Industrialization in Mexico: History, Growth, and Challenges
Fourth Assessment
1. What is industry and how is it divided?
Industry encompasses all economic activities transforming natural resources and raw materials into finished or intermediate goods. It is divided into:
- Extractive Industries: Activities focused on extracting underground natural resources like minerals and oil.
- Manufacturing Industries: Economic activities producing material goods or transforming existing ones.
2. Main Branches of Mining, Quarrying, and Processing Industries
Extractive Industry main branches are:
- Mining
- Oil industry
Manufacturing Industry main branches are:
- Industrialized Food
- Chemicals
- Textiles
- Glass
- Appliances
- Electrical and electronic equipment
- Paper
3. What types of goods are produced by industry? Give some examples.
Industries produce non-durable consumer goods, intermediate goods, consumer durables, and capital goods. Examples include:
- Non-durable Consumer Goods:
- Pasteurized milk
- Soft drinks
- Biscuits
- Cigars
- Shoes
- Durable Consumer Goods:
- Televisions
- Cars
- Refrigerators
- Washing machines
- Intermediate Goods:
- Wheels
- Pesticides
- Dyes
- Abrasives
- Cardboard
- Capital Goods:
- Electric Generators
- Tractors
- Heavy Machinery
- Steam Turbines
- Drilling equipment
4. When did industrialization begin in Mexico?
Industrialization in Mexico virtually started in the 19th century, during the Diaz period. Key manufactures included textiles, food, beer, and snuff.
5. Explain the process or way of industrialization.
Mexico initially based its economic development on external market production, focusing on export-oriented agriculture. However, due to a decline in goods from overseas markets, it shifted to an inward-oriented model (import substitution industrialization) to meet domestic market needs.
6. How has industry grown from 1940 to date?
Growth by Presidential Term (Sexenio)
- Manuel Avila Camacho (1940 – 1946): 1941 (5.8%), 1942 (6.9%), 1943 (4.9%), 1944 (4.5%), 1945 (7.4%), 1946 (7.3%)
- Miguel Alemán Valdés (1946 – 1952): 1947 (-5.3%), 1948 (3.9%), 1949 (5.6%), 1950 (13.1%), 1951 (9.2%), 1952 (5.2%)
- Adolfo Ruiz Cortines (1952 – 1958): 1953 (-1.5%), 1954 (8.1%), 1955 (10.2%), 1956 (10.4%), 1957 (7.7%), 1958 (4.4%)
- Adolfo López Mateos (1958 – 1964): 1959 (8.1%), 1960 (8.6%), 1961 (5.5%), 1962 (5.5%), 1963 (9.8%), 1964 (13.8%)
- Gustavo Díaz Ordaz (1964 – 1970): 1965 (9.0%), 1966 (9.6%), 1967 (8.7%), 1968 (9.9%), 1969 (6.7%), 1970 (9.7%)
- Luis Echeverria Alvarez (1970 – 1976): 1971 (2.5%), 1972 (9.3%), 1973 (9.2%), 1974 (7.2%), 1975 (4.3%), 1976 (3.5%)
- José López Portillo (1976 – 1982): 1977 (9.7%), 1978 (10.2%), 1979 (10.3%), 1980 (7.2%), 1981 (7.4%), 1982 (-2.0%)
- Miguel de la Madrid Hurtado (1982 – 1988): 1983 (-8.2%), 1984 (4.3%), 1985 (5.2%), 1986 (-4.0%), 1987 (4.1%), 1988 (1.9%)
- Carlos Salinas de Gortari (1988 to 1994): 1989 (5.3%), 1990 (5.4%), 1991 (3.1%), 1992 (2.8%), 1993 (0.2%), 1994 (4.1%)
- Ernesto Zedillo Ponce de Leon (1994 – 2000): 1995 (-7.8%), 1996 (10.1%), 1997 (9.3%), 1998 (6.6%), 1999 (3.8%), 2000 (6.6%)
- Vicente Fox Quesada (2000 – 2006): 2001 (-3.4%)
