Maquilla sector in Mexico
In the twentieth century, export-led industrialization fuelled by foreign investment and technology (ELIFIT) has become an economic and social development strategy for many countries of Third World. In the 1950s and 1960s, a group of Latin American and East Asian countries adopted such a strategy and allowed U.S. and European companies to use their cheap labor with the hope that this would lead to economic development. For East Asian countries, originally Hong Kong, Singapore, Taiwan, and South Korea, this strategy worked well and made a substantial contribution for countries' economic development. For Mexico, on the other hand, ELIFIT strategy did bring an economic growth to the country but it failed to convert this growth into development. Why would such a strategy work well for East Asian countries but not for Mexico? Was there anything the Government could've done in order to achieve a better level of development? The first phase in the maquila industry's brief history began in 1965 with the Border Industrialization Program (BIP). President Diaz initiated the program the year after his Minister of Industry and Commerce visited Asia, where U.S. and European multinational corporations were rapidly setting up assembly plants. C
LinkagesThe major failure of Maquila industry as an economic development strategy was its inability to create linkages between maquiladora sector and the rest of the Mexican economy. The more favorable the day-to-day conditions of work are for the labor force in relation to prevailing conditions in the rest of the host society, the more likely is the creation of a development zone. He could not continue school because family couldn't afford it. There are a number of factors that constrained the establishment of meaningful backward linkages between local producers and maquiladoras. The peso devaluations during De la Madrid's administration reduced real wages by 40 percent making Mexican labor even more externally competitive. At least six Korean suppliers were recently established. The rate of inflation has tended to be higher along the border areas than the rest of the Mexico. In 1987 the Ohio-based Farm Labor Organizing Committee (FLOC) in U. 5 miles of the border, but in 1972 the administration of Luis Echeverria eliminated this restriction, prohibiting maquilas only in Mexico's highly industrialized three largest cities: Mexico City, Guadalajara, and Monterrey .
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