Mexico

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Estados Unidos Mexicanos
United Mexican States
Flag of Mexico Coat of arms of Mexico
Flag Coat of arms
AnthemHimno Nacional Mexicano
Location of Mexico
Capital
(and largest city)
Mexico City
19°03′N, 99°22′W
Official languages Spanish (de facto)1
Demonym Mexican
Government Presidential Federal republic
 -  President Felipe Calderón
( PAN)
Independence from Spain 
 -  Declared September 16, 1810 
 -  Recognized September 27, 1821 
Area
 -  Total 1,972,550 km² (15th)
761,606 sq mi 
 -  Water (%) 2.5
Population
 -  2007 estimate 108,700,891 (11th)
 -  2005 census 103,263,388 
 -  Density 55/km² (142nd)
142/sq mi
GDP (PPP) 2006 estimate
 -  Total $1.149 trillion (12th)
 -  Per capita $11,249 (63rd)
GDP (nominal) 2006 estimate
 -  Total $840.012 billion (short scale) (14th)
 -  Per capita $8,066 (55th)
Gini? (2006) 47.3 (high
HDI (2004) 0.829 (high) (51rd)
Currency Peso (MXN)
Time zone (UTC-8 to -6)
Internet TLD .mx
Calling code +52
1 See languages note (below): [1]

The United Mexican States (Spanish: ), or commonly Mexico (IPA: /ˈmɛksɪkoʊ/) (Spanish: IPA: [ˈmexiko]), is a federated Union of thirty-one states and a federal district located in North America. It is bounded on the north by the United States; on the south and west by the North Pacific Ocean; on the southeast by Guatemala, Belize, and the Caribbean Sea; and on the east by the Gulf of Mexico.[2][3] The United Mexican States comprise a constitutional republican federation of thirty-one states and a federal district, the capital Mexico City, which is one of the most populous cities on Earth.

Covering almost 2 million square kilometers,[4] Mexico is the fifth-largest country in the Americas by total area and the 14th largest in the world. With a population of 109 million,[5] it is the 11th most populous country and the most populous Spanish-speaking country in the world.

As a regional power[6][7] and the only Latin American member of the Organization for Economic Co-operation and Development (OECD) since 1994, Mexico is firmly established as an upper middle-income country.[8]

Mexico is the 12th largest economy in the world by Gross Domestic Product (GDP), on par with countries like Canada and Spain, even though income inequality is still high. The economy is strongly linked to those of its North American Free Trade Agreement partners. Elections held in July 2000 marked the first time that an opposition party won the presidency from the Institutional Revolutionary Party (Partido Revolucionario Institucional: PRI) which had held it since 1929, culminating a process of political alternation that actively had begun at the local level during the 1980s.

Contents

Toponymy

Image of Mexico-Tenochtitlan from the Mendoza codex.
Image of Mexico-Tenochtitlan from the Mendoza codex.
Main article: Toponymy of Mexico

After winning independence from Spain, it was decided that the new country would be named after its capital city, whose original name of foundation was México-Tenochtitlan, in reference to the Mexica civilization, generally known as the Aztecs. The origin of the name of the mexica is obscure and subject to diverse interpretations. Some[9] argue that it derives from the Nahuatl Mexitl or Mexitli, a secret name for the god of war and patron of the Aztecs, Huitzilopochtli, in which case Mexico means "Place where Mexitli lives". Another hypothesis is that the word Mexiko derives from the metztli ("moon"), xictli ("navel", "center" or "son"), and the suffix -co (place), in which case it means "Place at the center of the moon" or "Place at the center of the Lake Moon", in reference to Lake Texcoco. The system of interconnected lakes, of which Texcoco was at the center, had the form of a rabbit, the same image that the Aztecs saw in the moon. Tenochtitlan was located at the center (or navel) of the lake (or rabbit/moon).[10] Still another hypothesis suggests that it is derived from Mectli, the goddess of maguey.[10]

The name of the city was transliterated to Spanish as México with the phonetic value of the x in Medieval Spanish, which represented the voiceless postalveolar fricative /ʃ/. This sound, as well as the voiced postalveolar fricative /ʒ/, represented by a j, evolved into a voiceless velar fricative /x/ during the sixteenth century.[11] This led to the use of the variant Méjico in many publications in Spanish, most notably in Spain, whereas in Mexico and some other Spanish–speaking countries México was the preferred spelling. In recent years the Real Academia Española, which regulates the Spanish language, determined that both variants are acceptable in Spanish but that the normative recommended spelling is México.[12] The majority of publications in all Spanish-speaking countries now adhere to the new norm, even though the alternative variant is still occasionally used.[13] In English, the x in Mexico represents neither the original nor the current sound, but the consonant cluster /ks/.

