The Mexican wars of independence (1810-21) left a legacy of economic stagnation that persisted until the 1870s. Political instability and foreign invasion deterred foreign investment, risk-taking, and innovation. Most available capital left with its Spanish owners following independence. Instead of investing in productive enterprises and thereby spurring economic growth, many wealthy Mexicans converted their assets into tangible, secure, and often unproductive property.
The seeds of economic modernization were laid under the restored Republic (1867-76) (see The Restoration, 1867-76, ch. 1). President Benito Juárez (1855-72) sought to attract foreign capital to finance Mexico's economic modernization. His government revised the tax and tariff structure to revitalize the mining industry, and it improved the transportation and communications infrastructure to allow fuller exploitation of the country's natural resources. The government let contracts for construction of a new rail line northward to the United States, and it completed the commercially vital Mexico City-Veracruz railroad, begun in 1837. Protected by high tariffs, Mexico's textile industry doubled its production of processed items between 1854 and 1877. But overall, manufacturing grew only modestly, and economic stagnation continued.
During the Porfiriato (1876-1910), however, Mexico underwent rapid and sustained growth, and laid the foundations for a modern economy. Taking "order and progress" as his watchwords, President José de la Cruz Porfirio Díaz established the rule of law, political stability, and social peace, which brought the increased capital investment that would finance national development and modernization. Rural banditry was suppressed, communications and transportation facilities were modernized, and local customs duties that had hindered domestic trade were abolished.
Revolution and Aftermath
The Mexican Revolution (1910-20) severely disrupted the Mexican economy, erasing many of the gains achieved during the Porfiriato. The labor force declined sharply, with the economically active share of the population falling from 35 percent in 1910 to 31 percent in 1930. Between 1910 and 1921, the population suffered an overall net decline of 360,000 people. The livestock supply was severely depleted, as thousands of cattle were lost to the depredations of rival militias. Cotton, coffee, and sugarcane went unharvested as workers abandoned the fields either to join or flee the fighting. The result was a precipitous drop in agricultural output. The disruption of communications and rail transportation made distribution unreliable, prompting further reductions in the production of perishable goods. As agricultural and manufacturing output declined, black markets flourished in the major cities. The banking system was shattered, public credit disappeared, and the currency was destroyed. The mining sector suffered huge losses, with gold production falling some 80 percent between 1910 and 1916, and silver and copper output each declining 65 percent.
Data as of June 1996
Vita vya Uhuru wa Mexico (1810-1821) viliacha urithi wa kushuka kwa uchumi ambao ulidumu hadi miaka ya 1870. Ukosefu wa uthabiti wa kisiasa na uvamizi wa kigeni ulizuia uwekezaji wa kigeni, kuchukua hatari, na uvumbuzi. Mengi ya mtaji inapatikana kushoto na wamiliki wake Kihispania kufuatia uhuru. Badala ya kuwekeza katika biashara zenye matokeo na hivyo kuchochea ukuzi wa kiuchumi, Wamexico wengi matajiri walibadilisha mali zao kuwa mali halisi, salama, na mara nyingi zisizo na matokeo. Mazao ya maendeleo ya kiuchumi yaliwekwa chini ya Jamhuri iliyorudishwa (1867-1876) (tazama The Restoration, 1867-1876, ch. 1) Rais Benito Juárez (1855-1872) alitafuta kuvutia mtaji wa kigeni ili kufadhili uboreshaji wa kiuchumi wa Mexico. Serikali yake ilibadilisha muundo wa kodi na ushuru ili kuamsha sekta ya madini, na iliboresha miundombinu ya usafiri na mawasiliano ili kuruhusu utumiaji kamili wa rasilimali za asili za nchi. Serikali ya Mexico ilitoa mikataba ya ujenzi wa reli mpya kuelekea kaskazini hadi Marekani, na ilikamilisha reli muhimu ya Mexico City-Veracruz, iliyoanza katika 1837. Kwa sababu ya ushuru wa juu, viwanda vya nguo vya Mexico viliongeza uzalishaji wake mara mbili kati ya mwaka wa 1854 na 1877. Lakini kwa ujumla, uzalishaji ulikua kwa kiasi kidogo tu, na uchumi ukaendelea kushuka. Wakati wa Porfirio (1876-1910), Mexico ilipata ukuaji wa haraka na endelevu, na kuweka misingi ya uchumi wa kisasa. "Kwa kutumia maneno ""amri na maendeleo"" kama kauli mbiu yake, Rais José de la Cruz Porfirio Díaz alianzisha utawala wa sheria, utulivu wa kisiasa, na amani ya kijamii, ambayo ilileta uwekezaji wa mtaji ulioongezeka ambao ungefadhili maendeleo ya kitaifa na kisasa." Uhalifu wa vijijini ulikandamizwa, mawasiliano na vifaa vya usafiri viliboreshwa, na ushuru wa forodha wa mahali hapo ambao ulikuwa umezuia biashara ya ndani ulifutwa. Mapinduzi ya Mexico (1910-1920) iliharibu sana uchumi wa Mexico, na kufuta mengi ya mafanikio yaliyopatikana wakati wa Porfirio. Idadi ya watu waliofanya kazi ilishuka kwa kasi, na idadi ya watu waliofanya kazi ikashuka kutoka asilimia 35 mwaka 1910 hadi asilimia 31 mwaka 1930. Kati ya mwaka wa 1910 na 1921, idadi ya watu ilipungua kwa jumla kwa watu 360,000. Utoaji wa mifugo ulipungua sana, kwa kuwa maelfu ya ng'ombe walipotea kwa sababu ya kuporwa na vikosi vya wapiganaji. Pamba, kahawa, na miwa haikukusanywa kwa sababu wafanyakazi waliacha mashamba yao ili kujiunga na vita au kukimbia. Matokeo yakawa kupungua kwa kiasi kikubwa kwa uzalishaji wa kilimo. Kuvunjika kwa mawasiliano na usafirishaji wa reli kulifanya usambazaji usiwe wa kuaminika, na kusababisha kupunguzwa zaidi kwa uzalishaji wa bidhaa zinazoweza kuharibika. Kadiri uzalishaji wa kilimo na utengenezaji ulivyopungua, masoko meusi yalifanikiwa katika majiji makubwa. Mfumo wa benki ulivunjika, mikopo ya umma ilitoweka, na sarafu ikaangamizwa. Sekta ya madini ilipata hasara kubwa, na uzalishaji wa dhahabu ulipungua kwa asilimia 80 kati ya mwaka wa 1910 na 1916, na uzalishaji wa fedha na shaba ulipungua kwa asilimia 65 kila moja. Takwimu za Juni 1996