Introduction: Mexico’s Political Economy— Oil and the Costs of Development

"Bandera y petroleo" is a Mexican description of nationalism, and few adages better convey the central role of petroleum in Mexico's political economy. Ever since the charismatic and popular General Lazaro Cardenas nationalized the oil industry on March 18, 1938, Mexican development programs and their core—oil—have been "wrapped in the flag." Focusing on the issues of oil, trade, and development, the contributors to this anthology address the effects of the crisis in the late 1980s on Mexico's economic and political systems and discuss the country's potential to repay its over $100 billion foreign debt. Growth, development, and distribution, the Mexican government argues, must remain central to Mexico's development plans. The chapter also presents an overview of the key concepts discussed in this book.