SOCIOECONOMIC PROBLEMS OF MEXICO

•THEME III

THE SHARED DEVELOPMENT MODEL (1970-1976)

3.1.- DEMOCRATIC OPENING.

3.2.- EDUCATIONAL REFORM.

3.3.- AGRARIAN REFORM.

3.4.- THE EXTERNAL DEBT.

3.5.- MONETARY DEVALUATION.

THEME IV

THE ACCELERATED GROWTH MODEL (1976-1982)

4.1 - OIL POLICY

4.2.- POLITICAL AND FINANCIAL DEPENDENCE

Political Reform

•4.4.- IMPACTS ON THE LABOR MOVEMENT

4.5. - URBAN ISSUE

•4.6.- IMPACTS ON THE AGRICULTURAL SECTOR

4.7.- FOREIGN POLICY

4.8 - THE GLOBAL ECONOMIC CRISIS

4.9. - INTERNATIONAL ECONOMIC SITUATION

4.10 - BUSINESS GROUPS IN MEXICO

4.11 - INCOME AND EXPENSE POLICY

4.12 - THE NATIONALIZATION OF BANKING

4.13.- THE NEW BANKING

THEME III Shared Development Model (1970-1976)

The shared development model proposed by Luis Echeverría Álvarez

(1970 - 1976) in which a great economic development and a redistribution of
wealth. We will see the objectives he had regarding his new economic model and all
the problems that arose during his government.
First of all, the model proposed by Luis Echeverría was called the model of
shared development since it was focused on boosting economic growth and
to the redistribution of wealth, hence the name 'shared development'.
During its first year, its government remained cautious, even causing the economy
it would grow by 3.4%.

Echeverría's objectives included increasing government social spending, the intervention of

state in production and distribution.
Starting from the second year, a policy of stop and start was implemented, which means that in
In his second year, Echeverría wanted to do what he had proposed and encourage the...
companies but the expenses they had to incur for maintenance and keeping them were so high
functioning that they stopped giving money and thus production slowed down.
As expected, this government did not achieve the success that everyone would have wanted, a
One of the causes of the failure of this model was that instead of charging more money to the
businessmen to resolve said company Echeverría turned to request loans from
other countries, this is where the external debt grew.
With the start of the administration of Lic. Luis Echeverría Álvarez on December 1, 1970,
that would culminate in 1976, the image that was held of Mexico in economic circles was
from a very fortunate and privileged country, due to the conditions of economic growth,
monetary solidity, creditworthiness, and also political solidity, natural for growth
of investments. The transformation of the 1910 revolution, sustained growth to
from 1935, the monetary stability of prices. From 1935, the stability
monetary of prices since 1956, were the new possibilities for development
investors, both domestic and foreign, had.
Mexico had reached its maturity as a capitalist system with industrial predominance and
a state monopolistic sector.
Luis Álvarez Echeverría, while president, tried to create an image that brought him closer.
with society, with the middle and lower class, through a strategy where your government
gain a greater presence in areas or dimensions such as economics, politics, and
social development. Just entering his presidential term, he announced reforms that
they allowed democratic opening in Mexico, offered guarantees to political refugees
Mexicans will return to the country, offered political asylum to freed political prisoners of the movement.
student movement of 1968. its management harassed Mexicans whose ideas and political action were

was directing the demand for greater justice and equality in the country, on June 10, 1971
special forces belonging to the government killed several students in a
demonstration in the capital of the country. guerrillas and their leaders were being pursued within the framework

referred to as 'dirty war'; teachers are murdered by the Mexican army

Vázquez in 1972 and Lucio Cabañas in 1979. Their government offered many gifts to
pensioners and media that supported the actions of the government. To not
damaging the president's image. The newspaper Excélsior was subjected to a series of integrals.

The Corpus Thursday - called the halconazo due to the participation of an elite group of
Mexican army known as the hawks - is the name given to the
events that occurred in Mexico City on June 10, 1971, when a demonstration
student protest in support of two students from Monterrey was violently repressed by a
paramilitary group in the service of the state called 'falcons'. The president, Luis Echeverría, is
I disconnect from the facts; but I never clarified the situation that was always officially denied.
The conflict at the Autonomous University of Nuevo León gave them one more reason to do it:
At the end of the 1970s, professors and students from the university presented an organic law.
which proposed a parity government and in March 1971 Héctor Ulises arrived at the rectorship
under this new law. The state government, in disagreement, drastically reduced the
budget that displeased the university students and forced the university council to approve
a new bill that eliminated the institution's autonomy. University students
they started a strike and solidarity was requested from the other universities in the country.
National Autonomous University of Mexico and the National Polytechnic Institute
they immediately responded and the students called for a massive demonstration in
support for Nuevo León on June 10.

3.1.- DEMOCRATIC OPENING.

 Since the student movement of 1968, the state has suffered a great deterioration that has acquired
multiple manifestations, which shook societies in general. It is further accentuated.
the political crisis, on June 10, 1971, known as the Thursday of Hábeas, because of the
intervention of the hawks group who repressed through violence, a
student demonstration due to the rejection of the societies and the resignation of the
Lic. Alfonso Martínez Domínguez. As the head of the DF department to whom was indicated
as the intellectual director.
The state, by losing political and ideological legitimacy, contributed to the establishment of openness.

democratic.
This crisis began in 1971 when it started to manifest, as the
oligopolies encompass all economic sectors. The concentration of the
property and income tighten the markets, idle capital grows, costs increase
profit rates, real wages decrease, underemployment and unemployment increase
and its consequences are: Inflation, external debt, and the freezing of
salaries.
To reconcile with society, the state plans to implement two important strategies.
1).- Populism:
Philosophy that identified the political left.
Promises to social groups.
The use of nationalist language.
The attacks on the foreign bourgeoisie.
The good treatment of intellectuals.
The decrease of repressions.
2).- The Budget Deficits, with External Debt constituting the foundations of
The economic crisis is finally reflected in a political crisis in this way:
A.- In 1970, the PRI obtained 485 of the votes from the electoral register.
B.- In 1976, the PAN does not launch a candidate for the presidency of the republic, while the PPS and

the PARM joins the PRI.

Mr. José López Portillo, the PRI candidate for the presidency of the republic, wins the
election without contenders, and the simple political procedure.

3.2.- EDUCATIONAL REFORM.

The educational reform is based on two legal provisions: the Federal Law of
December 1973 education and the national law of adult education, from December
from 1975. Its principles are: development of a critical consciousness; popularization of
knowledge and equal opportunities and permanent flexibilization and updating of
educational system.
From 1970 to 1976, the number of schools increased from 55,000 to 71,000, the total of
students at all levels rose from 11.5 million to 15.5 million; from 1970 to 1976,
The percentage of illiterate population aged 10 and older decreased from 25% to 14%.
A formidable boost was also given to technical education. Schools were created.
medium level techniques and regional technological institutes throughout the Republic, the
The polytechnic strengthened, new multidisciplinary schools were created, with innovative
degrees, the postgraduate program and the Research Center of the Polytechnic Institute were developed.
National (IPN).
The Educational Reform was initiated in early 1973, and focuses on:
Raise the quality of education in rural areas.
Incorporate indigenous people into national life.
Agricultural education is being restructured at all its levels.
The administration of Luis Echeverría (1970-1976) showed from the outset its interest in
improve the educational system and launched a Coordinating Commission for the Reform
Educational to diversify educational services, increase the number of schools and
reform the study plans. The reform of this period was reflected in the publication of
a new Federal Education Law in 1973 that replaced the Organic Law of
Public Education of 1941. This new law adopted the definition of education as
institution of the common good and organized the national education system to establish new
bases that will promote the rights that all inhabitants of the country have to receive
education with equal opportunities.
From 1970 to 1976, the number of schools increased from 55,000 to 71,000.
The percentage of illiterate population aged 10 decreased from 25% to 14%
Despite the fact that the budget for the education sector is one of the highest assigned
Federation, around 4% of GDP value, the educational system does not progress at the pace that
it would be desired, due to different factors and the growth of the school population, without
this demands increasingly the application of an educational reform in accordance with the
characteristics of the country. In 1970, at the beginning of the administration, Eng. Víctor Bravo Ahuja
The Secretary of Public Education observes the priority issues and raises the need.
from the reform, with the approval of the President of the Republic, which is summarized in the
next points:
1.- Educational Planning
2.- Primary and Normal Education
3.- Technical and Higher Education
The Educational Reform was implemented at the beginning of 1973, and it focuses on:
1.- Raise the quality of teaching in rural areas.
2.- Incorporate indigenous people into national life.
3.- Agricultural education is restructured at all levels.

