1. Caroline Morelock Grant Harris Ryan Campbell

2. Between 1940 and 1960 economic prosperity in Mexico was booming. This period was know as “The Mexican Miracle” By the early 1970s things started going downhill By 1987, Mexico’s debt was over $107 billion, making it one of the most indebted countries in the world. Economic Reform

3.  Between 1940 and 1960 Mexico’s economy grew as a whole by more than 6% a year  During this time industrial production and manufacturing both rose, however agriculture production dropped.  All this growth occurred without much inflation, unlike other Latin American economies at that time

4.  A growing gap between the rich and the poor from such rapid economic growth  From 1940-1980 Mexico’s income distribution was among one of the most unequal of all LCDs  The bottom 40% of the total population only earned 11% of wages  Rapid and unplanned urbanization led to many of Mexico’s major cities to become “urban nightmares”  Millions of people lived in shantytowns  Traffic was among the worst in the world  Pollution from all of the cars and factories made Mexico City’s air unsafe to breathe

6.  Mexico’s rapid economic growth was largely due to their oil  When the price of oil dropped in 1982, Mexico’s economic prosperity went down too  By 1987, Mexico’s debt was over $107 billion, making it one of the most indebted countries in the world.

7.  President Miguel de la Madrid began a reform program in Mexico when he came into office in 1982  The program was continued by later presidents Salinas and Zedillo.  It was one of the most dramatic economic turnarounds in modern history

8.  Sharp cuts in government spending  Thousands of jobs were cut, subsidies to government agencies were cut, and hundreds of public enterprises were eliminated  The US agreed to reduce interest rates on loans and allowed longer terms for them to be repaid.  However, Mexico still pays around $10 billion a year on interest payments  The government privatized many public enterprises, especially those costing public money

9.  Today, Mexico’s economy is not nearly as dependant on oil production  Income inequality, urban planning and pollution are still big problems  In 2004 the economy grew by 4.1%, but about 40% of the population is still below the poverty line

10.  Since the mid-1980s Mexico has entered trade agreements and organizations to globalize its economy and to get out of debt  GATT/WTO- General Agreement on Tariffs and Trade/ World Trade Organization  NAFTA- North American Free Trade Agreement ▪ The Zapatistas, an ethnic group in Mexico, protested the signing of the NAFTA treaty

11.  Mexico’s foreign policy is concerned with the US more than any other country  The Maquiladora District  Lining the boarder between Mexico and the US this is a manufacturing zone that accounts for over 20% of Mexico’s industrial labor.  The US also uses this zone for their industry and have been criticized for not abiding by employment or environmental regulations

12.  Immigration policies  President Vincent Fox really wanted to reduce tension between the US and Mexico concerning immigration and pushed for an immigration initiative that had a guest worker program  US President George W Bush was in favor of Fox’s plan, but after the 9/11 attacks the plan fell through due to security risks.  In 2006 President Bush signed a bill allowing 700 miles of fencing to be put up on the boarder. ▪ Current President Felipe Calderón strongly disagreed with the idea of a fence

13.  Drug trafficking has been a major problem between Mexico and the US  The drug trade led to much of the corruption that is seen in Mexico today  Felipe Calderón has really been committed to the war on drugs during his presidency  The US has stepped in by sending in members of the CIA and helped track down prominent drug traffickers

15.  Factions are called Camarillas  Based on personal ties of trust  They determine who rises through the political ranks of the political system  Members are from diverse political, professional, ideological, and criminal backgrounds

16.  One of the most important indications of democracy in Mexico is the development of clean, competitive elections  The IFE (Instituto Federal Electoral)- regulatory body to safeguard honest elections  Election reforms from the IFE include:  Campaign finance restrictions  Critical media coverage  International watch teams  Election monitoring by opposition party members

17.  Since the 1940s Mexico’s standard of living has greatly improved  Infant mortality rates, literacy and life expectancy have improved as well  There is a wide gap between the rich and the poor, even though there has been a growing middle class in the north