History

Main article: History of Mexico

Pre-Columbian civilizations

"The Castle" of Chichén-Itzá, one of the New Seven Wonders.
"The Castle" of Chichén-Itzá, one of the New Seven Wonders.

Human presence in Mexico has been shown to date back 40,000 years based upon ancient human footprints discovered in the Valley of Mexico (previous evidence substantiated indigenous inhabitants at 12,500 years ago). For thousands of years, Mexico was a land of hunter-gatherers. Around 9,000 years ago, ancient Mexicans domesticated corn and initiated an agricultural revolution, leading to the formation of many complex civilizations.

These civilizations revolved around cities with writing, monumental architecture, astronomical studies, mathematics, and militaries. For almost three thousand years, Aridoamerica (northern Mexico)[14] and Mesoamerica (central and southern Mexico)[15] were the site of several advanced Amerindian civilizations, among them the Olmecs, the Mayas and the Aztecs.

In 1519, the native civilizations of what is now Mexico were invaded by Spain;[16] this was one of the most important conquest campaigns in America. Two years later, in 1521, the Aztec capital and metropolis of Tenochtitlan was conquered by an alliance between Spanish and Tlaxcaltecs, the main enemies of the Aztecs, setting up a three-century colonial rule in Mexico. The viceroyalty of New Spain became the first and largest provider of resources for the Spanish Empire, and the most populated of all Spanish colonies.

After the independence of the vice-royalty of New Spain, it was decided to name the country after its capital, Mexico City. The city's original name was Mexico-Tenochtitlan, in reference to the name of the Nahua Aztec tribe, the Mexica.

Colonial Era and Independence

Miguel Hidalgo y Costilla, the founder of the Mexican independence movement.
Miguel Hidalgo y Costilla, the founder of the Mexican independence movement.

On September 16, 1810, independence from Spain was declared by Priest Miguel Hidalgo in the small town of Dolores, Guanajuato state.[17] This was the catalyst for a long war that eventually led to recognized independence in 1821 and the creation of an ephemeral First Mexican Empire. Agustín de Iturbide was the first and only emperor. Two years later, he was deposed by the republican forces. In 1824, a republican constitution was drafted creating the United Mexican States with Guadalupe Victoria as its first President.

The first four decades of independent Mexico were marked by a constant strife between liberales (those who supported the federal form of government stipulated in the 1824 constitution) and conservadores (who proposed a hierarchical form of government in which all local authorities were appointed and subject to a central authority).[18] General Antonio López de Santa Anna was a strong influence in Mexican politics, a centralist and a two-time dictator. In 1836, he approved the Siete Leyes, a radical amendment to the constitution that institutionalized the centralized form of government, after which Texas declared independence from Mexico, obtained in 1836. The annexation of Texas by the United States created a border dispute that would cause the Mexican-American War. Santa Anna played a big role in trying to muster Mexican forces but this war resulted in the resolute defeat of Mexico and as a result of the Treaty of Guadalupe Hidalgo (1848), Mexico lost one third of its surface area to the United States.

Evolution of the Mexican territory.
Evolution of the Mexican territory.

Dissatisfaction with Santa Anna's return to power, and his unconstitutional rule, led to the liberal Revolution of Ayutla, which initiated an era of liberal reforms, known as La Reforma, after which a new constitution was drafted that reestablished federalism as the form of government and first introduced freedom of religion. In the 1860s the country again underwent a military occupation, this time by France, which established the Habsburg Archduke Ferdinand Maximilian of Austria on the Mexican throne as Emperor Maximilian I of Mexico with support from the Catholic clergy and the conservative Mexicans. This Second Mexican Empire was victorious for only a few years, when the previous president of the Republic, the Zapotec Indian Benito Juárez, managed to restore the republic in 1867.

