we look at very rapid growth rates after Population growth in the Southern and Eastern parts of the country had been relatively slow in the nineteenth century.
But precisely the opposite occurred. The Mexican Revolution was no Bolshevik movement of course, it predated Bolshevism by seven years but it was not a purely bourgeois constitutional movement either, although it did contain substantial elements of both.
Admittedly, looking for modern economic growth in Mexico in the eighteenth century is an anachronism, although there is at least anecdotal evidence of technological change in silver mining, especially in the use of gunpowder for blasting and excavating, and of some productivity increase in silver mining.
Mexican silver accounted for well over three-quarters of exports by value into the nineteenth century as well.
This may or may not be accurate. The answer, unfortunately, was disastrous. Adams, Prehistoric Mesoamerica 3d ed. For the next sixty years, through a serpentine history of moratoria, restructuring and repudiationit took until for the government to regain access to international capital markets, at what cost can only be imagined.
Within six months, Mexico, too, had fallen into recession. They affected and alienated everyone, from the wealthiest merchant to the humblest villager. University of California Press,p. Real per capita output oscillated, sometimes sharply, around an underlying growth rate of perhaps one percent; changes in the distribution of income and wealth are more or less impossible to identify consistently, because studies conflict.
Since so much silver specie was carried, the system made sense, even if the flotas made a tempting target and the problem of contraband was immense. Most scholars shy away from using levels of GDP in any form, other than for illustrative purposes.
Their beginnings actually went back several decades earlier, to the last presidency of Santa Anna, generally known as the Dictatorship The Revolution increased labor mobility and the labor supply by abolishing constraints on the rural population such as debt peonage and even outright slavery.
Mexico and California Berkeley, CA: While only the French actively prosecuted the war within Mexico, and while they never controlled more than a very small part of the country, the disruption was substantial. If they did nothing else, the Bourbons proved to be expert tax collectors. The instability that existed was seen as a consequence of heavy-handedness on the part of the PRI and overreaction in the security forces.
From a macroeconomic standpoint, it has become fashionable to argue that the Revolution had few, if any, profound economic consequences. The choice of a cause tends to reflect the ideology of the critic.
The leaders of these organizations became important political figures in their own right. Melville, A Plague of Sheep: Initially at least, public sector borrowing could support a variety of consumption subsidies to the population, and there were also efforts to transfer resources out of agriculture via domestic prices for staples such as maize.
In the Iberian Peninsula, income from American silver mines ultimately supported not only a class of merchant entrepreneurs in the large port cities, but virtually the core of the Spanish political nation, including monarchs, royal officials, churchmen, the military and more.
This was a powerful consideration. What is clear is that the total internal plus external indebtedness of Mexico relative to late colonial GDP was somewhere in the range of 47 to 56 percent.
In an effort to surmount the crisis, the government implemented an agreement between organized labor, the private sector, and agricultural producers called the Economic Solidarity Pact PSE.
But for the Europeans, Mexico was largely about silver mining. Mining centers tended to crowd out growth elsewhere because the rate of return for successful mines exceeded what could be gotten in commerce, agriculture and manufacturing.
There are various measures of cumulative growth during the Porfiriato. Between andnominal federal spending doubled. Both economic theory and the experience of economies that tried this prescription demonstrated that it lacked validity.
After its current return to a relatively austere budget, it remains to be seen how the economic and political system in contemporary Mexico handles slow economic growth.The Economic History of Mexico.
The Economic History of Mexico. Richard Salvucci, Trinity University Preface. This article is a brief interpretive survey of some of the major features of the economic history of Mexico from pre-conquest to the present.
The Economic History of Mexico. The Economic History of Mexico. Richard Salvucci, Trinity University Preface. This article is a brief interpretive survey of some of the major features of the economic history of Mexico from pre-conquest to the present.Download