7. What has been the involvement of industry in GDP from 1940 to date?
Sexenio AñoParticipación in GDP (%) Manuel Avila Camacho (1940 – 1946) 1941 1942 1943 1944 1945 194624.2 24.5 24.7 24.1 25.1 25.3 Miguel Alemán Valdés (1946 – 1952) 1947 1948 1949 1950 1951 195225.8 25.7 25.8 26.5 26.9 27.5 Adolfo Ruiz Cortines ( 1952 – 1958) 1953 1954 1955 1956 1957 195827.0 26.5 27.0 27.9 27.9 27.6 Adolfo López Mateos (1958 – 1964) 1959 1960 1961 1962 1963 196429.0 29.2 29.3 29.5 30.0 30.6 Gustavo Díaz Ordaz (1964 – 1970) 1965 1966 1967 1968 1969 197031.3 32.1 32.8 33.4 33.5 34.4 Luis Echeverria Alvarez (1970 – 1976) 1971 1972 1973 1974 1975 197634.1 34.8 35.3 35.7 35.8 38.4José López Portillo (1976 – 1982) 1977 1978 1979 1980 1981 198236.9 37.9 34.9 35.1 35.3 35.0 Miguel de la Madrid Hurtado (1982 – 1988) 1983 1984 1985 1986 1987 198833.9 34.2 35.0 34.2 31.5 31.7 Carlos Salinas de Gortari (1988 to 1994) 1989 1990 1991 1992 1993 199432.3 33.1 32.8 33.9 32.8 33.0 Ernesto Zedillo Ponce de Leon (1994 – 2000) 1995 1996 1997 1998 1999 200029.7 25.5 26.1 26.4 26.5 26.3 Vicente Fox Quesada (2000 – 2006) 2001 24.6 8. What were the conditions of industrialization during World War II and after?
During the Second World War the conditions that can encourage industrialization through import substitution. During this period, it makes better use of installed capacity and investment in new facilities; intestifica is the process of accumulation and capital formation, opening foreign markets for exports of manufactured goods, there is abundant cheap labor, in addition, drive some basic industries such as steel, metal products, the cement, fertilizer and chemicals.
After the war, industry has sufficient capital to support its expansion and renewal of equipment; this allows greater investment in the sector and imports of equipment and raw materials, while lowering the manufacturing exports and foreign competition intensifies.
9.Explica the industrialization of Mexico in 1970 to date.
The industrial sector and the economy at large base their dynamism in the oil industry, which can meet domestic market needs and export oil and gas, facilitating the influx of currency into the country, with all the consequences it has brought.
The Mexican State has been behind this significant sector through protectionist industrial policy.
10. What has been the most dynamic branch of industry from 1941 to date?
The most dynamic branch is electricity, which grows at an average annual rate of 8.0%, followed by oil and gas, than the same period grew at 6.4% per year.
11. What has been the least dynamic branch of industry from 1941 to date?
The less dynamic branches is the extractive industry with only 2.3% per year.
12.Describe the growth of construction and manufacturing industries.
The construction industry shows highly variable rates of growth, even in 12 years decreases the pace of activity, 1983, 1988 and 1995 are the years most serious since a decrease of -17.9%, -14.3% and -24.5% respectively ; its most dynamic period came in the Avila Camacho, when grown on average 14.4% annually and has strong six-year declines in Miguel de la Madrid, as it decreases -3.3% annual average, and Ernesto Zedillo, with a fall of -2.4% per year.
The manufacturing industry has also had ups and downs, but shows more stable rates of growth in nine years has only decreases in the rate of activity, it had its heyday during the administration of Diaz Ordaz, which grew at a rate of 9.4% annual average and the slower growth observed during the administration of Miguel de la Madrid, which increased only 0.8% annual average. The number of branches of manufacturing industry has decreased on average -0.1% per annum in the Zedillo administration.
13. How it has affected the economic crisis of recent years the industry?
With the information listed, we realize that the crisis of the Mexican economy from 1982 to date also includes the manufacturing sector in general and some of its branches in particular, but the most critical years were 1982, 1983, 1986, 1995 and 2001, the last two years that mark the beginning of the Zedillo administration and Fox in which the industry experienced its worst crisis.
