Why did Mexico experience an “economic boom” between about 1

Why did Mexico experience an “economic boom” between about 1

Why did Mexico experience an “economic boom” between about 1940 and 1982 and why did it come to an end? The Mexican Revolution which was between 1910 and 1920 caused much disorder to the Mexican economy. The labour force experienced a huge deterioration and the population declined too. The livestock supply was used up, because many cattle were lost due to the negative effects of enemy forces. Many of the farm workers left their fields unattended because of the fighting therefore coffee and cotton went unharvested and this meant much less productivity resulting from agriculture. Transport was affected so no goods or products could be distributed. The currency was wiped out and general chaos was the order of the day. Slowly Mexico began the healing process. In the 1930’s the industrial sectors such as manufacturing began to recover due to the nationalization of the railways and the petrol industry. As well as the industrial side of the country, the agricultural industry began to flourish as well. The need for urban employment rose because the home market was increasing. During World War II Mexico made much contribution, however it was mainly economic. They supplied labourers and raw materials to the USA and by the end of the war in 1945 they had doubled the value of their exports. After World War II, President Miguel Aleman Valdes’s(1946-52) full-scale import-substitution program stimulated output by boosting internal demand. He raised import controls on consumer goods but not on capital goods. From 1946 to 1970 the four leaders of Mexico sustained close relations with the USA which proved to be much help in getting Mexico out of its economic depression. Mexico’s narrow development strategy produced continued economic growth of 3 to 4 percent and modest 3 percent inflation annually from the 1940s until the late 60s. (Reference) The domestic market would prove to be a saviour for Mexico therefore the government imp…


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