CAPITALISM IN MEXICO: HISTORY, CHARACTERISTICS, CONSEQUENCES - CULTURE VOCABULARY

The capitalism in Mexico is perceived as a system of economic transformation. It is a process that determines the structure of society and aims to support the needs of producers and consumers. Likewise, its purpose is to expand the market to improve the quality of life of the inhabitants.

This movement has manifested itself in various ways throughout history. In its origins it was observed as a mercantile principle, where trade allowed the coexistence of heterogeneous monetary organisms.

Mexican capitalism is a process that determines the structure of society and seeks to support the needs of producers and consumers. Source: pixabay.com

While one group progressed thanks to the exploitation of the country's resources, other inhabitants died of exhaustion and starvation. However, this perspective was modified over the years, displacing the commercial project for a financial one.

In this stage equality, freedom and material well-being were sought in all areas of society; the formation of the nation-state was consolidated and territorial recognition was achieved thanks to the impulse of production.

International participation and investment strengthened internal development. For this reason –in the middle of the XIX century– in Mexico the labor field, the advancement of manufacturing and the building of companies increased; But the ideal of a centralized town gradually faded in the 1920s.

At the end of that decade the idea of freeing up the economic area to restore and expand the private sector was raised. In such a way, it is appreciated that the financial doctrine was stripped and replaced by the neoliberal theory. For this reason, alienation and injustice currently predominate in Mexican territories.

How Mexico entered capitalism (history)

Mexican capitalism is not only identified for being an economic phenomenon, but for being a system that connects the political space with the cultural one. It consists of a global model where production relations usually have a managerial purpose.

Due to its commercial nature, it can be expressed that Mexican capitalism tries to link itself with nations that have a high mercantile index. Now, some historians say that capitalism began in the Central American country during the Porfiriato (1876-1911).

However, setting a specific date means omitting some fundamental events that contributed to the formation of the socio-economic movement. This is shown in the following lines:

Background

The capitalist doctrine emerged in the 19th century; However, in Mexico the bases for its development were designated from the colonial era. The Spaniards who settled in those lands were the first to revolutionize the economic field when they integrated it into the world market.

They achieved this through the export of gold minerals, food or articles such as leather and tallow. In addition, they created the first industries for the extraction of pearls and designed new routes in order to reform transport, connecting the different regions.

Such events privileged only Hispanics, since titles, earnings and assets belonged to them. Therefore, the appropriation of capital excluded the majority group, which were the aborigines.

After the War of Independence (1810-1821) trade limitations and uncompensated shipments of gold and silver were removed.

The Porfiriato

In the presidential period of Porfirio Díaz (1830-1915) Mexico was classified as a capitalist nation; fact that happened because this government focused on production and international treaty.

The state strategy was for the labor market to occupy the center of society. That is why an attempt was made to unify the country both geographically and culturally. Taxes were also abolished, as well as sub-national and municipal tariffs.

This aspect allowed the legal circulation of the properties for all the inhabitants. Likewise, railroad concessions were granted and fees for indigenous people were approved. Due to the monetary increase, a banking institution was created.

However, the essential element of this regime was the construction of foreign industries in the national territory. Consequently, the Porfiriato established the ideology that internal development depended on technology that came from abroad.

Neoliberalism

It emerged in the eighties and represented the privatization of companies. The government project during this period consisted of reestablishing the payment of taxes and limiting the manufacturing process.

This demonstration did not have vast progress, but it did promote competition among state agencies.

Characteristics of Mexican capitalism

One of the characteristics of Mexican capitalism is the growth of the productive sphere and the incorporation of instruments that allow the renewal of both agrarian territories and agricultural industries.

This movement comprises an autonomous labor market, which is the result of the privatization of communal property and the sale of vacant land.

In addition, it associates national commerce with the means of communication and transportation. The objective is to expand and incentivize the trading system to increase production and extend it to regions that are relevant for export and import.

This social manifestation causes the State to centralize its power and obtain dominion over the population. In addition, it guarantees property rights and decrees rules that authorize the reorganization of public finances.

Consequences

The capitalist model, from the Mexican context, caused numerous inconveniences such as the economic polarization of society and the base distribution of jobs. These events generated the development of corruption.

This was because local labor was discarded, overvaluing the work done by European and North American immigrants. Similarly, some investors altered income, which is why the assets did not cover all the expenses of exports.

Another consequence was that the bourgeoisie and mercenaries obtained the greatest amount of foreign currency, preventing them from being invested in the development of a national technology.

Furthermore, the imposition of this system in Mexico has generated –due to social injustice– that the inhabitants resort to violence to defend their rights; but plutocratic ideology causes people to forge the underdevelopment of their nation; success they achieve by electing an oppressive government disguised as a socialist. The capitalism that spread in this Central American country is third world.

References

Beaty, E. (2001). The political basis of industrialization in Mexico. Retrieved on October 30, 2019 from Stanford University Press: stanford.edu
Gerschenkron, A. (2008). Economic study of Mexico. Retrieved on October 30, 2019 from Faculty of Economics: econ.cam.ac.uk
Keremitsis, D. (2017). The formation of the mexican state. Retrieved on October 29, 2019 from Faculty of History: history.ox
Nava, G. (2018). On capitalism or the logic of the market. Retrieved on October 30, 2019 from the Historical Research Institute:histicas.unam.mx
Rippy, F. (2014). Development of socialism and capitalism in Latin America. Retrieved on October 30, 2019 from University of Minnesota Duluth: d.umn.edu
Semo, E. (2016). The productive forces of Mexican capitalism. Retrieved on October 29, 2019 from the Mexican Academy of History: acdmexhistoria.org.mx
Solorza, M. (2011). Capitalist origins in Mexico. Retrieved on October 30, 2019 from Revista Republicana: ojs.urepublicana.edu.co

CAPITALISM IN MEXICO: HISTORY, CHARACTERISTICS, CONSEQUENCES - CULTURE VOCABULARY - 2024