3.3.- LAND REFORM.

Within our strategy for economic promotion and redistribution that aimed to
to attend to agricultural activities, several decrees were issued in 1972. In addition to
to enact the new 'Federal Agrarian Reform Law', the 'Federal Law of
water", credit instruments for the countryside were strengthened and crop insurance was established.
life for the farmers.
The struggle for land was the strongest reason for peasant mobilization; from 1972 to
In 1973, there were 600 land invasions, and in June of that last year, the secretary of
Defense claimed to have evacuated, through the intervention of the army, thirty.
groups of invading peasants declaring that not a single takeover would be allowed
land more.
Meanwhile, the peasant movement was growing in organization and geographical extent.
as it gained greater depth, manifesting in marches, invasions of
land, occupation of agricultural affairs offices, dismissal of municipal presidents and
rejection of the ejidal assemblies promoted by the government. By 1975, practically no
there was a state in the Republic that had not been the scene of demonstrations of the
peasant protest and land invasions.
In November 1976, just a few days before the end of his administration, the president
Echeverría decreed the expropriation of 37,000 hectares of irrigation and almost 62,000 hectares.
from grazing land in the valleys of Yaqui and Mayo. This presidential decree was of great
impact across the entire country.

During this six-year term, greater agility was given to the procedures and agrarian processes.
reforming various provisions of the 'Federal Law of Agrarian Reform', with the aim of
shorten the benefit processes, both for the ejidatarios and for the comuneros and for the
large landowners.
The former Department of Agrarian Affairs and Colonization was elevated to the rank of
State Secretary, called of the Agrarian Reform, endowing it with the elements
humans and suitable materials, to overcome the backlog in conflict resolution.
Only in the matter of agrarian rights there were more than 144,000 instances of peasants.
without an answer, while 4.2 million hectares had been distributed on paper.
In 1972, the agrarian reform law came into effect, the fight for land was the reason for
The peasant mobilization from 72 to 73 resulted in more than 600 invasions of the lands.
By 75, all states of the republic had experienced some type of protest.
peasant, in 76 decreed the expropriation of 37,000 hectares in Sonora, this had a
very large impact on the country.
Since the beginning of 1970, a global crisis in the Mexican field becomes evident, that
is characterized by the decline in food production levels and by an insurgency
peasant redistribution of the lands, and the establishment of better prices of
guarantee and the economic development of its members.
After the agrarian policy is aimed at facing the crisis of 1973 with
operation of the following strategies:
I.- The increase in public investment in this sector.
II.- The Stimulus for production with adequate guarantee prices.
III.- The Ejidal Collectivization
IV.- Reforms to the administrative apparatus
By 1974, 17.3% of total public investment is allocated, and by 1975 it increases to
20% that were allocated to irrigation works and to the expansion and rehabilitation of districts
of irrigation in addition to soil and mountain conservation, etc.. Agricultural credit
it also increased, from 1970 to 1975 by 23% and for 1976 to 46.6%.
The increase in the guarantee prices for corn, beans, and wheat was an attraction for
the irrigation systems, since for large farmers it was profitable to survive
agricultural exports by basic grains, but this did not achieve the recovery of the
areas of the temporal, and those major parts of the rural population whose food supply
Corn is fundamental.
The most ambitious project was the collective reorganization of the ejidos starting in 1973.
but in 1974 the Master Plan for Organization and Peasant Training appears, where
the objectives, goals, and guidelines of the Doraadem collective strategy are laid out.
It tries to adjust the ejido organization to the goals of the "National Agricultural Plan"; these are:
1.- The Increase of Production
2.- The Increase of Rural Labor
3.- The largest capitalization of the sector

3.4 THE EXTERNAL DEBT

Luis Echeverría started a rapidly growing national project, but neglected the
Inflation that also led to the devaluation of 1976, but added to that serious mistake and
not compliant, increased by 3.6 times the External Debt, 360%, in just 6 years,
taking it to the incredible figure of 19.6 billion dollars. This disastrous and
Inconceivable situation caused the External Debt to current GDP ratio to rise.
for the first time up to 35%.
The imbalance in the trade balance during the six years of his administration.
The imbalance in the annual budget of income and expenses of the public sector,
they promoted the growing deficits, which were covered through internal and external loans
that later originated as a consequence of the devaluation of the peso called floating in
August 1976.
The rise of external debt in the 1970s: the construction of a tragedy
Although indebtedness had soared in the 1960s, it should be emphasized that it was
In the decade of 1970-1980, the most notable increase in external debt occurred.
in the history of the country. The figures for the increase in consolidated public external debt
Mexican women demonstrate the extraordinary speed of the process, increasing from
approximately 7 billion dollars in 1970, doubling to 14 billion
dollars in 1974, rising to 29 billion in 1977, reaching an enormous sum
from close to 80 billion in early 1982. Curiously, the relative proportion
Public and private debt did not change, reaching approximately 70% for
the public sector and nearly 30% for the private sector during the great boom of
external debt between 1972 and 1982

[Link] DEVALUATION

The characteristic of the national economy in the 1970s was stagnation with
inflation, without a doubt three major variables that began in the 1950s,
they contributed to marking the above.
The concentration of income among minority groups
The Imbalance of the Trade Balance
The fiscal deficit of the annual revenue and expenditure budget of the federation
The slow evolution of GDP and the increase in inflation were the result of the policies
adopted, in the six-year term on economic matters that culminated in a surge of the
international prices from 1973, which further shook the national economy.
The decline in GDP, especially from 1974 onwards, is related to the stagnation of the
private investment resulting from income concentration that promotes fiscal deficit and
the imbalance premiere.
In 1976, the first significant devaluation occurred, and it was precisely at the end of the regime.
from Luis Echeverría, 76%. During the following 6 years, in the period of José López
Portillo, the exchange rate was allowed to float, maintaining parity between 22 and 25 pesos.
per dollar.
THEME IV
THE ACCELERATED GROWTH MODEL (1976-1982)
Based on two priorities, food and energy, President José López
Portillo formally proposed to the Nation to divide the policy of economic development and
social in three biannual periods:
Two years to restore the economy (overcome the crisis)
Two years to consolidate it.
Two years to seek accelerated growth.
For these purposes, the President announced the so-called national popular alliance and
democratic for production. This alliance was supported by:
Strict control of public spending.
Exemptions and reductions of export taxes.
Ends of the alliance for production.
Resume ties with the business sector.
Strengthen and expand the material and institutional foundations for economic development
fairer.
A serious effort to open new fields for investment.
For this purpose, the López Portillo government had a fundamental objective.
Encourage investment
Promote the modernization of the productive apparatus
Mitigate inflation
Increase employment.

