1 / 9

Modernization, Dependencia , and Import Substitution Industrialization

This paper explores the dynamics of Mexico's economic modernization during the Porfiriato era and the subsequent adoption of Import Substitution Industrialization (ISI). It analyzes financing mechanisms for ISI, including taxation and state revenue sources, and discusses the implications of dependency theory. The paper also evaluates policies aimed at encouraging rural and urban support, promoting domestic businesses, and addressing the challenges of slow and unequal economic progress. By examining historical context and contemporary questions, the paper argues for a reevaluation of modernization policies in Mexico.

joyce
Télécharger la présentation

Modernization, Dependencia , and Import Substitution Industrialization

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Modernization, Dependencia, and Import Substitution Industrialization Mexico

  2. Financing ISI: Sources of State Revenue • Taxation • Imports and Exports • Income (individual and corporate) and payroll • Sales, property, etc. • Fees • Licensing fees and permits • State-owned industry • Monetary policy (printing) • Borrowing

  3. Financing ISI: Borrowing The question is who to borrow from and how. • Ownership requirements require joint partnerships • Local content requirements stimulate the domestic market for intermediary goods • Restrictions on repatriation of profits

  4. Modernization in Mexico:the Porfiriato Era “Order and Progress” • Economic Modernization • Modernization began in the rural areas • At the beginning of his Presidency imports totaled $20 million and exports $29 million; at the end imports totaled $205 million and exports $293 million • Focusing on the development of rail and telegraph lines to unite the country and facilitate export activities, as well as changes in land tenure to promote private property • Modernization was mainly paid for with foreign investment • Economic modernization favored large landholdings, pushing increasing numbers of landless peasants into the export-led market economy and competitive wage labor

  5. Dependency Theory and ISI:Revolutionary Mexico • Dependency Theory in Mexico, though popular academically, never had much political sway. • ISI was associated with the revolutionary project as a means of benefiting clients of the PRI, sustaining their rule • Small Farmers • Unionized urban workers • Unionized public employees • Business Elites

  6. Dependency Theory and ISI:Revolutionary Mexico Encouraging rural support • Agrarian reform: Article 27 of the Constitution allowed for the formation of ejidos • In total over 170 million acres were distributed from large estates to over 3 million peasants • By 1940 approximately ½ of cultivated land was held by ejidos and the number of landless rural laborers declined by almost 25% Encouraging urban support • Legal protections for unions and union members • Preferential access to social welfare programs

  7. Dependency Theory and ISI:Revolutionary Mexico Encouraging domestic businesses • Low rates of taxation • Subsidize production inputs • Targeted barriers to market entry • Targeted import and export restrictions • Manipulation of exchange rate policy • Restrictions on FDI

  8. Questions • What role do political motives play in the economy? To what extent do/can domestic political circumstances influence the national economy? • How should we understand the legacy of ISI? Debt and populism? Or industrialization and infrastructure improvements? • Dependency theory raised questions about distributive justice that remain valid. Do we have a way to address them?

  9. A Note on Policy Papers • Problem: slow and/or unequal economic progress under capitalism. • Policy options: • Modernization • Export-oriented growth • Dependency • Import Substitution Industrialization NOTE: you must argue in favor of a policy

More Related