Wayzata World Factbook 1994/World Factbook - 1994 Edition - Wayzata Technology (1994).iso/pc/text/txtfiles/mexico.bkg

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#CARD:Mexico:Background Notes
US DEPARTMENT OF STATE BACKGROUND NOTES:  MEXICO

September 1991
OFFICIAL NAME:  The United Mexican States

PROFILE
Geography
Area: 1.978 million sq. km. (764,000 sq. mi.); about three times the
size of Texas.  Cities: Capital--Mexico City (1990 est.: pop. 20
million). Other cities--Guadalajara, Monterrey, Puebla de Zaragoza,
Leon.  Terrain: coastal lowlands, central high plateaus, and mountains
up to 18,000 ft.  Climate: Tropical to desert.

People
Nationality:  Noun and adjective--Mexican(s).  Population: (1990
census): 81 million.  Annual growth rate: (1991 est.): 2.3%. Ethnic
groups: Indian-Spanish (Mestizo) 60%, American Indian 30%, Caucasian 9%,
other 1%. Religions: Roman Catholic 97%, Protestant 3%. Language:
Spanish. Education: Years compulsory--10. Literacy--88%. Health: Infant
morality rate (1991)--32/1,000. Life expectancy (1991)--72 years. Work
force (26 million, 1989): Agriculture, forestry, hunting, fishing--26%.
Manufacturing--13%. Commerce--14%.  Services--31%.  Mining and
quarrying--1%.  Construction--10%. Transportation and communication--5%.

Government
Type: Federal Republic. Independence: First proclaimed September 16,
1810; Republic established 1822. Constitution: February 5, 1917.
Branches: Executive--President (chief of state and head of government).
Legislative--bicameral. Judicial--Supreme Court, local and federal
systems.
Political parties: Institutional Revolutionary Party (PRI), National
Action Party (PAN), Party of the Democratic Revolution (PRD), Popular
Socialist Party (PPS), Authentic Party of the Mexican Revolution (PARM),
Party of the Cardenist Front of National Reconstruction (PFCRN), Mexican
Democratic Party (PDM), Revolutionary Workers Party (PRT), Mexican
Ecology Party (PEM). Suffrage: Universal over 18.
Administrative subdivisions: 31 states and a Federal District.
Flag: Green, white, and red vertical bands. Centered is an eagle holding
a snake in its beak and perching on a cactus.

Economy
(1990 figures) GDP: $236 billion. Per capita GDP: $3,000. Annual real
GDP growth: 4%. Avg. inflation rate: 30%
Natural resources: Petroleum, silver, copper, gold, lead, zinc, natural
gas, timber.
Agriculture: Products--corn, beans, oilseeds, feedgrains, fruit, cotton,
coffee, sugarcane, winter vegetables.
Industry: Types--manufacturing, services, commerce, transportation and
communications, petroleum and mining.
Trade (1990): Exports--$30 billion: manufacturing 52%, petroleum and
derivatives 38%, agriculture 8%, other 2%.  Imports--$27 billion:
intermediate goods 60%, capital goods 23%, consumer goods 17%. Major
trading partners--US, EC, Japan.
Official exchange rate: (July 1991): 3,030 pesos =US$1 (controlled
rate); 3,029 pesos = US$1 (free market rate).

International Affiliations
 UN and many of its affiliate agencies, World Bank, International
Monetary Fund (IMF), International Civil Aviation Organization (ICAO);
General Agreement on Tariffs and Trade (GATT); Seabeds Committee;
Inter-American Defense Board (IADB); Organization of American States
(OAS); Latin American Integration Association (ALADI); INTELSAT.

