An ejido ( Spanish pronunciation: [eˈxiðo] , from Latin exitum ) is an area of communal land used for agriculture in which community members have usufruct rights rather than ownership rights to land, which in Mexico is held by the Mexican state. People awarded ejidos in the modern era farm them individually in parcels and collectively maintain communal holdings with government oversight. Although the system of ejidos was based on an understanding of the preconquest Aztec calpulli and the medieval Spanish ejido, since the 20th century ejidos have been managed and controlled by the government.
197-678: After the Mexican Revolution , ejidos were created by the Mexican state to grant lands to peasant communities as a means to stem social unrest. As Mexico prepared to enter the North American Free Trade Agreement in 1991, President Carlos Salinas de Gortari declared the end of awarding ejidos and allowed existing ejidos to be rented or sold, ending land reform in Mexico . In central Mexico following
394-477: A shock therapy , which rapidly transformed Chile from an economy with a protected market and strong government intervention into a liberalized, world-integrated economy, where market forces were left free to guide most of the economy's decisions. Inflation was tempered, falling from over 600% in 1974, to below 50% by 1979, to below 10% right before the economic crisis of 1982 ; GDP growth spiked (see chart) to 10%. however, inequality widened as wages and benefits to
591-407: A "military mission" to Europe, distancing him from Mexico and potential political supporters. "The potential challenge from Reyes would remain one of Díaz's political obsessions through the rest of the decade, which ultimately blinded him to the danger of the challenge of Francisco Madero's anti-re-electionist campaign." In 1910, Francisco I. Madero , a young man from a wealthy landowning family in
788-415: A "slowly unfolding economic disaster" and bequeathed to the world increased inequalities, societal divisions, economic misery and a lack of meaningful politics. The Great Depression in the 1930s, which severely decreased economic output throughout the world and produced high unemployment and widespread poverty , was widely regarded as a failure of economic liberalism . To renew the damaged ideology,
985-636: A centrist political movement from modern American liberalism in the 1970s. According to political commentator David Brooks , prominent neoliberal politicians included Al Gore and Bill Clinton of the Democratic Party of the United States. The neoliberals coalesced around two magazines, The New Republic and the Washington Monthly , and often supported Third Way policies. The "godfather" of this version of neoliberalism
1182-441: A certain set of economic beliefs. The colloquium defined the concept of neoliberalism as involving "the priority of the price mechanism, free enterprise, the system of competition, and a strong and impartial state". According to attendees Louis Rougier and Friedrich Hayek , the competition of neoliberalism would establish an elite structure of successful individuals that would assume power in society, with these elites replacing
1379-514: A civilian-military regime. Shortly after the inauguration of Fujimori, his government received a $ 715 million grant from United States Agency for International Development (USAID) on 29 September 1990 for the Policy Analysis, Planning and Implementation Project (PAPI) that was developed "to support economic policy reform in the country". De Soto proved to be influential to Fujimori, who began to repeat de Soto's advocacy for deregulating
1576-414: A coup to oppose the re-election of Sebastián Lerdo de Tejada , he could not run for re-election in 1880. His close ally, General Manuel González , was elected president (1880–1884). Díaz saw himself as indispensable, and after that interruption, he ran for the presidency again and served in office continuously until 1911. The constitution had been amended to allow unlimited presidential re-election. During
1773-415: A drop in the real salary of the working class. They also liberalized trade policy so that foreign goods could freely enter the country. Argentina's industry, which had been on the rise for 20 years after the economic policies of former president Arturo Frondizi , rapidly declined as it was not able to compete with foreign goods. Following the measures, there was an increase in poverty from 9% in 1975 to 40% at
1970-426: A global 'free market'. Naomi Klein states that the three policy pillars of neoliberalism are " privatization of the public sphere, deregulation of the corporate sector, and the lowering of income and corporate taxes , paid for with cuts to public spending ". According to some scholars, neoliberalism is commonly used as a pejorative by critics, outpacing similar terms such as monetarism , neoconservatism ,
