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The Mexican Economy

Mexico was the site of some of the earliest and most advanced civilizations in the western hemisphere. The Mayan culture, according to archaeological research, attained its greatest development about the 6th century AD. Another group, the Toltec, established an empire in the Valley of Mexico and developed a great civilization still evidenced by the ruins of magnificent buildings and monuments. The leading tribe, the Aztec, built great cities and developed an intricate social, political, and religious organization. Their civilization was highly developed, both intellectually and artistically.

The first European explorer to visit Mexican territory was Francisco Fernández de Córdoba, who in 1517 discovered traces of the Maya in Yucatán. In 1535, some years after the fall of the Aztec capital, the basic form of colonial government in Mexico was instituted with the appointment of the first Spanish viceroy, Antonio de Mendoza. A distinguishing characteristic of colonial Mexico was the exploitation of the Native Americans. Although thousands of them were killed during the Spanish conquest, they continued to be the great majority of inhabitants of what was referred to as New Spain, speaking their own languag


es and retaining much of their native culture. Inevitably they became the laboring class. Their plight was the result of the 'encomienda' system, by which Spanish nobles, priests, and soldiers were granted not only large tracts of land but also jurisdiction over all Native American residents.

Mexico has been rocked by political rebellion during most of its entire history in one way or another. Under the various dictatorships that Mexico found itself under at times in history, it made tremendous advances in economic and commercial development. Many of the new undertakings were financed and managed by foreigners (mostly American and European). This was and continues to be a major factor in the discontent of most Mexicans. Moreover, the government favored the rich owners of large estates, increasing their properties by assigning them communal lands that belonged to the Native Americans. When the Native Americans revolted, they were sold into peonage. Discontent, anger and a spirit of revolt continued to grow throughout Mexico. Madero was elected president in 1911, but was not forceful enough to end the political strife. Other rebel leaders, particularly Emiliano Zapata and Francisco (Pancho) Villa, completely refused to submit to presidential authority. Victoriano Huerta, head of the Madero army, conspired with the rebel leaders and in 1913 seized control of Mexico City. New armed revolts under Zapata, Villa, and Venustiano Carranza began, and Huerta resigned in 1914. Carranza took power in the same year, and Villa at once declared war on him. In addition to the ambitions of rival military leaders, intervention by foreign governments seeking to protect the interests of their nationals added to the confusion. In August 1915, a commission representing eight Latin American countries and the United States recognized Carranza as the lawful authority in Mexico. The rebel leaders, except for Villa, laid down their arms. The bandit leader incited his forces to commit crimes against Americans to show his resentment against the United States and in 1916 led a raid on Columbus, New Mexico. As a result, an American force under General John J. Pershing was sent to Mexico. A new constitution, enacted in 1917, provided for a labor code, prohibited a president from serving consecutive terms, expropriated all property of religious orders, and restored communal lands to the Native Americans. Many provisions dealing with labor and social welfare were advanced. Some of the most drastic were intended to curb foreign ownership of mineral properties and land. In 1936 an expropriation law was passed enabling the government to seize private property whenever necessary for public or social welfare. The national railways of Mexico were nationalized in 1937, as were the soil rights of the oil companies. A government agency called Petróleos Mexicanos, or Pemex, was created to administer the nationalized industry. The expropriations seriously affected the Mexican oil industry, for it became difficult for Mexico to sell oil in U.S., Dutch, and British territories. Mexico was forced to arrange barter deals with Italy, Germany, and Japan. The oil trade with these nations was interrupted by World War II. In 1940, the so-called Good Neighbor Policy of the United States became dominant in Mexican politics. This policy involved close cooperation with the United States in commercial and military matters. Mexico agreed to allow the United States Air Force to use Mexican airfields and also agreed to export critical and strategic materials (mostly minerals) only to countries in the western hemisphere. Consistent with its policy of cooperation with the United States, Mexico severed diplomatic relations with Japan, Italy and Germany in December 1941. In May 1942, after the sinking of two Mexican ships by submarines, the Mexican Congress declared war on Germany, Italy, and Japan. Later that same year a trade agreement, establishing mutual tariff concessions, was negot

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Approximate Word count = 4462
Approximate Pages = 18 (250 words per page double spaced)


  

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