PEOPLE
 Mexico is the most populous Spanish-speaking country in the world and
the second most populous country in Latin America (after Brazil). The
official 1990 census put Mexico's population at 81 million, up from 29
million in 1950.  About 70% of the people live in urban areas. Many
Mexicans emigrate from rural areas that lack job opportunities--such as
the underdeveloped southern states and the crowded central plateau--to
the industrialized urban centers and the developing areas along the
US-Mexico border. According to 1991 US Bureau of the Census estimates,
the population of greater Mexico City is roughly 20 million, which would
make it the largest urban concentration in the world. The border region
has also undergone a sharp rise in population, as well as Guadalajara,
Monterrey, and other cities.
 Education in Mexico is being decentralized and enhanced in rural areas.
The increase in school enrollments during the past 2 decades has been
dramatic. Education is mandatory from ages 6 through 14 or until primary
education is completed. Primary enrollment from 1970 through 1989
increased from less than 10 million to nearly 15 million. In 1989, 98%
of the population between the ages 6 and 14 were in school. (Latin
America as a whole averages 85% enrollment.) Enrollments at the
secondary level have also shot up from 1.4 million in 1972 to as many as
4.4 million by 1989. Between 1959 and 1989, enrollments in institutions
of higher learning skyrocketed from 62,000 to 1,186,600.
 At the heart of Mexico's cultural expression are its history and quest
for national identity. Contemporary artists, architects, writers,
musicians, and dancers continue to draw inspiration from a rich history
of Indian civilization, colonial influence, revolution, and the
development of the modern Mexican state. Artists and intellectuals alike
emphasize the problems of social relations in a context of national and
revolutionary traditions.

HISTORY
 Advanced cultures, including Olmec, Maya, Toltec, and Aztec, existed in
Mexico before the Spanish conquest. Hernando Cortes conquered Mexico in
1519-21 and founded a Spanish colony that lasted nearly 300 years.
Independence from Spain was proclaimed by Father Miguel Hidalgo on
September 16, 1810, and the republic was established on December 6,
1822. Prominent in the War for Independence were Father Jose Maria
Morelos, Gen. Augustin de Iturbide, who defeated the Spaniards and ruled
as emperor for a short period, and Gen. Antonio Lopez de Santa Ana, who
controlled Mexican politics from 1833 to 1855.
 Santa Ana was Mexico's leader during the conflict with Texas, which
declared itself independent from Mexico in 1836, and during Mexico's war
with the United States (1846-48). The presidential terms of the
venerated Benito Juarez (1858-71) were interrupted by the Hapsburg
monarchy's rule of Mexico. Archduke Maximilian of Austria, whom Napoleon
III of France established as Emperor of Mexico in 1864, was deposed by
Juarez and executed in 1867. Gen. Porfirio Diaz was President during
most of the period between 1877 and 1910.
 Mexico's severe social and economic problems erupted in the revolution,
lasting from 1910-1920. Prominent leaders in this--some were rivals for
power--were Francisco I. Madero, Venustiano Carranza, Pancho Villa,
Alvaro Obregon, and Emiliano Zapata.  The Institutional Revolutionary
Party (PRI), formed in 1928 under a different name, continues to be the
most important political force in the nation.
.
GOVERNMENT
 The Constitution of 1917 provides for a federal republic with powers
separated into independent executive, legislative, and judicial
branches. The executive is the dominant branch, with power vested in the
President, who promulgates and executes the laws of the Congress. The
President also legislates by executive decree in certain economic and
financial fields, using powers delegated from the Congress. The
President is elected by universal adult suffrage for a 6-year term and
may not hold office a second time. There is no Vice President; in the
event of the removal or death of the President, a provisional president
is elected by the Congress. The next presidential election will be held
in August 1994.
 The Mexican Congress is empowered to legislate on all matters
pertaining to the national government.  Congress is composed of a Senate
and a Chamber of Deputies. Consecutive reelection to the Congress is
prohibited; 64 senators, 2 from each state and the Federal District
(i.e., Mexico City), are elected to 6-year terms. Deputies serve 3-year
terms. Under constitutional and legislative reforms adopted in 1986, the
Chamber of Deputies was enlarged in 1988 from 400 to 500 members. In the
expanded lower chamber, 300 deputies are directly elected to represent
single-member districts, and 200 are selected on an at-large basis by a
modified form of proportional representation. The 200 at-large seats
were created to give the opposition parties more of a voice in the
Chamber of Deputies.
 For over 60 years, Mexico's Government has been controlled by the
Institutional Revolutionary Party (PRI), which has won every
presidential race and most gubernatorial races. To secure its
continuance in power, the PRI has over the years relied on extensive
patronage and massive government and party organizational resources.
 Following federal elections in 1988, a total of six parties gained
representation in the Chamber of Deputies and two in the Senate--the
latter a first in Mexican history.  The combined opposition won an
unprecedented 237 seats out of a total of 500 in the lower house and 4
of 64 in the upper. In municipal elections held through December 1989,
the government recognized several opposition victories by both
left-of-center and right-of-center parties. In the state of Michoacan,
for example, the center-left PRD won almost half of the state's
municipalities, including the state's capital and most populous city,
Morelia.
 In midterm elections held in August 1991, the PRI bounced back with a
major victory.  It increased its representation  to 320 in the Chamber
of Deputies, won numerous local and municipal offices, and, based on
official figures released, appeared to have won five gubernatorial
contests; one gubernatorial race will be rerun.
 The judiciary is divided into federal and state court systems, with
federal courts having jurisdiction over most civil cases and those
involving major felonies. Under the constitution, trial and sentencing
must be completed within 12 months of arrest for crimes that would carry
at least a 2-year sentence. Trial is by judge, not jury, in nearly all
criminal cases. Defendants have a right to counsel, and public defenders
are available. Other rights include defense against self-incrimination,
the right to confront one's accusers, and the right to a public trial.
Supreme Court justices are appointed by the President and approved by
the Senate.
 Mexico's armed forces in 1991 numbered about 170,000 personnel.  The
army makes up about three-fourths of the total.  One year of limited
training is required of all males reaching age 18.  A paramilitary force
of communal landholders is maintained in the countryside.  Principal
military roles include narcotics control, maintenance of public order,
and civic action assignments such as roadbuilding and disaster relief.
Military expenditures constituted about 0.4% of GDP in 1990.

