History quiz two
what was cárdenas' land reform?
In the 1920's, land reforms has proceeded slowly. Government leaders had seen land reforms as an issue increasing the productivity and modernization of agriculture. Cárdenas land reform became an issue of justice. many large farms were broken up and approximately 50 million acres of land was given to peasants, to create ejidos.
Tlatelolco Massacre
government massacre of student and civilian protesters and bystanders that took place on October 2, 1968, in the Plaza de las Tres Culturas in the Tlatelolco secsion of Mexico city. It occurring 10 days before the 1968 summer Olympics in Mexico City.
What are the two main pillars of neoliberalism?
1) to reduce and recast the economic role of the state. this was to be done through continued cuts in public spending and through a program of privatization of state-owned companies. 2) Commercial liberalization and "opening up" of the economy. This was most dramatically demonstrated by Mexico's accession to the GATT which meant a long-term commitment to the reduction of barriers to imports from abroad.
What were four goals in the underlying political rationale of the US?
1)To ease the social pressure and sustain the political regime in Mexico by creating economic growth. 2) Increase access to Mexico's petroleum 3) Could gain an important bargaining chip with other countries 4) Gain diplomatic support from Mexico (specifically on foreign policies)
affects of the revolution on Mexico.
1.5-2 million Mexicans died during the war, mainly because of disease and famine.Much of Mexicos infrastructure had been damaged in the fighting and the economy needed serious attention.
What is NAFTA?
North American Free Trade Agreement. Creation of a three nation partnership
Why is this period of economic boom from 1940-80 viewed as the end of the Mexican Revolution?
As much of the population grew poorer, many believed that the government had betrayed the revolutions social reforms. After Cárdenas, the government largely abandoned the reforms of the revolution. The middle class beneficiaries of economic growth, grew larger and wealthier and become more conservative.
What was the goal of reducing tariffs and Subsidies?
Both tariffs and subsidies raise the price of foreign goods relative to domestic goods, which reduces imports. Barriers to trade are often called "protection" because their stated purpose is to shield or advance particular industries or segments of an economy.
Plutarco Elias Calles
Calles was president from 1924-1928 but exercised a great deal of control over the Mexican presidency until 1935. He also created the PRN in 1929 to bring stability and control to Mexican politics.
Nationalization
Changing something from private to state ownership or control
How did Mexico's economy change in the 1970's?
Foreign demand for Mexico's exports declined and the government owed a huge foreign dept.
How did the Great Depression affect Mexico?
Foreign demands for Mexican goods and oil plummeted, hurting nearly every sector of the Mexican economy.
How did the government restructure the economy?
Foreign investment in Mexico continued to grow and Mexico became even more dependent of trade with the United States. This was a dangerous position for the Mexican economy, as became clear during the Great Depression in 1930.
ISI
Import Substitution Industrialization, an industrialization plan that involved the creation of new factories to manufacture goods that Mexico had typically imported before, which used many of the agricultural goods and raw materials the country had previously exported
How much did Mexico's economy grow between 1940 and 1960?
It grew at an average annual rate of 6%. During this time Mexico's population grew from about 20 to 70 million people, urbanization transformed Mexico's rural society and by 1980, more than twice as many people lived in cities than in rural areas.
how did the second world war affect Mexico?
It initiated a longs stretch of economic growth in Mexico. The United States and its allies needed food and raw materials so demand for Mexico's exports boomed. Their domestic industries, producing many of the country's former imports, flourished under the ISI strategy.
what happened to Mexico's oil industry in the 1920's?
It was the third largest oil producer in the world but foreign companies dominated the industries. in 1938 workers organized a series of strikes against British and US oil companies. When these companies refused to increase worker compensation Cardenas seized the property and nationalized the industry, bringing it under state control.
How did these changes impact the Mexican economy by 1985?
President de la Madrid dutifully followed the IMF prescription, but at the cost of including a deep recession. By 1985 real wages had fallen by 40%, living standards fell even further as subsidies for such staples as corn tortillas were ended.
1980s oil glut
Mexicans discovered new reserves of oil and gas and by 1981, Mexico was the fourth largest producer of oil in the world; at the same time, international oil prices skyrocketed and the country was suddenly flush with cash
Discovery of oil reserves
Mexico discovered new reserves of oil and gas in the early 1980s
Explain the massive financial crisis Mexico experienced in 1982. Why were US, European, and Japanese banks involved?
Mexico had run out of dollars with which to make payments on its foreign debt ($80 billion) Washington, New York, Frankfurt, and London were panicked because they thought other Latin American countries might declare a de facto default. In this case U.S, European, and Japanese banks would face huge losses, posing a formidable threat to world financial markets.
What changes was Mexico forced to make to its economic policies?
