CMP 27/01

Political Context in Mexico (1929)

• Elections held in March 1929 to determine the successor to the presidency.

• Two main candidates contesting:

  • Emmanuel Avidaca Macho (candidate of PRM - Institutional Revolutionary Party)

  • A new party emerging that unites those opposing the government’s actions.

Influence of External Factors

• Significant foreign opposition, especially from the US and UK.

• US and UK interests in Mexican oil led to them trying to limit Mexico's oil sales, particularly selling to Germany.

Issues during Elections

• The electoral process was marked by high levels of violence and riots, indicating a tumultuous political climate.

• Suspicions of electoral fraud arose, further complicating the legitimacy of the elections.

Political Mechanisms

• Emergence of De Lazo, a key political mechanism in 20th-century Mexican politics, associated with power transitions.

• Lazaro Cardenas, leader known for progressive reforms, still aimed to control the transition of power to ensure stability.

Economic Stability and Growth

• Despite political turmoil, Mexico saw economic growth during Cardenas's administration.

• Stability lasted until the 1960s, known for significant economic prosperity.

Mexico's Involvement in the War

Mandatory Military Service

• Joining the military is mandatory in Mexico due to state policies, ensuring a ready reserve of troops. This system is designed to maintain national defense and allows for a swift mobilization of forces in times of conflict.

Limited Participation

• While Mexico is involved in the war, its participation is not as extensive as in other countries. This limited engagement is due in part to territorial defense priorities and domestic challenges.

Economic Impact and Focus on Local Production

• Supply Disruption: The war leads to a significant shortage of goods entering Mexico, as many are redirected to support allied countries. This scarcity poses challenges for both consumers and businesses reliant on imported products.

• Shift to Local Production: In response to supply shortages, both businesses and the government prioritize local production. This strategic shift not only helps to mitigate the impact of reduced imports but also fosters industrial growth, creating more jobs and increasing revenue for many Mexican companies. Industries such as textiles, food processing, and manufacturing see rapid expansion during this time.

• Protectionist Measures: To encourage local industry, Mexico imposes tariffs and taxes on foreign products. This makes imports less cost-effective, promoting a shift towards domestic manufacturing and stimulating economic activity within the country.

International Relations and Trade Agreements

• Improved US Relations: The war acts as a catalyst for better relations between the US and Latin American countries, including Mexico. Diplomatic ties strengthen as both nations recognize the strategic benefits of cooperation.

• Debt Reduction: Mexico significantly reduces its debt during this period, allowing for reinvestment in modernization and development projects that enhance the economy.

• Trade with the US: Despite the focus on local production, Mexico continues to export significant quantities of oil and food to the US, contributing to its war efforts. This trade relationship is mutually beneficial, providing the US with essential resources while supporting Mexico’s economy.

Migration and Labor Programs

• Bracero Program: To address severe labor shortages in the US, Mexico participates in the Bracero Program, allowing temporary migration of Mexican agricultural workers to the US. This program creates a legal pathway for workers and provides support to US farms during critical labor shortages.

• Technical Assistance: The relationship between the US and Mexico improves as the US offers technical assistance and expertise to Mexican industries. This support particularly benefits the energy and oil sectors, facilitating advancements and enhancing productivity.

State-Owned Institutions and Public Spending

• Institutional Development: The Mexican government establishes significant institutions like IMSS (Mexican Social Security Institute) and CFE (Federal Electricity Commission) to build a welfare state that aims to provide social security and essential services to its citizens.

• Investment in Services: Efforts are focused on improving healthcare, energy, and agricultural sectors by creating state-owned entities. This proactive approach is in line with John Maynard Keynes' economic theories, promoting government spending to stimulate economic growth and prosperity.

Economic Growth and Infrastructure Development

• Population Growth: Mexico experiences significant population growth attributed to improved healthcare initiatives. Enhanced maternal and infant health outcomes lead to a remarkable increase in the birth rate from 1.72 to 3.28 over approximately 40 years, fueling population dynamics.

• Construction Projects: The introduction of various infrastructure projects, including extensive road networks and a metro system in Mexico City, markedly improves urban mobility, connectivity, and economic opportunities in urban areas.

Challenges with Labor and Union Dynamics

• Urban Migration: As rural populations migrate to urban centers, the government faces challenges in managing food supply in cities. This necessitates the establishment of agencies aimed at stabilizing food prices and ensuring an adequate supply level for the growing urban population.

• Control of Labor Unions: The government intervenes in union activities, creating a controlled structure where unions become allies of the ruling political party. This suppression of grassroots movements discourages protests and maintains political stability during a transformative period.

Conclusion

• Consolidation of Power: The era witnesses a consolidation of state power in economic matters, with a strong emphasis on industrialization, labor productivity, and infrastructure development.

• Enduring Implications: The policies and institutions established during this time set the stage for long-term economic strategies in Mexico, influencing future developments and shaping the national identity.