UCLA History 161A Dr Olga Lazin

Spring Quarter, 2012 Tue & Thur, 2:00-3:45

This course introduces students to struggles that have marked Mexico‟s history during the last 100 years. As we will see, these “recent” struggles are not new, but rather are based in the context of the country‟s long history since the height of the Aztec Empire beginning in 1486 and the Spanish changes imposed on Mexico beginning with the Conquest in 1521 and the process of Independence from Spain in 1821. New Spain paid 35 times more “taxes” to Spain than did the 13 English Colonies in what would become the United States, already favored by geographic conditions. During three centuries of Spanish rule Mexico was essentially a colony cut off from the world (a main factor in what would lead to the smuggling of goods into, through, and then out of the country). With “accidental” independence in 1821, Mexico had to begin to create a framework for national governance, including the education of the masses who had been previously ignored as well as the establishment of a free press to stimulate public debate about how to “best” govern the new nation. Immigration was explicitly closed to non-Spaniards until 1821 and implicitly closed owing to constant political instability, battles, and unsafe travel until the 1880s. The Mexican Revolution beginning in 1910 sought to identify and build new institutions that could face the fact that Mexico has never “resolved” most problems, but rather accumulated a series of partial “solutions” that complicate on-going change. Mexico‟s difficult geographic situation and demographic history continue to influence how the government seeks to establish principles on which to organize government and “reinvent” social organization in the face of post1521 problems, such as damage to pastures by erosion and overuse. Consequent long-term erosion and droughts have harshly affected Mexico‟s agro/ranching rural life as well as ability to identify Mexico‟s preoccupation with the land after Industrialization reached “take-off” (19411951). Thus, all periods of Mexican history have shifted recurrently among the following systems of government: Full Central Statism (State Capitalism), Active Statism (Partial Central State Capitalism/) and Anti- State Central Power (with some near anarchical transitions). Each shift has involved jarring new laws and regulations on the “best” ways to allow the population to hold land titles, in the process veering from latifundia to minifundia (and back again) while taking into account the extent to which small and medium properties can be accommodated. Too, urban debate involve the extent to which small and medium-sized industries/businesses face pressures from large ones. The systems have gone through 13 cycles since before and after 1521—all involving recurring issues regarding social class, roles and “laws” of the Roman Catholic Church, Military, Police as well as of legislative, judicial bodies, labor unions, business associations, and professional societies (especially law, health, and medicine). Important recurring themes involve private investors (foreign and domestic), monopolies, workers in Mexico (and eventually migrant workers in the USA), as well as students and the gender and family roles at different levels of society. On the one-hand, with time, international trade relations and investment have emerged to give Mexico an important role in the expansion of its economy into tourism and the making of free trade agreements. On the other hand, since the 1980s Mexico has found itself facing Mexican Narcotraficantes who, rather than seeking to replace government, seek to defeat police functions. A common theme in all epochs involves “Mexico‟s Huge National Problems” identified by major Mexican policymakers in 1908 and 1909 as well as in 1988 and 2006. Thus, this course examines how new generations seek to adapt old bureaucracies to understand partially “resolved” problems.

2 Course Administration Office: 6299 Bunche Hall, telephone: 310-825-4569 Requirements: Lecture and discussion: Two sessions of 1 hour & 45 min each in length--one Tue, and 105 minutes again on Thur—class attendance is mandatory; weekly reading assignments and assessment of historical statistics in graphs and charts. Examinations (open notes and books, but no electronics are permitted (cell phones, computers, no surfing the Internet during class). Please bring Blue Books: Mid-Term Exam: May 10, Thursday (covers lectures, discussions, articles and Basic Lecture Outline on Course Website, Booklets through May 3) Final: June 11, Monday, 11:30-2:30 Grading: 30% Mid-term 50% Final 20% Participation in class and in office hours (asking important questions and discussing lectures and readings—each student must sign up for at least one appointment with the professor E-mails from the professor require that all students need to be sure that they have their correct email address on-file with the UCLA Registrar, and the class TA. Course website with latest articles and Basic Outline of Lectures

Required Booklets available from: Westwood Copies: call ahead to assure availability of Booklets: Tel 310-208-3233, Gayley (just south of Weyburn. next to Coffee Bean; students may enter also from alley parking in the back of the store) (Copies are available on two-hour Reserve at Powell Library) A. MEXICO SCHEMA 6.0 (Revised and expanded edition, 2012) Bring this volume with you to all of our class sessions—this is the guide to lectures and discussions B. Charts and Readings on Mexican History (revised and expanded, 2012) Bring Volume with you to all of our class sessions—we discuss this material C. The Six Ideological Phases of Mexico’s “Permanent” Revolution (1990) D. Many Images of Mexico (2012) 1. Simpson‟s View of Mexico‟s Geography 2. Cline‟s View of Pre-Colonial, Colonial, and 19th-Century Mexico 3. Case of Aguas Blancas 4. U.S. Images of Mexico 5. Dangerous Journeys 6. Violence in Mexico's Cartel War 7. Statism Defined 8. When did the Mexican Revolution of 1910 end?

