National Flag
Full country name: United Mexican States (Estados Unidos Mexicanos)
Area: 761,602 sq mi (1,972,550 sq km)
Population (2003 est.): 104,907,991
Capitals: Mexico City.
People: mestizo (Amerindian-Spanish) 60%, Amerindian or predominantly
Amerindian 30%, white 9%, other 1%.
Languages: Spanish, various Mayan, Nahuatl, and other regional indigenous
languages.
Religion: nominally Roman Catholic 89%, Protestant 6%, other 5%.
Government: federal republic
President: Vicente Fox Quesada (2000)
GDP per head: US$9,000 (2001 est.)
Annual growth: -0.3% (2001 est.)
Inflation: 6.5% (2001 est.)
Major industries: food and beverages, tobacco, chemicals, iron and steel,
petroleum, mining, textiles, clothing, motor vehicles, consumer durables, tourism
Major trading partners: U.S., Canada, Germany, Spain, Netherlands Antilles,
Japan, UK, Venezuela, China, South Korea, Taiwan, Italy, Brazil.
At least three great civilizations—the Mayas, the Olmecs, and later the Toltecs—preceded the wealthy Aztec empire, conquered in 1519–21 by the Spanish under Hernando Cortés. Spain ruled Mexico as part of the viceroyalty of New Spain for the next 300 years until Sept. 16, 1810, when the Mexicans first revolted. They won independence in 1821.
From 1821 to 1877, there were two emperors, several dictators, and enough presidents and provisional executives to make a new government on the average of every nine months. Mexico lost Texas (1836), and after defeat in the war with the U.S. (1846–48) it lost the area that is now California, Nevada, and Utah, most of Arizona and New Mexico, and parts of Wyoming and Colorado under the Treaty of Guadalupe Hidalgo. In 1855, the Indian patriot Benito Juárez began a series of reforms, including the disestablishment of the Catholic Church, which owned vast property. The subsequent civil war was interrupted by the French invasion of Mexico (1861) and the crowning of Maximilian of Austria as emperor (1864). He was overthrown and executed by forces under Juárez, who again became president in 1867.
The years after the fall of the dictator Porfirio Diaz (1877–80 and 1884–1911) were marked by bloody political-military strife and trouble with the U.S., culminating in the punitive U.S. expedition into northern Mexico (1916–17) in unsuccessful pursuit of the revolutionary Pancho Villa. Since a brief civil war in 1920, Mexico has enjoyed a period of gradual agricultural, political, and social reforms. The Partido Nacional Revolucionario (PNR; National Revolutionary Party), dominated by revolutionary and reformist politicians from northern Mexico, was established in 1929; it continued to control Mexico throughout the 20th century and was renamed the Partido Revolucionario Institucional (PRI; Institutional Revolutionary Party) in 1946. Relations with the U.S. were disturbed in 1938 when all foreign oil wells were expropriated, but a compensation agreement was reached in 1941.
Following World War II, the government emphasized economic growth. During the mid-1970s, under the leadership of President José López Portillo, Mexico became a major petroleum-producer. By the end of Portillo's term, however, Mexico had accumulated a huge external debt because of the government's unrestrained borrowing on the strength of its petroleum revenues. The collapse of oil prices in 1986 cut Mexico's export earnings. In Jan. 1994, Mexico joined Canada and the United States in the North American Free Trade Agreement (NAFTA), which will phase out all tariffs over a 15-year period, and in Jan. 1996, it became a founding member of the World Trade Organization (WTO).
In 1995, the U.S. agreed to prevent the collapse of Mexico's private banks. In return, the U.S. won virtual veto power over much of Mexico's economic policy. In 1997, in what observers called the freest elections in Mexico's history, the PRI lost control of the lower legislative house and the mayoralty of Mexico City in a stunning upset. To increase democracy, President Ernesto Zedillo said in 1999 that he would break precedent and not personally choose the next PRI presidential nominee. Several months later, Mexico held its first presidential primary, which was won by former interior secretary Francisco Labastida, Zedillo's closest ally among the candidates.
In elections held July 2, 2000, the PRI lost the presidency, ending 71 years of one-party rule. Vicente Fox Quesada, of the center-right National Action Party (PAN), took 43% of the vote to Labastida's 36%. Fox vowed tax reform, an overhaul of the legal system, and a reduction in power of the central government. By 2002, however, Fox had made little headway on his ambitious reform agenda. Congress, dominated by PRI, has blocked most of the legislation he has supported.
Mexico has a free market economy with a mixture of modern and outmoded industry and agriculture, increasingly dominated by the private sector. Recent administrations have expanded competition in seaports, railroads, telecommunications, electricity, natural gas distribution, and airports. Income distribution remains highly unequal. Trade with the US and Canada has tripled since the implementation of NAFTA in 1994. Following 6.9% growth in 2000, real GDP fell 0.3% in 2001, with the US slowdown the principal cause. Positive developments in 2001 included a drop in inflation to 6.5%, a sharp fall in interest rates, and a strong peso that appreciated 5% against the dollar. Mexico City implemented free trade agreements with Guatemala, Honduras, El Salvador, and the European Free Trade Area in 2001, putting more than 90% of trade under free trade agreements. Foreign direct investment reached $25 billion in 2001, of which $12.5 billion came from the purchase of Mexico's second largest bank, Banamex, by Citigroup.
The great majority of the population are of mixed Spanish and indigenous descent and speak Spanish, the official language, as their first language. Various Mayan dialects are also spoken. Since 1920 the population of Mexico has had a very high rate of growth, almost entirely the result of natural increase; from 1940 to 1990 the population grew from 19.6 million to 81.1 million. However, declining fertility rates (from 7 children per woman in 1965 to slightly under 3 in 1998) are slowing down the population growth. Nearly 90% of the people are Roman Catholic and 6% are Protestant. The country has numerous universities, notably in Mexico City, Saltillo, Guadalajara, Monterrey, and Puebla. Since precolonial times Mexican architects, painters, writers, and musicians have produced a rich cultural heritage.
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