Revolutionary Mexico and the world economy

Abstract

Obregon and Calles encountered intense but disunited resistance at home and abroad. They responded with land and labor reforms to coopt campesinos and urban workers, thereby undercutting popular opposition and enlisting the masses in the campaign against regionalist bosses, Porfirian oligarchs, and foreign investors. These populist alliances helped the Sonoran diarchy build more loyal and professional military and civilian bureaucracies, which in turn helped regulate local and metropolitan firms, increase and stabilize tax revenues, and develop the economy's infrastructure. Following Obregon assasination in 1928, Calles forestalled collapse by integrating many military and civilian bosses into a central party organization. Yet the state remained only partially consolidated. At the end of the Calles administration, regionalist cliques retained considerable political autonomy, and a major campesino rebellion challenged federal authority. Furthermore, dependence on foreign petroleum and mining companies limited government revenue and spending. In mid-1927, Calles inaugurated several years of conservative domestic policies and open collaboration with North Americans. But Calles did not purge all progressive elements from the state machinery. His quest for political stability led him to enroll in the official party many elites who depended on mass followings and who opposed the rightward shift of government policy. During the Great Depression, these elites formed a coalition with intellectuals, small business, and the lower classes that after electing Lazaro Cardenas president, ended Callista hegemony and undertook far-reaching reforms. Thus the Cardenistas completed what Obregon and Calles had begun: the Mexican state's transformation from the poorly centralized oligarchic structure of the Porfiriato to the highly centralized, mass-inclusionary structure of the postrevolutionary era. In the next decade, Mexico joined the ranks of the world's intermediate, “semiperipheral” economies thanks to import-substitution and metropolitan capital. Since then, Mexican governments have maintained political stability and spurred industrialization by steering a pragmatic course between reformism and conservatism, nationalism and collaborationism.