2167-438: A government-appointed commission that ensured Pinochet would remain as president for a further eight years—with increased powers—after which he would face a re-election referendum. The Chicago Boys were given significant political influence within the military dictatorship , and they implemented sweeping economic reform . In contrast to the extensive nationalization and centrally planned economic programs supported by Allende,
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#17327795009112364-599: A group of 25 liberal intellectuals, including a number of prominent academics and journalists like Walter Lippmann , Friedrich Hayek , Ludwig von Mises , Wilhelm Röpke , Alexander Rüstow , and Louis Rougier , organized the Walter Lippmann Colloquium , named in honor of Lippmann to celebrate the publication of the French translation of Lippmann's pro- market book An Inquiry into the Principles of
2561-408: A legal framework and began murdering political opponents while battling revolutionary forces that had united in opposition to his regime. Neoliberalism Neoliberalism is both a political philosophy and a term used to signify the late-20th-century political reappearance of 19th-century ideas associated with free-market capitalism . The term has multiple, competing definitions, and
2758-411: A major socioeconomic revolution but offered hopes of change for many disadvantaged Mexicans. The plan strongly opposed militarism in Mexico as it was constituted under Díaz, calling on Federal Army generals to resign before true democracy could prevail in Mexico. Madero realized he needed a revolutionary armed force, enticing men to join with the promise of formal rank, and encouraged Federales to join
2955-572: A million acres). Many Mexicans became landless peasants laboring on these vast estates or industrial workers toiling long hours for low wages. Foreign companies (mostly from the United Kingdom, France, and the U.S.) also exercised influence in Mexico. Díaz had legitimacy as a leader through his battlefield accomplishments. He knew that the long tradition of military intervention in politics and its resistance to civilian control would prove challenging to his remaining in power. He set about curbing
3152-435: A net-importer of maize and food in general. The majority of peasants were part of the ejido system with a male figure being the head of the household. On ejido land job opportunities were limited creating a push for the male figures to migrate to the United States in order to support their households and land. US job opportunities for Mexican migrants would include agricultural sectors which contributed to further development of
3349-698: A new constitution to replace the Pinochet-era constitution, which entrenched certain neoliberal principles into the country's basic law, won with 78% of the vote. However, in September 2022 , the referendum to approve a rewritten the constitution was rejected with 61% of the vote. Peruvian economist Hernando de Soto , the founder of one of the first neoliberal organizations in Latin America, Institute for Liberty and Democracy (ILD), began to receive assistance from Ronald Reagan 's administration, with
3546-587: A period of intense labor unrest, exemplified by the Cananea and Río Blanco strikes. When wealthy northern landowner Francisco I. Madero challenged Díaz in the 1910 presidential election and Díaz jailed him, Madero called for an armed uprising against Díaz in the Plan of San Luis Potosí . Rebellions broke out first in Morelos and then to a much greater extent in northern Mexico. The Federal Army could not suppress
3743-633: A philosophy that was more moderate than entirely Laissez-faire free-market capitalism and favored using state policy to temper social inequality and counter a tendency towards monopoly. In 1976, the military dictatorship 's economic plan led by José Alfredo Martínez de Hoz was the first attempt at establishing a neoliberal program in Argentina. They implemented a fiscal austerity plan that reduced money printing in an attempt to counter inflation. In order to achieve this, salaries were frozen; however, they were unable to reduce inflation, which led to
3940-431: A political machine, first working with regional strongmen and bringing them into his regime, then replacing them with jefes políticos (political bosses) who were loyal to him. He skillfully managed political conflict and reined in tendencies toward autonomy. He appointed several military officers to state governorships, including General Bernardo Reyes , who became governor of the northern state of Nuevo León , but over
