This chapter is a detailed and critical study of Mexico, from the Mayan period to the arrival of the conquistadors in 1521. It also reviewed the country's political and economic development policies from independence in 1821/24 to date. Thirty-nine years (1981–1999) time series multivariate data were analyzed using an ARDL model. Results show that the independent variables, especially export, and private consumption expenditure accounted for as much as 95% variation in the dependent variable. The study discovered that Mexico's economic performance could have been much better but for low total factor productivity, large informal sector, and less than desirable level of domestic savings and investment. Addressing these and sustaining the drive towards FDI flows, export expansion, and increase in ease of doing business are suggested policy focus for Mexico going forward.
Top1.0 Introduction
Mexico: officially called, the United Mexican States, is one of the three largest countries that make up the continent of North America; the others being the United States of America, (the USA), to the immediate North of Mexico; and Canada further North.
With a population of approximately one hundred and twenty-eight million and six hundred thousand; (128.6 million; 2022 est.); (predominantly Catholics), Mexico operates a federal presidential system of government with a bi-cameral Legislature: Congress of the Union; the Upper House and the Chamber of Deputies, (the Lower House), at the Federal level; and similar legislative structures at the state level; thirty-one in number; each of which is sovereign in status. At the head of the Executive at the Federal level is an elected president while each state is equally headed by an elected Governor. (Alonso, 2004; Ramirez, 2021) among others.
The aborigines of Mexico were the Maya tribe; (Mesoamerican) who inhabited the land from about 250 to 900 AD. They were displaced by the Astecs from about 250AD, (Maiolo 2014). The Astecs settled and dominated the land until February 1519, when Spanish explolers/colonizers, invaded and quickly took over Mexico in the name of the Spanish Crown. Mexico thus became a vice royalty of Spain thus began Spanish colonization of Mexico by the conquerors (conquistadores), (Macnutt, 1909).
Neither Spaniards nor the conquistadores hid their intention; they were in New Spain, as in the Americas (the New World, in quest of Eldorado; (Gold) Oziah (2011).
After establishing themselves as ‘overlords’, the conquestatores quickly established; or better still, perfected a seven-strata social class in Mexico. These were the Peninsulaies; people of Spaniard blood born in Spain and their uprisings and the Cleoles; also, of Spanish blood but born in Mexico or elsewhere other than Spain. Others were mestioze and mullatoes; people of mixed blood. Then came still below these, the Indian native Americans, Africans, and slaves in descending order of status or superiority; and with little or no difference between the last two (Hackle, 1997; Mecaa, Schwatz & Gubesic, 2009; & Flores and Telles, 2012).
Top2.0 Mexico: The Colonial/Era
Spanish colonization of Mexico is a classic case of European colonial exploits; characterized by three major modus operandi (i) a firm and enforced master-slave class stratification; a caste system, as described above; (ii) a conscious and vicious enforcement of the ‘capture of the mind’, a systematic enforcement of the colonial masters’ language, religion and culture in general on the colonized at the peril of severe and sometimes, dehumanizing punishment, (including death), for any sign of resistance, and (iii) politico-economic integration of the colony’s economy into that of the ‘home country’; in which the colony is a mere appendage of the home country and the colony is economically ‘milked’ to feed the home country. In the case of new-Mexico, things were the same if not worse, especially in the economic sphere as revealed by Meza, 2019; Ecker, 2022 among others.
In the case of Spanish-Mexico, colonial economic relationship, exploitation was accomplished by many principles or practices among which were agricultural and industrial exploitation via (i) hacienda: (ii) encomienda, (iii) mercantilism, (iv) bullionism, (v) repartimiento, among others (Meza, 2019; Anaya, 2023).