Tuesday, 26 January 2010

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After five decades After five decades of political turmoil after independence from Mexico, the four consecutive administrations of President Porfirio D az, during the last quarter of the nineteenth century produced an unprecedented economic growth accompanied foreign investment and immigration, and the development of an efficient rail system and the exploitation of natural resources of the country.The gross domestic product (GDP) per capita in the early 1900s was on a par with Argentina and Uruguay, almost three times more than Brazil and Venezuela. The average annual economic growth between 1876 and 1910 was 3.3 . However, political repression and fraud, and the enormous income inequality exacerbated by the system of land distribution in large estates and farms where they worked million farmers in poor conditions were the main causes that motivated the Mexican Revolution (1910-1917) an armed conflict that radically transformed the political, economic, social and cultural development during the twentieth century, under a premise of social democracy. The period from 1930 to 1970 was called by economic historians as the "Economic Miracle", a stage of rapid economic growth spurred by the industrialization model of import substitution (ISI), which protected and promoted the development of national industry.Through the ISI, the country experienced an economic boom in which industries rapidly expanded their production. Important changes in economic structures included the free distribution of land to peasants under the concept of the ejido, the nationalization of oil and railroad industries, the incorporation of social rights in the constitution, the birth of large labor unions and modernization of infrastructure. The GDP in 1970 was six times higher than in 1940, while the population only doubled during the same period of time. To protect the balance of payments the government exercised protectionist policies in addition to increased private cr industry through Nacional Financiera (NAFINSA). The ISI model...