Historia del Neoliberalismo en México - Introducción (04/07/2024)

Neoliberalism in Mexico: A Historical Overview

The Rise of Neoliberalism

• The recent history of Mexico has been significantly shaped by neoliberal economic, social, and political doctrines, which aligned the country with the directives of the World Bank and International Monetary Fund.

• This shift led to the dismantling of state protections established post-Revolution, resulting in increased private wealth while public welfare diminished.

Economic Consequences

• Six Mexican presidents adopted this neoliberal model prioritizing financial capital, which ultimately plunged many families into poverty while enriching a small elite.

• The promise of a better future under neoliberalism was unfulfilled; instead, it exacerbated inequality.

Initial Implementation Under Miguel de la Madrid

• Miguel de la Madrid's presidency marked the first implementation of neoliberal policies during a severe economic crisis affecting all of Latin America due to falling oil prices.

• By 1982, Mexico faced one of the largest external debts globally, leading to significant capital flight just before de la Madrid took office.

IMF Intervention and Policy Changes

• In response to impending crisis conditions, Mexico became the first Latin American country to declare a moratorium on debt payments; this was contingent upon adopting neoliberal reforms as mandated by the IMF.

• Key reforms included opening markets for foreign investment and reducing government involvement in the economy.

Impact on Society and Economy

• De la Madrid's administration raised VAT from 10% to 15%, reversed nationalization efforts in banking, and integrated Mexico into global trade systems like GATT.

• Despite renegotiating external debt in 1985, subsequent natural disasters and falling oil prices led to further economic turmoil.

Political Fallout and Electoral Fraud

• In 1988, electoral fraud undermined democratic processes when Carlos Salinas de Gortari was declared president over opposition candidate Cárdenas amidst widespread discontent.

• These early years of neoliberal governance were characterized by significant societal challenges that set precedents for future administrations.

Consolidation Under Carlos Salinas de Gortari

• Salinas' term is often viewed as a golden age for neoliberal policies in Mexico; he continued privatization efforts initiated by de la Madrid.

• His administration sold off numerous public enterprises while maintaining wage suppression for workers amid rising wealth concentration among elites.

Economic and Political Turmoil in Mexico: A Historical Overview

The Disparity Between the U.S. and Mexican Economies

• The U.S. economy was significantly stronger than Mexico's, with better integration and technology in various sectors, including agriculture and livestock, supported by government subsidies for lower prices.

• This economic disadvantage forced many Mexican producers and small business owners to close their businesses to gain political legitimacy and support.

Salinas' Reforms and Political Maneuvering

• President Salinas implemented electoral reforms, creating the Federal Electoral Institute and the National Human Rights Commission while launching a solidarity program aimed at aiding impoverished sectors with a substantial budget.

• Solidarity became an effective electoral tool for Salinas' party (PRI), which suppressed emerging opposition parties like the Democratic Revolution Party (PRD) through repression tactics.

Banking Crisis and Economic Mismanagement

• Salinas initiated the reprivatization of banks, leading to mismanagement by inexperienced bankers that resulted in several bank failures; he refused necessary devaluations that would later burden the Mexican populace during a banking crisis.

• The privatized banking system collapsed, necessitating government intervention through Fobaproa to absorb bank debts, marking one of the largest frauds of neoliberal policies costing billions of pesos still affecting citizens today.

Zapatista Uprising and Political Assassination

• The Zapatista Army of National Liberation (EZLN), primarily composed of Chiapas indigenous people, rose against neoliberal economic models and undemocratic governance under PRI dominance; this uprising led to negotiations due to popular support preventing mass violence against them.

• The political landscape worsened after PRI presidential candidate Luis Donaldo Colosio was assassinated shortly after a campaign rally, leading to further instability as Ernesto Cedillo took over amidst an impending economic crisis reminiscent of past crises in 1976 and 1982.

Cedillo's Administration: Economic Collapse

• Under Cedillo’s leadership, millions lost savings due to severe economic downturns; his administration followed international financial directives without restraint despite rising poverty levels reaching unprecedented figures by 2000.

• By late 1994, Mexico faced a current account deficit exceeding $27 billion due to overvaluation of the peso leading to capital flight exacerbated by premature announcements regarding currency devaluation from his finance secretary.

Consequences of Financial Policies

• Following devaluation measures taken without legislative approval led Cedillo's government into deeper debt as public funds were used for bank bailouts via Fobaproa; this decision increased national debt significantly impacting future generations financially.

• As reported by La Jornada until September 2023, costs related to Fobaproa have exceeded 1 trillion pesos when adjusted for inflation since its inception in the mid-'90s—an ongoing burden on taxpayers today.