4.1 OIL POLICY

From 1978, the Government was able to increase exports of the

energy, marking the beginning of the oil boom that would characterize the Mexican economy.
By 1978, the oil boom allowed for a reduction in short-term debt that had reached
It is almost 4000 million dollars about 1000 million.
Proven oil reserves amounted to 20 billion barrels, the probable to
37 billion and the potential to 200 billion.
It was assured that oil would play a fundamental role in the economic development of
Country
The oil boom increased the availability of foreign currency both in terms of
exports as it helped Mexico obtain greater external credit
From 1978 to 1980, there were constant increases in the price of energy, due to the
existing scarcity of crude oil and the monopolistic and speculative power of countries
producers members of O.P.E.P.
The increase in oil exports meant financing for development.
In two years, the industrial plant doubled.
Food self-sufficiency was achieved.
More than 4 million jobs were created.
In mid-1981, the external market situation began to deteriorate, as it increased.
the interest rates and in the face of a depreciation of the dollar that was causing an increase in cost
from exports; the oil market was beginning to weaken, in the last days of
In May, the price of oil began to drop. In light of this situation, the Government considered
that this would be a temporary fact, so it was decided to maintain the price of oil
Mexican, withdrawing his offer to those who wanted to pay less; moreover, I decide to request
more external credits to be able to continue with their economic program and to cover the
demand from the increasing capital flight. Although the Government was able to maintain its policy
expansive was made possible by the growth of public debt that in a single year
increase of 19.148 billion dollars; that is, the balance of the accumulated external debt
In 40 years, it grew by 56% in 1981. In 1981, the international landscape changed.
Abruptly, oil prices collapsed and interest rates rose.

4.2 Political and financial dependency.

Set of instruments and measures applied by the government, through banking
central, to control the currency and credit, with the fundamental purpose of maintaining the
economic stability of the country and avoid an adverse balance of payments. Control can be
establish through: a) the structure of interest rates, b) the control of the
international capital movements, c) the control of the credit conditions for
installment purchases, d) the general or selective controls over the activities of
loans from banks and other financial institutions, and e) on the emissions of
capital.

Monetary policy is the set of actions carried out by the Central Bank to
control the amount of money and interest rates and, in general, the conditions of
credit.
Governments, through the Ministry of Economy, typically set the goals.
macroeconomic goals to be achieved (GDP growth, price evolution, etc.). Starting from
of
These forecasts the Central Bank must estimate how much money should exist in the
economics to achieve the objectives that are intended to be reached.
A monetary policy that tends to expand or reactivate the economy is formed by
those measures aimed at accelerating the growth of the money supply and making it cheaper
loans (lower interest rates).
The positive and harmful effects that can arise from a monetary policy
expansive

Economic Political Dependency of Mexico:

In the current capitalism, the State actively participates in the economy through the
economic policy, which is defined (according to the dictionary of political economy by Alonso
Aguilar) as: "that part of economic science that studies the forms and effects of"
the intervention of the State in economic life in the sense that it would not be possible the
forecast of the effects of state intervention without knowledge of the laws
economic
Throughout the course of economic problems in Mexico, the evolution has been raised.
of the national economy, identifying its main problems; in this work
we explain the planning attempts that have been made in the country to solve the
serious problems that plague him. However, the measures of economic policy
followed until today by the Mexican State have been of an immediate and monetarist nature,
whose central axis is austerity in search of economic stability, which has
caused problems to worsen and the crisis to remain.

The economic policy that has been implemented in our country has been a factor for its
development gradually grows, examples that have built that development are
foreign investment and the emergence of national entrepreneurs who have taken emphasis
that the country must move towards a safer and more prosperous future, based on policies
attractive governmental initiatives for the private sector and the promotion of investment, that
led to three decades of unparalleled growth rates throughout the
developing world (1940-1970). Part of the success of Mexican development is due to a
political elite, which has been both modernist and traditional, as it has thus "controlled and
content the demands and pressures in request for various benefits.
The origin of the Mexican miracle could be explained much better if we go back.
until the mid-independence, since this way we will see the evolution that has
Having had this economic and political development that has arisen in our country.
It is then in the mid-19th century when Mexican development begins to emerge from the
independence, by becoming self-sufficient, but a little stagnant due to the destruction of the
war and due to the lack of transport routes. But it is only during the Porfirio Díaz period (1877-1911),
when development is more securely on track, due to the political stability that
it presents in those years, to foreign investment and to the wide transport network as the
railroads, which integrate the Mexican economy. Unfortunately, that growth
gradually decreased due to the dating system, as the hoarding of
land and the overexploitation of people led to revolts, to conclude
in a revolution and that the development fell to the ground.
Therefore, to raise the development, it was necessary first to establish stability.
institutional policy to then advance on the economic aspect. In this way, it
they created several important institutions for economic development such as the Bank of
Mexico in 1925, Nacional Financiera in 1934, as well as many more banks that
they helped the economic growth to take off gradually and from the groups
of people who raised capital for the investment process and construction of
bases for development in Mexico, so as the author says: 'the Revolution suppressed
to an economically unproductive elite, excluded the old investment guidelines
unproductive and redistributed part of the wealth
Thus, the results in economic development were that it rose further from
the 1940s, with an annual growth rate of 6% and calling it,
growth period with development, creating a very important policy, that of
period of import substitution and the stabilization development.
With this, the public sector contributed 30% of the total fixed capital formation.
90% of the total gross fixed investment was financed with internal savings.
4.3 POLITICAL REFORM

Throughout history, the political necessity has been proposed in various governments,
to carry out a political reform.
But what is a political reform and what does it aim for?
It is a Nation-State as stated in the Constitution of 1991 and, as such, it is governed
by the rules established in the constitutional text.
When talking about reform, it refers to the desire to change or modify something.
a norm that is currently in force in the current Constitution of a nation. With this
it intends that obsolete rules somehow hinder the development of certain
specific sectors that are harmful to the well-being of society may be
modified or abolished with the sole purpose of the collective good.
To achieve the success of a political reform, several steps must be followed that go
from its presentation to its approval.
Projects to reform the Constitution can be presented by the Government, by
at least ten members of Congress, by twenty percent of the Deputies or
Councilors, or by a number of citizens that is equivalent to five percent of the
current electoral roll.
After the project is presented, it is processed so that it can become effective.
This procedure takes place during two ordinary sessions of Congress,
keeping in mind that such periods must be consecutive. For the project to be
approved, both the Senate and the House of Representatives must vote
mostly in favor of it.
Once that point is reached, Congress calls the people to a vote
popular, decide if you agree to call a new assembly
constituent.
For it to be approved, the reform will be voted on directly, having to be
approved by more than a third of the members of the current electoral roll.
In that case, the future members of the constituent assembly will have a time frame.
determined to draft the new Constitution, which will be adopted at the same time as
It derogates that which is in effect in the country at that moment.

Examples of a political reform:

Pastrana Government Reform (1998-2002)

General aspects

Measures to negotiate with the guerrilla.

Sanctions for officials who commit irregular acts in the exercise of their functions.

Powers for the President to advance the peace process.

- Regarding the electoral system: single list, distributive figure, preferential vote,
internal organization of the parties and their legal personality.

Regarding Congress: the submitted projects must have technical and legal support.
economic and political so that they are viable.

Loss of investiture due to absenteeism, expansion of the regime of ineligibilities and

incompatibilities in order to reduce corruption. This reform, presented by the former
President Andrés Pastrana and his government did not succeed, as Congress did not approve it.

Uribe Government Reform (2002-2006)

General aspects

Social service: replace it with mandatory military service.

Reduction of Congress and special peace constituencies.

Freezing of pensions and salaries for former presidents, former congress members, former magistrates, and
public servants, in such a way that they do not exceed twenty minimum wages.

Eliminate the departmental and municipal comptrollers.

Adjustment of fees for deputies and councilors.

New resources for education.

Political death.

Nominal and public vote.

No substitutes allowed in Congress.

Resource restriction.

Congress Administration: natural or legal person who takes charge of the

administrative and technical services.

Strict loss of investiture.

Elimination of parliamentary aids.

