CMP 22/01

Economic Crisis and the PNR Formation

• The PNR (Partido Nacional Revolucionario) was created during a time of economic hardship for Mexico.

• The Great Depression impacted Mexico significantly, leading to severe economic challenges.

• Problems included dropping prices and a decrease in trade volume, affecting imports and exports severely.

Agricultural and Economic Issues

• Mexico faced a drought, leading to reduced food supply and agricultural productivity.

• Coffee was one of the few crops sustaining the economy, primarily produced in Veracruz.

• Economic strategies included looking inward to strengthen local markets rather than relying on foreign trade.

Migration and Employment Challenges

• Mexico had dependency issues with foreign investments, especially from the U.S.

• Many Mexican migrants in the U.S. sent remittances back home, which supported local communities.

• The Great Depression caused a reversal where migrants returned to Mexico, exacerbating unemployment.

• Population issues were prevalent, with a growing urban migration leading to uneven workforce distribution in rural areas.

Governmental Responses During the Great Depression

• To counteract the economic downturn, Mexico imposed tariffs and taxes on imports.

• This local focus aimed to protect domestic industries and foster national unity amid divisive historical conflicts.

• Vasconcelos emphasized building a national identity and unity in response to the post-revolutionary divisions.

• Despite attempts to empower Mexican industries, foreign companies continued to operate with less regulation, especially in the energy sector.

Banking and Monetary Policies

• The creation of the Bank of Mexico in 1925 established a monopoly on money supply regulation.

• This institution was tasked with managing credits and currency, stabilizing Mexico's economy amidst turmoil.

Leadership and Political Transitions

• Lázaro Cárdenas became a significant figure, symbolizing progressive reform and national identity in Mexico.

• The era known as "Maximato" refers to the period of political power held by Plutarco Elías Calles and his successors.

• Calles' presidency faced corruption and waning public support, leading to his eventual exile.

• Cárdenas implemented policies promoting land redistribution and support for agrarian reform.

Reforms and Educational Initiatives

• Cárdenas boosted education and recognized indigenous groups, promoting their integration into society.

• His presidency focused on establishing technical institutions to prepare skilled workers needed for modernization.

Nationalization of Oil and Energy Sector

• Tensions arose between the Mexican government and foreign oil companies over labor conditions.

• Cárdenas nationalized oil in 1938, leading to international backlash and boycotts from the U.S. and the UK.

• Mexico sought new markets for oil, including Germany, to mitigate losses from foreign embargoes.

Political Developments and New Parties

• The late 1930s saw the emergence of opposition parties, such as the "Bank" formed in 1939.

• Political dynamics shifted with changing leadership focused on granting rights and empowerment to workers, farmers, and Mexican nationals in the wake of foreign interests.