Socioeconomic structure of Mexico

The Mexican socioeconomic structure, provides a very complete historical vision in relation to its economy, society, politics and industrialization. It is a system that leads to reflection and investigation of the different historical events and the environment of today that develops various social competencies for the improvement of citizenship.

Within the development of this structure, the necessary stability and changes are provided without destabilizing internal relations, since stability does not adapt with ease to new relations that are under a transformation system between its elements, which means that the equilibrium conditions contain a constant relation of changes.

Origin of Mexican industrialization

The European Industrial Revolution is the one that allows the change of a traditional society that contains a functioning agricultural, to a modern industrial society, determining that the new form of economic exploitation would be that of the worker.

The liberal state had much more importance than the optimal functioning of capitalist relations in any angle that considered ethics and morals. This liberal capitalist system contained full market freedom before the game of offers and demands.

The state, as an institute responsible for society, should only be in charge of public order without getting involved in the economy, therefore, the state liberate capitalist, only ensured the proper functioning of the economic system and in the same way was desensitized to the different demands social.

The Mexican state benefits by associating itself with the state that emerged from the industrial revolution since the the mandate of Lázaro Cárdenas, who benefited the state by helping it achieve a higher level of coincidences.

Functions of industrialization in Mexico

Among the functions, certain policies are highlighted, such as those mentioned below:

Economic policy

The basic objective of the economic policy of industrialization during the government of Lázaro Cárdenas was to achieve the independence of the economy and achieve the progress of the level of the different social classes, in addition to the intervention of the state economic. Lázaro considers the state as a regulator of daily activities where its main features were:

• Improve the evolution of the economic organization of workers to help them have quality of life.
• It favored the working classes to increase the productive capacity of the state.
• He supported the peasant class in the distribution of land.
• It gave importance to the proletarian masses, in order to stimulate the development of industries and the growth of commerce in the country.

Social policy

An orientation towards the welfare of the state was maintained, so that all citizens could enjoy their social and political rights.

Indigenist

Being the least benefited from civilization since colonial times, Cárdenas formed a department in charge of studying the different problems indigenous peoples in order to solve them and developed the necessary actions to defend them, together with economic aid, the production of work and education.

Cooperativism

It is an organization that was applied by a professional community in charge of solving its internal problems. For its part, the economy liberates due to its individualism and its free market action, considers that the Cooperativism interferes with the proper functioning of the economy, since many times they monopolize the job.

Protection of Mexican economic policy

The states usually implement measures in the demand for offers, in order to protect their economic sources, the immediate antecedent to this, is due to import substitution during the Cárdenas period, who supported the national industry with some basic protection measures such as the following:

• Ease of importation of basic goods for the Mexican industry.
• Similarity of tariffs for both foreign and domestic products.
• Fiscal measures that guide the excellent national industry of taxes on income and importation of products and machinery.

Factors of Mexican economic growth

The growth factor refers to private investment, because it is usually the engine of the economy and the state does not intervene, the countries that are in the process of development like Mexico, the state did intervene in its economy, which means that the growth factor was both private investment and investment public.

Public investment

The state was mainly concerned with internal economic activities such as electricity and oil, with communications such as the telegraph, transportation such as roads and railways, all with the intention of providing well-being to the nation and improving economic infrastructure that would help increase industrial development and that of communications.

Cárdenas allowed the creation of development banks and national credit institutions among them, the National Fund for Ejidal Development, the National Transport Bank and the Bank Agricultural. Electric power, the drinking water network, sewerage, education, housing and health were also developed.

For the year 1941 Mexico, managed to solve the oil expropriation and the foreign debt, however, due to its military security, the credits and the Fall in commodity prices, which later depleted government resources and led to international borrowing.

Private investment

Due to economic policies, the national capital from Ávila Camacho had a more stable investment system. The radical decline and political control, allowed Mexico to be a country where you could invest.

Therefore, between 1940 and 1959 private investment stood out, ascending as exclusive investment or as associations in the national capital, but with foreign direct investment, giving entry to technological innovation and practical Commerce.

The national chamber of industry and the northern textile chamber did not agree with the foreign investment regulations, since:

• External loans had to be in line with the country's ability to pay.
• Negative in the face of classified investments of national capital and the exploitation of non-renewable resources.
• In the economic advancement of Mexico, the use of its own resources was necessary and foreign investments should only be a complement.
• Only the investments where the national income will be incorporated should be managed.