3 E. Revolution in Mexico: Years of Upheaval, 1910-1940 SCHEDULE 1st Week: Reading, Discussion, and Topics: Please bring reader to class Schema 6.0, to p. 36 Many Images of Mexico, Articles 1-2 and 7 Book of Charts, through Chart A to G, Charts 1 to 2C, Charts 3C to 7A Apr 3 Introduction, concepts, and cycles; Geographical and demographic factors (1521-2012). Population: 1521 = 30 million, 1608 = 1 million, 1950 = 25 million, 2012 = 112 million. PBS Documentary: “Mexico, 1910-40.” Apr 5 Aztec and Spanish Full Statism prior to and after 1521 Anti-State Movements (1810-1820) in which Creoles (Spaniards born in New Spain) join with “Mestizos” (persons of mixed Spanish-Indigenous Ethnicity) to seek Independence from Spain; Statist “Independence” (1821-1824) maintains Spanish monopolies in power; Chaotic shifts to Anti-Statism and Statism (1825-1855) sees Peninsulares (Spanish born in Spain) expelled from Mexico (especially in mid-1820s to mid-1830s, driving out much of the intellectual and financial capital needed to prevent economic chaos); in 1829 Mexico abolished slavery—in Texas 1830. Loss of State power over all lands and sub-soil rights (previously held by the Crown of Spain before implicit deregulation at Independence in 1821); Santa Anna‟s loses, that is half of Mexico‟s territory to the USA in 1848; and, finally Santa Anna‟s restoration in 1853 of State power over all lands and sub-soil rights gives the Nation of Mexico some of the Statism lost when the Spanish Crown fell in the New World. 2nd Week: Reading, Discussions, and Topics: Bring reader to class: Schema 6.0, pp 36-46; Book of Charts, Charts H through I-3. Apr 10 Rise of Active Statism (Partial State Central Power) under Juárez and Díaz, 1855-1882; President Benito Juárez wins Mexico‟s Active State Constitution of 1857 to (a) breakup the power of the Church over credit and half of Mexico’s land, as well as (b) breakup of indigenous communal lands (ejidos)—Juárez sees the Church and ejidos as preventing the development of a free-market Mexico based on small/medium-sized private land owners needed in Mexico (as in France, and the USA) for the success of nation-building, but unfortunately he creates unproductive minifundia; Juárez fights (a) War to implement the Constitution of 1857; and (b) War (1864-1867) against the French invasion to establish Maximilian as Statist Emperor of Mexico;

4 Juárez’s Active Statism is victorious in Mexico City but countryside is not safe. Apr 12 Porfirio Díaz continues Juárez Active Statism, forging alliance with the rich private sector to plan to build railroads throughout Mexico and a modern port at Veracruz; . Díaz establishes order throughout Mexico by deputizing bandits and limiting bureaucratic corruption 3rd Week:

Reading, Discussion, and Topics: Bring to class Schema 6.0, pp 46-52; Book of Charts, Charts H through I-3 and 8 to 16 Six Ideological Phases, pp 1-4

Apr 17 Dictator Porfirio Porfirio Díaz (1876-1911) shifts to Full Statist Power in 1882; Role of the Científicos (circle of scientifically-oriented technocratic advisors to Díaz)—such a group will emerge again in the 1990s and hold government Díaz uses Juárez’s land laws but changes implementation to encourage plantation and hacienda agriculture for export of goods, thus returning government policy to support of latifundia; by 1910 he converts 32% of Mexico’s land surface into large haciendas and plantations (see Chart 25-B) He empowers U.S. railroad builders to link the country and to USA (Compare Charts 15A and 15B) Díaz helps haciendas to build railroad to ports and also complete the reopening of mines and their railroads to the ports; Díaz pays off the national debt, establishes the national Statistical Office; He rules with an iron hand, alienating the middle and upper class who want to move beyond social and economic power to political power; Gap between rich and poor grows exponentially; Francisco Madero writes book (1908) demanding political democracy; Andrés Molina Enriquez publishes in 1909 his call to breakup Diáz‟s “newly recreated” haciendas in order to recreate ejidos—intellectual diagnoses of Mexico’s Huge National Problems is underway and helps lay the basis for the Revolution of 1910-1911 (See Chart 15C, which Molina only implicitly identifies) Apr 19 “Successes” and “failures” of Díaz‟s Statism

4th Week: Reading, Discussions, and Topics: Bring to class Schema 6.0. pp 52-63 Book of Charts, Charts I-4 and 18A to D Mexico Years of Upheaval , to page 120 Six Ideological Phases, p 5 (The Violent Years) Apr 24 Revolution led by Madero in North and threat by Zapata south of Mexico City (see Chart 18-B) caused collapse of Díaz regime after 34 years in power

5 Madero becomes President in November 1911 after his massive electoral victory; but violence continues as regional strongmen seek to displace Madero (considered to be weak, hardly the strong figure needed), and who is assassinated in February 1913 by Victoriano Huerta, his chief of the Army who acts in collusion with U.S. Ambassador Henry Lane Wilson (no relation to President Wilson) to “protect private property.” Apr 26 Civil war 1913-1916 against Huerta is finally ended after Carranza is sworn in as President to oversee the signing of a new Active-State Constitution of 1917, which requires in Article 27 the breakup (again) of latifundios to re-create ejidos and private small/medium-land holdings as well as Central government control of sub-soil mining, oil, and water wealth; Other Constitutional provisions cover required lay education (Article 3); Workers‟ right to strike, minimum wages, safe conditions (Article 123); and strong limits on the role of the Church (130). See Mexico Years of Upheaval, pp 112-115. Zapata is assassinated in 1919, Carranza in 1920, Villa in 1923 5th Week: Reading, Discussion, and Topics: Bring to class Schema 6.0, pp 63-69 Book of Charts, Charts, 19A to 23B, 26C-D-E Mexico Years of Upheaval , pp 121-180 Six Ideological Phases, pp 5-6 May 1: Reading, Discussions, and Topics: Generals Obregón [1920-19240 and Calles (1924-1928), become successive Active State Presidents of Mexico-they put down military revolts (1923, 1927, 1929) as well as holding at bay Catholic guerrillas fighting since 1926 in West Central Mexico the Cristero War against (a) the national government’s “division of small/medium properties into “Godless communal ejidos”; and (b) against “Mexico City’s atheistic government.” Calles takes on many challenges as he undertakes the building of Mexico by establishing the Bank of Mexico to play the role of a Federal Reserve System, establishes the National Road Commission, and establishes a Rural Education Program, etc. (see Charts 26C-D-E) Before President-Elect Obregón can return to the presidency in 1928, he is assassinated. Interim President Emilio Portes-Gil (Dec 1, 1928 to Feb. 4, 1930) not only successfully conducts the presidential election for the period 1930 to 1934, he accomplishes more in 13 months than any four- or six-year president in Mexico’s history. To avoid any hint of conspiracy against Obregón, Calles had left for Europe and Portes-Gil has a free hand to found the Official Party of the Revolution (PNRPartido Nacional Revolucionario) to bring mutual enemies into what he called the “Revolutionary Family” that would share power rather than “kill or be killed” for power. PNR is organized around the country’s regional caudillos (Governors and military chiefs).