XX and XXI century

Venustiano Carranza, former president and supporter of the 1917 constitution.
Venustiano Carranza, former president and supporter of the 1917 constitution.

Porfirio Díaz, a republican general during the French intervention, ruled Mexico from 1876–1880 and then from 1880–1911 in five consecutive reelections. The period of his rule is known as the Porfiriato, which was characterized by remarkable economic achievements, investments in art and sciences, but also of huge economic inequality and political repression.[19] An obvious and preposterous electoral fraud that led to his fifth reelection sparked the Mexican Revolution of 1910, initially led by Francisco I. Madero. Díaz resigned in 1911 and Madero was elected president but overthrown and murdered in a coup d'état in 1913 led by a conservative general named Victoriano Huerta after a secret council held with the U.S. ambassador Henry Lane Wilson. This re-ignited the civil war, with participants such as Pancho Villa and Emiliano Zapata who formed their own forces. A third force, the constitutional army led by Venustiano Carranza, managed to bring an end to the war, and radically amended the 1857 Constitution to include many of the social premises and demands of the revolutionaries into what was eventually called the 1917 Constitution. Carranza was killed in 1920 and succeeded by another revolutionary hero, Álvaro Obregón, who in turn was succeeded by Plutarco Elías Calles. Obregón was reelected in 1928 but assassinated before he could assume power. Shortly after, Calles founded the National Revolutionary Party (PNR), later renamed the Institutional Revolutionary Party (PRI) which became the most influential party during the next 70 years.

During the next four decades, Mexico experienced substantial economic growth that historians call "El Milagro Mexicano", the Mexican Miracle.[20] The assumption of mineral rights by the government, and the subsequent nationalization of the oil industry into PEMEX during the presidency of Lázaro Cárdenas del Río (1938) was a popular move, but sparked a diplomatic crisis with those countries whose citizens had lost businesses expropriated by the Cárdenas government.

Although the economy continued to flourish, social inequality remained a factor of discontent. Moreover, the PRI rule became increasingly authoritarian and at times oppressive.[21] An example of this is the Tlatelolco Massacre of 1968, which by according to government officials claimed the life of around 30 protesters, even though many reputable international accounts reported that around 250 protesters were killed by security forces in a clash at the neighborhood.[22] In the 1970s there was extreme dissatisfaction with the administration of Luis Echeverría which took missteps in both the national and international arenas. Nonetheless, it was in this decade that the first substantial changes to electoral law were made, which initiated a movement of democratization of a system that had become electorally authoritarian.[23][24] While the prices of oil were at historically high records and interest rates were low, Mexico made impressive investments in the state-owned oil company, with the intention of revitalizing the economy, but overborrowing and mismanagement of oil revenues led to inflation and exacerbated the crisis of 1982. That year, oil prices plunged, interest rates soared, and the government defaulted on its debt. In an attempt to stabilize the current account balance, and given the reluctance of international lenders to return to Mexico given the previous default, President de la Madrid resorted to currency devaluations which in turn sparked inflation.

Former President Vicente Fox and U.S. President George Bush at the signature of the Security and Prosperity Partnership of North America.
Former President Vicente Fox and U.S. President George Bush at the signature of the Security and Prosperity Partnership of North America.

The first small cracks in the political monopolistic position of PRI were seen in the late 1970s with the creation of 100 deputy seats in the Chamber of Deputies assigned through proportional representation with open party-lists. Even though at the municipal level the first non-PRI mayor was elected in 1947,[25] it was not until 1989 that the first non-PRI governor of a state was elected. However, many sources claimed that in 1988 the party resorted to electoral fraud in order to prevent leftist opposition candidate Cuauhtémoc Cárdenas from winning the national presidential elections who lost to Carlos Salinas, which led to massive protests in the capital.[26] Salinas embarked on a program of neoliberal reforms which fixed the exchange rate, controlled inflation and culminated with the signing of the North American Free Trade Agreement (NAFTA), which came into effect in 1994. However, that very same day, the Zapatista Army of National Liberation (EZLN) started a two-week-lived armed rebellion against the federal government, and has continued as a non-violent opposition movement against neoliberalism and globalization. Being an election year, in a process that was then called the most transparent in Mexican history, authorities were reluctant to devalue the peso, a move which caused a rapid depletion of the National Reserves. In December 1994, a month after Salinas was succeeded by Ernesto Zedillo, the Mexican economy collapsed.