Mexico had to adopt an IMF-approved austerity plan. The goal was to reduce the inflationary public deficit, which was at a dangerously high 15 percent of the GDP. This meant phasing out government subsidies on food and public utilities. They also had to reduce their tariff barriers, thereby stimulating greater industrial efficiency and thus greater competitiveness in world export markets.
What was the US hoping to create through access to low-wage Mexican labor?
Mexico was hoping to attract sizable flows of direct foreign investment (from US, JapanJapan, and Europe). The US was hoping to get low-wage Mexican labor to improve export for manufactured goods and to be more competitive in the global economy.
What were four goals in the underlying political rationale of Mexico?
Mexicon wanted to attract investment and stimulate employment, provide meaning opportunity for the 1 million persons entering the job market every year. Nafta offered Salinas an opportunity to institutionalize his economic reforms, Mexico was seeking international benediction for its not-quite-democratic political regime. Finally, Mexico believed NAFTA would provide the country with diplomatic leverage vis-á-vis the rest of Latin America and the third world as a whole.
who were the authors of the constitution?
Mostly teachers, lawyers and bureaucrats, engineers and other members of the middle class. They were determined to wrest power away from large landowners, foreign businessmen, and the church.
Did NAFTA achieve its economic goal? How so?
NAFTA did appear to achieve its economic goal of expanding commerce. The two-way trade between Mexico and the US climbed from $83 billion to more than $200 billion by 2000, and Mexico became the second-largest trading partner with the US (after Canada)
what was the PRN changed to?
PRI or Party of the Institutionalized Revolution, effectively controlled Mexican politics and the presidency for the remainder of the twentieth century.
who were the two main political figures during this era?
Plutarco Elias Calles and Lázaro Cárdenas.
What were some of the pro- and anti-NAFTA arguments that came out during the 1992 US Presidential campaign?
Ross Perot led the charge against the treaty, claiming that NAFTA would entice businesses to seek low-wag Mexican labor and thus lose jobs for millions of American workers.
Neoliberalism
based upon "reducing and recasting" the role of the government and liberalization ("opening" the economy)
economic changes during Cardenas' Presidency
The constitution had given the government the right to nationalize, or take control of, foreign owned mining and petroleum industries. In practice, little had been done to change foreign ownership.
what happened to Mexico's economy in the 60's?
The economy slowed as a foreign demand for agricultural goods declined. Urban middle class dissatisfaction grew as the cities were strained by even more peasant migration. Many believed the government official were corrupt, getting richer as everybody else got poorer.
In 1982, when oil prices dropped, what happened to the Mexican economy?
The government had thought they would be able to pay back their debt as the oil prices rose. But in 1982 oil prices decreased sharply and the Mexican economy, losing its main source of revenue crashed. At the same time, due to a world wide recession, international demand for Mexican exports declined. *eventually became bankrupt.
How did Mexico get itself into the debt crisis of the 1980s?
The price of Mexico's prime export (oil) had nosedived, interest rates had sky rocketed, and the rich Mexicans had transferred billions of dollars out of the country.
what did the constitution protect and give?
The rights of workers to form unions and strike with the government as a mediator between owners and laborers. It also granted rural communities the right to claim land, and gave the Mexican government control over Mexico's mineral and petroleum resources.
What resource did NAFTA not allow to flow freely across the border?
The treaty made no reference at all to the large-scale migration of labor.
What also happened in 1985 in Mexico?
There was massive earthquake in Mexico City that compounded the economic disaster. A 1985-86 drop in oil prices depressed export earnings, further weakening the economy.
What did Mexico do under ISI?
They built new factories to manufacture goods that Mexico had typically imported before. These factories also used many agricultural goods and raw materials the country had typically imported before.
The IMF, US gov, and commercial banks did what for Mexico
They rushed a "rescue" loan package to Mexico. These loans enabled Mexico to continue paying interest but did not allow for amortization
How did the government try to reverse their debt?
They tried to limit their foreign imports. However, later in the 70's Mexico found new oil reserves and became the fourth largest producer of oil in the world.
who organized strikes against the government?