6 Further, Portes establishes the University of Mexico as a unit autonomous from the Mexican government, oversees passage of a new labor code, and signs an accord with the Catholic Church to end the Cristero War (1926-1929) against the government. Portes launches the fastest rate of distribution of hacienda lands to ejidos in Mexican history. (Ejidos have a common area for all to use for ceremonies, schooling, and a work area for agro/ranching, which may be worked collectively or divided into individual plots. Members of the ejido do not “own” any land, which is seen as communal by nature and, according to the Constitution of 1917 not subject to inheritance, sale, lease, rental, or be worked jointly with private land owners.) The new Official Party candidate, Pascual Ortiz Rubio, has to be brought from Brazil where he had been sent into “golden exile” as Ambassador of Mexico--thus he does not understand the difficult situation into which he is, and is forced to resign in favor of yet another Interim President Abelardo Rodríguez—a former Governor of Baja California who had been involved in the smuggling of alcohol and marijuana from Mexico into California (1923-1930)—and then taken his “skills” to the national level. May 3: Calles returns from Europe to become the “Jefe Máximo” of the Revolution and to “settle scores” with his protégé General Lázaro Cárdenas, who as Governor of the state of Michocán had ignored Calles’ demand from Europe to stop carrying out President Portes-Gil‟s orders to distribute huge amounts of lands into ejidos. Calles, like Juárez, opposes ejido lands being held in the in the collective form outside the market economy—the form preferred by Portes-Gil and Lázaro Cárdenas. Owing to a number of factors, however, Lázaro becomes the President of Mexico in 1934 and inaugurates the shift to six-year presidential terms guided by Mexico‟s new “Six-Year Plans” to outdo Russia‟s Five-Year Plans. 6/th Week: Reading, Discussions, and Topics: May 8 Review: where we are coming from in this course and where are we going PBS Documentary: “Mexico: 1940-1982”

May 10 Mid-Term Exam through May 3 7th Week: Reading, Discussions, and Topics: Bring to Class: Schema 6.0, pp 69-89, Book of Charts, Charts, 26F to 33A Mexico Years of Upheaval , pp 181-284 Many Images of Mexico, Article 8 Six Ideological Phases, pp 7-16 May 15 Lázaro Cárdenas and Manuel Avila-Camacho Refine the Active State A. Calles (who in 1934-1935 still sees himself as the Jefe Máximo) threatens to remove Lázaro from the Presidency of Mexico unless Lázaro stops the increasingly rapid redistribution of land and water to benefit ejidos worked collectively--not ejidos worked individually). Also Calles demands that Lázaro end his support of massive labor strikes against Calles the old CROM Labor Union headed by the corrupt Luis Morones (who always sees strikes as treasonously endangering

7 “national economic stability). Calles‟ threat seals the fate of the now old Revolutionary power structure because Lázaro expels Calles and Morones from Mexico. (May 15 Con’t): B. Lázaro reforms the PNR, changing its name to PRM (Partido de la Revolución Mexicana) into a “corporativist” political party (influenced by Mussolini’s Scheme adapted for Mexico) controlled by 4 sectors of “unionized” laborers: i) peasants (favored by Lázaro‟s massive distribution of Mexico‟s hacienda-owned land into ejidos), by the end of his six year presidency in 1940 Lázaro announces that an accumulated 13% of Mexico’s land surface has been redistributed into Ejido, 9% under his signature; ii) factory workers (favored by being given “real right to strike” under their own leaders, led by Vicente Lombardo Toledano); iii) military; iv) popular “workers” ( including merchants, lawyers, physicians, CPAs, teachers, etc.) whose “union” is the “Popular Sector” of the PRM. Private Big Business owners are excluded from the PRM but are given direct access to the President of Mexico via Chambers of Commerce, Industry, etc.—the Chambers advise the President of Mexico (See Chart 33A) C. D. Lázaro cancels “sexual education” to stop needless controversy about what was really education about “personal hygiene”, and he … …strengthens his friendship with the Archbishop of Mexico, with whom he had developed a cooperating relationship since their days together in the state of Michocán (Lázaro was Governor (1928-1932), and the Bishop was slated to become Archbishop (as they both moved up to national affairs 1933).

