histori of commers in mexico

The economic history of Mexico (a summary from the perspective of risk)
Early in Mexico for export on the export story has its beginnings in Mexico during the Porfirio Diaz (late nineteenth and early twentieth centuries) began to develop certain branches of agriculture production is destined for export, as sisal, sugar cane, snuff and rubber.
The country's industrial development came with the mining and metallurgy was developed after the smelting of silver, copper and lead.

The manufacturing industry was represented by textile companies.

"In early 1910 there were 150 factories in Mexico textiles." (Valencia Rodríguez, 2001).

The 1929 crisis

A very important fact of world economic history and affection for Latin American exports was the 1929 economic crisis.
Produced by trade protectionism hindered exports and a sharp increase in the production of consumer goods, automobiles and buildings.

"The market is saturated and there is a drop in sales, bank debt, the decline and paralysis of industrial activities, unemployment, reduced purchasing and almost complete saturation of the market into a spiral of recession" . (Annual Almanac, 2001).

On October 24, 1929 falls on New York Stock Exchange, which produces:

"Paralysis of exports to the rest of Latin America and the fall in prices of raw materials to the global crisis. To curb the price collapse, thousands of tons of agricultural products are destroyed in the U.S., Europe and Latin America. " (Op. Cit.).

Period Cardenista

After the Great Depression, Mexico is beginning to show important changes during the administration of President Lázaro Cárdenas started Agrarian Reform (1935), was nationalized the oil industry and railways.
We developed a national development project independently abroad.
This structural change leads to government involvement as an active agent of change and development.

Early Model Substitution Industrialization (1940-1955)

During the six years of Avila Camacho (1940-1946). It created the foundation for the industrialization process in Mexico, better known as the "substitution industrialization model" or "Import Substitution Model."
In order to promote industrialization in Mexico, some agencies were created as Sosa Texcoco, SA (1940), the IMSS (1942);
Altos Hornos de Mexico, SA (1942); Cobre de Mexico, SA (1943); Guanos and Fertilizers de Mexico, SA (1943) and also reorganized NAFIN (Nacional Financiera), in order to support the process of industrialization and revitalize the productive apparatus of the State, in order to benefit private enterprise in the country.

In the period 1946-1952, which was ruled by Miguel Valdes continued to push German private companies, national and foreign, in this administration increased the infrastructure in our country, especially roads and bridges.

By the state machinery was used to boost private investment as (Méndez, 1997):
Exemptions and tax cuts.
Increasing and private credit facilities.
Promotion of industrial activities.
Support to private investment in the field.
Increased public spending.
Enactment of the law to promote processing industries.
Increased tariffs and subsidization.
Control of worker and peasant organizations.
Control of wages.
Amendments to Article 27 of the Constitution in order to increase the limits of the small private property, unaffected and more land grant agricultural protections, all to promote capitalist farms, ie neolatifundios.

This industrialization enabling a firm and continuous
the decade of the 50's, where there emerged a strong industrial activity in small and medium enterprises.

"In 1955, the Law for the Promotion of New and Necessary Industries, whose law permitted the establishment of a large number of industrial enterprises and mainly medium and small, and that a large number of handicraft workshops and small enterprises were transformed into" . (Rodriguez, 2001).

For this the State instituted financial mechanisms to respond to the demand for loans by small and medium industrial type, creating a rapidly expanding and diversifying the industrial sector in our country.

The above constitutes the first stage of substitution industrialization model (1940 to 1955).
Resulting in an economic policy designed to promote the expansion and industrial development in Mexico.
Leaving strong negative effects on the Mexican economy, including: fluctuations in the exchange rate, inflation, and deficits in public finances as the current account, creating internal and external imbalances.

MIS Phase II (1955-1970)

The second phase of the model developed in the period 1955-1970. Period characterized by borrowing abroad to finance public spending, but all was not as bad as, the development of economic policy of the Administration of Adolfo Lopez Mateos (1958-1964), "permitted the sustained growth with inflation below 5% and a stable exchange rate ... "(Mendez, 1997), it is said that this period is called" stabilizing development period. "

With Gustavo Diaz Ordaz (1964-1970), continued with this period of sustained growth without inflation and exchange rate stability, following the same economic policies of previous administrations, "tariff protection, subsidies, tax breaks, official control of labor organizations , wage control, price liberalization, etc.. " (Ibid.).

MIS Crisis

During the period of Luis Echeverria Alvarez (1970-1976), the crisis was felt, because of all the financial irregularities that had been dragging on previous administrations, such as strong government spending, financed by excessive money supply, foreign debt and a large deficit in the balance of payments, creating an adverse situation for the economy, characterized by strong growth in inflation, devalued the peso, increased food imports, increased foreign debt and capital flight.

For the 1977-1982 period ruled by Jose Lopez Portillo, there is an oil boom that benefits the expectations of our country, and this is the basis of the revival of Mexico's economic recovery, with the confidence gained from exports of oil, sharpens fiscal policies and monetary expansion (increased government spending and more money creation), creating a level of inflation with upward trends, producing a loss of competitiveness abroad.
That brings stagnation in exports and coupled to a global recession, where the countries around the world adopt restrictive policies and protectionist policies such practices can increase the trade deficit.