The reform proposed by the Uribe Government was presented by the executive on the day of the
inauguration of the new president

In the virtual library, you can find more information on this topic at:

The conservative constitutional reform project of 1953 in Colombia Article of

James Henderson on the 1953 reform. In: Colombian Yearbook of Social and
of the culture

A new 'definitive' political reform is approaching to be discussed in Congress and

to produce new guidelines for organizing, regulating, and sanctioning competitions
political-electoral in the country.

The political class and Congress will review the irregularities and practices.
allowed and not allowed that generated more conflicts, animosities, and challenges
during the struggles for power in the most recent elections.

It will be said that, with these modifications to the law, the things that did happen will not occur again.
occurred in the previous election.

The competition mechanisms will be redesigned; some doors will be opened, others will be closed.
some windows and, as is to be expected, enough openings will be left to
start over.

The skill and imagination to circumvent laws and prohibitions and take undue advantages
against the other competitors in the struggles for power through the electoral route has been
the name of the game and the prerequisite to multiple reforms that have been cooked up in the
country for a good number of years.

The notable evolution in laws and modernizing precepts in recent years is

undeniable. From the times when being in opposition was prohibited and could mean prison or
until death, in today's times when there is discussion on how to regulate the
independent candidacies or if a second round for the election is desirable
presidential, many reforms have taken place. Despite this, no one can claim
satisfied—neither at the federal nor at the state level—about the current conditions for the
contest.

Frauds and tricks have become sophisticated in some cases. The 'Monexgate' marked a
serious precedent - not sanctioned - for the establishment of a parallel structure for the
obtaining and dispersing millions of resources - of unknown origin - that were
triangulated and hidden through shell companies, with frontmen and
triangulations, from which the PRI's presidential candidacy was promoted.

Other perverse mechanisms remain intact as if nothing had happened since

the oldest times of politics. In view, the 'Veracruz Case'.

It will be interesting to see how the tension generated by the machinery is resolved.
"Pact for Mexico", with those who have the formal representation to formulate and approve
laws.

Due to the scandal over the use of social programs to favor

Illegally, the Veracruz campaigns advanced the timing to promote a.
new political reform. That remained as one of the conditions of the PAN and PRD not to
get up from the table. However, the leadership disputes within the parties themselves and
the defense of Congress regarding its role and representation has led to groups
parliamentarians of these two parties announce that – regardless of the proposal
of consensus that is anticipated from the Pact–they will push their own agenda for a
political reform.

They have announced that it will contain 30 points. It is to be expected that several will be coincident.
with those proposed by the Pact for Mexico, if they do not comply with the proposal that
now it would proceed from Congress.

Several of the points aim to sanction some of the most abusive practices.
ostensible issues that occurred during the last elections.

The bipartisan proposal suggests: the loss of candidacy and registration for exceeding limits.
from campaign; the revocation of concessions in radio and television to those who intervene
illegally in the campaigns; criminal penalties for covert propaganda or advertising;
early monitoring and during the campaigns of candidates and competing parties;
serious sanctions and new classifications regarding vote buying and coercion, etc.

It is also proposed to have a second round for presidential elections, re-election of

legislators and the abolition of presidential immunity.

The senators, from the PAN and PRD, got ahead of the signatories of the Pact—or for the
less that seems - and they announced that they will also seek an anti-corruption prosecutor's office and a
Independent Fepade.

The PAN, for its part, has launched the idea of creating a centralized electoral body to
carry out the organization tasks for all elections in the country, taking into account
from the crisis of autonomy and performance of electoral bodies in the country. Many
pros and just as many cons have the idea.

4.4 Repercussions on the labor movement.

The following is a recount of the impact of constitutionalism on
our country, specifically on the most important issue for us, education. Today
we find ourselves facing this situation and although the purposes are not the same, the
education in our country remains a topic of interest due to its implications
economic, social, philosophical, moral, pedagogical, but above all political. From there.
That in each six-year term the president in office, with their team, implements the changes that
they consider it relevant.

Thus, in the past, from the origins of our nation, we witnessed countless
changes adjusting them to the political and ideological fluctuations of political parties that
they intended to impose their nation project.

In this work, the aim is to highlight how the educational development of Mexico is
determined by broad social sectors, that the political access of the nation imposes
your national project, in the belief that it is responding to the interests of the
majority of the Mexican people, the reforms to article 3 specify the development of the
education in Mexico, a young nation that little by little, with setbacks, has tried to save
its educational lag.

EDUCATIONAL IMPLICATIONS OF CONSTITUTIONALISM.

RULING ON ARTICLE 3 OF THE CONSTITUTION

During the last year of General Abelardo Rodríguez's presidency, who

occasionally expressed his disagreement with the constitutional violations, the issue of the
socialist education passed from the university.

all social areas and since December 1933 there has been talk of the existence of a
draft law with that purpose attributed to the legislature of Jalisco.
The Supreme Leader of the Revolution, Plutarco Elías Calles, whose word was law, warned that
nevertheless the commotion caused by the organizations controlled by the State in
preparation for the implementation of Marxist education, the bulk of civil society
he rejected it, saying that it was only a bridge for the establishment of communism in
Mexico, therefore, decided to intervene personally in the confrontation.
On July 20, 1934, Calles spoke to the people of Jalisco specifically about the reform to the
Article 3. Of the Constitution. Its message was known as the 'Grito de Guadalajara' and
said, among other things, that "the eternal enemies of the Revolution are lurking and trying to
make their triumphs negligible... With all the cunning, the reactionaries say that the boy
belongs to the home, that the young man belongs to the family; selfish doctrine, the child and the
young belong to the community...
On the 23rd, the legislative commission, led by deputies Alberto Bremauntz and
Alberto Coria submitted his constitutional amendment project to Congress titled 'Education'
what is taught will be socialist in its orientations and trends striving for
May prejudices and religious dogmas disappear and true solidarity be created.
human based on a progressive socialization of the means of production
economic.

he declared that he opposed the project for being dogmatic and because it curtailed autonomy
established. The newspaper El Informador from Guadalajara stated in its editorial on August 2:
Our Constitution is not of a socialist nature, (it does not state that Mexico is a
Socialist Republic) but liberal and democratic; for the same reason, it cannot be understood by
that the school must adopt that political principle in the face of a regime that is not.
because the Constitution, by establishing the rights of the worker and providing rules for the
practice of religious worship of any denomination is not strictly socialist...

A second reform project proposed 'Socialist Education from kindergarten to

the university" clarifying that "The socialism they strive for is Scientific Socialism
and channeling to implement the socialist state.
October 11, 1934, the first paragraph of article three says:
The education provided by the State will be socialist and, in addition to excluding all doctrine
religious, will combat fanaticism and prejudices, for which the school will organize its
lessons and activities in a way that allows creating a rational concept in the youth
and exact of the universe and social life.

4.5 URBAN PROBLEMATIC.

The action of the Sustainable Cities Campaign since Aalborg in 1994, the Group of
Experts in Urban Environment and the latest Campaign on Common Indicators
Europeans are undoubtedly moving in the right direction, as are the proposals from
Framework for Sustainable Urban Development presented by the Commission in Vienna in 1999.
Progress is also being made in clean technologies and practical applications.
of better management. But the vast majority of actions are specific and do not carry over.
to the general policies, and in addition, the positive results are overshadowed by the
growth of consumption, globally increasing the negative impacts.
Experience shows that problems are not just technical, but fundamentally
of ways of life, and that political approaches and actions are necessary that
promote the social responsibility of citizens and businesses, which must
promote and lead the public sector. The Urban Environment is not a sector, nor a
technical issue. It is the meeting point between Quality of Life and Sustainability. It is necessary to
to improve the habitability of the neighborhoods in our cities, with criteria of
equity, and manage demand and production processes with criteria of efficiency
social and environmental, promoting collective quality of life without exceeding limits
local and global environmental.
In this presentation of the issues of the urban environment in cities
Europeans, in front of an audience with the characteristics of this Seminar, allow me to...
focus on some topics that I consider priorities in the current European moment and that
they gain relevance in the political debate.