4137-578: A powerful figure for conservative forces opposing the Madero regime. During the Orozco revolt, the governor of Chihuahua mobilized the state militia to support the Federal Army. Pancho Villa , now a colonel in the militia, was called up at this time. In mid-April, at the head of 400 irregular troops, he joined the forces commanded by Huerta. Huerta, however, viewed Villa as an ambitious competitor. During
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#17327795009114334-484: A powerful military union in the north and, although they were not especially committed to Madero, took Mexicali and Chihuahua City . These victories encouraged alliances with other revolutionary leaders, including Villa. Against Madero's wishes, Orozco and Villa fought for and won Ciudad Juárez, bordering El Paso , Texas, on the south side of the Rio Grande . Madero's call to action had unanticipated results, such as
4531-702: A reduction in the rate of inflation , though Peru's poverty rate remained largely unchanged with over half of the population living in poverty in 1998. According to the Foundation for Economic Education , USAID, the United Nations Population Fund (UNFPA) and the Nippon Foundation also supported the sterilization efforts of the Fujimori government. E. Liagin reported that from 1993 to 1998, USAID "basically took charge of
4728-466: A respectable revolutionary, with the explanation that Orozco had not reached the legal age to serve as governor, a tactic that was "a useful constitutional alibi for thwarting the ambitions of young, popular, revolutionary leaders". Madero had put Orozco in charge of the large force of rurales in Chihuahua, but to a gifted revolutionary fighter who had helped bring about Díaz's fall, Madero's reward
4925-497: A short period to San Antonio, Texas . Díaz was announced the winner of the election by a "landslide". On 5 October 1910, Madero issued a "letter from jail", known as the Plan de San Luis Potosí , with its main slogan Sufragio Efectivo, No Re-elección ("effective voting, no re-election"). It declared the Díaz presidency illegal and called for a revolt against him, starting on 20 November 1910. Madero's political plan did not outline
5122-680: A story told by Pancho Villa , a leader who had defeated Díaz's army and forced his resignation and exile, he told Madero at a banquet in Ciudad Juárez in 1911, "You [Madero], sir, have destroyed the revolution ... It's simple: this bunch of dandies have made a fool of you, and this will eventually cost us our necks, yours included." Ignoring the warning, Madero increasingly relied on the Federal Army as armed rebellions broke out in Mexico in 1911–12, with particularly threatening insurrections led by Emiliano Zapata in Morelos and Pascual Orozco in
5319-684: A visit to Huerta's headquarters in June 1912, after an incident in which he refused to return a number of stolen horses, Villa was imprisoned on charges of insubordination and robbery and sentenced to death. Raúl Madero, the President's brother, intervened to save Villa's life. Jailed in Mexico City, Villa escaped and fled to the United States, later to return and play a major role in the civil wars of 1913–1915. There were other rebellions, one led by Bernardo Reyes and another by Félix Díaz , nephew of
5516-760: A wealthy landowner who led the Constitutionalist faction, which defeated all others. In 1917, a new Constitution was drafted, which included empowerment of the government to expropriate privately held resources. Many peasants expected Article 27 of the Constitution to bring about the breakup of large haciendas and to return land to peasant communities. Carranza was entirely resistant to the expropriation of haciendas, and in fact returned many to their owners that had been seized by revolutionaries. Distribution of large amounts of land did not begin until Lázaro Cárdenas became president in 1934. The ejido system
5713-444: Is broadly defined as the extension of competitive markets into all areas of life, including the economy , politics and society . The Handbook of Neoliberalism Neoliberalism is contemporarily used to refer to market-oriented reform policies such as "eliminating price controls , deregulating capital markets , lowering trade barriers " and reducing, especially through privatization and austerity , state influence in
5910-461: Is distinct from liberalism insofar as it does not advocate laissez-faire economic policy, but instead is highly constructivist and advocates a strong state to bring about market-like reforms in every aspect of society. Anthropologist Jason Hickel also rejects the notion that neoliberalism necessitates the retreat of the state in favor of totally free markets, arguing that the spread of neoliberalism required substantial state intervention to establish