Urban workers. during this support grew for zapata as he criticized the government for not implementing land reform. Carranza's popularity declined even more when he organized the murder of zapata. many viewed Zapata as a martyr and Carranza as a traitor in the revolution
Austerity plan
banned government subsidies on food or utilities and saw the reduction of tariffs and other trade barriers; resulted in a decrease in living standards
Debt crisis
a period of economic catastrophe that Mexico faced in 1982 due to the fact that they were $80 million dollars in debt with its primary sources of revenue being sold at drastically reduced prices
Subsidies
a sum of money granted by the government or a public body to assist an industry or business so that the price of a commodity or service may remain low or competitive
Tariff
a tax or duty to be paid on a particular class of imports or exports
Tariffs
a tax to be paid on a particular class of imports (or exports)
North American Free Trade Agreement (NAFTA)
a three nation partnership between Mexico, Canda, and the US that aimed to create a new market for US goods, stimulate economic growth in Mexico, lower prices on goods, and encourage foreign investment in Mexico
GATT (General Agreement on Tariffs and Trade)
an international trade treaty designed to encourage worldwide trade among its members
Foreign debt
an outstanding loan or set of loans that one country owes to another country or institutions within that country
How did the revolution change Mexican society?
created a strong sense of nationalism, and national identity for most Mexicans. Many viewed the revolution not only as a driving force for economic and political changes, but also as a cultural revolution. The point of the revolution was to "mexicanize" the population and also them to take pride in their traditions.
What happened to Mexico's foreign debt from 1976 to 1982?
despite earning a lot of money from the oil and gas industries, they still had to borrow even more money to finance all of its expenses. From 1976-1982, their foreign debt nearly tripled and Mexico became one of the most heavily in debt countries in the world.
How did ww2 affect Mexico?
economic and social changes created a great deal of inequality in Mexican society. Economic growth did not translate into a higher standards of living for most of Mexico's population. The government limited its funding for ejidos and many peasants again lost their land. many left to find jobs in the city, but the city didn't have enough jobs, leaving many unemployed.
Tlatelolco Massacre
following government violence and the jailing of many student leaders, a protest was organized in the Tlatelolco plaza in 1968, during which police opened fire and killed as many as 400
Cardenas' land reform program (1930s)
following trends of slow, reluctant land reform in the 1920s, the Cardenas program saw the redistribution of 12% of Mexico's land, ending more than four hundred years of concentrated landholding
What is free trade and how does it differ from previous Mexican economic policies (e.g. those of Cardenas)?
free trade means that you can buy goods from Mexico to the US without tariffs
The International Monetary Fund (IMF)
gave a "rescue loan" to Mexico in 1982 that allowed Mexico to continue paying interest; loan came at the price of agreeing to an austerity plan
1973 Oil Crisis
in 1982, oil prices decreased sharply and the Mexican economy, losing its main source of revenue, crashed; this impacted the Mexican government because not only did they have massive foreign debt, but governments started demanding payback because the recession was worldwide
what was significant about the constitution of 1917?
is established an active central government committed to promoting the well-being of Mexican citizens. This reversed previous ideas that the government should have a limited role in the lives of ordinary people
What impact did the debt crisis and economic stagnation have on Mexican society?
it intensified social inequality and popular pressures. investment plummeted, unemployment increased, and per capita income declined by more than 9% during the 1980s.
How did NAFTA signal a shift in policy?
it rejected the protectionist strategies of keeping a suspicious distance from the "Colossus of the North"
What was the Simpson-Rodino Act of 1986? Did it have its intended impact?
laid down tough penalties for employers who hired "undocumented aliens" The prospect of its implementation sent shudders through northern and central Mexico, whose younger generations had long seen jobs in the US as their main hope for a decent life.The law only had a minimal impact on actual migration flows
What happened when Cardenas left power in 1940?
many of his programs ended. land reforms in particular was largely abandoned. Leaders decided to focus instead of industrialization and economic growth.
Subsidies
money government pays an industry or a company to keep the price of something low
IMF (International Monetary Fund)
organization which gives loans to poor countries
what class struggled post ww2?
peasants. Most wanted to preserve what they had rather than change the system to benefit the poor. the middle class was powerful force in the PRI, which still retained control of the government. During this time the government increasingly repressed peasant and worker discontent and jailed anyone engaged in activities considered threatening to society.
Lazaro Cardenas
president from 1934 to 1940 who opened PRI membership up to workers, unions, and peasants
why did fighting continue after the constitution?
some people felt that the constitution was too progressive ir not progressive enough. others became frustrated with Carranza for failing to institute the constitution's reforms fast enough.
Economic boom (1940-1970)
the flourishing of Mexico's economy under the ISI strategy and focus on domestic growth (which was especially beneficial as other countries were struggling during WWII)
how did education change?
the government built thousands of new schools, particularly in remote rural regions. these schools opened their doors to rich and poor alike, girls as well as boys
What did the government do with all the money they earned from the new oil reserves?
they began spending it on social projects, increasing public employment, and creating social welfare programs. This economic boom boosted the public's confidence and renewed support for the PRI.
PRN/PRI
was a political party that united the hundreds of political movements that had arisen during the revolution. It made itself the the symbol of Mexico's revolutionary reforms, using images and slogans from the revolution to gain public support.
Lázaro Cárdenas
was president from 1934-1940, opened party membership up to workers, unions, and peasants. By 1940, the party had expanded to control nearly all potential opposition.
