2 - Mexico Before 1982: The Political Economy of Authoritarian Rule

Summary

Mexico experienced major economic and political transformations during the 1980s and 1990s that ushered in an open economy and electoral democracy. These transformations are not understandable if viewed outside of the broader context of Mexico's history. Thus, a balanced assessment of both the importance and the limits of these changes requires an understanding of Mexico's political economy before 1982.

Twice in its history, Mexico was governed by authoritarian regimes based on rent-seeking coalitions. The first was the dictatorship of Porfirio Díaz (1876–1911, a period known as the Porfiriato); the second was the party-based authoritarian regime that took shape in the aftermath of Mexico's 1910–1920 revolution and held sway until the election of Vicente Fox Quesada in 2000. These two regimes differed greatly in their social bases, their degree of political institutionalization, and their resilience in the face of pressures for change. Yet these regimes also had some important things in common: They produced long periods of stable government, centralized political power in the presidency, and pursued protectionist economic policies. Both regimes also produced a highly unequal distribution of the benefits of economic growth – a direct result of the fact that they allocated public policies and property rights selectively, so as to benefit primarily the core members of the coalitions that supported them.