6107-739: Is near the Latin American average, Chile still has one of the highest Gini coefficients in the OECD , an organization of mostly developed countries that includes Chile but not most other Latin American countries. Furthermore, the Gini coefficient measures only income inequality ; Chile has more mixed inequality ratings in the OECD's Better Life Index , which includes indexes for more factors than only income, like housing and education . Additionally,
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6304-502: Is not well defined, and even the conservative winner of the 2000 election, Vicente Fox , contended his election was heir to the 1910 democratic election of Francisco Madero, thereby claiming the heritage and legitimacy of the Revolution. Liberal general and war veteran Porfirio Díaz came to the presidency of Mexico in 1876 and remained almost continuously in office until 1911 in an era now called Porfiriato . Coming to power after
6501-451: Is often used pejoratively. In scholarly use, the term is often left undefined or used to describe a multitude of phenomena. However, it is primarily employed to delineate the societal transformation resulting from market-based reforms. Neoliberalism is an economic philosophy that originated among European liberal scholars during the 1930s. It emerged as a response to the perceived decline in popularity of classical liberalism , which
6698-675: The Asia-Pacific , the Middle East , and China implementing significant neoliberal reform. Additionally, the International Monetary Fund and World Bank encouraged neoliberal reforms in many developing countries by placing reform requirements on loans, in a process known as structural adjustment . Neoliberal ideas were first implemented in West Germany . The economists around Ludwig Erhard drew on
6895-518: The Great Recession . In sum, the neoliberal policies of the 1980s and 1990s—initiated by a repressive authoritarian government —transformed the Chilean economy from a protected market with high barriers to trade and hefty government intervention into one of the world's most open free-market economies. Chile experienced the worst economic bust of any Latin American country during
7092-597: The Latin American debt crisis (several years into neoliberal reform), but also had one of the most robust recoveries, rising from the poorest Latin American country in terms of GDP per capita in 1980 (along with Peru) to the richest in 2019. Average annual economic growth from the mid-1980s to the Asian crisis in 1997 was 7.2%, 3.5% between 1998 and 2005, and growth in per capita real income from 1985 to 1996 averaged 5%—all outpacing Latin American averages. Inflation
7289-680: The Magonista rebellion of 1911 in Baja California. With the Federal Army defeated in several battles with irregular, voluntary forces, Díaz's government began negotiations with the revolutionaries in the north. In historian Edwin Lieuwen's assessment, "Victors always attribute their success to their own heroic deeds and superior fighting abilities ... In the spring of 1911, armed bands under self-appointed chiefs arose all over
7486-717: The Mexican Liberal Party ( Partido Liberal de México ) drew up a radical program of reform, specifically addressing what they considered to be the worst aspects of the Díaz regime. Most prominent in the PLM were Ricardo Flores Magón and his two brothers, Enrique and Jesús . They, along with Luis Cabrera and Antonio Díaz Soto y Gama , were connected to the anti-Díaz publication El Hijo del Ahuizote . Political cartoons by José Guadalupe Posada lampooned politicians and cultural elites with mordant humor, portraying them as skeletons. The Liberal Party of Mexico founded
7683-467: The National Endowment for Democracy 's Center for International Private Enterprise (CIPE) providing his ILD with funding. The economic policy of President Alan García distanced Peru from international markets, resulting in lower foreign investment in the country. Under García, Peru experienced hyperinflation and increased confrontations with the guerrilla group Shining Path , leading
7880-689: The Spanish conquest of the Aztec empire (1519-1521), indigenous communities remained largely intact, including their system of land tenure. The Spanish crown guaranteed that indigenous communities had land under its control, the fundo legal [ es ] . It also established the General Indian Court so that individual natives and indigenous communities could defend their rights against Spanish encroachment. Spaniards applied their own terminology to indigenous community lands, and early in
8077-541: The United States , the Chilean armed forces and national police overthrew the Allende government in a coup d'état . They established a repressive military junta , known for its violent suppression of opposition , and appointed army chief Augusto Pinochet Supreme Head of the nation. His rule was later given legal legitimacy through a controversial 1980 plebiscite , which approved a new constitution drafted by