E. For the economy of Mexico: On the one hand Lázaro nationalizes the foreign-owned oil and railroad industries, on the other hand, he instructs the Mexican Treasury Department to invest in private industry (domestic and foreign) and also to establish the Mexican National Economic Development Bank as well as to lay the basis for Mexico Instituto Mexicano de Seguro Social. Lázaro places the industries that he nationalizes into the Decentralized Sector of Government to distinguish them from the Centralized Sector (see Chart 33-A). Decentralized agencies collect their own funding by provided direct services, for which there are paid directly. Congress knows little (if anything) about their activities. The Central government continues to receive its funding from the Treasury Department, which collects taxes and authorizes funding to Central agencies, such as the post office and police. Congress monitors the Central agencies F. Lázaro , who chooses Manuel Avila-Camacho (MAC) to succeed him as President, tells Mexico that land redistribution has been completed because 42% of the

8 agriculturally employed population now have received ejidos (see Chart 24-B.) Lázaro informs MAC that the ejido has failed to produce food for urban Mexico (which they cannot admit to the Nation); Lázaro quietly authorizes the protection of large land holdings that supply food to cities—remaining haciendas and plantations can receive legal protection to prevent their lands from being divided into ejidos; Lázaro and MAC both secretly ask the USA for help in research to increase crop production; U.S.’s Vice President Henry A Wallace asks the Rockefeller Foundation to help and it establishes in Mexico its first center to improve world crop production—the Center to Improve Corn and Wheat (CIMMyT), which eventually wins World Prizes in recognition of his contributions, including the establishment of the first global bank to preserve agricultural seeds G. For the “rigged” presidential election of 1940, Lázaro facilitates registration of two Parties that oppose the PRM: i. The PAN (Catholic Conservative Party is founded in 1939 to compete (but does not win the Presidency of Mexico until 2000). ii. PRUN, the real losing opposition “party” that is “owned” by Juan Andreu Almazán, who, after losing the presidency, does not lead a rebellion but in return is allowed to develop the government‟s beach-front property in Acapulco. Almazán establishs the basis for a new type of modern tourism, which begins to attract Hollywood stars just as European tourism is ending with Hitler‟s expansion of German bellicosity. H. Manuel Avila-Camacho (MAC) becomes the PRM’s President of Mexico (1940-1946) and follows Lázaro‟s lead implicitly but is explicit when he announces to the Nation that he is a believer in Catholicism. (Lázaro himself would never be such a believer.) I. MAC develops Mexico‟s first laws on the Urgent Need to Develop Mexico into a Manufacturing power-house by officially launching Mexico’s Industrial Revolution. J. MAC signs a Mexico-U.S. agreement to supply agricultural laborers for U.S fields (1942, renewed routinely though 1964, when this legal escape valve has closed). May 17: The Active State continues in power as the Official Party’s Miguel Alemán-Valdés becomes the President of Mexico (1946-1952)-Alemán undertakes the largest public works program since the era of Porfirio Díaz. He constructs skyscrapers, four-lane highways, dams, electrical grids for industry and Consumers (for example, making air conditioning available in the tropics and the desserts)—but corruption also grows exponentially. Alemán builds public housing and condos for the rising middle classes.

9 Alemán fathers a huge new (and centralized) campus in the south of Mexico City for UNAM (National Autonomous University of Mexico). Alemán funds an academic publication on Problems of Agricultural Development in Mexico, and encourages viewpoints by scholars who oppose the Official Party. Most importantly, Alemán reforms the Official Party and changes its name from PRM to PRI (Partido Revolucionario Institucional), which retains corporativism but eliminates the military sector. (The military is no longer seen as possibly seeking to overthrow the government, the institutionality of which is now protected by the military.) Alemán furthers joint U.S.-Mexico ventures to develop new and expand existing industries. Miguel Alemán fathers the rise of the Mexican “Economic Miracle” with Mexico's strong economic performance continuing through the 1950s and 1960s, when GDP growth averages about 7% overall and about 3% percent per capita. Consumer price inflation averages only 3% annually. Manufacturing remains the country's dominant growth sector, expanding 7% annually and attracting major foreign investment. By instituting a full-scale import-substitution program, Alemán stimulates output by boosting internal demand. The government raises import controls on consumer goods but relaxes them on capital goods, which it purchases with international reserves accumulated during the war. The government spends heavily on infrastructure. By 1950 Mexico's road network expands to 12,600 miles, of which some 8,200 are paved. 8th Week: Reading, Discussion, and Topics: Schema 6.0, pp 93-125, Six Ideological Phases, pp 17-23 (to Part VI), Many Images of Mexico, Article 5 Book of Charts, handouts May 22: Two PRI Presidents continue Active State Policy: Adolfo Ruiz-Cortines (1952-1958) and Adolfo López Mateos (1958-1964) keep the Mexican Economic Miracle on course. Although ARC is colorless and stodgy, he realizes that a changing Mexico has to give more importance to women and even incorporate them into the work force. The 1947 advent of the first Sears in Mexico City had not only revolutionized the traditional systems of commercialization and open exhibition of merchandise as well as the setting of fixed and fair prices for shoppers, but with their clean and manicured new building, Sears (a prestigious foreign company) has given young women a place they ccan become a sales person without being denigrated by society as a being “too daring,” especially because Sears has set fixed prices and ended the traditional bargaining system. Further, beginning in 1955, Sears begins to open its retail stores (also considered to be fancy and wholesome) throughout Mexico. Young women flock to them to gain respectable employment. Sears also spurred the commercial revolution by offering credit to buyers, who previously had to “lay away” goods and not gain access to them until the last payment was made. The rise of credit and acceptance of personal checks by the late 1950s offered a boon, establishing the Commercial Revolution in Mexico that went hand-in-hand with the Industrial Revolution‟s expansion into consumer goods and opening the retail work force to women.

