The Industrialization of Mexico: 1821-Present

After its independence from Spain in 1821, Mexico has had rapid industrialization rate. It became present in Mexico when Porfirio Diaz had become president in 1871. During his reign, he was able to install a stable federal government with secure financial and industrial supports. However, the vast expansions of both manufacturing and mining outputs encouraged a role of government in the economy. Diaz began to make economical reforms which brought both positive and negative results, many say that these "reforms" were a necessary foundation to help the country rapidly grow industrially, however the close ties between some of the leading figures in the Diaz regime and major companies were benefiting disproportionately. The Porfiriato lasted over 35 years, in which Diaz became more refined making racial groups segregating native Indians from basic society. He was known for his favoritism within parliament and trying to ensure the long-term economic and industrial growth in Mexico. The people of Mexico were divided into two classes; there were elites and peasants. Little or no benefits came out of the Diaz regime for the impoverished majority of Mexicans.

In the mid 1893, Mexico introduced economic policies, which focused on import tariffs, intellectual property institutions, and Industrias Neuvas (The New Industry). Industrias Neuvas was a program, which provided incentives, and tax breaks to entrepreneurs, which would benefit Mexico. At the time, it was thought that raising incentives to encourage industrial growth was socially desirable and that a modern industrial sector would be needed. After these incentives were raised there was a boom in industrial growth for two decades based on the expansion of mining and the expansion of the railroads used to support other extractive industries. In 1890, Mexico experienced foreign support from investors who began to provide substantial resources especially the production of domestic manufactures. Many historians believe that

References: D. Mabry "The Pofiriato" 2001 www.historicaltectarchive.com J. Ross "Mexico Barbaro" 1996 www.hartford-hp.com K. Sokoloff "The Political Basis for industrialization in Mexico before 1911" 2002 D. Mabry " Mexico and the revolution of 1910" 1995 www.mexicoonline.com J. Bergsman "Commercial Policy, Allocative Efficiency and X-Efficiency," 1974 J. Bhagwati "Foreign Trade Regimes and Economic Development" 1978 J. Estrada "A Comparative Study of Manufacturing Productivity in Mexico and South Korea" 1991 J.C. Moreno "The Motor-Vehicle Industry in Mexico in the Eighties, Geneva" 1987 D. Rodrik "How Should Structural Adjustment Programs be Designed?" 1990