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8274-595: The Washington Consensus and "market reform" in much scholarly writing. The Handbook of Neoliberalism , for instance, posits that the term has "become a means of identifying a seemingly ubiquitous set of market-oriented policies as being largely responsible for a wide range of social, political, ecological and economic problems". Its use in this manner has been criticized by those who advocate for policies characterized as neoliberal. The Handbook , for example, further argues that "such lack of specificity [for
8471-517: The company store , binding them to the company. These strikes were ruthlessly suppressed, with factory owners receiving support from government forces. In the Cananea strike, mine owner William Cornell Greene received support from Díaz's rurales in Sonora as well as Arizona Rangers called in from across the U.S. border. This Arizona Rangers were ordered to use violence to combat labor unrest. In
8668-514: The economic policy of classical liberalism. In the context of policymaking, the term neoliberalism is often used to describe a paradigm shift that followed the failure of the post-war consensus and neo-Keynesian economics to address the stagflation of the 1970s. The collapse of the USSR and the end of the Cold War also facilitated the rise of neoliberalism in the United States and around
8865-675: The "clearest repudiation of the country's establishment". In the 1960s, Latin American intellectuals began to notice the ideas of ordoliberalism ; they often used the Spanish term "neoliberalismo" to refer to this school of thought. They were particularly impressed by the social market economy and the Wirtschaftswunder ("economic miracle") in Germany and speculated about the possibility of accomplishing similar policies in their own countries. Neoliberalism in 1960s Argentina meant
9062-497: The "true authors" of the Mexican Revolution for agitating the masses. As the 1910 election approached, Francisco I. Madero , an emerging political figure and member of one of Mexico's richest families, funded the newspaper Anti-Reelectionista , in opposition to the continual re-election of Díaz. Organized labor conducted strikes for better wages and just treatment. Demands for better labor conditions were central to
9259-447: The 1910 election. At age 80, this set the scene for a possible peaceful transition in the presidency. It set off a flurry of political activity. To the dismay of potential candidates to replace him, he reversed himself and ran again. His later reversal on retiring from the presidency set off tremendous activity among opposition groups. Díaz seems to have initially considered Finance Minister José Yves Limantour as his successor. Limantour
9456-494: The 1980s, "have contributed to steady economic growth in Chile and have more than halved poverty rates," and some scholars have even called the period the " Miracle of Chile ". Other scholars have called it a failure that led to extreme inequalities in the distribution of income and resulted in severe socioeconomic damage. It is also contested how much these changes were the result of neoliberal economic policies and how much they were
9653-507: The 1990s, Chile maintained high growth, averaging 7.3% from 1990 to 1998. Eduardo Aninat, writing for the IMF journal Finance & Development , called the period from 1986 to 2000 "the longest, strongest, and most stable period of growth in [Chile's] history." In 1999, there was a brief recession brought about by the Asian financial crisis , with growth resuming in 2000 and remaining near 5% until
9850-595: The 30,000 in the army and another 30,000 in the federal auxiliaries, irregulars and National Guard. Despite their small numbers, the rurales were highly effective in controlling the countryside, especially along the 12,000 miles of railway lines. They were a mobile force, often sent on trains with their horses to put down rebellions in relatively remote areas of Mexico. The construction of railways had been transformative in Mexico (as well as elsewhere in Latin America), accelerating economic activity and increasing
10047-567: The Chicago Boys implemented rapid and extensive privatization of state enterprises, deregulation, and significant reductions in trade barriers during the latter half of the 1970s. In 1978, policies that would further reduce the role of the state and infuse competition and individualism into areas such as labor relations, pensions, health and education were introduced. > Additionally, the central bank raised interest rates from 49.9% to 178% to counter high inflation. These policies amounted to
