Abstract

Ecological Economics studies social metabolism; that is, the material and energy flow into and out of the economy. Using the ecological economics perspective, we analyse the transformation of the economic landscape of the Santiago river basin, Mexico. We discuss why the appropriation of water resources is one of the most important drivers of North American economic integration. We argue that the theoretical model of neo-extractivism can explain the dynamics of social metabolism behind the North American Free Trade Agreement (NAFTA).

Highlights

  • In this paper, we explore the transformation of the productive space in Mexico from the perspective of the economic specialisation of globalisation

  • Because of Mexico’s economic policy orientation to the American market as a result of North American Free Trade Agreement (NAFTA), local Mexican producers focused on export-oriented activities and, by doing so, modified land use patterns and the exploitation of natural resources, the exploitation of water resources

  • There is evidence to suggest a close relationship between the instability of the world economy and the problems of over-exploitation of natural resources

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Summary

Introduction

We explore the transformation of the productive space in Mexico from the perspective of the economic specialisation of globalisation. The paper discusses the thesis of authors such as Harvey, Klein,, Farley et al Foster and Toledo, which argues that the distinguishing feature of the current stage of globalisation is the synergy between environmental degradation and recurrent economic crises. The main focus of this paper’s discussion is the scarcity of water resources from the Santiago river basin in western Mexico. Local and federal efforts related to the promotion of Mexican exports do not consider environmental externalities, even though such externalities are significant enough to call into question the very premises of economic efficiency and the legitimacy of capitalism as an appropriate operating system for Mexico

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