Economy of
Mexico
Mexico has
little good agricultural land, and much food has to be imported. Its
struggle for economic growth has been hampered by falling oil prices, the
1985 Mexico City earthquake and massive foreign debt. Inflation remains
high, and economic controls have been only moderately successful.
Emergency austerity measures were taken in 1995.
AGRICULTURE IN MEXICO
Most
agricultural land is on the central plateau, though irrigation projects
in the north have created new farmlands there. Since 1910 much of this
land has been occupied by small subsistence farms. Export crops include
coffee, sugar cane and cotton, while staples include maize, squash and
kidney beans. Cattle ranching is largely concentrated in the north, and
some meat is exported. Fishing is largely for export, the most important
being tuna, anchovies, sardines and shrimps.
About one-fifth of Mexico is forested, mostly in the east and south.
These forests are exploited for hard and fragrant woods, and for chicle,
the base material for chewing gum. Many forested areas, however, are
threatened by large-scale clearance for agriculture.
INDUSTRY IN MEXICO
Mexico is the
world's largest source of silver; other commercial minerals include zinc,
copper and lead. Ore from Durango in the west of the country is used for
iron and steel production at Monterrey in the northeast, fueled by coking
coal from the nearby Sabinas fields. Mexico's massive hydrocarbon
resources now provide the majority of foreign-exchange earnings. The
state-owned company Pemex, Mexico's largest employer, controls the
exploration, production and marketing of natural gas and petrochemical
products.
Petrochemicals are the chief energy source. Hydroelectricity is also
significant, however, and geothermal energy is being increasingly
exploited. There is a nuclear power plant at Laguna Verde. Manufacturing
industry is concentrated in and around Mexico City. Products include
industrial chemicals, machinery and transportation equipment.
TRANSPORTATION AND COMMUNICATIONS
Tourism is an
important foreign-currency earner, and has stimulated the development of
both road and air networks. The extensive railroad system is slow and
unreliable, but the road network has almost doubled in extent since the
1940s and is continuing to expand. There are two state-owned airlines,
Aeroméxico and Mexicana, with more than 75 airports serving major cities,
resorts and international destinations.
Mexico has a free press, with several hundred daily newspapers.
HEALTH AND EDUCATION
Subsidized
health care is available to many, but poor facilities in rural areas are
reflected in higher rates of death and disease, particularly malaria.
Adequate housing is a major problem, particularly in the cities. There
are minimum-wage laws, but rural poverty is widespread.
Education is free, and literacy levels are high as a result of an
extensive campaign. However, rural areas lack facilities, and there are
few secondary schools outside the cities.