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#173277950091110244-430: The Díaz regime was authoritarian and centralizing, it was not a military dictatorship. His first presidential cabinet was staffed with military men, but over successive terms as president, important posts were held by able and loyal civilians. He did not create a personal dynasty, excluding family from the realms of power, although his nephew Félix attempted to seize power after the fall of the regime in 1911. Díaz created
10441-682: The Díaz regime, such as Ricardo Flores Magón and Práxedis Guerrero, went into exile in the relative safety of the United States, but cooperation between the U.S. government and Díaz's agents resulted in the arrest of some radicals. Díaz had ruled continuously since 1884. The question of presidential succession was an issue as early as 1900 when he turned 70. Díaz re-established the office of vice president in 1906, choosing Ramón Corral . Rather than managing political succession, Díaz marginalized Corral, keeping him away from decision-making. Díaz publicly announced in an interview with journalist James Creelman for Pearson's Magazine that he would not run in
10638-489: The English-language study of political economy. According to one study of 148 scholarly articles, neoliberalism is almost never defined but used in several senses to describe ideology, economic theory, development theory, or economic reform policy. It has become used largely as a term of abuse and/or to imply a laissez-faire market fundamentalism virtually identical to that of classical liberalism – rather than
10835-539: The Federal Army and the Huerta regime fell. Like Porfirio Díaz, Huerta went into exile. The Federal Army was disbanded, leaving only revolutionary military forces. Upon taking power, Huerta had moved swiftly to consolidate his hold in the North, having learned the lesson from Díaz's fall that the north was a crucial region to hold. Within a month of the coup, rebellions began to spread throughout Mexico, most prominently led by
11032-642: The Federal Army eagerly responded to the call, most prominently Pancho Villa. Alvaro Obregón of Sonora, a successful rancher and businessman who had not participated in the Madero revolution, now joined the revolutionary forces in the north, the Constitutionalist Army under the Primer Jefe ("First Chief") Venustiano Carranza. Huerta had Governor González arrested and murdered, for fear he would foment rebellion. When northern General Pancho Villa became governor of Chihuahua in 1914, following
11229-552: The Federal Army was defeated by revolutionary armies. The revolutionary armies then fought each other, with the Constitutionalist faction under Carranza defeating the army of former ally Francisco "Pancho" Villa by the summer of 1915. Carranza consolidated power and a new constitution was promulgated in February 1917. The Mexican Constitution of 1917 established universal male suffrage , promoted secularism , workers' rights , economic nationalism , and land reform , and enhanced
11426-587: The Federal Army's weakness and inability to suppress them. Madero's vague promises of land reform attracted many peasants throughout the country. Spontaneous rebellions arose in which ordinary farm laborers, miners and other working-class Mexicans, along with much of the country's population of indigenous peoples, fought Díaz's forces with some success. Madero attracted the forces of rebel leaders such as Pascual Orozco , Pancho Villa , Emiliano Zapata , and Venustiano Carranza . A young and able revolutionary, Orozco—along with Chihuahua Governor Abraham González —formed
11623-404: The French in the 1860s. Some 9,000 officers commanded the 25,000 rank-and-file on the books, with some 7,000 padding the rosters and nonexistent so that officers could receive the subsidies for the numbers they commanded. Officers used their positions for personal enrichment through salary and opportunities for graft. Although Mexicans had enthusiastically volunteered in the war against the French ,
11820-571: The German neoliberals, his name was only occasionally mentioned in conjunction with neoliberalism during this period due to his more pro-free market stance. During the military rule under Augusto Pinochet (1973–1990) in Chile, opposition scholars took up the expression to describe the economic reforms implemented there and its proponents (the Chicago Boys ). Once this new meaning was established among Spanish-speaking scholars, it diffused into
12017-757: The Good Society . Meeting in Paris in August 1938, they called for a new liberal project, with "neoliberalism" one name floated for the fledgling movement. They further agreed to develop the Colloquium into a permanent think tank based in Paris called the Centre International d'Études pour la Rénovation du Libéralisme. While most agreed that the status quo liberalism promoting laissez-faire economics had failed, deep disagreements arose around
