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View Diary: How neoliberalism ruined Mexico (43 comments)

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  •  Who got the 50 billion? (2+ / 0-)
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    cotterperson, pkbarbiedoll

    Mexico's foreign debt skyrocketed from $6.8 billion to $58 billion between 1972 and 1982, this in a nation of 50 million people.

    In the space of eight years they assumed 50 billion of debt and interest rates increased, so someone got the money , can I presume it was interest on loans, because as I recall interest rates were as high as 20% during that time period.

    In 1970 Luis Echeverría Álvarez (1922– ) became president; the former interior minister had been elected by a wide margin as the candidate of the PRI. During his 6-year term Echeverría pursued a more balanced strategy of economic growth so that all levels of Mexican society would benefit; he also adopted measures to reduce foreign control of the economy and to increase exports. Ties with the U.S. were loosened, and in their place Echeverría negotiated economic accords with several Latin American nations, Canada, the European Community (now European Union), and the Soviet-sponsored Council for Mutual Economic Assistance. The Mexican economy grew at a healthy annual pace of 6.3 percent during 1970–1974,

    I also thought this was enlightening too..

    Official corruption reached unprecedented levels during the 1970s when petroleum revenues surged as a result of higher oil prices and when newly discovered oil fields in Chiapas and the Bahía de Campeche began producing. Much of the wealth that flowed into the country through the state oil monopoly, Mexican Petroleum (Petróleos Mexicanos--Pemex), was squandered in wasteful and unnecessary projects and the inflation of payrolls. The main beneficiaries of high-level graft during this period were the senior executives of the national oil workers union and high-level PRI functionaries. This brand of official corruption reached new heights during the presidency of López Portillo (1976-82), who allegedly acquired a US$2 million house as a "gift" from the oil workers' union and was subsequently vilified by the media and the public as a symbol of PRI graft.

    While I was reading all this it occurred to me it wasn't as much neoliberalism as ever present greed and corruption. Excellent diary, I enjoyed it.

    Oh that we had the gift to see ourselves as others see us. Robbie Burns

    by ohcanada on Wed Jun 13, 2007 at 10:37:12 AM PDT

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