GO 357 GO 357 The Political The Political Economy of Economy of Regionalism Regionalism Walter Hatch Walter Hatch Colby College Colby College Mexico in NAFTA Mexico in NAFTA
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GO 357GO 357The Political Economy of The Political Economy of
RegionalismRegionalism
Walter HatchWalter Hatch
Colby CollegeColby College
Mexico in NAFTAMexico in NAFTA
MEXICOMEXICO
What’s happening in USA What’s happening in USA backyard?backyard?
The Latin Left TurnThe Latin Left Turn
BrazilBrazil• Luiz Inácio Lula da Silva (2003)Luiz Inácio Lula da Silva (2003)
ArgentinaArgentina• Néstor Kirchner (2003)Néstor Kirchner (2003)
UruguayUruguay• Tabaré Vázquez (2005)Tabaré Vázquez (2005)
BoliviaBolivia• Evo Morales (2006)Evo Morales (2006)
ChileChile• Michelle Bachelet (2006)Michelle Bachelet (2006)
Two ExceptionsTwo Exceptions
Colombia (Uribe)Colombia (Uribe) Mexico (Calderon)Mexico (Calderon)
Presidential Election CrisisPresidential Election Crisis
Mexico City, July 2006
Obrador
Calderon
Chiapas CrisisChiapas Crisis
Oaxaca CrisisOaxaca Crisis
Mexico: Some BackgroundMexico: Some Background
Independence from Spain in 1821Independence from Spain in 1821 War with US (1846-48)War with US (1846-48) Revolution (1910-21)Revolution (1910-21) PRI (1929)PRI (1929)
• Cardena (1934)Cardena (1934)• Pemex (1938)Pemex (1938)• El Milagro MexicanoEl Milagro Mexicano
Economic CrisesEconomic Crises
1968, 1976, 1982, 19941968, 1976, 1982, 1994 BOP deficitBOP deficit Peso collapsePeso collapse Multilateral bailoutMultilateral bailout Weak investor confidenceWeak investor confidence
US-Mexico Economic TiesUS-Mexico Economic Ties
Bracero program (1942-64)Bracero program (1942-64)• Temporary contract laborTemporary contract labor• 50,000 farmworkers in 194550,000 farmworkers in 1945
Border Industrialization Program Border Industrialization Program (1965)(1965)• Tax breaks for maquiladoraTax breaks for maquiladora• 25% of Mexico’s GDP25% of Mexico’s GDP• 50% of manufacturerd exports50% of manufacturerd exports
NAFTANAFTA
Maquila-izing MexicoMaquila-izing Mexico Chasing investors (FDI)Chasing investors (FDI)
Carlos SalinasCarlos Salinas
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