10 (ARC also did what Lázaro Cárdenas could not—ARC won in 1953 federal voting rights for women (and the right to run for office), effective at the next federal election for the national Congress—1955. Times had indeed change since President Lázaro Cárdenas had to give in to fears that women might be unduly influenced by the clergy and vote against the Official Party. At the indigenous level to this day, women are generally denied the right to vote, which is reserved for males who present the outside face of the family to the community.) With regard to a major problem of the Mexican Economic Miracle, the share of imports subject to licensing requirements rises 28 percent in 1956 to an average of more than 60 percent during the 1960s and about 70 percent in the 1970s—this aspect of the “miracle” not only leads to an explosion in the scale of the bribery of federal officials, but it also causes smuggling to become a huge unofficial industry. Upper and middle classes find that they can finance a vacation in the USA from savings on their purchase of American household goods and clothing at low cost compared to the high, tariff-protected cost of the same items in Mexico—this situation will continue until 1982. Nevertheless, Mexican industry, which accounts for about 18% of GDP in 1940 sees this ratio grow to 29% by 1970. Agriculture declines from 23% of GDP in 1940 to 16% in 1970, a testimony to the Official Party‟s granting poor quality ejido lands in the form of minifundia that too often is conducive only to subsistence survival where individuals eat up to 17 tortillas daily, no meat, fish, chicken, or eggs being available. PRI Presidents ignore Lázaro‟s declaration that land redistribution into ejidos has been completed and continue to pulverize the land. By the end of the Adolfo López Mateos (ALM) presidency, an accumulated 27% of Mexico‟s land surface has been shifted back into ejidos. As the agricultural share of GDP declines consistently, agricultural workers move to the USA or to Mexico‟s cities, where they see opportunities for better-paying jobs as well as greater possibilities in education and advancement for themselves and their families. Educational opportunities for peasant children continue to be minimal, at best. ALM “nationalized” the foreign-owned electricity system, buying out the companies who had refused to extend service to isolated rural communities because of the high cost and low rate of return. The companies were happy to leave Mexico with a relatively high income from the sale of a poorly maintained system. With the Mexican government failing to raise wages to keep up inflation, workers see their urban union-negotiated salaries running far below a “living wage,” The situation is so dire that during the Mexican transition presidential transition of 1958, the unions reject their union bosses who are tied into the government. Thus union members seek to take advantage of the fact that the incoming President Adolfo López-Mateos (ALM) is the first national leader to come from the Ministry of Labor (instead of the Ministry of Government as had been usual). Thinking that they now have a leader who will understand them, union members demand wage increases even before ALM becomes President. However, the unions find themselves facing ALM‟s ruthless Minister of Government, Gustavo Díaz-Ordaz (GDO),

11 who “forces” the workers to launch a general strike. GDO has the strikers savagely beaten (the ones he calls the “lucky” strikers), and “unlucky” strikers are arrested for years and tortured. GDO is leading the way to brutally authoritarian national government to save the PRI. May 24: Shift to Full Statism is led by 3 PRI Presidents, 1964-1982: Gustavo Díaz-Ordaz (GDO, 1964-197o70); Luis Echeverría-Alvarez (LEA, 1970-1976); José López-Portillo (JOLOPO, 1976-1982). A. As President, GDO officially launches in 1965 the Maquiladora" manufacturing industry on Mexico‟s border with the USA in which foreign investment builds or leases factories, imports raw materials, and pays taxes only on workers‟ salaries as long as the manufactured goods are exported. (With time Mexico, would require/allow these factories to sell a share of their products in Mexico, and maquilas would begin to move deep into Mexico.) Although often exploitative of workers, wages and benefits are usually higher than those of most workers in Mexico, and Maquilas seek to hire away the best workers from competing maquilas by paying slightly higher wages.

Maquiladora factories encompass a variety of industries including electronics, transportation, textile, and machinery, among others. Maquiladoras may be 100% foreign-owned. The use of Maquiladoras is an example of off shoring. Other countries such as Hong Kong, Singapore, Taiwan, South Korea, Japan, and Germany (and by the 2000s in China, Vietnam, etc.) have Maquiladoras as well, but those located in Mexico are associated with companies from any country mainly seeking access to the U.S. markets.
B. GDO offers the peasants “tierra o plomo” (“titles for ejidos or the bullet”)— he seeks to surpass the high amounts of land redistribution by Lázaro Cárdenas and by Portes-Gil. By the end of the GDO presidency, an accumulated 34% of Mexico’s land surface is in ejidos. In spite of his seeing his “generosity” to peasants rewarded by loyalty, he sees protest marches demanding “social justice” and an end to the corruption by official and unofficial rural police. C. GDO reduces subsidies to professors and students and stops funding their scholarly journals and is surprised when they begin to organize guerrilla networks against him and his henchman. D. Secret “Dirty War” ensues, with many thousands of protestors killed, including innocent persons dying in “collateral damage.” E. GDO and his Minister of Government Luis Echevería-Alvarez (LEA), proud that Mexico has been selected to be the first country in the Third World to host the Olympics, reject protesters demands in 1968 for the PRI to call off the Olympic Games in Mexico City and cancel the building of a metro (to divert those funds to help poor peasants), and for the PRI to step down from power—no negotiation.