The neoliberal model in Mexico (1982-current)

For the period 1982-1988, six years ruled by Miguel De La Madrid Hurtado, we start with an international market-oriented economy, as it is seen as only way out of recession and stagnation of the productive activity of our country, a stage characterized by hyperinflation (levels up to three digits), and considered a lost decade, produced by an external debt crisis and oil.

It began a period of privatization of parastatals, and an economic policy that adheres to the neoliberal model based on free internal and external markets, which reduced import tariffs and eliminating trade barriers, Mexico's accession to GATT in 1986 (General Agreement on Tariffs and Trade).

This did not solve any problem in Mexico because the excessive protectionism that occurred in our country, created strong monopolies, which were neither competitive nor productive and less efficient to foreign trade, ie did not have an offer enough to export, we also have a production plant obsolete, and competitiveness was based on the modifications that were given in the exchange rate.

In the early 90's is signed the FTA (Free Trade Agreement) with United States and Canada, which invites foreign investors to invest in our country, for use as an export platform toward our neighbors north.
Delving further into this point, in February 1991, Presidents George Bush, Carlos Salinas de Gortari and Brian Mulroney (U.S., Mexico and Canada respectively) formally announced that their governments were prepared to negotiate a historic trade agreement free trade, which would be a catalyst for economic growth in the hemisphere, promoted by the increase in investment, trade and employment.

The negotiations were formally concluded on 11 August 1992 with the final document (NAFTA) and this was signed on December 17, 1992 by the three aforementioned leaders, coming into operation on January 1994, having as objectives General:
"The elimination of trade barriers.
Investment promotion.
The promotion of competition.
The protection of intellectual property.
And he intends to exploit the potential offered by economic complementarity between member countries to achieve greater international competitiveness, especially to the European Union and Japan. "
(Ceballos, 1997).
In the same six-year period begins the creation of the derivatives market, called MexDer, a futures and options exchange in the BMV, and the derivatives market "is one of the most significant advances in the development process and internationalization of Mexican Financial System "

(Www.mexder.com.mx). But this is nothing new, as

"In 1865 negotiated the first futures contracts on agricultural products and in the following years developed futures contracts on metals and other products.
Futures contracts and options on financial and foreign exchange, debt and stock indexes appeared in the seventies and eighties. " (Op. Cit.).

Mexico attempted several times to establish a market mechanism to derivatives.

"From 1978 it began trading futures contracts on the exchange rate peso / dollar, which were suspended following the exchange controls enacted in 1982. In 1983, the NYSE listed single stock futures and petrobonos, which registered operations until 1986. It was in 1987 that such trading was suspended due to problems of reasonable nature. " (Ibid.).

But the MexDer could be the August 24, 1998 and Assigns (derivatives clearing house) on December 11, 1998. Starting operations at December 15, 1998, with the participation of four partners liquidators (Banamex, Bancomer, BBV, Inverlat), and initiating electronic trading on Monday, May 8, 2000, with SENTRA DERIVATIVES (system developed specifically for the implementation of future operations).

It is this pattern intermediate, since the MexDer, has no place between the periods of Salinas and Zedillo. It is of vital importance to the historical development of this issue.

With the entry into force of NAFTA, joins the appearance of the EZLN (Zapatista Army of National Liberation), an armed group of peasants in four municipalities of the State of Chiapas, led by Subcomandante Marcos raising awareness of social changes and economic demand for the region, the Mexican army intervenes in the area on January 3 and has remained there until the current date.
It is worth mentioning some of the post-NAFTA political aspects, which were key factors to create an atmosphere of political and economic instability in the country, leaving in response to the worst economic crisis Mexico has lived:

"In March 1994, is assassinated in Tijuana PRI candidate for president, Luis Donaldo Colosio. In September, killing José Fco Ruiz Massieu, secretary general of the party. Ernesto Zedillo - the new candidate of that party - is elected president on 21 August of that year. " (Annual Almanac, 2001).

The sum of all these political events, combined with a high current account deficit and low capacity to meet debt commitments, together with successive increases in U.S. interest rates forced Mexico to devalue by 40%, creating a chain reaction in Latin America is characterized by capital flight and that effect has been known as "Tequila."
In 1996, Mexico is showing signs of economic recovery and achieving economic stabilization in 1997, which until now has been maintained.

The current president Vicente Fox, gives continuity and reinforces the same time, private initiative, as an engine of economic growth and development, promote exports, competitiveness, productivity and efficiency in the industry.
In addition to the continuation of a restrictive policy to control inflation.

Conclusions:

Those elections of 2 July 2000, represented a dream for the Mexican population in the many promises of President Fox

The reality that we live in today the Mexicans, has only resulted in political unrest, as there are no real support for small and medium-high real rates of unemployment, closure of more units than before attempting to promote something, or simply represented jobs, the Federal Government argues a financial crisis in the IMSS (Mexican Social Security Institute) and they want to privatize, corruption scandals, diplomatic break with Cuba and the list could go on.

Democracy is not bad, the opposite is good for any country, which lives in Mexico, is the presence of a leader with a lack of knowledge about how a country should be run really, there are no agreements between our parties and by the way, take the country with miscellaneous reforms or totally ineffective or inconsistent for the economic reality of our country.

In addition to internal problems, he is also clearly influenced by instability from outside, as the economic slowdown in the United States of America, as well as the related problems of the invasion of Iraq and its relationship to terrorism