If the political pendulum had swung to the left during the
Presidency of Cárdenas, it almost immediately began swinging
to the right again following his leaving
office. His successor
was Manuel Ávila Camacho, a conservative general who was born
in Teziutlán, Puebla.
One of his first moves was to declare "I am a believer",
thereby signaling the church that it had nothing to fear from his
administration and, indeed, that it could expect to find warm support
from his quarter. He likewise began making
conciliatory gestures in the direction of Washington, initiating in
the process an unprecedented period of friendship with the United
States. For its part, because Washington was occupied with fighting
the Second World War during most of Camacho's term, it had little
inclination to involve itself in the affairs of its southern neighbor
as long as the struggle went on. Throughout the war, Mexican exports
of cotton, coffee, and oil to the United States commanded high prices
and brought in growing amounts of needed capital, although with most
U.S. industrial production diverted into military hardware, Mexico
could not satisfy its needs for imported industrial goods. As a
result, its domestic manufacturers were given the incentive to
develop a number of new import-substitution industries that could
capitalize on the country's reservoir of cheap labor and its captive
middle-class market. This, in turn, accompanied a policy shift from
agrarian reform in the rural areas of the country to industrial
development in its urban regions, and during the 1940's the country's
population distribution increasingly reflected this structural change
in its economy. Also contributing to the flow of money into Mexico
were the remittances of thousands of Mexican field hands
(braceros)
who had been temporarily welcomed into the labor-short United States
to harvest agricultural crops, so all in all, the war years were ones
of relative prosperity for at least middle- and upper-class
Mexicans. Perhaps one
indicator of the new vision of the future which was unfolding was
seen in the ruling party's decision in 1946 to change its name from
the Party of the Mexican Revolution (PRM) -- now nearly a half
century in the past with many of its goals already "set aside" -- to
the Institutional Revolutionary Party, or PRI, implying that the
"revolution" had become an ongoing "institution" in Mexican life. Of
course, the fact that the party had already abandoned the principles
of Cárdenas made this move all the more ironic.
As he left office in 1946, Camacho designated his Interior
Minister (Secretaría de Gobernación), Miguel
Alemán, as his successor, thereby making him the candidate of
the PRI and thus ensuring his election as the President.
Alemán had earlier been the Governor of Veracruz and was the
first civilian president to take office since the Revolution. As if
to demonstrate how pointedly he differed from the philosophy of
Cárdenas, he consciously set out to further slow the program
of agrarian reform and to accelerate the industrial development of
Mexico instead. At the end of the war, foreign investors were again
invited back, being offered free reign in all but a few sectors of
the economy over which Mexican control was deemed
necessary. These
included such "cultural" activities as filmmaking, publishing, and
the ownership of radio and television networks, as well as the
operation of land and air transport and commercial fishing. During
Alemán's administration several large hydroelectric projects
were undertaken and the transformation of the sleepy colonial seaport
of Acapulco into a major tourist attraction was begun. Not only did
he manage to enrich himself considerably in the latter venture but he
also gained control over key elements of the Mexican media, including
a major newspaper and a TV network. Probably his most lasting legacy
was a reputation for graft and corruption on a scale heretofore
unknown in Mexico.
It was during the immediate post-war period that Mexico saw
the greatest expansion of the so-called paraestatales, or the heavily subsidized state-owned enterprises
dedicated to the production of such basic essentials as electricity,
cement, and steel. By their provision of
relatively cheap goods and services to the private industrial sector
and the encouragement of large-scale commercial agriculture based on
export crops, the economic planners expected that free enterprise
capitalism would produce a "miracle" of development which would
inevitably "trickle-down" to the lower classes and improve their lot
as well. What happened instead was the unleashing of an inflationary
spiral that quickly pushed the prices of foodstuffs, clothing, and
housing out of reach of the poor. In 1948 the value of the peso was
devalued by half, and, when that failed to halt the crisis, it was
devalued by another third two years later. While Mexican
industrialists wallowed in profits generated by protective tariffs,
generous subsidies, and low taxes, the unemployed rural poor
continued to flock into the cities in the hope of finding jobs and
bettering their lives.
