Travel Tips Mexico

The site of advanced Amerindian civilizations, Mexico came under Spanish rule for three centuries before achieving independence early in the 19th century. A devaluation of the peso in late 1994 threw Mexico into economic turmoil, triggering the worst recession in over half a century. The nation continues to make an impressive recovery. Ongoing economic and social concerns include low real wages, underemployment for a large segment of the population, inequitable income distribution, and few advancement opportunities for the largely Amerindian population in the impoverished southern states. Elections held in July 2000 marked the first time since the 1910 Mexican Revolution that the opposition defeated the party in government, the Institutional Revolutionary Party (PRI). Vicente FOX of the National Action Party (PAN) was sworn in on 1 December 2000 as the first chief executive elected in free and fair elections.

At least three great civilizations—the Mayas, the Olmecs, and later the Toltecs—preceded the wealthy Aztec mpire, conquered in 1519–1521 by the Spanish under Hernando Cortés. Spain ruled Mexico as part of the viceroyalty of New Spain for the next 300 years until Sept. 16, 1810, when the Mexicans first revolted. They won independence in 1821.

From 1821 to 1877, there were two emperors, several dictators, and enough presidents and provisional executives to make a new government on the average of every nine months. Mexico lost Texas (1836), and after defeat in the war with the U.S. (1846–1848), it lost the area that is now California, Nevada, and Utah, most of Arizona and New Mexico, and parts of Wyoming and Colorado under the Treaty of Guadalupe Hidalgo. In 1855, the Indian patriot Benito Juárez began a series of reforms, including the disestablishment of the Catholic Church, which owned vast property. The subsequent civil war was interrupted by the French invasion of Mexico (1861) and the crowning of Maximilian of Austria as emperor (1864). He was overthrown and executed by forces under Juárez, who again became president in 1867.

Mexico has a free market economy that recently entered the trillion dollar class. It contains a mixture of modern and outmoded industry and agriculture, increasingly dominated by the private sector. Recent administrations have expanded competition in seaports, railroads, telecommunications, electricity generation, natural gas distribution, and airports. Per capita income is one-fourth that of the US; income distribution remains highly unequal. Trade with the US and Canada has tripled since the implementation of NAFTA in 1994. Mexico has 12 free trade agreements with over 40 countries including, Guatemala, Honduras, El Salvador, the European Free Trade Area, and Japan, putting more than 90% of trade under free trade agreements. The FOX administration is cognizant of the need to upgrade infrastructure, modernize the tax system and labor laws, and allow private investment in the energy sector, but has been unable to win the support of the opposition-led Congress. The next government that takes office in December 2006 will confront the same challenges of boosting economic growth, improving Mexico's international competitiveness, and reducing poverty.