Urban problems.

Often what are defined as problems are actually the symptoms of others.
underlying problems, which are perhaps more difficult to address but which must be
propose in order to move forward towards sustainable development.
The Dobris report in 1995 devoted a chapter to urban issues and showed that the
pressure they exerted on the environment, both in resource consumption and in
waste production becomes unsustainable if it spreads to the rest of the planet. Different
Studies on the ecological footprint indicate that London relies on a territory of 120
times larger than the area it occupies, and the Netherlands in an area 15 times larger than its territory
national, although the European footprint per capita is smaller than that of the USA. This way of
life is above environmental limits, and human development must be promoted
reducing the metabolism of our cities and their ecological footprint.
For example, transportation, whose external costs can be estimated at 8% of
GDP (TERM 2001), but they do not affect the users, and the damages caused only are
they usually attend when the situations are serious and sometimes difficult to recover from.
Despite technological improvements in energy efficiency and reduction of
emissions that derive from the use of the catalyst, the environmental impact does not improve due to the
increase in the use of motor vehicles, the low occupancy of them and the greater
average length of the routes.
Social cohesion is another major sustainability issue on the EU agenda.
Income inequalities are high although they are relatively stabilized in the countries.
that have maintained welfare policies (full employment policies and greater impact
redistributive), and the deregulation policies of labor markets are
driving, where it is most applied, to the precariousness of jobs and of the
economies of households and more vulnerable groups.
In the URBAN AUDIT, it seemed that the proportion of households below the limit was noticeable.
poverty was higher in the cities and that in the 90s the proportion was growing
long-term unemployed. A report from the OECD indicated that at the beginning of the
last decade the proportion of the urban population living in disadvantaged neighborhoods of
the cities varied between 7% and 25% in the studied member countries.
The attached table highlights a set of significant problems regarding the
situation of the selected European cities from the URBAN AUDIT.

Some issues of interest for the sustainability of urban cities

Demographics and employment.
The European population tends to live in cities. The urban way of life has
generalized.
Cities generally have a quantitatively stabilized population.
Aging population and low birth rate. Strong generational imbalance between
neighborhoods.
Destabilized structure that tends to be compensated by the immigration of people
youth, increasing non-EU immigrants.
The size of households is decreasing and single-person households, particularly retirees, are increasing.
living alone and as single parents.
There are more jobs, especially for women, and unemployment is decreasing. There are still pockets of
unemployed like the long-term unemployed. Strong imbalance between neighborhoods in the
cities.
Around a quarter of the population have a household income lower than 50% of the average.
national and almost 20% of households depend on social security.
Well-being and social cohesion.
Life expectancy at birth increased by 3 years between 1981 and 1996.
Infant mortality decreases but is higher than the national averages.
There is a lack of information on school failure (only 10 cities)
Daycare spots increase.
Universities are concentrated (70-87-122 places/1000 inhabitants in 1981-91-96)
The crime rate is stabilized but is higher than the national averages and
more in the big cities.
Electoral participation is lower than the national average in three out of four.
cities.
City configuration.
The density decreased in most cities between 1981 and 1996.
In the 1990s, the proportion of apartments decreases (65.4% in 1996)
The usable area of the homes was 32 m2 per room.
Airplane travel increases (4.5-6.8-9.7 pax/capita/year in 1981-91-96)
43% of households do not have a car (varies between cities from 29-76%) but it is increasing the
automobile park (295-397-408 per 1000 inhabitants in 1981-91-96)
The number of displacements per person for non-work-related reasons seems to be increasing.
Only 22% of trips are for work.
The use of public transport for the commute to work decreases (34-26-26% in 1981-91-96).
and is even lower in the conurbations.
Serious accidents are reduced in three out of four cities and stand at 3 dead.
serious injuries per 1000 inhabitants.
Urban metabolism.
Winter Smog decreases but Summer Smog increases in 60% of cities, and
only 3 had no episodes in the year.
Only 12 cities provided information about noise.
Water consumption per capita decreases. (110 - 101 - 93 m3/capita in 1981 - 91 - 96). Decrease in
three out of four cities. The quality of water improves.
The water supply and sewerage service caters to 95% of the households.
556 kg/person/year of solid waste is collected. In 2/3 of the cities, this increases.
Stabilized electricity consumption per capita (0.5 toe per year). In three out of every four
cities are below the national average. In 87% of the cities, consumption is increasing.
of gas (0.62 toe per year)

In light of these social and environmental situations, two processes must be highlighted.
that have developed in the historical period of modernity:
Citizens have lost the ability to control many
Activities that occur in your neighborhood and city environment: with the development of the State
modern, and rapidly in the second half of the twentieth century, the decisions about
urban activities (production, exchange, and consumption) have been emancipating themselves from
the places where they occur, without taking into account the local needs of both capital
natural as part of the human development of its inhabitants.
Citizens do not feel the effects that the operation of the city has on others.
nearby and distant places: cities have been able to develop based on the
transport infrastructure, which has allowed the circulation of resources and products,
in addition to the workforce, and in the environmental infrastructures that transport
resources and waste between the city and its surroundings. In this way, cities,
especially the best neighborhoods within them, improve their quality of life, their
habitability, at the expense of the environmental and social effects that are "transferred" to places
away from their daily life.

These processes imply an institutional deficit that is at the root of the problems of
European cities, limiting the possibilities for improving local sustainability and
global in its various environmental, social, and economic aspects.
To guide development towards sustainability, responsibility must be promoted.
social of citizenship and its institutions and organizations, public and private. It
better social control mechanisms are required to evaluate the trends, the
actions and behaviors of the different social agents and
economic, in the territory. And for that, appropriate information, reflection and
debate on problems, solutions, and results.
Regulators, according to the Law of Ashby (Law of Requisite Variety), must have a
sufficient complexity in relation to the complexity of the processes that are desired
control. It seems clear that current social regulators do not have the capacity
enough to guide the processes towards sustainability, and that need supplements.
and reorganization, both in representative democracy and in the instruments
administrative and the market, so that social agents, companies and the
citizens take on the necessary patterns for change and transfer them to their
everyday behavior and local and global policies.

Public policies, states, and cities.

Throughout the century, with the progressive globalization of the economy, the modern state
has played a major role in economic regulation, markets and the
welfare services, and continues to have it. Economic integration, especially in
Europe is heading through the States, and the agendas regarding the
Social and environmental Europe. These state political frameworks must be reconciled with
policies in the cities.
Environmental objectives like those of Kyoto need to be territorialized, and furthermore...
adopt sectoral measures on car emissions or systems
productive. And the social cohesion in European cities, which depends on the
the modernization of the Welfare State in our countries needs these policies
are applied, in many cases, in a focused manner with the participation of the subjects in the
line exposed in the previous point.
Actions in neighborhoods or with disadvantaged groups are not very effective in the medium term.
if they do not have a favorable state framework of full employment and welfare policies
social, aimed at facilitating equality of personal capabilities and opportunities
for human development. Equality as gender (human) so that we can be
distinct as individuals.
It is necessary to develop the Welfare State and include sustainability criteria.
environmental. The Welfare State emerged and is maintained with the support of, and supported by,
civil society and participatory democracy. Its modernization, without entering into the debate of
when and where more or less social spending may be necessary, it is an 'investment' in
economic efficiency, productivity, development of human capital and relational capital,
what is necessary for the improvement of social cohesion and sustainability.
Align public policies for sustainable development in states and cities,
It is necessary to raise some important issues:
The inadequacy of state policies causes many actions of interest to
they are forced to exhaust their energies in the search for resources for survival,
losing effectiveness. Administrations should not use Best Practices as
propaganda elements and they must support the transfer with appropriate means
cases.
Partnerships between agents for the development of actions bring together many
cases to administrations of different levels and to agents from the three sectors (community,
private and social economy), facilitating the transfer of values, mutual trust,
common learning and the effectiveness of actions. But it has not yet been developed
adequately a new political culture that translates experiences into practice
general administrative.
The need for new competence blocks that go beyond the current sectoralization of
problems and interventions, and that favor subsidiarity, is necessary for
adapt public action to the problems and the creation of opportunities with a
more effective participation of the subjects.
Municipal budgets are generally a reflection of the social deficit of
participation and the scarce application of subsidiarity, remaining almost in the hands of
exclusively from politicians and administration professionals. The Budgets
Participated (in some of their spending and investment items) are a line of work of
interest that develops in Latin American cities, and that in Europe has some
examples with almost a decade of experience as a Deventer in the Netherlands.

