Mexico’s Arrested Development

Mexico’s Arrested Development

In his 1996 classic, "The Clash of Civilizations," Samuel Huntington characterized Mexico as a "torn country" -- a condition produced by the Westernizing instincts of its elites pulling against the weight of its cultural heritage. Today, however, Mexico is not torn by internal discord, its drug violence notwithstanding. Rather, it is trapped -- caught between dynamic global trends washing over Latin America on one hand, and the dogged political realities of North America on the other.

In heralding the end of trade barriers between Mexico, the United States and Canada, the North American Free Trade Agreement (NAFTA) cast modern Mexico's orientation northward in 1994. NAFTA melded easy access to the U.S. market with Mexico's low production costs. Rapid industrialization of northern Mexico soon followed, giving the country a "hub-and-spoke" economic model, whereby maquiladora factories sourced inputs and investment from a variety of foreign multinationals and then exported manufactures to the United States, and, to a lesser degree, Canada.

Initially, Mexico's integration into the North American bloc showed signs of mutual benefit. The cost of many manufactured goods in the U.S. went down thanks to the pool of cheap labor used in the maquiladoras, and business-related economic indicators -- worker productivity, trade growth and foreign direct investment -- bode well for Mexico. Tech firms set up shop around Guadalajara, Mexico's second-largest city, which investors and Mexicans alike feted as a new Silicon Valley. According to the neoliberal orthodoxy that prevailed in the 1990s, these developments foreshadowed improvements in overall welfare.

Keep reading for free!

Get instant access to the rest of this article by submitting your email address below. You'll also get access to three articles of your choice each month and our free newsletter:

Or, Subscribe now to get full access.

Already a subscriber? Log in here .

What you’ll get with an All-Access subscription to World Politics Review:

A WPR subscription is like no other resource — it’s like having a personal curator and expert analyst of global affairs news. Subscribe now, and you’ll get:

  • Immediate and instant access to the full searchable library of tens of thousands of articles.
  • Daily articles with original analysis, written by leading topic experts, delivered to you every weekday.
  • Regular in-depth articles with deep dives into important issues and countries.
  • The Daily Review email, with our take on the day’s most important news, the latest WPR analysis, what’s on our radar, and more.
  • The Weekly Review email, with quick summaries of the week’s most important coverage, and what’s to come.
  • Completely ad-free reading.

And all of this is available to you when you subscribe today.

More World Politics Review