12 In response, GDO and LEA trap many hundreds of protesters at the Plaza of Three Cultures (Tlatelolco) to kill hundreds if not thousands, in the now infamous Massacre at that Plaza on the eve of the opening of the Olympics. F. The implicit message to Mexico‟s protesters is: If you fight the government, you will be killed. G. LEA becomes President (1970-1976) and breaks the long pact between the private sector and the PRI dating back to World War II and the post-war presidency of Alemán. LEA decides that there is no reason to share profits with the private sector—it is time to nationalize as much industry as possible, thus keeping profits for Mexico and employing university graduates who had not been able to find work under GDO. The employment of thousands of former students in industries many did not understand was costly and unproductive. Further, much of the new profits available are swallowed by corruption under LEA and his successor in the Presidency, José López Portillo (JOLOPO). In 1972 LEA nationalizes TELMEX, turning the act of making a telephone call into a Kafka-like experience. Service is supposed to improve, but it enters into a state of near collapse as LEA‟s Security Agency make it part of a Cold War campaign. In trying to “bug” the phones of so many “dangerous people,” many main switches stopped working properly. H. To pay for the nationalization of private property, LEA and GDO abandon any serious attempt to control inflation, and indeed claim that “inflation is healthy.” I. LEA knows that he does not have support of many young workers, so undertakes the distribution of land to ejidos with the goal of surpassing the high distribution records of Lárzaro Cardenas and Emilio Portes-Gil as well as the effort of GDO. LEA‟s act is in defiance of what is now well known to the PRI—the ejidos have failed to produce food on what is now ever more eroded land and further distribution is increasing more counterproductive than even GDO‟s team had thought possible. When LEA leaves office in 1976, an accumulated 40% of Mexico’s land surface has been shifted into ejidos (see Chart 25-B) J. LEA launches into world politics, and criticizes Israel for “ its Zionist policies”—in a fallout, the Jewish Community in the USA organizes a boycott of tourism to Mexico, and LEA has to apologize. K. LEA loses his grasp on reality when he orders the June 10, 1971, hard-line PRI thugs to attack students protesting about the national education budget. Dozens are killed in Mexico City (either on the street or in hospitals where the wounded are taken). This incident becomes known as the Corpus Christi Massacre for the feast day on which it took place, and also as the "Falcon Strike"-- the special police unit involved was called Los Halcones ("The Falcons"). [This incident becomes prominent again in the 2001-2005 period when LEA is charged with genocide by President Fox‟s Special Prosecutor, who argues that the charges have not surpassed the 30-year statute of limitations and in any case,

13 Mexico has signed the UN Convention that ends all the statute of limitations on genocide, thus making LEA vulnerable to trial for the 1968 massacre. (GDO had died in 1979, thus never charged with genocide). The Mexican Supreme Court rules in 2005 that the 30 years had expired and that the 2002 Convention could not be applied retroactively to LEA. Humiliated and in fear of retribution by the families of his victims, since 2001 LEA lives under self-imposed seclusion at home—in effect “self-imposed house arrest.” L. Protesters who decide not to work for/with the government, join guerrillas in urban as well as urban cells, which “justify” LEA‟s decision to expand the Secret “Dirty War”. M. Ironically, LEA had set out to make a “Legal Revolution” (see Schema 6.0. p. 120). 9th Week: Reading, Discussions, and Topics: Bring readers to class Schema 6.0, pp 125-147, Six Ideological Phases, pp 23-27 Many Images of Mexico, Article 4 Book of Charts, Charts May 29 José López Portillo (JOLOPO) expands Full Statism. He is the “God President” intent on restoring “Aztec Greatness.” With loans flowing into Mexico to develop new oil deposits under LEA, Mexico sees the dramatic rise in value of its exports caused by two world energy crises: (a) the Yom Kippur War-Arab Oil Embargo of the USA in 1973-1974, and (b) and the Iraq-Iran War beginning in 1979-1980. These crises cause world oil prices to quintuple in the 1970s, but Mexico loses much of the sudden influx of “oil money,” which is wasted in the government‟s bureaucratic bungling and high levels of corruption. JOLOPO expands s the rate at which private companies are nationalized and loses count of what it owns wholly or partially. New Decentralized Agencies on their own authority borrow money abroad, receiving loans from foreign entities that wrongly believe are guaranteed by the Mexican Treasury. Unfortunately, the Treasury does not even know about the borrowing until the world economic crisis of 1982 and collapse of oil prices causes the Central government to recentralize borrowing authority to face austerity, but after he nationalizes the major private banks (claiming they aided capital flight from Mexico‟s anarchical fisa; situation and inflationary economic instability) and leaves office in 1982 at the end of his six years of printing ever more useless pesos. JOLOPO‟s passion for the pompous and symbolic rather than practical investment leads Mexico into a morass of debt and near bankruptcy. Only a bridge-loan of nearly $2 billion dollars facilitated by the U.S. Treasury saves Mexico from economic collapse in 1982. (The USA has provided temporary bailouts, some quietly or confidentially, to Mexico in 1976, 1982, 1988, 1994, and 2008. (Events to 1994 are treated by Lee Hoskins and James W. Coons, “Mexico Policy Failure,…,” Cato Policy Analysis No. 243, Oct 10, 1995). In the meantime, to JALOPO is the first Mexican President to actively recognize the danger emerging from the rise of Narcotraficantes. In 1975 he ordered troops into action under code name Operation Condor to break the south-north supply chain to the USA from Sinaloa, Durango, and

14 Chihuahua where the Mexican military, always the most important eradication force, had to fight not only the increase of illegal crops but also a growing number of armed peasants and smugglers, DEA statistics suggest that Mexicans are supplying around 87 percent of the heroin and nearly 95 % of the marijuana available in the United States market, according to María Celia Toro, who has studied the role of the DEA in Mexico. JALOPO ends the Dirty War by 1978, but does not win credit because that War is a secret one. He is otherwise infamous for his mistresses and for having sponsored "rampant corruption," "excessive overseas borrowing," galloping inflation, policies leading to devaluation of the peso. He announces in 1981: "I will defend the peso like a dog!" It earned him the nickname 'El perro' (The dog) and having people barking at him. By 1982 the cumulative action of the vicious GDO, the two-faced LEA, and erratic JALOPO lead to Mexico‟s crash of state capitalism. May 31 Active Statism is crafted by “Virtual President” (1983-1988) and President (1983-1994). Carlos Salinas de Gortari sets the framework for the three Presidents who follow him: Ernesto Zedillo, 1994-2000; Vicente Fox, 2000-2006; Felipe Calderón, 2006-2012 The myth of presidential succession in 1982: Purportedly JALOPO had two candidates to succeed him. A political choice if those skills were needed and a financial/administrator type of leader if the economic factors were imploding. Clearly the later was needed and MMH won the nod not so much from JALOPO but from most of the PRI Family who knew that CSG, chief advisor to MMH, would be the de facto President (1983-1988) and would then assume the Presidency in his own right (1988-1994). Obviously MMH was out-of-his-depth and only in the presidential game because he has CSG behind him. It is CSG, the young political economist with a doctorate from Harvard University who can save the Official Party.

