Abstract
The North American Free Trade Agreement (NAFTA) was adopted with the hope that the accord would bring economic growth to Mexico, reducing poverty and social inequality. It is now 24 years later, and these development goals have not been achieved. Using primary source interview material from indigenous people of southern Oaxaca, along with a review of the literature and quantitative data, this article contends that NAFTA has contributed to an increase in rural poverty, regional disparities, and the emigration of campesinos from their native communities. With NAFTA 2.0 negotiations underway, this paper advocates that the voices of indigenous people should be heard at the negotiating table. Their insight on how the trade deal has impacted southern localities is of critical importance moving forward.
Highlights
Modern Mexico is often described as a nation in transition
In Mexico, the economic achievements of the last twenty years such as, the growth in its industrial sector, increased foreign direct investment and integration into the North American economy, are celebrated by supporters of free trade who associate this development with the North American Free Trade Agreement (NAFTA)
In a conference on the special economic zones of Oaxaca, Picard noted that, “NAFTA was sold to Mexicans as a development tool, but development for who and at what cost?”1 This chapter will address Picard’s question with a particular emphasis on evaluating how NAFTA has negatively impacted the situation in southern Mexico in terms of poverty and economic inequality
Summary
Modern Mexico is often described as a nation in transition. One needs only to examine the economic landscape of the country to confirm this sentiment. Proponents of free trade advocate that trade liberalization increases the standard of living within a nation This view, is not shared by all, including Alberto Arroyo Picard, professor at the Universidad Autónoma Metropolitana in Mexico City, who is not convinced of the positive benefits NAFTA has brought to Mexico. What they receive.” Poverty in rural areas of Mexico has risen significantly from 37% in 1992 to 50.6% in 2016.3 In order to develop an explanation of how NAFTA, in particular, has impacted southern Mexicans, the following paper is broken up into three main inquiries: Contextualizing Poverty in Southern Mexico, where the situation and causes of modern poverty are examined; Inequality on the Rise deals with NAFTA’s impacts on the situation of economic inequality in Mexico; and the End of the Campesino, in which the problem of economic displacement and subsequent migration are discussed. Prior to an analysis of the indicators of poverty and economic inequality, both the methodology and a brief theoretical engagement will be presented
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