Primary Six-year plan Imports Stabilizing Shared Accelerated

exporting (Cardenismo)  substitution Development development  growth 

model  mode

Definition of Model that Not an Model that Also called Model that Model used to
the model promoted economic advocated the Mexican favored sectors in achieve
primary sector model, it was replacing miracle, it need and that economic
activities to a program foreign was a tried to correct growth and
export raw designed to products with development issues of the capital
material.  meet domestic strategy that previous period accumulation
unsatisfied products produced (more social due to the
social and sustained justice)  discovery of
economic economic all reserves 
demands.  growth.

Period of Late 1800’s 1934 - 1940  1941 - 1954 1954 - 1970 1970 - 1977 1976 - 1982
implemente (Porfiriato) to
d model early 1930’s

President(s) Porfirio Diaz  Lázaro Manuel Ávila Adolfo Ruiz Luis Echeverria José López
that Cárdenas del Camacho Cortines Portillo
implemente Río Miguel Alemán Adolfo López
d the model Valdés Adolfo Mateos
Ruiz Cortines Gustavo Díaz
Ordaz 

Aims or + Promote the + Defend + To promote + To stop + To stabilize the + To keep

objectives agricultural natural domestic trade inflation country after the supporting
sector resources + To promote + To expand student workers
+ Exploit + To apply substitution of industrial movement without
mineral labor foreign capacity of 1968 disturbing
resources laws in favor products for + To maintain + To correct the interest of
+ Attract of domestic ones State issues of the
foreign workers + To impulse intervention in the previous industrial
investment + To national economy model sector
+ Start distribute industry + To support + To prevent a + To achieve
Mexican lands (industrial industry deeper social economic
industry throughout development) capitalization political growth
ejidos + To finance + To benefit and capital
+ To limit industrial working classes accumulation
foreign development + To limit support + To reduce
investment with previously given unemployment
and national and to rate
reduce foreign the industrial and inflation
dependence savings sector + To improve
on other and support basic
countries agricultural sector services and
food
sufficiency

Economic + Foreign + To adopt a + Large + Creation of 1. Increasing + Reduction of

strategies of investments policy subsidies to more credit interest rate to
guidelines were of economic local industry public supply and 3%
established in nationalism Taxes or enterprises government + Impulse the
 Mexico + The barriers to + Control the investment in the oil
+ expropriation import imports to agricultural industry by
Industrialization of oil + Avoid direct protect sector. increasing the
started companies foreign the national Extension of the investment in
+ Infrastructure and investment industries social expenses Pemex
for railway + Promote the + of the with public
domestic and system substitution of Establishment country money
foreign + The follow foreign of 2. Eliminating tax + Redirection
trade precepts of products for guaranteed rebates given to of
+ Foreign the local ones and prices for the industrial
enterprises Constitution promote basic industrial sector, production
began to of exports agricultural and towards
exploit 1917 + Overvalue products redirecting trade basic
mineral currency to + Export and policy toward consumer
resources lower import export goods
such as oil the cost of taxes were promotion (processed
+ purchasing used to 3. Developing food, clothing,
Modernization inputs support the new footwear, etc.)
of and machinery industrial touristic cities as + Restructure
commercial from sector an marketing
ports abroad + additional source systems,
and shipping + Facilitate Development of by expanding
lines access to of income credits
stimuli and infrastructure 4. Rise of public for
credits works sectors prices, commodities
for growth + Use of tax + Delivery of a
public reform, and a basket of
investment reduction of tax basic
evasion consumption
5. More to 19
participation of million
the Mexicans
State in the + Creation of
production agricultural
progrecesses insurance
and coverage
distribution of + Expanded
goods and coverage
services of social
6. Introduction of services
tax incentives to +
increase Modernization
employment of
rates and salaries governmental
apparatus to
make it
more efficient

Effects/ + Regions + Creation of Advantages + The + The economy + Expansion

results  developed PEMEX + Employment government grew irregularly of
unevenly + Success increase decreased + Private public health
+ Lost of + Greater support investment services,
infrastructure welfare for rural decreased drinking
destroyed by state and activities + Public water, public
the war social + Massive spending lighting,
+ Exploitation guarantees for urban grew drainage
of workers migration and disproportionately and public
mineral + Decreased uncontrolled compared to education
resources (oil) dependence urban income which
on growth + Waste of doubled the
international + Stabilization resources; number
markets of the corruption and of students
+ Flourishing nominal bad + Very rapid
of exchange planning economic
small and between + Mexico started growth
medium pesos and to compared to
industries dollars to depend more on other
+ Lower cost $12.5 oil Latin
of + Growth rate income American
transport (only of + Mexico countries
local) gross borrowed + The
+ Increase in domestic 5,000 million, distribution
consumption product + External debt of this income
Disadvantages between 6% and became very
+ General and 7% per inflation skewed,
increase in year increases meaning it
prices, + Industrial + Unemployment was
+ Appearance production rates increased unfair
of increased by + Devaluation of + The financial
state 8% with more than 6% deficit of the
monopolies inflation against the US public
and oligopolies staying at dollar sector grew
+ only 2.5% + The economic from
Disappearance + Stabilization loss 6.7% to 14.8%
of of impacted + A dramatic
market national + Private sector fall in
señf-regulation economy (industrial oil prices,
mechanisms and economic entrepreneurs) worldwide
(due to development disagreed since provoked an
state + The their unexpected
intervention) production interests were turn that
+ Tendency to and affected would bring
stagnation and consumption overall
obsolescence of economic
of local consumer instability
industries goods in the long run
 señf- were + The
regulation strengthened exchange rate
mechanisms + The went from
(due to state agricultural $12.50
intervention) + productivity MXP to
Tendency to started $2,290.00
stagnation and to decrease MXP
obsolescence Social
of local discontent:
industries protests,
movements,
etc.