Figure 1.--Here we see a scence from rural Mexico in the 1930s. The farming technology is virtually unchanged from the 16th century. The PRI instituted a series of reforms, but thec statist approach as in the Soviet Union did not createc a modern, efficent economy. The povery endemic in rural Mexico, despite the land reform continued.

At the time of the Revolution (1910), large land owners and industriaslists dominated the economy. Land ownership was highly concentrated in a very small mumner of families. The Revolution transferred power to the Partido Recoluciaraio Institucional (PRI). PRI leaders introduced a variety of scocialist reforms including state ownership of major sectors. At the time, with the creation of the Soviet Unionm, many in Mexico thought that statist solutions were the way of rapidly developing the economy. Some limited progress was made and important steops were taken like creating a public education system. The large landed estates were broken up. The result of the PRI's statetist approach were inefficenties among state companies. Arrangements with major sectors also introfuced a degree of inflexibility in the ecoomy which inhibited the function of the private sector and the development of a culture of corruption. The same dynamic in the 1980sc was obsevable in the Soviet Union. It was mot as pronounced in Mexico, however, because the private sector was no eliminated in Mexico. These and other factors prevented Mexcico from developing a modern economy like the United States and Europe which could have addressed social inquities indemic in Mexico. The impact of these policies inevitably fell most heavily on poor Mexicans. Denied opportunity in Mexico, large numbers of Mexicans began seeking jobs in America by crossing the border illegally.

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Created: 10:25 PM 3/20/2010
Last updated: 10:25 PM 3/20/2010