C. The social responsibility of companies in urban metabolism and cohesion

social.

The meeting of the public, community, and business sectors in dialogue spaces.
to improve the regulatory function of economic and territorial systems, they require
a favorable attitude in the business sector, which facilitates their entry into work
in favor of sustainable development. Throughout the nineties, some have been developed
business participation experiences in addressing social exclusion.
In 2000, the Lisbon Council raised the importance of social responsibility of the
companies in the European social agenda and sustainable development.
What quality of life model do we need to defend and how should participants be involved in it?
companies? Development cannot be based on the increasing consumption of products
materials. We need to promote ways of well-being that do not deplete the physical world
(resource depletion, transformative energy, and accumulation of waste), since it
You know that the planet cannot sustain the extension to all the inhabitants of the pattern of
material consumption that advanced countries currently have. It is necessary to base the
well-being and development in a greater share of intangible services (information) and
closing the cycles of materials, as the biosphere does, reusing products and
waste.
Many cities set the attraction of capital as a strategic objective.
(local or external investments) and do not worry about the efficiency of their metabolism nor
of the increase in their per capita ecological footprint. A new urban culture has to
consider the creation of employment based on improving its competitiveness
habitability without expanding its footprint. Productivity can be increased by reducing the
consumption of natural productive factors (materials and energy) and improve the
living conditions of workers (at work and in the neighborhoods) instead of pretending
achieve it by reducing the cost of labor (wages and social spending) that leads to the
Long live for all cities and companies to lower labor costs and become equal.
it generalizes the discomfort and loss of quality of life.
Companies need to participate in the dialogue to regulate competitiveness.
that it does not continue to be, in so many cases, the excuse to produce negative externalities,
reducing costs by ignoring that capital is being degraded
social and the natural, and that this deterioration is ultimately paid for by the citizens (public spending), the
neighbors, or in the future our children. Social and environmental quality must be understood as
an investment in the competitiveness of companies, in an increasingly consumer-driven environment
more demanding and responsible.
To promote proactive business practices, codes are being established.
conduct volunteers in some business networks, and processes must be established
national and multilateral regulators, with the participation of the business sector (COM
(2001) 366 final):
The social responsibility of companies must include training practices for
employees and the chain of productive and distribution relationships, practices
democratic business organization, fair trade, participation in development
local of their environments and ecological responsibility of their production process "of birth
to death.
Small businesses are of special importance for this strategy due to their
contribution to employment, local development, and the vitality of cities and neighborhoods,
especially those with declining economies.
Special mention deserves the companies of the social economy, which include in their philosophy
of action: the organization of small structures closely linked to the territory,
services to the social environment, internal democratic management and decision-making, primacy of the
people and the work on capital, reinvestment of profits in the environment, etc.
The development of corporate social responsibility requires an approach to
study and reflection on the results of various business practices in the changes
of the social and environmental quality of the territory. We need to promote the development of
indicators, measurable objectives, benchmarking, and performance evaluation.

A more sustainable configuration of cities: urban policy.

Cities are the great invention of civilization, of life in society, but with their
current size and internal organization are unsustainable. Urban systems have
improving their habitability by deteriorating the sustainability of extensive, nearby spaces or
distant, increasing their ecological footprint. The city's footprint is made up of the materials
and energy that is used directly and indirectly, and is measured by accounting for space
necessary to obtain the resources, to transform them, and to use or consume them, and
deposit or assimilate their waste.
The situation worsened in the cities as their local incapacity increased.
to supply themselves with resources and assimilate waste, and the areas began to expand
capture and deposit. As the size of the city increases, the internal movements of the
resources, waste, and people, which are necessary to maintain the complex
interrelationship of urban activities, they are becoming disproportionately
long due to the cities having no internal order or configuration
adequate. The result is an excessive consumption of energy, and a functioning with
economic and social inefficiency.
To facilitate internal mobility, cities have developed infrastructures for
transport and environmental factors, which are more complex, extensive, and dominant in the city,
the larger and more concentrated the flows that move through them and the longer
they are the routes.
As Wright Mills said, the dominant order of the modern city is that of interests.
of real estate. The Urbs (the physical urbanization of the city for the Romans)
it becomes autonomous and imposes itself on the Civitas (the urban culture) and the Polis (the common management)
of the public thing). Urban politics seems to have become obscured in the second half of the
last century with the dispersed city model, surrendered to the car as a means of
transport, and the real estate business as a mechanism to establish settlement of
the buildings. The concept of city has diluted and the dispersed suburbia emerges.
The configuration of the city is not just a matter of environmental metabolism. The
political decisions and the distribution of public spaces and urban activities, results in
the internal organization of the city is fundamental for human development, the
social and economic interaction, the possibility of accessing opportunities, participation
politics, etc.
In the conclusions section of the URBAN AUDIT presented in point 1, it is clear that
European cities tend towards urban sprawl, decreasing their density more.
use of the car. The metabolism of the city is not managing to improve the quality
the air in summer and maintains a high energy consumption and waste production
solid, although water consumption per inhabitant decreases. The population is aging,
the number of single-person households is increasing, and the proportion of residents is increasing
foreigners from non-EU cultures. Unemployment is rising in some social groups. There are
strong internal demographic and poverty inequalities between neighborhoods. Insecurity is
higher than the national average. Voter turnout is lower than in the overall group of
their countries, in parts of the cities.
In order for the city to be more socially, economically, and environmentally efficient, its
physical configuration, the distribution of its social and economic activities, and its
political organization for management has to transform itself taking into account all
these situations.
For example, the 2001 TERM report reminds us that transport continues a trend
of greater environmental unsustainability. The emissions that affect climate change continue
increasing, despite technological advances. The air is still dangerous to health, the
noise also affects excessively 30% of the population. The accidents are
too high. City planning continues to fail to address sprawling growth
supported by a growing use of the car for daily commuting. It worsens the
accessibility for people without cars. The proportion of motorized trips increases and
also the length of the routes.
However, as can be seen in the 1999 report of the Citizens Network Benchmarking
Among the cities studied, there are very specific situations and trends.
various in terms of mobility, which are related to urban policies and
transport that has been followed in the medium term: there are cases where the use of the car is
growing and others that have achieved improvements over the last decade
considerable, with a decrease in car usage and user transfer to public transport
public and other alternative media.
The territorial order that contributes to improving social, economic, and environmental efficiency, not
It still seems to be a real, quantified and evaluated objective, in management and configuration.
current of the cities. But the questions are present.
How can existing neighborhoods be improved? What should their mix be like?
activities and availability of local services, and their transport connections to places
of greater centrality? What internal configuration changes does it need to function?
better and offer more quality of life? What housing and services should they have?
different neighborhoods to promote social integration? What types of neighborhoods, of different
density, types of buildings and organization of public spaces, can provide
more quality of life and have a lower environmental footprint per inhabitant?
Among the experiences that are being developed in the regeneration of neighborhoods of
In our cities, some concepts that converge in development can be highlighted.
sustainable
Support urban systems and medium cities to reduce territorial polarization between
the regions, combining economic and social policies with those of infrastructure and
environmental quality.
Avoid the suburban sprawl of cities, and support the regeneration of spaces
urbanized, the average densities and certain compactness, which facilitates the existence of
sufficient thresholds to efficiently provide local services, public transportation and
the development of local life.
Promote functional and social diversity in neighborhoods, and combat segregation.
fragmentation of the city. Equip neighborhoods with local proximity services that
reduce the need for long commutes.
Promote collective life projects, community local development, in the neighborhoods with
declining economies, favoring the inclusion of all social sectors and of
the economic agents, to reduce the social polarization of the city and the situations
of disadvantage in these neighborhoods.
Reinventing bioclimatic architecture and urbanism, taking advantage of the conditions
environmental measures to create comfort in public spaces and buildings, reducing in these
the need for artificial air conditioning.
Facilitate the participation of all social stakeholders in advisory bodies of the
decisions about the city, also in the neighborhoods.
Promote the determination of explicit objectives and monitoring mechanisms
evaluation of decisions and evolution.