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#173277950091112214-478: The Great Depression while Mises denounced the other faction, complaining that the ordoliberalism they advocated really meant "ordo-interventionism". Divided in opinion and short on funding, the Colloquium was mostly ineffectual; related attempts to further neoliberal ideas, such as the effort by Colloque-attendee Wilhelm Röpke to establish a journal of neoliberal ideas, mostly floundered. Fatefully,
12411-510: The Interim President, said of him that "De la Barra wants to accommodate himself with dignity to the inevitable advance of the ex-revolutionary influence, while accelerating the widespread collapse of the Madero party." The Federal Army, despite its numerous defeats by the revolutionaries, remained intact as the government's force. Madero called on revolutionary fighters to lay down their arms and demobilize, which Emiliano Zapata and
12608-537: The Italian economist Maffeo Pantaleoni , with the term néo-libéralisme previously existing in French; the term was later used by others, including the classical liberal economist Milton Friedman in his 1951 essay "Neo-Liberalism and its Prospects". In 1938 at the Colloque Walter Lippmann , the term neoliberalism was proposed, among other terms, and ultimately chosen to be used to describe
12805-631: The Liberal Party program, drawn up in 1905. Mexican copper miners in the northern state of Sonora took action in the 1906 Cananea strike . Starting June 1, 1906, 5,400 miners began organizing labor strikes. Among other grievances, they were paid less than U.S. nationals working in the mines. In the state of Veracruz, textile workers rioted in January 1907 at the huge Río Blanco factory, the world's largest, protesting against unfair labor practices. They were paid in credit that could be used only at
13002-620: The Madero era, including El País and La Nación , only to be later suppressed under the Victoriano Huerta regime (1913–1914). Under Díaz relations between the Roman Catholic Church and the Mexican government were stable, with the anticlerical laws of the Mexican Constitution of 1857 remaining in place, but not enforced, so conflict was muted. During Madero's presidency, Church-state conflict
13199-414: The Madero regime, "Madero clearly welcomed the emergence of a kind of two-party system (Catholic and liberal); he encouraged Catholic political involvement, echoing the exhortations of the episcopate." What was emerging during the Madero regime was "Díaz's old policy of Church-state detente was being continued, perhaps more rapidly and on surer foundations." The Catholic Church in Mexico was working within
13396-532: The Mexican Constitution to permit the privatization and the sale of ejidal land. This was a direct cause of the Chiapas conflict . The changes to the ejidal system have largely failed to improve ejidal productivity, and have been implicated as significant contributing factors to worsening rural poverty , forced migration, and the conversion of Mexico, where the cultivation of maize originated, into
13593-461: The Mexican Revolution, with the expectation that their village lands could be restored. In particular, many peasants in the state of Morelos under the leadership of Emiliano Zapata waged war against the presidency of Francisco I. Madero , a wealthy landowner whose reformist political movement sought to oust the regime of Porfirio Díaz; Victoriano Huerta , the leader of a reactionary coup that ousted and assassinated Madero; and Venustiano Carranza ,
13790-420: The Mexico City revolt as interim commander. He did not know that Huerta had been invited to join the conspiracy, but had initially held back. During the fighting that took place in the capital, the civilian population was subjected to artillery exchanges, street fighting and economic disruption, perhaps deliberately caused by the coupists to demonstrate that Madero was unable to keep order. The Madero presidency
13987-481: The Peruvian economy. Under Fujimori, de Soto served as "the President's personal representative", with The New York Times describing de Soto as an "overseas salesman", while others dubbed de Soto as the "informal president" for Fujimori. In a recommendation to Fujimori, de Soto called for a "shock" to Peru's economy. The policies included a 300% tax increase, unregulated prices and privatizing two-hundred and fifty state-owned entities. The policies of de Soto led to
14184-682: The Porfiriato, there were regular elections, widely considered sham exercises, marked by contentious irregularities. In his early years in the presidency, Díaz consolidated power by playing opposing factions against each other and by expanding the Rurales , an armed police militia directly under his control that seized land from local peasants. Peasants were forced to make futile attempts to win back their land through courts and petitions. By 1900, over ninety percent of Mexico's communal lands were sold, with an estimated 9.5 million peasants forced into
