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Re: VOTERS' CHOICE (Re: Argentine's elections)
On Mon, 15 May 1995 13:00:46 -0400 Alex Lopez-Ortiz wrote:
> > I don't understand why people complain so much about what
> >they call "leftist-populist" governments, when those governments
> >actually maintained an almost uninterrupted period of progress
> >in Mexico.
>
> I don't think people complain about all populist governments. Last
> time the topic arose in Mexico94, we agreed that up to the mid 60's
> the Mexican development strategy seemed to have been the "right
> medicine" for the times. Foreign debt was kept at relatively
> small levels at the same time as the industrial base of the country
> grew.
The Mexican governments between 1940-70 can hardly be considered populist, at
least in an economic sense, and even less in the 1960s, when economic policies
were extremely orthodox. Not even the Cardenas regime (1934-40) was populist in
a macroeconomic sense. In fact, contrary to what is generally accepted, the
Cardenas administration was orthodox in its economic policies. Many people
identify "populism" with Echeverria and Lopez Portillo.
> >Since the Revolution most governments in Mexico have
> >tried to accommodate popular demands for better social conditions
> >by establishing welfare programs, buying industries, and
> >subsidizing services and education.
> >
> > Defenders of neoliberalism always point to the governments
> >of the 70's to blame the left for the economic crisis, even
> >though the left has never governed Mexico. So at this point,
> >it would be interesting to question the labeling they use and
> >its coherence.
Here is a very intersting definition problem: it is not "letf" or "right", but the PRI that
has always governed Mexico (since 1929). If by "left" one understands socialism,
then it is correct, the left had never governed Mexico, but several governments are
considered to have followed "leftist" policies, and that is why many people label
them as "left" oriented, moreover when compared to those to the "right".
> > In 1970 Luis Echeverria Alvarez became president of
> >Mexico. He was labeled a leftist for several reasons. For one, he
> >repudiated the repression of his predecessor, DIaz Ordaz, and also
> >he criticized American imperialism, and flirted with the USSR and
> >China in his bid for the UN general secretary post. He also bought
> >and created a lot of state owned companies. That made him a
> >socialist to the eyes of many although workers and peasants
> >never saw one inch of gain in their control of politics and
> >economics. Oil exports increased enormously, and a lot of
> >money was borrowed from foreign sources.
He was also labeled leftist because of his anti-business rethoric (particularly
against the Monterrey Group). It must be pointed out that several unions enjoyed
-at least relatively speaking- much more liberty than before. Minimum wages
reached their historical peak under Echeverria. Oil exports started to "increase
enormously" until 1978, with Lopez Portillo, but certainly Echeverria increased
enormously the external debt.
> > In 1976 JosE LOpez Portillo took office, and continued
> >the trend of nationalizing industries including banks while increasing
> >government spending, and accepting more foreign loans on the basis of oil
> >exports. He also refused to bow to pressures from Washington, and
> >supported the Sandinistas in Nicaragua. Then the international price of
> >oil collapsed along with prices of other export products,
> >and the first serious economic crisis hit Mexico. Much of the profits
> >from the oil exports disappeared in corruption schemes, while capitals
> >went abroad. The foreign debt became unbearable. Lopez Portillo is
> >also considered a socialist,
Echeverria and Lopez Portillo were at least economic populists because of the
management of the economy they followed: increasing fiscal deficits brought
similar jumps in inflation. Combined with an virtually fixed exchange rate, this
brought finally the crises of 1976 and 1982. That is why many point to both regimes
as guilty of the crisis of the 1980s.
Sergio.