The year 1950 once more found the United States fighting a
war, this time in Korea, and once again the Mexican economy found
itself revived by a greater demand for its critical exports in its
northern neighbor. Northern border towns raked in a rich harvest of
dollars from Yankee tourists, many of them servicemen on leave, as
the war dragged on, and once again the Mexican economy saw an upward
turn that encouraged local businessmen to invest in many new resort
complexes as they sought to emulate the success of
Acapulco.
As Alemán approached the end of his term in office, he
named Adolfo Ruiz Cortines as the PRI candidate for the Presidency in
the election of 1952. A lawyer by training, Ruiz
Cortines' earlier career had been a carbon copy of that of
Alemán, serving first as a governor of Veracruz and later as
chief of the Interior Ministry. Unfortunately, as the Korean War
wound down in 1952, the U.S. economy again lurched into a depression,
and the Mexican economy soon followed suit. Another devaluation of the
peso took place, and again the wealthy sent much of their capital out
of the country. When the U.S. stopped stockpiling critical metals,
the prices of lead and zinc collapsed, as did that of cotton. In the
latter instance, synthetic fibers had begun replacing natural ones,
and Mexican markets contracted sharply. The production of long-staple
varieties in the irrigated valleys of northern Mexico could no longer
meet the foreign competition, especially after 1956 when the United
States started dumping its surplus cotton on the world market. With
agricultural exports generating fewer revenues, domestic investments
were reduced, and the national budget contracted. Adding to the
country's woes was the recurrence of drought that cut the production
of corn and beans so sharply that these basic staples of the Mexican
diet had to be imported, further exacerbating the country's balance
of payments.
The long-suffering working class, on whom much of the burden
of Mexico's industrial development had been placed, now demanded
higher wages to meet the spiraling cost of
living. With the
prospect for real social breakdown looming so large, there was no
alternative but to grant them.
Yet, there was still the question of how to finance them, and
raising taxes of the middle and upper classes would only have
antagonized these sectors of the public as well. Finding itself
embroiled once again in a seemingly never-ending economic, social,
and political dilemma, the Cortines administration lacked both the
means and the resolve to protest to the United States in 1954 when
the CIA subverted the only democratically-elected government
Guatemala had ever known, although public opinion throughout Latin
America was indignant at this further breach of the "Good Neighbor
Policy".
Instead of attempting to expand Mexico's domestic market by
improving the economic conditions of the country's rural poor, the
government planners once again looked to foreign investment to bail
them out of the mess in which they found
themselves. In the last
three years of the Cortines' administration, some $400 million of new
investment was made in Mexico, most of it ear-marked for industries
that produced motor vehicles, heavy equipment, and machinery of
various kinds. Ironically, most of these
industries required specialized, high-tech equipment, the bulk of
which had to be imported from
abroad. Thus, rather
than utilizing the vast reservoirs of cheap domestic labor which
remained underemployed on every side, this policy only increased the
country's foreign indebtedness all the
more.
Up until about 1950, the United States always referred
supplicants for financial aid such as Mexico to private capital
markets, but as the Cold War began to intensify and its fear of
Communist influence heightened, Washington encouraged the
International Bank for Reconstruction and Development and the
Export-Import Bank to start making substantial loans to third-world
countries. Mexico was one of the
"fortunate" recipients, being granted over $200 million in loans in
the last two years of Alemán's tenure, and by the time
Cortines left office, the total of foreign loans had risen to over
$600 million. A victim of severe migraine headaches, Ruiz Cortines'
most lasting contribution to the political life of Mexico was no
doubt the fact that he enfranchised women in his final year in
office.
By the time that Cortines' handpicked successor, Aldofo Lopez
Mateos, moved into the Presidential palace in 1958, the political
pendulum has swung so far to the right in Mexico that government and
labor had become seriously estranged. Lopez Mateos had first been a
teacher, then a senator, and had served as minister of labor in the
cabinet of Cortines. He is best known in Mexico as the architect of
the law of disolución
social (social dissolution),
an act which enabled the government to jail labor leaders who
"threatened the stability of society" by daring to strike -- a total
about face in official policy since the days of Cárdenas.