14.Define industrial policy.
Package provided by the State to promote various aspects of the industry.
15.Señala the main public bodies that deal with industrial policy.
– Secretary of Energy
-Ministry of Economy
-Ministry of Finance and Public Credit (SHCP)
-Nacional Financiera (NAFIN)
“Some industry-related trusts, as FOGAlN and FONEl.
16.Enuncia the main functions of the Secretary of Energy.
– To conduct the country’s energy policy.
“Exercising the rights of the nation in petroleum and all solid hydrogen carbons, gaseous and liquid nuclear energy as well as against the exploitation of natural wealth and resources required for generating, conducting, transforming, distributing and supplying power which has the purpose of public service delivery.
-Conduct the activity aimed parastatals is related to the exploitation and processing of oil and electric power generation and nuclear, and complying with environmental legislation.
-Participate in international forums on matters responsibility of the secretariat, with the statement that correspond to the foreign secretary, proposed holding this international conventions and treaties on such matters.
17.Haz a list of the main functions of the Department of Economics.
– Develop and lead the general policies of industry, foreign trade, internal, supply and prices in the country.
-Regular, promote and monitor the marketing, distribution and consumption of goods and services.
-Establish the policy of industrialization, distribution and consumption of agricultural products, livestock, forestry, minerals and fisheries.
-Study and determine the necessary fiscal incentives to promote industry.
-To regulate and register industrial property.
-Establish and monitor quality standards and industrial specifications.
-Provide advice to private initiative for the establishment of new industries.
18. What is the relationship of constitutional article 123 º and Industrial Policy?
one of the first manifestations of industrial policy was set out in Article 123 of the Mexican Constitution, which contains elements of labor-management regulation and consists of two sections, the a and the b.
paragraph relates to the regulation of labor among workers, laborers, employees, domestics, artisans and, in a general way. to contracts of work; paragraph b governs labor relations between the powers of the union, the Federal District government and their workers.
in paragraph b of the general working conditions are practically the same, but there is profit sharing and causes of strikes are limited.
19.Menciona the main topics included in Article 193 º.
“The section I set the maximum working day of eight hours per day.
-The fraction II indicates the maximum working day is 6 hours nightly.
-The fraction III protects the employment of minors.
-The fraction IV refers to the day of rest for every six workers.
-Fractions VI, VII, VIII, X and XI regulate aspects relating to wages.
-The fraction IX refers to the profit sharing to employees.
20.Resume the features of industrial policy for six years, from 1940 to date.
21.Señala the main functions of the industrial sector.
“Contributing to national production with a significant percentage, 24.2% happened to GDP, to 26.7% in the Zedillo administration.
-Collaborate with economic growth is high, since industrial production is generated is higher than GDP. Likewise, when industrial production decreases, also reduces the GDP. Likewise, when industrial production decreases, also reduces the GDP. It is the process of capitalist reproduction.
-Production of almost all consumer goods necessary for the national population, but does not meet all the needs of intermediate goods, capital and durable.
-To promote the urbanization process which brought the population growth in cities, with all its advantages and disadvantages.
“Great collection of labor in the rural sector driven.
-Purchase of foreign technology has gradually been assimilated to the national productive apparatus.
-Promote the formation of capital through increased investment and purchase of machinery, tools, equipment, supplies and, of course, labor.
-Allow the increased consumption and, for many people, improving their living standards.
22.Señala the major issues facing the industry.
“Unfair foreign competition in some industries such as pharmaceuticals, steel, and the toy.
-Lack of international competitiveness in many industries.
-Closure of enterprises by economic recession, the collapse of the domestic market and international competition.
Excessive red-impeding the creation of new industrial undertakings, especially micro, small and medium.
-Technological obsolescence of many industrial companies.
“Increased imports of many items that previously produced the domestic industry, with the consequent closure of businesses and firing workers.
“The economic and trade liberalization has posed a threat to many industrial companies.
23.Elabora a model of industrial policy outlining the problems to be solved and the measures to solve them. This model should contain:
· Problems
· Causes
· Solutions
· Instruments (how to solve the problems?)