E. Education for a sustainable future.

It is necessary for general education, from primary to university, to be focused on

a methodology of systemic vision and complexity, if one wants that in the future it
overcame the disciplinary fragmentation so common at the present time. Education
Environmental is a derivative of this broader approach.
The defense of this approach to education is important, as UNESCO does in its
Education project for a sustainable future, at a time when it has been implemented
It is fashionable to believe that the education needed for the future is, above all and
fundamentally, training in new information technologies and the
communication. Sustainable development is not just economic efficiency and revolution.
technological. Additionally, the emphasis on informational training, if detached from education
Globally, it seems to indicate that the main educational problem is competitiveness.
personal in the labor market, and that this is the solution for the social integration of the
individuals.

Following the proposals of E. Morin, we can emphasize the need for:

Educate in the ability to question one's own ideas, as the first step to change the
society and ourselves. The contextual uncertainty of social processes
current opens the way to systemic and complex thinking, which questions ideas
simple, appearances, etc. Learning to argue and refute in a context of tolerance
with other argumentative positions.
To educate in the ability to make the systemic and complex visible, to understand what they are
the relationships with the rest of the world of the objects and social processes that are studied,
avoiding excessively isolating them in themselves. Adjusting knowledge to the problems,
overcoming the fragmentations of complex realities like man, the community or
the planet, concepts that cannot be explained by specializations.
Educating in the understanding of the human condition. The human as joint development.
of individual autonomy, community participation, and the sense of species. We are
part of the biosphere, and we need it as a species, but the conceptual fragmentation of
the human aspect leads us to an exaggerated individualism and weakens responsibility and
community solidarity.
Educating in the understanding of the identity of the planet, which welcomes us as a species. It is
difficult to grasp the earth as an object, as its complexity overwhelms, especially for
minds formed in a fragmented way and focused on competitive individualism and
productivist. Development, in current technical-economic terms, is unsustainable,
and its future depends on awareness of its functional and identity complexity.
Teaching to face uncertainty. The future is open, it is unpredictable, it will be
product of unstable relationships and chance. Action is a choice and a gamble that
it is necessary to have a strategy that requires monitoring and reflection in order to
pursue their objectives. Collective interest is not obtained by associating private interests.
and requires collective strategies.

4.6 Implications in the agricultural sector

Throughout the six-year term of President J.L.P., approximately 6.5 were physically delivered.
millions of hectares benefiting 250,000 farming families.
In 1977, the Ministry of Agriculture and Livestock was merged with the Ministry of Hydraulic Resources.
to form the Secretariat of Agriculture and Water Resources.
In 1980, an agricultural program called the SAM food system was announced for
advance in the alliance for production together with the farmers seeking the
national self-sufficiency the totalizing effort of the SAM included production,
commercial distribution and consumer orientation to the lower classes, in this
the program shared the risks not only of the disasters but also of the costs of the
guaranteed productive stimulus to the farmer for their normal income in case of failure and
the profits when they are obtained.
In 1981, the agricultural promotion law was enacted.
During 1981, the credit granted by Banrural amounted to 105 billion pesos.
73% higher than in 1976.
In 1982, as support for farmers, the credit system was put into operation.
the Banrural card.
During this administration, the agricultural area expanded by 3.4 million hectares.
the largest area open for cultivation in the entire history of the country.

4.7 Foreign Policy

Between 1977 and 1978, diplomatic relations were reestablished with the monarchy of
Spain.
Our country's disagreement towards an amendment proposed by the Senate of States was demonstrated.
United States imposed the ratification of the treaties regarding the Panama Canal and
it contradicts the unilateral U.S. intervention in that area.
September 1979 before the UN, President J.L.P. proposed the adoption of a plan
global energy in two plans a structure dependent on hydrocarbons and in the
future inexhaustible energy sources.
1980 the San José agreement is signed: oil supply to Central America and the
Caribbean with low credits.
1979 Mexico breaks relations with the Nicaraguan government of Anastasio Somoza

In the face of the new Reagan administration, our country opposed isolationist policy.
against Cuba.

For López Portillo, maintaining good relations with the U.S. constitutes a
cornerstone of their relationship with the outside, but there cannot be a good relationship with the
The EU is not based on the first term in respect.
The last display of foreign policy during that period was the North-South summit in
Cancún in October 1981.

4.8 THE WORLD ECONOMIC CRISIS AND ITS IMPACTS IN MEXICO

INTERNATIONAL ECONOMIC SITUATION

It should be noted that the crisis of 1982 had internal causes; it was also motivated by
caused attributable to the international financial community. The crisis would not have been so
intense and so broad if there had not been erroneous estimates and closed attitudes of
the creditors:
The international banking interpreted this as a temporary situation.
The authorities of the international financial community did not react promptly.
to prevent the crisis from exploding.
A movement of fear was created among the banks.
The credit offer became null, with payment suspension.
Weakness of international organizations.
Exhaustion of the industrial dynamics of advanced countries where the crisis is
origin.
The low productivity of labor and the economic and social difficulties for
incorporate technological advancements in industrial production processes.
The abandonment of the dollar exchange rate peg in 1971 and the energy crisis that began in the
1973 reflected the exhaustion of the growth dynamic and this accelerated the deterioration of
the global economy.
Despite this, the rigidity of the political positions of industrialized countries regarding
international economic organizations prevented the solution of global problems to the
problems drastically reduced the chances of advancing in the achievement of the
international economic order. Industrialized countries responded to the crisis
international economics with internal policies of rigorous fiscal discipline to reduce the
inflation and correct internal imbalances. These protectionist measures the countries
advancements reduced the export possibilities of developing countries at the same time
when interest rates increased, the consequence was for developing countries,
the loss of income, the lower demand for imports, and the growth of debt.
This established a vicious cycle that deepened the economic stagnation and the
unemployment reinforced inflation and accentuated disparity. This increased the burden of the adjustment of the
economic imbalances fell disproportionately on the countries in
development. These countries, by postponing political decisions demanded to the limit
the situation complicated their own internal problems even more.
Regarding developing countries, their growth was initially limited.
In the 1980s, there were conditions of economic recession in these countries,
inflation, unemployment, and foreign exchange shortage. In particular, Latin America was experiencing the most crisis
profound since the post-war period.
In monetary matters, a wide range of issues presented themselves for the 1980s.
what the reform of the international monetary system required to face it.
Unfortunately, this did not happen.

4.10 BUSINESS GROUPS IN MEXICO

Some of the largest companies in Mexico today already existed in the first
the decade of the 20th century and the period between 1940 and 1970 is historically the one that
presents the largest number of foundations of major national companies and installation
transnationals in Mexican territory.
EXAMPLES:
empresa, grupos empresariales, empresas mineras, ferrocarriles, mercados regionales,
banks, capital, foreign investment, financial capital, industrial company, foundries
institutional reforms, economic reforms, private business groups, strategies
financial, regional expansion.