With a rapid rescue packaged authorized by United States President Bill Clinton and major macroeconomic reforms started by president Zedillo, the economy rapidly recovered and growth peaked at almost 7% by the end of 1999.[27] Democratic reforms under Zedillo's administration caused the PRI to lose its absolute majority in the Congress in 1997. In 2000, after 71 years the PRI lost a presidential election to Vicente Fox of the opposition National Action Party (PAN). On March 23, 2005, the Security and Prosperity Partnership of North America was signed by Vicente Fox. During the 2006 elections, the PRI was further weakened and became the third political force in number of seats in the Chamber of Deputies after PAN and the Party of the Democratic Revolution (PRD). In the concurrent presidential elections, Felipe Calderón, from PAN was declared winner, with a razor-thin margin over Andrés Manuel López Obrador of the Party of the Democratic Revolution (PRD). López Obrador, however, contested the election and pledged to create an "alternative government".[28]

Government and politics

Main article: Politics of Mexico
Palacio de San Lázaro, Chamber of Deputies, Congress of the Union.
Palacio de San Lázaro, Chamber of Deputies, Congress of the Union.

The United Mexican States are a federation whose government is representative, democratic and republican based on a congressional system according to the 1917 Constitution. The constitution establishes three levels of government: the federal Union, the state governments and the municipal governments. All officials at the three levels are elected by voters through first-past-the-post plurality, proportional representation or are appointed by other elected officials.

The federal government is constituted by the Powers of the Union, the three separate branches of government:

All elected executive officials are elected by plurality (first-past-the-post). Seats to the legislature are elected by plurality and proportional representation at the federal and state level.[32] The Chamber of Deputies of the Congress of the Union is conformed by 300 deputies elected by plurality and 200 deputies by proportional representation with closed party lists[33] for which the country is divided into 5 electoral constituencies or circumscriptions.[34] The Senate is conformed by a total of 128 senators: 64 senators, two per state and the Federal District elected by plurality in pairs; 32 senators assigned to the first minority or first-runner up (one per state and the Federal District), and 32 elected by proportional representation with closed party lists for which the country conforms a single electoral constituency.[33]

According to the constitution, all constituent states must have a republican form of government composed of three branches: the executive, represented by a governor and an appointed cabinet, the legislative branch constituted by a unicameral congress and the judiciary, also called a Supreme Court of Justice. They also have their own civil and judicial codes.

In the 2006–2009 Congress of the Union, eight parties are therein represented; five of them, however, have not received neither in this nor in previous congresses more than 4% of the national votes.[35] The other three parties have historically been the dominant parties in Mexican politics:

The PRI held an almost hegemonic power in Mexican politics since 1929. Since 1977 consecutive electoral reforms allowed opposition parties to win more posts at the local and federal level. This process culminated in the 2000 presidential elections in which Vicente Fox, candidate of the PAN, became the first non-PRI president to be elected in more than 70 years.

In 2006, Felipe Calderón of the PAN faced Andrés Manuel López Obrador of the PRD in a very close election (0.58% difference). On September 6, 2006, Felipe Calderón was declared President-elect by the electoral tribunal. His cabinet was sworn in at midnight on December 1, 2006 and Calderón was handed the presidential band by outgoing Vicente Fox at Los Pinos. He was officially sworn as President on the morning of December 1, 2006 in Congress.

Foreign relations

President Calderón and Canadian Prime Minister Harper at the 2007 North American Leaders' Summit.
President Calderón and Canadian Prime Minister Harper at the 2007 North American Leaders' Summit.