THE MMH / SALINAS PRESIDENCY (1983-1988) MMH and CSG agree that CSG should move quickly to contain the damaged economic scene left by the mentally unstable JALOPO. But the question how to rapidly contain inflation when the banking system has just been nationalized and put in the hands of JALOPO‟s cronies. . MMH/CSG have to print more money and wait for peso‟s value to plummet, but at least they meet the government payroll as well as pay the subsidies needed to keep the poor afloat. The next step is to rely on Ernesto Zedillo, the young doctorate from Yale University who immediately saves the capitalist classes in Mexico by taking control Zedillo negotiate the amount and timing of payments leaving Mexico.

15 In the meantime, major earthquake shocks Mexico City in 1985, killing up to 10,000 persons and cutting most communications in Mexico— all the telephone trunk lines go directly to Mexico City and then out to the provinces, but Mexico City lines are out, so the lesson is learned about the dangers of extreme centralization. Further, CSG (who is officially Minister of Planning and Budget) is laying the basis in 1985 to join the U.S.-Canadian Free Trade Agreement (FTA), the negotiations lead to the signing of the agreement in 1988. Because many Mexican intellectuals are still infected by the idea that Mexico‟s State Capitalism and anti-foreign business bias can be resuscitated, CSG‟s strategy is take debate to the international level by having Mexico join the General Agreement on Trade and Tariffs, membership in which is required to join into FTAs. The U.S.-Canada FTA (which Mexico joins in 1994) contains the principles that will guide Mexico as it looks beyond the North American Free Trade Agreement (NAFTA) to sign with other regions such as Mexico-European Union. These principles at the outset are to: ▪ ▪ ▪ ▪ ▪ eliminate barriers to trade in goods and services between Canada and the United States; facilitate conditions of fair competition within the free-trade area established by the Agreement; significantly liberalize conditions for investment within that free-trade area; establish effective procedures for the joint administration of the Agreement and the resolution of disputes; lay the foundation for further bilateral and multilateral cooperation to expand and enhance the benefits of the Agreement.

In the political sphere, MMH‟s own input to policy is to drive the PRD‟s “Democratic Current” out of the Official Party, alienating the Currents leaders Cuauhtémoc Cárdenas (the son of Lázaro), and Porfirio Muñoz-Ledo, who are both critical of CSG‟s approach to international economic relations and the opening of the Mexican economy. Cuauhtémoc wins the presidential election of 1988, but does not demand a full recount after the PRI/government computers crash before all the voting can be tallied. Cuauhtémoc meets secretly with CSG and then over the objections of his group lets the partial vote stand. He goes on to found in 1989 the Statist-oriented PRD (Partido Revolucionario Democrático). Independent analysis of how the full presidential vote would have come out in 1988 favors Cuauhtémoc, who bides his time and delivers a major defeat to the PRI when he wins the Mayorship of Mexico City, 1997-2000.

THE SALINAS PRESIDENCY, 1988-1994 In the meantime, with the PRD wrapped up in urban affairs, in 1992 President Salinas sponsors and wins a change to the Constitution of 1917. Indeed, in taking up again-Juarez‟s nineteenth-century project to give titles to the holders of ejido land, CSG‟s 1992 Constitutional Amendment provides for granting ownership of title to

16 the land currently being worked by a family, thus ending complete control over the land that had been held by Communal Councils. Further, this new law states that although land distribution to Ejidos could continue, it does not require it, effectively ending land redistribution that creates counterproductive minifundia. Although CSG hopes that the communal farmers will begin to sell their land and capitalize their years of investment, in reality there are few buyers for eroded lands. Where the Amendment is more successful is in authorizing the holders of the new individual titles to rent, lease, or join their lands to the private farming sector, which had hitherto been illegal. (See Schema 6.0, pp. 139-142) With regard to the money losing Decentralized Industries owned by the government, CSG conducted audits to find out exactly what the government owns and how to privatize up to 1,000 firms-- all of which had been losing huge amounts of money, especially under the Statist Presidents. (For major sales of State owned companies such as truck and cigarette manufacturing plants and milk processing plants (Schema 6.0, pp. 137-142). GSG sale of the TELMEX in 1990 “gives” the telephone monopoly to Carlos Slim in a questionable deal that will make Slim the world‟s richest man and the one who charges the highest telephone rates on the globe. In 1992, GSG re-privatizes the banking system nationalized in 1998. While it belonged to the nation, it fell ten years behind the process of modern changes to private banks around the world. Salinas makes friends with those who were the Official Party‟s old opponents. Immediately after taking office as President in 1998, he recognizes and attends the inauguration in Baja California of Ernesto Ruffo-Appel, the first elected opposition state governor—a leader of the PAN. In 1992 CSG negotiates a change in the Constitution to give the clergy the right to vote, denied since 1917. To help the poor, as promised in his own presidential campaign, he establishes the National Solidarity Program (PRONASOL) to implement his political philosophy of “Social Liberalism” in 1988, immediately after taking office in December 1988. Salinas also opens FTA talks with the USA and Canada so that Mexico joins NAFTA on January 1, 1994, the date on which Subcomandante Marcos declares war in Chiapas to stop NAFTA—too late. In any case, Marcos has been in the jungles of Chiapas advocating a Maoist type revolution for Mexico‟s Indigenous people since 1983. The war quickly ends when Salinas halts military attacks and seals Marcos into a sizeable portion of the state. Marcos is pleased with has new base of community development that is visited by foreign sympathizers from around the world. Others problems during Salinas‟ final year in the presidency this year of 1994 are not so easily resolved, especially the assassination of Luis Donaldo Colosio, the PRI‟s official candidate to succeed CSG. The only leading members of the PRI not in government (and not subject to having had to leave government) is Colosio‟s campaign manager—Ernesto Zedillo, who is relatively unknown in much of Mexico. Further, the Secretary General of the PRI is assassinated amid rumors of conspiracies and speculation that GSG „s brother Raúl Salinas is attending parties at isolated ranches owned by