Principal Government Officials
President--Carlos SALINAS de Gortari
Foreign Minister--Fernando SOLANA Morales
Ambassador to the United States--Gustavo PETRICIOLI Iturbide
Ambassador to the United Nations--Jorge MONTANO Martinez
Ambassador to the OAS-- Santiago ONATE Laborde

 Mexico maintains an embassy in the United States at 1911 Pennsylvania
Ave. NW, Washington, DC 20006 (tel. [phone]). Consular offices are
located at 1019-19th Street, NW. (tel. [phone]), and the trade
office is at 1776 I St. NW, 20016 (tel. [phone]). Consulates
general are located in Chicago, El Paso, Los Angeles, New Orleans, New
York, San Francisco, and San Antonio, and consulates (partial listing)
in Boston, Dallas, Detroit, Miami, Philadelphia, and St. Louis.

POLITICAL CONDITIONS
 President Carlos Salinas de Gortari began his 6-year term in 1988.
Salinas, holding a Harvard Ph.D., was Secretary of Programing and Budget
in the de la Madrid Administration (1982-88), where he played a
prominent role in formulating economic policy. Significant themes of the
Salinas Administration have included adopting market-oriented economic
policies, lowering inflation and reducing the foreign debt burden,
pursuing a free trade agreement with the US and Canada, opening the
political system, combatting narcotics trafficking, bolstering
environmental protection, and curtailing corruption and human right
abuse.

