Towards an Industrial Economy (Limitations in Protectionism and…
Towards an Industrial Economy
From an exporting Model to importing Substitution
The economic model of Mexico from colonial times focused on exporting raw materials.
Unfortunately, because of the global crisis Mexico had to change it, we began to industrializing the economic process.
" Importation Substitutions"
From the Mexican Miracle to Petroleum Explotation Economy
It was the increasing pace of the Mexican economy from 1940 to 1952.
Was achieved by the import substitution model and the war economy.
World's most powerful countries were in war, this benefited Mexico, who exported raw materials and oil abroad.
The economy entered in a stabilizing stage that lasted until 1970.
Limitations in Protectionism and Technological Backwardness
Mexican economy was based on protectionism.
Imports and foreign investment were limited to encourage domestic industry.
By 1970, Mexico become an indebted country.
Entrepreneurs stopped worrying about efficiency in production.
They lost interest in investing in technology.
The Crisis in the Countryside
Poverty in mexican workers lives.
Mexican government wanted to keep certain products at a low Price to help consumers.
This affected the producers because they couldn't generate any profits.
The agricultural crisis provoked peasants migration to big cities.
Others entered to the braceros, a program to go to work in the USA.