Traditionally, the Mexican government has sought to maintain its interests abroad and project its influence largely through moral persuasion rather than through political or economical pressure.

Since the Mexican Revolution, and until the administration of President Ernesto Zedillo, Mexico had been known for its foreign policy or "doctrine" known as the Doctrina Estrada (Estrada Doctrine, named after its creator Genaro Estrada). The Doctrina Estrada was a foreign policy guideline of an enclosed view of sovereignty. It claimed that foreign governments should not judge, positively or negatively, the governments or changes in government of other nations, in that such action would imply a breach to its sovereignty.[36] This policy was said to be based on the principles of Non-Intervention, Pacific Solution to Controversies, and Self-Determination of all nations.

During his Presidency, Vicente Fox appointed Jorge Castañeda to be his Secretary of Foreign Affairs. Castañeda immediately broke with the Estrada Doctrine, promoting what was called by critics the Castañeda Doctrine.[37] The new foreign policy called for an openness and an acceptance of criticism from the international community, and the increase of Mexican involvement in Foreign Affairs.[38]

In line with this new openness in Mexico's foreign policy, some political parties have proposed an amendment of the Constitution in order to allow the Mexican Army, Air Force or Navy to collaborate with the United Nations in peace-keeping missions, or to provide military help to countries that officially ask for it.

Military

Mexican troops in Mexico City.
Mexican troops in Mexico City.

Mexico has the second largest defence budget ($6.07 billion USD)[39] and armed forces[40] in Latin America. Mexico's military strength includes 503,777 total personnel, of which around 192,770 are active in the frontline.[41] The Mexican Military has three branches; the Mexican Army, the Mexican Air Force, and the Mexican Navy.

The Army

There are three main components of the Army: a national headquarters, territorial commands, and independent units. The Minister of Defense commands the Army by means of a very centralized system and a large number of general officers. The Army uses a modified continental staff system in its headquarters. The Army is the largest branch of Mexico's armed services. At present there are 12 "Military Regions", which are further broken down into 44 subordinate "Military Zones".

The Air Force

The Air Force national headquarters is embedded in the Army headquarters in Mexico City. It also follows the continental staff system, with the usual A1, A2, A3, and A4 sections. The tactical forces form what is loosely called an Air Division, but it is dispersed in four regions—Northeast, Northwest, Central, and Southern. The Air Force maintains a total of 18 air bases, and has the additional capability of opening temporary forward operating bases in austere conditions for some of the rotary wing and light fixed-wing assets.

The Navy

ARM Allende (FF-211)
ARM Allende (FF-211)

The Ministry of the Navy, the Navy’s national headquarters, is located in Veracruz City. The “Junta (or Council) of Admirals” plays a unique consultative and advisory role within the headquarters, an indication of the institutional importance placed on seniority and “year groups” that go back to the admirals’ days as cadets in the naval college. They are a very tightly knit group, and great importance is placed on consultation among the factions within these year groups.

The Navy’s operational forces are organized as two independent groups: the Gulf (East) Force and the Pacific (West) Force. Each group has its own headquarters, a destroyer group, an auxiliary vessel group, a Marine Infantry Group, and a Special Forces group. The Navy also has an air arm with troop transport, reconnaissance, and surveillance aircraft.

The Navy maintains significant infrastructure, including naval dockyards that have the capability of building ships, such as the Holzinger class gunboats. These dockyards have a significant employment and economic impact in the country.

Administrative divisions

See also: Mexican state name etymologies


The United Mexican States are a federated union of thirty-one free and sovereign states which form a Union that exercises jurisdiction over the Federal District and other territories. Each state has its own constitution and congress, as well as a judiciary, and its citizens elect by direct voting, a governor (gobernador) for a six-year term, as well as representatives (diputados locales) to their respective state congresses, for three-year terms.[42] The 31 states and the Federal District are collectively called "federal entities", and all are equally represented in the Congress of the Union.

Mexican states are also divided into municipalities (municipios), the smallest official political entity in the country, governed by a mayor or "municipal president" (presidente municipal), elected by its residents by plurality.[43] Municipalities can be further subdivided into non-autonomous boroughs or in semi-autonomous auxiliary presidencies.