ECONOMY
 The Mexican Government has taken bold steps in recent years to
restructure the economy. Monetary and fiscal discipline and a wage/price
stabilization program have reduced inflation from over 150% in 1987 to
10% for the first half of 1991. With the acceleration of market-oriented
reforms, Mexico's real GDP growth rate went from 2% in 1987 to 4% in
1990. The Mexican economy has gradually decreased its dependence on
petroleum exports, which accounted for 34% of 1990 exports, down from
75% in 1982.
 The government has taken steps to put public finance on a sound footing
through privatization and deregulation of state owned companies,
elimination of subsidies to inefficient industries, dramatic reduction
of tariff rates, and shrinking the overall financial deficit from nearly
17% of GDP in 1987 to a projected 2% of GDP in 1991. In 1982, the
Mexican Government owned 1,155 parastatal enterprises; by late 1990, the
number had dropped to 452. Real short-term interest rates were down to
about 9% in mid-1991 from 30% a year earlier.
 In addition, in 1989 Mexico was the first country to participate in a
US-sponsored plan, the "Brady Plan," to help developing countries reduce
their foreign debt to foreign commercial banks.  This helped reduce
Mexico's debt from a high of $107 billion in 1987 to about $93 billion
in 1990. This has further restored business confidence and sparked a
return of expatriated capital.
 One of the Mexican Government's most salient initiatives is a proposed
North American Free Trade Agreement (NAFTA) with the US and Canada [see
box], as well as similar agreements with several Latin American
neighbors. The NAFTA is part of President Bush's Enterprise for the
America's Initiative, which envisions a hemispheric-wide system of free
trade.
 Mexico's economic growth is vital to its political prospects, thus of
great interest to the United States.  Mexico's economy also has a
substantial and direct impact on US border communities. Our close
economic interrelationship is important to the stability and growth of
both countries. Mexico is our third-ranked trading partner, purchasing
two thirds of its imports and sending two thirds of its exports here.
Chief US exports to Mexico are motor vehicle parts, office equipment,
and agricultural products; top imports from Mexico include petroleum,
cars, piston engines, and coffee.  The US is the source of two-thirds of
direct foreign investment in Mexico.  Both US exports and investment
have increased as Mexico has progressively opened its economy.

Agriculture
 Mexico's agrarian reform program began more than 50 years ago; lands
have been distributed to hitherto landless farmers. By now, almost all
available land has been distributed. Raising the productivity and living
standards of subsistence farmers has been slow, however, due to poor
soils and a burgeoning rural population. Nevertheless, increased
production of basic crops, such as corn and beans, has been stressed by
the government. Emphasis is also given to export crops such as coffee,
tomatoes, and winter vegetables. The government hopes to revitalize food

production by extending its economic reform program to the agricultural
sector.
 After several years of stagnant agricultural production, improved
weather conditions in 1990 helped boost Mexico's production of corn,
sorghum, and beans. On the other hand, rice and soybean production fell,
as farmers shifted toward more profitable crops.

Minerals and Energy Resources
 Mexico is rich in mineral and energy resources, and mineral exports are
an important element in foreign trade. A leading producer of silver,
sulfur, lead, and zinc, Mexico also produces gold, copper, manganese,
coal, and iron ore. The discovery of extensive oil fields in the coastal
regions along the Gulf of Mexico in 1974 enabled Mexico to become
self-sufficient in crude oil and to export significant amounts.  With
crude oil production averaging 3 million barrels per day during 1990,
Mexico ranks as the world's fifth largest oil producer. About half of
the oil is refined and consumed domestically, leaving the remainder for
export.  Proven oil reserves total 45 billion barrels, about 7% of the
world's proven reserves. Total hydrocarbon reserves, including natural
gas, are estimated at 67 billion barrels.

Manufacturing and Foreign Investment
 During 1990, Mexico's manufacturing sector accounted for about
one-fourth of the GDP and nearly 52% of exports. It grew by 5% during
that year. Important gains have been made in the production of cement,
aluminum, synthetic fibers, chemicals, fertilizers, petrochemicals, and
paper. A growing automobile industry has become one of Mexico's most
important industrial and export sectors.
 Approvals for foreign investment in 1990 exceeded $4 billion, up from
the 1989 total of $3 billion. The Secretariat of Commerce and Industrial
Development in 1989 announced sweeping revisions of Mexico's foreign
investment regulations. Among the most important of these is the
explicit permission for foreigners to have majority ownership in
companies. This is in effect a reversal of the intent of the 1973
Foreign Investment Law which in most cases limited foreign ownership to
49%. The government has also announced that special trust funds will be
set up to liberalize foreign access to the Mexican stock market.
 Key sectors of the economy remain restricted to Mexicans or the state,
including energy, power generation, and railroads.