Moreover, like Cortines before him, Lopez Mateos was so intimidated
by the United States that he took no official notice of Castro's
victorious revolution in Cuba, leaving only Cárdenas to hail
the move as an act of national liberation similar to his own more
than twenty years earlier.
Ironically, the success of the Castro revolution in Cuba in
1959 so frightened the United States that Washington once again felt
impelled to goad private banks into increasing their participation in
providing loans to foreign countries. By the end of that year
direct U.S. investment in Mexico had reached $900 million and had
increased by nearly half again by the end of the Mateos
administration in 1964. With prices essentially
stabilized, the subsidized domestic industries running at full
capacity, and foreign investors reaping bountiful profits, many
Mexicans of the middle- and upper classes were convinced that the
long-awaited "economic miracle" had finally arrived. But, as usual,
the "silent majority" of the poor still had little to cheer about.
Following what had become a virtual pathway into the
presidency, the Minister of the Interior under Lopez Mateos, Gustavo
Díaz Ordaz, received the nod to move into the National Palace
in 1964. Four years into his term, however, as Mexico was hosting the
Olympic games, a massive student demonstration was called at the
National Autonomous University of Mexico (UNAM) to challenge the
government's priorities, its hypocrisy, and its corruption. How was
it, they asked, that a country as poor as Mexico could spend money on
building mammoth athletic facilities for the Olympics when it could
scarcely find sufficient funds to properly educate its burgeoning
population? Why were so few lower- and middle-class students being
admitted to the University and why were there no jobs for those who
finally completed their studies? In response to what was considered a
cause for international embarrassment, Ordaz ordered his Interior
Minister, Luis Echeverrría, to put down the student riots as
expeditiously as possible. The latter called in troops to disperse
the crowds, who, firing into their midst, killed over 300 students,
wounded as many as 1000 others, and imprisoned many more -- giving
the country cause for far greater embarrassment both domestically and
abroad. The so-called Tlatelolco massacre was indeed one
of the darkest days in Mexico's recent
history.
Yet, despite his harsh handling of the student strike,
Echeverría advanced into the President's office -- one might
add, "right on schedule" -- as the PRI nominee in 1970. It must have
been heart-rending for Cárdenas to have witnessed the
disaffection of one of his constituencies after another -- first, the
campesinos and the agrarian reform had been abandoned, then labor,
and now the students, who formed a sizable and active component of
the so-called "popular sector". The story is told of Cárdenas
visiting with an impoverished Yaqui Indian in 1970, three decades
after his land had been restored to him and two decades after it had
been taken away from him again. When he asked Cárdenas, "Was
this the Revolution?" the latter had all he could do not to burst
into tears. It was a disillusioned man indeed whom they laid to rest
in late October of that year.
Once in office, Echeverría surprised almost everyone by
moving to the left. In the face of opposition by the Catholic Church,
he instituted family planning in 1973, apparently cognizant that,
small as the economic gains had been for the masses over the last
decades, they would be wiped out entirely by the country's
uncontrolled population growth. Despite the fact that Mexico had
received over $80 billion in foreign loans during the 1970's, the
balance of payments was in such poor shape and inflation was so
rampant that he was forced to devalue the peso by 50% just before
leaving office in 1976.
The Mexico that José Lopez Portillo (y Pacheco)
inherited was definitely one that was ailing. Trained as a lawyer, he
was also a professor and his first political job was as the Minister
of Finance in Echeverría's cabinet. In an effort to make some
concessions to an increasingly alienated electorate, Lopez Portillo
expanded the Chamber of Deputies to 400 seats, allocating a minimum
of 100 seats to opposition parties. He also nationalized the banks,
many of which were going bankrupt as a result of over-extending
themselves on unsecured loans. Government borrowing abroad, however,
went on without restraint, piling up an ever-larger foreign debt. The
discovery in 1976 of major oil and gas reserves in Tabasco and
Chiapas led Mexican planners to think that they could easily pay off
all of their indebtedness with their vast newfound mineral wealth. On
the other hand, this unexpected "bounty" also led to rampant and
widespread corruption, not leaving the President himself untainted.