Constitutionally, Mexico City, as the capital of the federation and seat of the powers of the Union, is the Federal District, a special political division in Mexico that belongs to the federation as a whole and not to a particular state, and as such, has more limited local rule than the nation's states.[44] Nonetheless, since 1987 it has progressively gained a greater degree of autonomy, and residents now elect a head of government (Jefe de Gobierno) and representatives of a Legislative Assembly directly. Unlike the states, the Federal District does not have a constitution but a statute of government. Mexico City is conterminous and coextensive with the Federal District.

State names and abbreviations for the 31 Mexican states and the Federal District:

Geography and climate

A picture of Mexico seen from space.
A picture of Mexico seen from space.
Main article: Geography of Mexico

Situated in the Americas at about 23° N and 102° W,[45] Mexico comprises much of southern North America[46][47] or Middle America.[48][49] Physiographically, the lands east of the Isthmus of Tehuantepec including the Yucatán Peninsula (which together comprise around 12% of the country's area) lie within the region of Central America; geologically, the Trans-Mexican Volcanic Belt delimits the region on the north.[50] Geopolitically, however, Mexico is commonly not considered a Central American country.

Mexico's total area is 1,972,550 km², making it the world's 14th largest country by total area, and includes approximately 6,000 km² of islands in the Pacific Ocean (including the remote Guadalupe Island and the Islas Revillagigedo), Gulf of Mexico, Caribbean Sea, and Gulf of California. On its north, Mexico shares a 3,141 km border with the United States. The meandering Río Bravo del Norte (known as the Rio Grande in the United States) defines the border from Ciudad Juárez east to the Gulf of Mexico. A series of natural and artificial markers delineate the United States-Mexican border west from Ciudad Juárez to the Pacific Ocean. On its south, Mexico shares an 871 km border with Guatemala and a 251 km border with Belize.

Topography

Topographic map of Mexico.
Topographic map of Mexico.

The Mexican territory is crossed from north to south by two mountain ranges known as Sierra Madre Oriental and Sierra Madre Occidental, which are the extension of the Rocky Mountains from northern North America. From east to west at the center, the country is crossed by the Trans-Mexican Volcanic Belt also known as the Sierra Nevada. A fourth mountain range, the Sierra Madre del Sur, runs from Michoacán to Oaxaca. As such, the majority of the Mexican central and northern territories are located at high altitudes, and the highest elevations are found at the Trans-Mexican Volcanic Belt: Pico de Orizaba (5,700 m), Popocatépetl (5,462 m) and Iztaccíhuatl (5,286 m) and the Nevado de Toluca (4,577 m). Three major urban agglomerations are located in the valleys between these four elevations: Toluca, Greater Mexico City and Puebla.

Climate

Annual snowfall in Chihuahua and an isolated beach in Cabo San Lucas.
Annual snowfall in Chihuahua and an isolated beach in Cabo San Lucas.
Map of climates in Mexico
Map of climates in Mexico

The Tropic of Cancer effectively divides the country into temperate and tropical zones. Land north of the twenty-fourth parallel experiences cooler temperatures during the winter months. South of the twenty-fourth parallel, temperatures are fairly constant year round and vary solely as a function of elevation.

Areas south of the twenty-fourth parallel with elevations up to 1,000 meters (the southern parts of both coastal plains as well as the Yucatán Peninsula), have a yearly median temperature between 24 and 28 °C. Temperatures here remain high throughout the year, with only a 5 °C difference between winter and summer median temperatures. Although low-lying areas north of the twentieth-fourth parallel are hot and humid during the summer, they generally have lower yearly temperature averages (from 20 to 24 °C) because of more moderate conditions during the winter.

Many large cities in Mexico are located in the Valley of Mexico or in adjacent valleys with altitudes generally above 2,000 m, this gives them a year-round temperate climate with yearly temperature averages (from 16 to 18 °C) and cool nighttime temperatures throughout the year. Many parts of Mexico, particularly the north have a dry climate with sporadic rainfall while parts of the tropical lowlands in the south average more than 200 cm of annual precipitation.

