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Mexico and Argentina have the commonality of export economies. In other words, the rich and the poor alike relied on the exportation of agricultural goods to foreign markets.

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1. Mexico and Argentina have the commonality of export economies. In other words, the rich and the poor alike relied on the exportation of agricultural goods to foreign markets. This type of economy places heavy emphasis on the large plantation, or hacienda. Because of the latifundia being equivalent to a hacienda, a lot of money was needed to run and manage it. Of coarse, the latifundia's earnings greatly surpassed that of the mere plantation, making the rich even richer. For these reasons, "the political and social structures of both countries were conditioned by the mode of production of the latifundia." Mexican history reveals this trend in economic activity. During the reign of D�az, the country opened up new markets for its mineral and agricultural products and brought new land under cultivation. Concentration of land ownership during the Porfiriato, coupled with the loss of communal holdings, made it difficult for people to practice subsistence agriculture. D�az favored the rich owners of large estates, increasing their properties by allowing them to absorb communal lands that belonged to Native Americans. Many landless peasants fell into debt peonage, a system of economic servitude in which workers became indebted to their employers for both money and supplies and were forced to labor in mines or plantations until the debt was paid. ...read more.


He distributed 3 million acres of land to the people. Of coarse, the good land was given to the latifundias, and the marginal land to the peasants. Even after a village had received land, its prospect for success was poor. The government failed to provide the peasants with any means of getting loans from the bank, seeds, tools, or modernization. Industry occurred only on the latifundias because that is where the money was. This was the same reason that latifundia owners were granted loans; they had the money to pay them back. The Labor and Agrarian Party did manage to slow down land reform. The delayed large landowners sued to prevent land distribution. Calles, Obreg�n's handpicked successor, also neglected to provide the peasantry with irrigation, fertilizer, tools, or seed. He established a government bank that was supposed to lend money to the ejidos, promote modern farming techniques, and act as agents for the sale of their produce. But four-fifths of the bank's resources were loaned not to ejidos, but to haciendados with much superior credit ratings, and many of the bank's agents took advantage of their position to enrich themselves at the expense of the peasants. ...read more.


This inner circle was composed of four hundred families that were closely allied through social clubs and business associations. Geographically, most of the wealth was located in the cattle and cereal regions of the Pampas. From 1880-1912, the elite class that controlled the nation's land also controlled its politics (hence, the larger land owners, or the latifundia owners, were the most powerful politically during this time period). Later, and urban middle class arose, who was still dependent on the export economy. The lower class, conversely, was divided into two groups: workers and urban marginals. A considerable amount of workers were employed by the railways and in the Port of Buenos Aires. Mexico is still more dependent upon the latifundia system than Argentina, both socially and politically. Argentina has gone further with industrialization, creating more jobs available for the middle and lower classes of their complex class structure. Also, Mexico took much longer to set up their domestic market. By the time they were just beginning to set their goals on producing staples for their own markets, Argentina had a healthy domestic market with plenty of staples for their people. However, both countries tended to rely on exportation as a means of capital for a great deal of time. ...read more.

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