It is concluded that the main source of financing of

the expansion of assets between 2005 and 2007 was the growth
of the liabilities and, secondly, the equity contributions
of the shareholders. It is determined that the investment of the main
groups are carried out discreetly over time and that they tend to
about investing as a way to obstruct the entry of others
competitors.
4.11 INCOME AND EXPENSES POLICY
The auditing of the Public Account includes the review of revenues and expenditures,
including subsidies, transfers and donations, funds, fiscal expenditures and debt
public; the management, custody, and application of federal public resources, with
exception of federal participations, as well as other financial information,
accounting, patrimonial, budgetary and programmatic that the audited entities must
Included in that document, comforts REVENUE LAW, is the legal regulation in the
which are established annually the revenues (rates and/or amounts) of the Government of that
rate (which can be Federal, State or Municipal) that must be collected for the concept of
taxes, fees, products, benefits, bond issuance, loans, fines
and any other concept provided for in that Law.

EXPENDITURE BUDGET is the legal regulation that contains the forecast of

all those expenses that are expected to be accrued for the period of the year that
approve, they are the annual expression of the State's plans, developed within the framework of the
economic and social development strategy, in those aspects that demand from
public sector, capture and allocate the resources conducive to its normal functioning and
for the fulfillment of investment programs and projects, in order to achieve the goals
and sectoral, regional, and institutional objectives. There are expenditure budgets for
federal, state, and municipal level.

AUTHORITIES PARTICIPATING IN ITS PREPARATION: A) at the FEDERAL level, a) The

Chamber of Deputies of the Federal Legislative Power, and b) Head of the Federal Executive
(who sends the corresponding Initiative); B) at the STATE level, a) The Legislative Power
Local, and b) The Governor of the State (who sends the Initiative); C) at the MUNICIPAL level,
FOR REVENUE LAW: a) The State Legislative Power, and b) The city council of each
City council which sends the Initiative to the State Congress; for BUDGET OF
EXPENSES: The City Council of each Municipality determines it (for the sake of autonomy
municipal).

Regarding the DATES by which the Initiatives must be submitted, both for the Revenue Law
as Expenditure Budget: A) at the Federal level, no later than September 8
(art. 74 Constitutional), with the exception of the first year of the President's term,
since he is given until December 15 -as he takes office on the 1st- to do
to bring the initiatives; B) at the State and Municipal level, it depends on which state it is, but
They go from the month of September to October, because in almost all of them they are required to...
must be approved by no later than November 15 of the year in question for approval
next year.

STAGES INVOLVED: a) Drafting of Initiative, b) Submission of Initiative to

Legislative, c) discussion and approval; d) submission to the Executive for its publication or in its
case for him to exercise his right of veto - if given, it happens again the
mentioned in section c) -; and e) publication and entry into force.

Finally, regarding what governs the preparation of the budget, your question could have
many diverse responses, for example, the principles of rationality govern,
transparency, austerity, proportionality, just to name a few.
applicable provisions.

4.12THENATIONALIZATIONOFBANKINGINMEXICO

During his last government report, José López Portillo, President of Mexico from 1976
in 1982, it decreed the nationalization of banking as a measure to curb the outflow of
currencies, which had already surpassed 30 billion dollars. In this same speech,
he also held the banks responsible for promoting the flight of capital and criticized the
dollar extractor

The nationalization of 49 Mexican banks was described as a desperate decision.

which led to the handover of banking to foreign capital during the decade of the
ninety-two decades of economic stagnation.

That time had been enjoying an oil boom with the exploitation of the fields.
from Cantarell, promoting an average annual GDP growth of 7%.
Unfortunately, politicians believed that those deposits were unlimited and they
practiced a waste in public finances, causing a deficit of 17% of GDP and
tripled the external debt to over 60,000 million dollars, shooting up inflation and
devaluation.
The good levels of technological development achieved during the 1970s are no longer
they existed ten years later, when the banking system in Mexico appeared outdated and weak.

The bankers refrained from protesting after receiving the Compensation Bonds.
Banking for a total of 1.2 billion dollars, plus interest, which was completed
pay until 1989.

Mexican banking was privatized again during the sexenio of Carlos Salinas de Gortari (1988-
1994), who sold it to the brokerage firms. They, accustomed to investment
speculative, they led the banks to bankruptcy to sell them to foreign banking.

Currently, 92% of banks in Mexico belong to foreign financial groups.

4.13 THE NEW BANK OF MEXICO.

3. Reprivatization of the Mexican Banking System (1990 - to date)

Until 1990, the Mexican banking system was formed by the government owning
national credit institutions, later through the constitutional rectification and the
promulgation of the Law on Credit and Institutions has mixed banking and credit (and its
system) was stabilized.
These measures allow for the privatization of commercial banks and the option of a
legal framework for multiple banking services and their inclusion in financial groups
private.
The privatization of commercial banks resulted from the need to modernize and make
the most competitive financial system in relation to both financings, the
economic growth and its process as well as the channeling of network and resources for
produce and structure projects in an optimal way.
The president of Mexico at that time, Carlos Salinas de Gortari, within his
The State Modernization Program deemed it appropriate to promote changes,
first to the Constitution then through the initiative of a new Law of Institutions
Credit in order to restore the mixed regime in the provision of banking services
credit.
The proposal for a constitutional change fundamentally consisted of repealing the
fifth paragraph of Article 28 of the Political Constitution of the United Mexican States
(that had been reformed in October-November 1982)
This initiative received a majority consensus from public opinion and was approved in the
permanent constituent with the participation of the majority of opposition parties
represented in the Chamber of Deputies. The new Law on Credit Institutions, whose
The initiative sent to Congress by the President of the Republic was approved by the
same Congress, with the participatory vote of opposition parties.
This transcendental change in state policy, I estimate as pointed out by the initiative was
a step to modernize the Mexican State and as President Salinas pointed out
Gortari found it convenient to review and change the myths of the past.
The new Law on Credit Institutions was published in the Official Federal Gazette.
July 15, 1990.
A) process of reprivatization.
The process of privatization or divestment of the 18 multiple banks involves the
transformation of Public Limited Companies into National Credit Companies, since
these are commercial companies that perform acts of commerce.
The above in accordance with the provisions of the seventh transitory article, in which it grants 360 days for
that the Federal Executive issues the transformation decrees.; which implied that the
privatization procedure although it was not stated how long it could take, one was carried out or
two years; without forgetting the various conflicts that arose regarding the lack
of the personality of banks at the time of collecting the debts incurred by
customers facing banking institutions.
Another effect of the disincorporation of the banks was that their workers, without prejudice to
his rights will now be governed by section A of article 123 of the Constitution
and the Federal Labor Law when they became private banks.
B) Opinion on the Reprivatization of Mexican Banking
Various circumstances that the Mexican banking system has to face such as
the globalization of trade between nations, the consequences of a free trade agreement
trade with the United States of America and Canada, the opening of banking activities to
foreign competition internal market operations and becoming a factor
important for the economic development of the last decade of this century and the beginning of
next.
According to risk factors such as high operating expenses, the dimension
lesser of Mexican banks compared to foreign ones based on the standards
international and the low level of investment in communication information development,
Mexican banks will have to improve their training systems more, their levels
of recruitment, of efficiency its IT infrastructure and also get on par with the
foreign banks in order to carry out fair and healthy competition,
even when the rearrangement process began in 1991 and that the competition was and
it remains difficult; and this was thought to positively impact the economy of
country, seeking higher efficiency rates and a lower cost of money1, as it has not
it was as positive as expected.
There is no doubt that in the long run all the goals and assumptions will be achieved.
proposed, but the Mexican Banking sector is still struggling with obstacles, which although they do not
They are the result of reprivatization, yes, they are more profound, like the emergence of
problems, that if the disincorporation had been carried out properly
thinking about future inconveniences, litigations such as the lack of would not have arisen
personality of credit institutions.