Biodiversity

A Lepisosteus, one of the endemic species of Mexico.
A Lepisosteus, one of the endemic species of Mexico.

Mexico is one of the 17 megadiverse countries of the world. With over 200,000 different species, Mexico is home of 10–12% of the world's biodiversity.[51] Mexico ranks first in biodiversity in reptiles with 707 known species, second in mammals with 438 species, fourth in amphibians with 290 species, and fourth in flora, with 26,000 different species.[52] Mexico is also considered the second country in the world in ecosystems and fourth in overall species.[53] Approximately 2,500 species are protected by Mexican legislations.[53] The Mexican government created the National System of Information about Biodiversity, in order to study and promote the sustainable use of ecosystems.

In Mexico, 170,000 square kilometres are considered "Protected Natural Areas." These include 34 reserve biospheres (unaltered ecosystems), 64 national parks, 4 natural monuments (protected in perpetuity for their aesthetic, scientific or historical value), 26 areas of protected flora and fauna, 4 areas for natural resource protection (conservation of soil, hydrological basins and forests) and 17 sanctuaries (zones rich in diverse species).[51]

Economy

Mexico Stock Market building.
Mexico Stock Market building.
Mexico City is the largest city in the Americas and the second largest in the World
Mexico City is the largest city in the Americas and the second largest in the World

Mexico has a free market economy, and is firmly established as an upper middle-income country,[54] and it is the 12th largest economy in the world as measured in Gross Domestic Product in purchasing power parity.[55] After the 1994 economic debacle, Mexico has made an impressive recovery, building a modern and diversified economy.[54] Recent administrations have also improved infrastructure and opened competition in seaports, railroads, telecommunications, electricity generation, natural gas distribution and airports. Oil is Mexico's largest source of foreign income.[56]

According to the director for Mexico at the World Bank, the population in extreme poverty has decreased from 24.2% to 17.6% in the general population and from 42% to 27.9% in rural areas from 2000-2004.[57] Nonetheless, income inequality remains a problem, and huge gaps remain not only between rich and poor but also between the north and the south, and between urban and rural areas. Sharp contrasts in income and Human Development are also a grave problem in Mexico. The 2004 United Nations Human Development Index report for Mexico states that Benito Juárez, a district of the Distrito Federal, and San Pedro Garza García, in the State of Nuevo León, would have a similar level of economic, educational and life expectancy development to Germany or New Zealand. In contrast, Metlatonoc, in the state of Guerrero, would have an HDI similar to that of Malawi.[58][59]

Many of the positive effects in poverty reduction and the increase in purchasing power of the middle class are attributed to the macroeconomic stability pursued by the last two administrations. GDP annual average growth for the period of 1995–2002 was 5.1%.[60] The economic downturn in the United States also caused a similar pattern in Mexico, from which it rapidly recovered to grow 4.1% in 2005 and 3% in 2005. Inflation has reached a record low of 3.3% in 2005, and interest rates are low, which have spurred credit-consumption in the middle class. The Fox administration also provided monetary stability: the budget deficit was further reduced and foreign debt was decreased to less than 20% of GDP.[60] Along with Chile, Mexico has the highest rating of long-term sovereign credit in Latin America. Poverty in Mexico is further reduced by remittances from Mexican citizens working in the United States of America, which reaches US$20 billion dollars per year and is the second largest source of foreign income after oil exports.[61]

Exports Imports
Country Percentage Country Percentage
Flag of the United States United States 88.4 % Flag of the United States United States 68.4 %
Flag of Canada Canada 2.0 % Flag of Japan Japan 4.7 %
Flag of Germany Germany 0.9 % Flag of Germany Germany 3.6 %
Flag of Spain Spain 0.8 % Flag of Canada Canada 2.5 %
Flag of the Netherlands Antilles Netherlands Antilles 0.6 % Flag of the People's Republic of China China 2.2 %
Flag of Japan Japan 0.4 % Flag of South Korea South Korea 2.1 %
Flag of the United Kingdom United Kingdom 0.4 % Flag of the Republic of China Taiwan 1.6 %
Flag of Venezuela Venezuela 0.4 % Flag of Italy Italy 1.6 %
Others 6.1 % Others 13.3 %
Source: INEGI, 2005

Approximately 90% of Mexican trade has been put under free trade agreements with over 40 countries, of which the North American Free Trade Agreement remains the most significant. Almost 90% of Mexican exports go to the United States and Canada[62] and close to 65% of its imports come from these two countries.[62] Other major trade agreements have been signed with the European Union, Japan, Israel and many countries in Central and South America.