Transportation and Communications
 Mexico's land transportation network is one of the most extensive in
Latin America. The 36,000 kilometers of railroads are government owned.
Tampico and Veracruz on the Gulf of Mexico are Mexico's two major ports,
although the government is developing additional ports on the Gulf of
Mexico and on the Pacific as well. A number of international airlines
serve Mexico, with direct or connecting flights from most major cities
in the United States, Canada, Europe, and Japan. Most Mexican regional
capitals and resorts have direct air links with Mexico City or the
United States.
 The Salinas Administration is attempting to enhance transportation
through modernization of infrastructure and services, deregulation and
development of more efficient intermodal transport, and privatization in
all sectors except as constitutionally restricted.
 Mexico has a well-developed telecommunications system, with its own
satellites, hundreds of television stations, more than a thousand radio
stations, and a number of satellite receiver stations. Mexico is a
member of the International Telecommunications Satellite Consortium
(INTELSAT).
 In 1990, the communications sector grew by 16%. A major development
during that year was the privatization of the national telephone
company, Telefonos de Mexico (TELMEX), with one-fifth of the shares
going to private owners.

FOREIGN RELATIONS
 The Government of Mexico has sought to maintain its interests abroad
and project its influence largely through moral persuasion and selective
economic assistance. In particular, Mexico champions the principle of
non-intervention, self-determination, and certain legal corollaries--the
Estrada, Calvo, and Drago doctrines. In its efforts to revitalize
Mexico's economy and open it to international competition, the Salinas
Administration has sought closer relations with the US, Western Europe,
and the Pacific Basin. While in the past, Mexican and US policies have
differed over regional conflicts in Central America, both countries
agree on the ultimate goal of establishing a lasting peace and recognize
that such a peace requires a redressing of the region's historic
patterns of economic and social injustice.  To that end, Mexico
participates in a number of recent regional initiatives to promote
peace, democratization, and economic development in Central America.
 Mexico's cooperation in world affairs has extended outside of the
hemisphere.  In August 1990, immediately after the Iraqi invasion of
Kuwait, the Mexican Government announced that it would increase oil
production capacity by 100,000 barrels a day, despite capacity
restraints, to demonstrate its solidarity.
 Mexico actively participates in several international organizations.
Although Mexico is a strong supporter of the UN system, it also pursues
its interests through a number of ad hoc international bodies. Mexico
has been selective in its membership in other international
organizations. To date, it has declined to become a member of the
Organization of Petroleum Exporting Countries and the Nonaligned
Movement.  Nevertheless, in 1986 Mexico acceded to the General Agreement
on Tariffs and Trade (GATT).

US-MEXICAN RELATIONS
 US foreign relations with Mexico are among its most important and
complex. They are shaped by a mixture of mutual interests, shared
problems, growing interdependence and differing national perceptions.
Historical factors, cultural differences, and economic disparities add
further intricacy to the relationship.
 The scope of US-Mexican relations goes far beyond the official contacts
between each capital; it entails extensive commercial, cultural, and
educational ties.  Along our 2,000-mile border, state and local
governments interact closely. The two countries cooperate to resolve
many issues, including trade, finance, narcotics, immigration,
environment, science and technology, and cultural relations.
 An independent, strong, and economically healthy Mexico is a
fundamental US interest. Both governments actively discuss ways to
improve cooperation on an array of bilateral issues.  Since 1981, this
process has been formalized in the US-Mexico Binational Commission,
composed of several US Cabinet Members and their Mexican counterparts.
The Commission holds annual plenary meetings, and many subgroups meet
during the course of the year to discuss a range of topics, including
trade negotiations and investment opportunities, financial cooperation,
narcotics, migration, law enforcement, cultural relations, education,
border cooperation, environment, labor, agriculture, housing and urban
development, fisheries, and tourism.  The most recent meeting was held
in Mexico City  September 8-9, 1991.