Aside from reopening diplomatic relations with Spain in 1978 after a
38-year hiatus -- giving him an opportunity to visit the country and
trace his ancestry -- José Lopez Portillo is perhaps best
remembered for building himself a palatial mountain-top residence
having the shape of his initials.
By contrast, his personally chosen successor as President,
Miguel de la Madrid, hailed from the west coast state of Colima, was
educated at UNAM, and had taken an Master's degree in public
administration at Harvard. Another political conservative, he was
definitely a friend of the business community. Through no fault of
his own, the Mexican economy, despite its bonanza of oil and gas
wealth, was sent into a tailspin by the oil glut of the 1980's. With
prices cut sharply, Mexico plunged ever deeper into debt.
Unemployment and underemployment became the order of the day as shops
and factories closed in the cities and farm workers were let go in
the countryside. Mexican exports could no longer pay for more than a
fraction of what the country's upper classes were importing, and the
balance of payments was becoming increasingly unfavorable. The rate
of inflation was so great that the wealthy began sending their money
abroad in an effort to retain its value. Mexico found itself unable
to even pay the interest on its foreign debt, and finally de la
Madrid felt obliged to institute an austerity program that inevitably
hurt the poorer classes far more severely than the elite. To make
matters worse, the ruling party was again charged with fraud in the
local elections in 1985, and in September of that year, a severe
earthquake struck Mexico City killing over 7000 people and inflicting
massive damage on the capital city. Strapped for funds, the
government was condemned for its tardiness in helping the city and
its residents to recover from this disaster. Then, on the eve of de
la Madrid's departure from office in 1988, Hurricane Gilbert ravaged
the Caribbean resort centers at Cancún and Cozumel, killing
over 200 persons and causing widespread damage to the tourist trade.
Thus, throughout his entire term as President, Mexico limped from one
disaster to another, while all the while the volume of drugs and
illegal aliens smuggled into U.S. continue to swell into ever-greater
proportions.
The man chosen by de la Madrid to bail Mexico out of the
deepening morass in which it found itself was Carlos Salinas de
Gortari. Born into a wealthy Mexico City family, he had completed his
higher education with a Ph.D. from Harvard. Despite the fact that the PRI
claimed that he had won the election with 50.36% of vote, his margin
was so narrow that most Mexicans were convinced that their suspicion
of fraud was amply justified, especially because of purported
"computer break-downs" and numerous other irregularities which took
place. Ironically, the
opponent from whom he "stole" the election was Cuauhtémoc
Cárdenas, the son of Lázaro Cárdenas, who had
founded the National Democratic Front (Frente Democratico Nacional,
or FDN, in an effort to put an end to the rigged elections that had
become a standard means of keeping the PRI in power. Salinas made his
most lasting mark on the country's history by negotiating for
Mexico's admission to NAFTA on January 1, 1994, though he left office
under a growing cloud of scandal resulting from the association of
his brother and other close colleagues with the drug cartels whose
influence over the Mexican government had reached frightening
levels.
Salinas' choice of a successor was Luis Donaldo Colosio
Murrieta, a native of a mining town in Sonora who had been educated
at the Technical University in Monterrey, taken a Master's degree at
Pennsylvania, and done advanced computer studies in
Vienna. He began his
government career in 1980 as a planner, was first elected to congress
in 1985, had gone on to become a senator, and then Secretary of
Social Development in the Salinas cabinet. From 1988 to 1992 he had
served as head of the PRI. To continue the "technocrat" tradition
that had essentially begun with the Lopez Portillo administration in
1976, Colosio was an obvious candidate for the "dedazo" -- the
"fingering" of a successor by an incumbent president about to leave
office.