Ongoing economic concerns include the commercial and financial dependence on the US,[63] low real wages, underemployment for a large segment of the population, inequitable income distribution (the top 20% of income earners account for 55% of income), and few advancement opportunities for the largely Amerindian population in the impoverished southern states. Lack of structural reform is further exacerbated by an ever increasing outflow of the population into the United States, decreasing domestic pressure for reform.

Tourism

Main article: Tourism in Mexico

According to the World Tourism Organization, Mexico has one of the largest tourism industries in the world. In 2005 it was the seventh most popular tourist destination worldwide, receiving over 20 million tourists per year; it is the only country in Latin America to be within the top 25. Tourism is also the third largest sector in the country's industrial GDP.[64] The most notable tourist draws are the ancient Meso-American ruins, and popular beach resorts. The coastal climate and unique culture – a fusion of European (particularly Spanish) and Meso-American cultures; also make Mexico attractive. The peak tourist seasons in Mexico are during December and during July and August, with brief surges during the week before Easter and during spring break at many of the beach resort sites which are popular among vacationing college students from the United States.

Mexico's middle/lower class typically take their vacations within Mexico, in contrast to the middle/higher class who travel worldwide, especially to Europe and the United States, and in lesser numbers to Asia and South America. Mexico is the twenty-third highest tourism spender in the world, and the highest in Latin America.

Demographics

With a population of 103 million (2005 Census), Mexico is the most populous Spanish-speaking country in the world.[65] Mexican annual population growth has drastically decreased from a peak of 3.5% in 1965 to 0.99% in 2005. Life expectancy in 2006 was estimated to be at 75.4 years (72.6 male and 78.3 female). The states with the highest life expectancy are Baja California (75.9 years) and Nuevo Leon (75.6 years). The Federal District has a life expectancy of the same level as Baja California. The lowest levels are found in Chiapas (72.9), Oaxaca (73.2) and Guerrero (73.2 years). The mortality rate in 1970 was 9.7 per 1000 people; by 2001, the rate had dropped to 4.9 men per 1000 men and 3.8 women per 1000 women. The most common reasons for death in 2001 were heart problems (14.6% for men 17.6% for women) and cancer (11% for men and 15.8% for women).

Mexican population is increasingly urban, with close to 75% living in cities. The five largest urban areas in Mexico (Greater Mexico City, Greater Guadalajara, Greater Monterrey, Greater Puebla and Greater Toluca) are home to 30% of the country's population. Migration patterns within the country show positive migration to north-western and south-eastern states, and a negative rate of migration for the Federal District. While the annual population growth is still positive, the national net migration rate is negative (-4.7/1000), attributable to the emigration phenomenon of people from rural communities to the United States.

The following is a list of the major metropolitan areas of Mexico, as reported in the 2005 census.

Rank Core City State Pop. Rank Core City State Pop.
Mexico City at night
Mexico City
Guadalajara, JA
Guadalajara
Monterrey, NL
Monterrey
1 Mexico City DF 19,231,829 11 Queretaro QT 918,100
2 Guadalajara JA 4,095,853 12 Merida YU 897,740
3 Monterrey NL 3,664,331 13 Mexicali BC 855,962
4 Puebla PB 2,109,049 14 Aguascalientes AC 805,666
5 Toluca ME 1,610,786 15 Tampico TM 803,196
6 Tijuana BC 1,483,992 16 Culiacan SI 793,730
7 Leon GT 1,425,210 17 Cuernavaca MO 787,556
8 Juarez CH 1,313,338 18 Acapulco GR 786,830
9 Torreon CO 1,110,890 19 Chihuahua CH 784,882
10 San Luis Potosi SL 957,753 20 Morelia MI 735,624
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