Transition Towards Democracy: Challenges Ahead

• Despite significant electoral reforms in 1996 that allowed Vicente Fox from PAN to win against PRI candidates—marking an end to decades-long corruption—the transition did not eliminate systemic issues such as social injustice or corporate greed prevalent within Mexican politics post-Cedillo’s term.

Vicente Fox's Presidency: A Failed Democratic Transition

Legislative Challenges and Economic Policies

• Vicente Fox's administration struggled to achieve significant reforms, notably limiting indigenous self-determination, which was criticized by the Zapatista movement as a mockery.

• Despite promoting neoliberal policies aimed at increasing private investment in electricity and oil sectors, economic growth fell short of expectations, with a 0.3% reduction instead of the promised 7%.

• The construction of a new airport in Texcoco faced protests from local communities due to land expropriation issues, leading to violent confrontations with police.

• Fox's foreign policy also faltered; he failed to secure a migration agreement for undocumented Mexicans and expanded border security measures instead.

• An embarrassing incident occurred during the Ibero-American Summit when Fox asked Fidel Castro to leave the meeting to avoid upsetting President George W. Bush.

Political Maneuvering and Electoral Controversies

• Fox employed judicial tactics against opposition leader Andrés Manuel López Obrador but had to retract after massive peaceful protests supporting López Obrador.

• During the electoral process, despite public support for López Obrador, Fox openly backed his party’s candidate Felipe Calderón, attempting to sway voter sentiment.

• The election results were contentious; although exit polls favored López Obrador, discrepancies led to accusations of electoral fraud when Calderón was declared the winner.

• Protests erupted following Calderón's inauguration as supporters of López Obrador demonstrated against perceived electoral injustice.

The Calderón Administration: Continuation of Struggles

• Felipe Calderón began his presidency amid ongoing protests and declared war on drug cartels shortly after taking office.

• His military strategy involved deploying thousands of troops against organized crime but resulted in increased violence rather than stability.

• Despite capturing major drug lords, violence escalated as new leaders emerged within criminal organizations vying for control over territories.

Neoliberal Reforms and Legislative Outcomes

• To push through neoliberal reforms, Calderón allied with the PRI (Institutional Revolutionary Party), granting them substantial budgets while securing legislative victories for his initiatives.

• Although some proposals like energy reform were rejected initially, later changes favored large corporations in line with neoliberal policies that deepened commercial liberalization.

Labor Market Changes and Economic Impact

• Significant labor reforms introduced flexibility in hiring practices but often left workers vulnerable due to poor wages and lack of benefits under outsourcing arrangements.

Economic and Political Landscape of Mexico: A Critical Analysis

Economic Challenges Under Calderón's Presidency

• During Felipe Calderón's presidency, Mexico experienced a lack of sustained economic growth, creating only 2.4 million jobs against a promised 6 million by the end of 2012.

• By the end of his term, average wages had fallen by 45% compared to 1982 levels, leading to increased migration to the U.S. and heightened poverty and inequality.

Controversies Surrounding Calderón's Administration

• Calderón faced criticism for not prosecuting those responsible for the ABC daycare fire in Sonora that resulted in the deaths of 49 children, which implicated family members of his wife.

• His administration was also marked by wasteful spending on projects like the Estela de Luz monument, symbolizing corruption at the end of his tenure.

Transition to Peña Nieto's Presidency

• Enrique Peña Nieto’s government is characterized as a failure of neoliberalism despite implementing significant structural reforms; promises for welfare and development were unmet.

• The political landscape shifted with a pact among major parties (PRI, PAN, PRD), resulting in Congress approving 14 reforms within just 20 months.

Energy Reforms and Economic Consequences

• One notable reform opened up Pemex (state oil company) to private investment in exploration and extraction, allowing international companies access to lucrative resources.

• This led to a drastic reduction in Pemex’s budget by over 45%, with Mexico importing more than 70% of its gasoline by 2017.

Socioeconomic Decline During Peña Nieto's Term

• Peña Nieto increased public debt from 33.8% to 46.4% of GDP while overseeing significant currency devaluation; inflation remained low but at the cost of real wage stagnation.

• By the end of his term, minimum wage had depreciated approximately 80% since the 1980s; wealth concentration became extreme with top earners holding over half national wealth.

Major Events Impacting Public Perception

• The forced disappearance of 43 students from Ayotzinapa in September 2014 drew national and international outrage against Peña Nieto’s administration.

Shift Towards New Leadership

• Andrés Manuel López Obrador won the presidential election on July 1st, 2018 with over half the votes, marking an end to decades of rampant neoliberalism.

• The transition indicated a potential reinvention for Mexico amidst deep-rooted issues stemming from previous administrations' alliances between political elites and economic oligarchies.

Future Prospects Under López Obrador