Principal US Embassy Officials
Ambassador--John D. Negroponte
Deputy Chief of Mission--Allen L. Sessoms
Counselor for Political Affairs--Theodore S. Wilkinson
Counselor for Economic Affairs--Donald. F. McConville
Counselor for Labor Affairs--John W. Vincent
Counselor for Public Affairs (USIS)--Robert L. Earle
Counselor for Consular Affairs--Patricia Langford
Consul General--Jon. G. Edensword
Counselor for Scientific and Technological Affairs--Ahmed Meer
Counselor for Administrative Affairs--Thomas J. Fitzpatrick
Counselor for Commercial Affairs--Roger Wallace

 The US Embassy in Mexico is located at Paseo de la Reforma 305, 06500
Mexico, DF. Telephone (from the US): 011-52-5-211-0042.  There are also
US Consulates and Consulates General in Ciudad Juarez, Guadalajara,
Hermosillo, Matamoros, Mazatlan, Merida, Monterrey, Nuevo Laredo, and
Tijuana.

Travel Notes
 Customs: Either a passport or a certified copy of a birth certificate
together with a photo ID such as a driver's license is required for
entry.  A tourist card, obtained at the port of entry, is also required.
 Climate and clothing: The high plateau area around Guadalajara and
Mexico City is springlike throughout the year, a bit cooler in winter,
and a little warmer in summer. The Yucatan Peninsula, the Monterrey
area, and the US border areas are very hot in summer and pleasant in
winter. Business suits for men and street dresses or pantsuits for women
are appropriate in the cities. Sport shirts are worn for all social
occasions in the coastal zones.
 Health: Cooked food is safe to eat; raw vegetables often are not.
Tapwater is usually not potable.  Medical facilities in the larger
cities are good.  A leisurely pace is recommended for the first few days
in the higher altitudes.
 Transportation: Direct international air service from many US airports
is available to Mexico City, Cancun, Guadalajara, Merida, Monterrey, and
other points. Bus service in Mexico is good.  Auto rental is available.

North American  Free Trade Agreement
 On June 12, 1991, the governments of the United States, Canada, and
Mexico began formal negotiations for an historic North American Free
Trade Agreement (NAFTA). The trilateral negotiations will be an
opportunity to build on the existing US-Canada agreement. The proposed
NAFTA would be a catalyst for increased trade, investment, and jobs in
all three countries. It would create the world's largest market, with
annual production of $6 trillion and more than 360 million people.
 The negotiations seek a broad agreement to eliminate restrictions on
the flow of goods, services, and investment among the United States,
Canada, and Mexico.  This includes phasing out tariffs over a period of
years (the period is 10 years in the US-Canada agreement), elimination
(as far as possible) of non-tariff barriers, and full protection of
intellectual property rights (patents, copyrights, and trademarks).
 NAFTA negotiating groups cover a range of topics, including market
access, services, investment, intellectual property rights, trade rules,
dispute settlement, labor, and environment.

International Boundary and Water Commission
 Preceded by several short-term commissions to survey and mark the
boundary after its creation in 1848 and modification in 1853, the
International Boundary Commission was established as a permanent joint
commission by treaty in 1889. The Water Treaty of 1944 extended its
authority to the land boundary and added to its responsibilities
boundary water problems then becoming more important. The 1944 treaty
renamed the body the International Boundary and Water Commission, United
States and Mexico (IBWC). It also required that the US and Mexican
commissioners be engineers.  The IBWC has a wide range of
responsibilities and specific programs for solution of US-Mexican water
and boundary problems. These include distribution between the two
countries of the waters of the Colorado River and the Rio Grande; joint
operation of international dams on the Rio Grande to control floods,
conserve waters, and generate electricity; other joint flood control
works along boundary rivers; solution of border water quality control
problems; and stabilization of the river boundaries.  These
responsibilities and programs are carried out in accordance with various
treaties and agreements.
 The IBWC has successfully resolved many difficult and longstanding
problems.  For example, the Chamizal Settlement of 1963 resolved a
100-year-old dispute at El Paso/Ciudad Juarez by exchange of territory
and rechanneling the Rio Grande.  A permanent solution to the
international problem related to the salinity of the Colorado River was
reached in 1973.  Since the early 1980s, the IBWC has focused on
troublesome border sanitation problems and has been studying groundwater
resources along the boundary. (###)


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