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A Strategy to Create
New Beneficiaries from World Trade

David Barkin

Profesor de Economía en la Universidad Autónoma Metropolitana-Xochimilco, México, D. F. BACK

Hans Singer published a similar analysis at about the same time, a result of the collaborative relationship between the two (cf. Sapsford and Chen 1998). BACK

This so-called dematerialization of production, celebrated by environmental economists as a way in which the economy has incorporated self-correcting mechanisms for reducing the ecological footprint of economic growth, only serves to reduce the rate of growth extractive industries in the Third World, not to lower output or reverse their harmful impacts on the environment or the communities in which they are located. BACK

For a more complete discussion of the internationalization of capital and its impact on society see, for example, Froebel, Heinrichs and Krey 1979; Karliner 1997; and Barkin 1985. BACK

The difficult adjustment process in markets for rural products led to the formalization of the famous cobweb theorem in standard economic analysis. Because there is a lag in the supply process, important differences in demand and supply at prevailing prices often lead to unstable fluctuations in supply and significant changes in market prices which invariably affect the majority of smaller, less well capitalized producers more harshly than their more affluent competitors. BACK

A note about electrical generation is in order: recently (2002), the Supreme Court invalidated government efforts to transfer responsibility for this service to private suppliers. The original nationalization involved a constitutional change that the jurists interpreted to mean that this sector was the exclusive responsibility of public sector. In contrast to the political atmosphere ten years ago, when the land reform was terminated, a continuing series of incidents of mismanagement, corruption and bankruptcies has undermined support for the continued transfer of public assets and services to private investors. Pressures for further privatization during the administration of President Fox (2000-2006) are intensifying. BACK

There are more than 60 distinct ethnic groups who still speak their own native languages, down from more than 100 that existed a century ago. BACK

Officially these international remittances from Mexicans now approach $14,000 million; however, many consider this to be a serious underestimate. My estimates, which include income from employment in the urban economy and commercial agro-export activities in Mexico, suggests that transfers to rural Mexico now amount to more than 40% of the value of rural GDP in Mexico. These resources contribute to explain how rural communities can survive and implement the kinds of strategies described in the rest of this paper. However, if it were not for the commitment to reinvigorate rural society, these resources would most likely finance further migration to the urban areas. Along with a number of other Latin Americans, I have explored these ideas in some depth in several writing on the new rurality. See the collections edited by N. Giarracca (2000) and E. Pérez and M.A. Farah (2001) for two of my contributions along with those of other leading exponents of this approach. BACK

Proposals to create this corridor, based on a high-speed rail and highway system for the trans-shipment of merchandise between Asia and Europe -an alternative to the Panama Canal- have existed for most of the XX century, but the Mexican government started actively promoting such schemes once it decided to implement its radical opening to the international economy in the late 1980s. Originally labeled the Alfa-Omega Project, the present administration has proposed a more grandiose "Plan Puebla-Panama" to promote economic growth in the southern part of the country as well as in Central America with concessions for private operation of infrastructure that will attract productive investments. The Mexican agency charged with promoting the program has placed its public documents on a web site: http://www.presidencia.gob.mx. International support is described on the regional UN site: http://www.cepal.org.mx. BACK

Although there is no grand master plan, as opposition to the Plan has developed, local communities are realizing the importance of coordinating efforts to explore their options. (Bartra 2001) A web site for more current information is: http://www.rmalc.org.mx/ppp.htm. BACK

In 2000, this assistance was withdrawn at the insistence of the Mexican government, which decreed that the local NGO was not fulfilling its functions and was preventing the creation of the biosphere reserve. Following the Zapatista uprising, political conflicts intensified in this region (Barkin and Garcia 1998 and Salas et al. 2001). BACK

See, for example, the writings of Alburquerque (1990) and those of Bianchi (1999) who are influential in México among groups promoting SMEs, strongly influenced by the Italian experience. In Europe, social funds are promoting initiatives in poorer regions that might also be considered part of this approach (Saraceno 1994). For a critical analysis of the spatial impacts of internationalization, see Walker, 1999. BACK

 

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