17 narcotrafficantes. Too there is concern about possible devaluation of the peso owing to Mexico‟s deepening deficit in Mexico‟s balance of payments. Despite all these problems, Zedillo wins the presidential election against Cuauhtémoc Cárdenas who is seen again as a dour candidate and out of touch with how to reach millions of voters via modern media—the fact that Cuauhtémoc had given up even on a sample vote recount in 1988 did not help his image as a “fighter,” and he placed third after the equally dour PAN candidate Diego Fernandez de Cevallos 10th Week: Reading, Discussions, and Topics: Schema 6.0, pp. 147 to end of Schema 6.0 Many Images of Mexico, Articles 3 and 6 Book of Charts, Charts Jun 5 Presidencies of the PRI’s ZediIllo (1994-2000) and the PAN’s Vicente Fox, who continue the Salinas model of the Active State. Both expand social programs and sign FTAs around the world to make Mexico a leader in these realms. Zedillo’s big problem involved his naming to his cabinet fine people, but most to the wrong jobs. The new Finance Minister fires all the experts at the Treasury not realizing that the levers of power worked counter-intuitively and there is no expert left to point out the accounts where funds are stashed as part of state secrets. Needless to say, this Minister thinks that his predecessor’s habit of calling different bankers in New York City every day to stay in “reassuring touch that all is well” was demeaning to a possible future President of Mexico. When the Minister calls a meeting of Mexican bankers to all agree that there can be no devaluation, to those in attendance that means, inadvertently, “get all available cash into dollars because a devaluation is coming.” After these “Errors of December 1994,” the first month of the new presidency, that Minister not only lost his job at Treasury; he lost his “road to the presidency.” That Bill Clinton send Zedillo a bailout guarantee is better than any transfer of cash, and the financial situation stabilizes, but the situation remains difficult for the first three years. In the meantime, the election of 2000 is coming close, and the influential PRD leader Porfirio Muñoz Ledo, who had been Zedillo’s professor in earlier years urges Zedillo to restructure the Instituto Federal Electoral by giving up the government’s chair of that oversees the election. Since the PRI controlled the government and the government names the Electoral Commission, Muñoz Ledo discusses different options. Instead of the President of Mexico appointing the chair and members of the Electoral Commission, why not have the Congress select highly respectable independent citizen who could gain the trust of all parties in Congress. Zedillo agreed, and the change is made that means an election that is not rigged at the outset in favor of the government in power. On July 6, as the votes were counted, many observers worry that the PRI must have a final card to play and win, but that does not happen. The vigorous Vicente Fox wins and brings down the PRI after 71 years in power.

18 The PRI candidate appear exhausted during the election when he appears on stage with Fox. Cuauhtémoc looks dour for the third time, and he retires from his runs for the Presidency. The Fox presidency is notable for his opening the State’s Secret Archives to see what really happened at the Plaza of Three Cultures back in 1968—GDO and LEA gave order to trap the protester demanding ouster of the PRI fro power, and make the protesters appear to be guilty. With this new information, Fox appoints the Special Prosecutor to investigate also charges of genocide dating back to 1971, as we have seen. Fox also established Seguro Popular so that the poor who have never paid into the Social Security System can be covered like those who have. This places extraordinary pressure on Social Security hospitals and clinics so that the middle classes turn to private doctors, accepting the reality that the wait is not worth the time. The Instituto Federal Electoral mobilizes and trains 1 million citizens to count the votes in front of the representative of all political parties The election officials declare the PAN’s Felipe Calderón the winner—by 0.6% of the vote. The loser Manuel Andrés López-Obrador demand and receives a recount of the 10 most important districts where he suspects voter fraud, the percentage remain the same. Nevertheless, López-Obrador shuts down the Paseo de la Reforma to cut the city in half for months, wasting much of the credibility coming forward to the Mexican Presidential Elections in July 2012, where he is again the PRD candidate for he leftist coalition. Jun 7 Calderon Presidency (2006-2012) and War on Narcotraficantes As Calderón approaches the end of his six year term in December, he is fighting a Drug War with Narcotraficantes who are warring among themselves as well as with the Government. Former President Zedillo and Fox have joined with former President in South and Central America to decriminalize drugs to eliminate the profit while offering medical treatment to addicts and, hopefully, stopping the Mexican death toll at about the 50,000 where it now stands. Calderon helps more Mexicans to get health insurance during his term in office. (Financial Times video of F.C.’s interview. Finals Week: June 11 Monday: Final Exam 11:30am-2:30pm

Copyrighted Dr Olga Lazin, 2012

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