Globalization - Mexico

5 Most Important:
- 1982 Mexico is in debt of 80 billion dollars --> the government decided to have greater involvement with the world market (more trade/exports), the government privatized some of the workforce (government is not controlling the economy), and the government cut programs/aid
- Carlos Salinas became Mexico's President in 1988 --> He created free trade which lowered taxes and government protection
- North American Free Trade Agreement (NAFTA) --> Opened up the borders, cheapens trade and at first created more jobs. Upper class benefited from this, however the middle and lower classes did not benefit
- Earthquake: a lot of people were injured and the government did not help
- Zapatista Army: they were against NAFTA and the Mexican government because they believed that NAFTA and the government were making inequalities greater between the rich and poor. Purpose: the independence for indigenous groups and land reforms. They declared on the government.

2 Consequences:
- Privatization: workers were mistreated and low wages (no labor laws) --> opposition grew towards PRI
- Maquiladoras: foreign owned enterprises that did not help the economy (sweatshops)


Mexico's Challenges:
-Felipe Calderon won the election in 2006 by 1%, some voters believed it rigged. Courts had a partial recount resulting in Calderon remaining president, this leads to great mistrust of the government.
-Outgrowing natural resources: most oil has been used up, oil industry is now failing.

Economic Challenges:
-Struggling to compete with US
-Agriculture failing: 30% of farm jobs have been lost since NAFTA was introduced
-250,000 jobs lost

Mexico's Relationship with the US
-165,000 Mexicans immigrated to US, Mexican government felt pressure to defend their citizens' rights in the US
-Expansion of drug trade between US and Mexico, partially due to illegal immigration
-Aggressive war on drugs in Mexico led by President Calderon
-Drug cartels linked to
-In 2008, 90% of rifles confiscated from cartels were from the US

Land Reform
-Mexico's large indigenous population are mostly poor
-Most of the farming is consumed by farmers and doesn't benefit local economy
-Zapatistas seek to reclaim land lost by the poor, many people arrested in protesting