However, the PRI was in disarray following its questionable
victory in the election of 1988 and internal dissensions between old
guard politicos and the younger technocrats were increasingly
weakening its monolithic structure. In March 1994 when Colosio
was campaigning in the border city of Tijuana, a gunman killed him
under circumstances that the Mexican authorities have never
completely clarified. It is still unknown whether the 23-year old
assassin was working alone or with accomplices, or what his motives
may have been. (Ironically, Colosio's young widow also died
(mysteriously?) just eight months later.) In any case, with the
election just months away, a "replacement" candidate was quickly
found in Ernesto Zedillo Ponce de León, another of the young
technocrats trained as an economist both in Mexico, England, and at
Yale where he took both a Master's and a Doctor's degree. Zedillo had
become the planning and budget minister under Salinas when Colosio
was named to head the PRI, and had served as minister of education
from 1992 to 1993.
The Mexico whose leadership Zedillo assumed in 1994 was
undergoing its most serious trials in perhaps a
generation. On January
1st of that year, the very day that the NAFTA agreement came into
force, an Indian uprising broke out in the southern state of Chiapas
as a guerrilla army calling itself the Zapatista Army of National
Liberation (EZLN) captured several villages in an effort to call
attention to the long-suffering and disadvantaged indigenous peoples
of this remote part of the country. Troops were rushed to the region
and fighting killed nearly 150 persons before a tense truce of sorts
was reached with the rebels. The unsolved mystery of Colosio's death
still hung over the country, the scandals of the Salinas regime were
increasingly coming to light, and the economy was once more on the
verge of total bankruptcy. Realizing the precariousness of Mexico's
situation -- particularly as it could affect financial interests in
the United States -- President Clinton managed to push through
Congress a $50 billion bail-out program to save the country from
default. The austerity program demanded by this bailout plunged the
nation into yet deeper recession, causing hundreds of thousands to
lose their jobs and the value of the peso to decline by half. Yet, by
taking their "pound of flesh" from the impoverished masses of the
Mexican people, by January of 1997 the Zedillo government was able to
repay the entire loan with interest.
Meanwhile, the Zapatista rebels and the Mexican government
signed a lengthy document known as the San Andres Accords on January
18, 1996 according to which the Zedillo administration agreed that it
would seek redress for the Indians'
grievances. It wasn't
long, however, before accusations were made that the government had
gone back on its promises by constantly building up its military
forces within the region and fighting a "quiet war" against its
indigenous inhabitants. On December 22, 1997, a group of armed men
wielding machine guns and machetes stormed into the Indian village of
Acteal, killing 45 Mayans and wounding at least 25 others in a brutal
massacre. They were
identified as a vigilante group called the "Red Mask", apparently
hired by local landlords in the region to intimidate and terrorize
the Indians. Then, on
April 9, 1999, Public Security Forces seized control of the Municipal
President's Office in San Andres Sakamc'hen de los Pobres, site of
the signing of the truce accords, further heightening the tensions
between the rebels and the government.
As Zedillo's term neared its end, he made a much-heralded
announcement that he would break with the long-standing PRI tradition
of dedazo, or
naming his successor in office, and let the democratic process itself
sort out who the next candidate of the ruling party would be.
Critics, of course, pointed out that Zedillo already had his
"favorite" but simply wasn't going to make public his support for
him. When his attorney general, Labastida Ochoa, announced his
candidacy a few weeks later, most everyone assumed that he did so
with Zedillo's blessing. Also announcing his candidacy for the
presidency was Vicente Fox, the governor of the state of Guanajuato,
who had won the nomination of the leading opposition party, PAN, or
the Party of National Action. Likewise, Cuauhtémoc
Cárdenas, who had won election as the Mayor of Mexico City in
1997 by a landslide vote, resigned from that post to run a second
time as the candidate of the PRD, or Party of Democratic Reform. In
doing so, however, it was with less enthusiastic support from the
electorate of the country's capital than he might have otherwise
expected, for his attempt to solve the staggering problems
confronting the world's largest city had been less than successful.
Indeed, the insolubility of Mexico City's many pressing problems
would seriously compromise any politician's hopes for higher office,
so Cárdenas entered the race with no better prospects than
placing a poor third. Indeed, many political observers foresaw that a
three-way split of the vote would make the defeat of the PRI a
physical impossibility, but the likelihood that either Fox or
Cárdenas would defer to the other in order to wage a joint
campaign appeared to be just as hopeless.
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