I. Historical, Population, Culture, Political, and Economic Information History Mexico was the site of some of the earliest and most advanced
Civilizations in the western hemisphere. The Mayan culture, according to archaeological research, attained its greatest development about the 6th
Century AD. Another group, the Toltec, established an empire in the Valley of Mexico and developed a great civilization still evidenced by the ruins
Of magnificent buildings and monuments. The leading tribe, the Aztec, built great cities and developed an intricate social, political, and religious
Organization. Their civilization was highly developed, both intellectually and artistically. The first European explorer to visit Mexican territory was
Francisco Fernández de Córdoba, who in 1517 discovered traces of the Maya in Yucatán. In 1535, some years after the fall of the Aztec capital,
The basic form of colonial government in Mexico was instituted with the appointment of the first Spanish viceroy, Antonio de Mendoza. A
Distinguishing characteristic of colonial Mexico was the exploitation of the Native Americans. Although thousands of them were killed during the
Spanish conquest, they continued to be the great majority of inhabitants of what was referred to as New Spain, speaking their own languages and
Retaining much of their native culture. Inevitably they became the laboring class. Their plight was the result of the 'encomienda' system, by which
Spanish nobles, priests, and soldiers were granted not only large tracts of land but also jurisdiction over all Native American residents. A second
Characteristic of colonial Mexico was the position and power of the Roman Catholic church. Franciscan, Augustinian, Dominican, and Jesuit
Missionaries entered the country with the conquistadores. The Mexican church became enormously wealthy through gifts and bequests that could
Be held in perpetuity. Before 1859, when church holdings were nationalized, the church owned one-third of all property and land. A third
Characteristic was the existence of rigid social classes: the Native Americans, the mestizos, mixed Spanish and Native American (an increasingly
Large group during the colonial era), black slaves which were brought from Africa and the Caribbean, freed blacks and white Mexicans. The white
Mexicans were themselves divided. Highest of all classes was that of the peninsulares, those born in Spain, as opposed to the criollos, or
Creoles—people of pure European descent who had been born and raised in New Spain. The peninsulares were sent from Spain to hold the
Highest colonial offices in both the civil and church administrations. The peninsulars held themselves higher than the criollos, who were almost never
Given high office. The resentment of the criollos became an influential force in the later movement for independence. In 1808 the viceroy, under
Pressure from influential criollos, permitted them to participate in the administration. Other peninsular officials objected and expelled the viceroy. In
The midst of these factional struggles a political rebellion was begun by the Mexican people. Mexico has been rocked by political rebellion during
Most of its entire history in one way or another. Under the various dictatorships that Mexico found itself under at times in history, it made
Tremendous advances in economic and commercial development. Many of the new undertakings were financed and managed by foreigners (mostly
American and European). This was and continues to be a major factor in the discontent of most Mexicans. Moreover, the government favored the
Rich owners of large estates, increasing their properties by assigning them communal lands that belonged to the Native Americans. When the
Native Americans revolted, they were sold into peonage. Discontent, anger and a spirit of revolt continued to grow throughout Mexico. Madero
Was elected president in 1911, but was not forceful enough to end the political strife. Other rebel leaders, particularly Emiliano Zapata and
Francisco (Pancho) Villa, completely refused to submit to presidential authority. Victoriano Huerta, head of the Madero army, conspired with the
Rebel leaders and in 1913 seized control of Mexico City. New armed revolts under Zapata, Villa, and Venustiano Carranza began, and Huerta
Resigned in 1914. Carranza took power in the same year, and Villa at once declared war on him. In addition to the ambitions of rival military
Leaders, intervention by foreign governments seeking to protect the interests of their nationals added to the confusion. In August 1915, a
Commission representing eight Latin American countries and the United States recognized Carranza as the lawful authority in Mexico. The rebel
Leaders, except for Villa, laid down their arms. The bandit leader incited his forces to commit crimes against Americans to show his resentment
Against the United States and in 1916 led a raid on Columbus, New Mexico. As a result, an American force under General John J. Pershing was
Sent to Mexico. A new constitution, enacted in 1917, provided for a labor code, prohibited a president from serving consecutive terms,
Expropriated all property of religious orders, and restored communal lands to the Native Americans. Many provisions dealing with labor and social
Welfare were advanced. Some of the most drastic were intended to curb foreign ownership of mineral properties and land. In 1936 an
Expropriation law was passed enabling the government to seize private property whenever necessary for public or social welfare. The national
Railways of Mexico were nationalized in 1937, as were the soil rights of the oil companies. A government agency called Petróleos Mexicanos, or
Pemex, was created to administer the nationalized industry. The expropriations seriously affected the Mexican oil industry, for it became difficult
For Mexico to sell oil in U. S., Dutch, and British territories. Mexico was forced to arrange barter deals with Italy, Germany, and Japan. The oil
Trade with these nations was interrupted by World War II. In 1940, the so-called Good Neighbor Policy of the United States became dominant in
Mexican politics. This policy involved close cooperation with the United States in commercial and military matters. Mexico agreed to allow the
United States Air Force to use Mexican airfields and also agreed to export critical and strategic materials (mostly minerals) only to countries in the
Western hemisphere. Consistent with its policy of cooperation with the United States, Mexico severed diplomatic relations with Japan, Italy and
Germany in December 1941. In May 1942, after the sinking of two Mexican ships by submarines, the Mexican Congress declared war on
Germany, Italy, and Japan. Later that same year a trade agreement, establishing mutual tariff concessions, was negotiated by Mexico and the
United States. In 1944, Mexico agreed to pay U. S. oil companies $24 million plus interest, for oil properties expropriated in 1938. In June 1945,
Mexico became an original member of the United Nations. The government stabilized the peso in with the aid of loans from the Treasury of the
United States and the International Monetary Fund. In 1950, the problem of Mexican laborers who entered the United States to seek seasonal
Farm employment became a matter of grave concern to the two governments. Official agreements between Mexico and the United States provided
For the legal entry of a specified number of such workers annually. Approximately 1 million, however, crossed the border illegally every year. The
Problem was further complicated by the demand of the Mexican government for guarantees against the exploitation of its citizens by U. S.
Employers and by the hostility of U. S. farm labor organizations toward the competition of Mexican migratory laborers willing to work for
Substandard wages. In March 1952, the Congress of the United States passed a bill providing for the punishment by fines and imprisonment of
Those recruiting and employing aliens who entered the country illegally. The Mexican economy grew at a healthy annual pace during the period
From 1970 to 1974, but beginning in 1975 growth decreased markedly and inflation rose substantially. In an attempt to reduce the nation's
Foreign-trade deficit, the government in 1976 devalued the peso by more than 50 percent by changing from a fixed to a freely floating exchange
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The Mexican Economy
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