14381-459: The Roman Catholic Church. The Liberal Reform first put in place the Lerdo Law , calling for the end of corporate landholding and then incorporated that law into the Constitution of 1857. Ejidos were thus legally abolished, although many continued to survive. Mexico was plunged into civil unrest, civil war, and a foreign invasion by the French, so not until the expulsion of the French in 1867 and
14578-622: The World Worker) was founded in September 1912 by Antonio Díaz Soto y Gama , Manuel Sarabia, and Lázaro Gutiérrez de Lara and served as a center of agitation and propaganda, but it was not a formal labor union. Political parties proliferated. One of the most important was the National Catholic Party, which in several regions of the country was particularly strong. Several Catholic newspapers were in circulation during
14775-432: The alternatives often rebelled and were crushed. It took him some 15 years to accomplish the transformation, reducing the army by 500 officers and 25 generals, creating an army subordinate to central power. He also created the military academy to train officers, but their training aimed to repel foreign invasions. Díaz expanded the rural police force, the rurales as an elite guard, including many former bandits , under
14972-482: The amount of productive land; labor reforms including workman's compensation and the eight-hour day; but also defended the right of the government to intervene in strikes. According to historian Peter V. N. Henderson, De la Barra's and congress's actions "suggests that few Porfirians wished to return to the status quo of the dictatorship. Rather, the thoughtful, progressive members of the Porfirian meritocracy recognized
15169-494: The anti-Díaz anarchist newspaper Regeneración , which appeared in both Spanish and English. In exile in the United States, Práxedis Guerrero began publishing an anti-Díaz newspaper, Alba Roja ("Red Dawn"), in San Francisco, California. Although leftist groups were small, they became influential through their publications, articulating their opposition to the Díaz regime. Francisco Bulnes described these men as
15366-427: The armed rebellion of Emiliano Zapata in Morelos, where peasants demanded rapid action on agrarian reform . Politically inexperienced, Madero's government was fragile, and further regional rebellions broke out. In February 1913, prominent army generals from the Díaz regime staged a coup d'etat in Mexico City , forcing Madero and Vice President Pino Suárez to resign. Days later, both men were assassinated by orders of
15563-437: The army intact as an institution, using it to put down domestic rebellions against his regime. Huerta was a professional soldier and continued to serve in the army under the new commander-in-chief. Huerta's loyalty lay with General Bernardo Reyes rather than with the civilian Madero. In 1912, under pressure from his cabinet, Madero called on Huerta to suppress Orozco's rebellion. With Huerta's success against Orozco, he emerged as
15760-651: The benefits are concentrated in Lima." In 2020, the COVID-19 pandemic in Peru compounded these disparities, with political scientist Professor Farid Kahhat of the Pontifical Catholic University of Peru stating that, "market reforms in Peru have yielded positive results in terms of reducing poverty ... But what the pandemic has laid bare, particularly in Peru, is that poverty was reduced while leaving
15957-474: The classical liberal notion that competition drives economic prosperity. However, they argued that a laissez-faire state policy stifles competition, as the strong devour the weak since monopolies and cartels could pose a threat to freedom of competition. They supported the creation of a well-developed legal system and capable regulatory apparatus. While still opposed to full-scale Keynesian employment policies or an extensive welfare state , German neoliberal theory
16154-771: The colonial era began calling them ejidos. Mexico achieved its independence from Spain in 1821, following the Mexican War of Independence , the new sovereign nation abolished crown protections of natives and indigenous communities, making them equal before the law rather than vassals of the Spanish crown. The disappearance of the General Indian Court was one effect of independence. With political instability and economic stagnation following independence, indigenous communities largely maintained their land holdings, since large landed estates were not expanding to increase production. For nineteenth-century Mexican liberals,
16351-477: The continuing separateness of natives and indigenous villages from the Mexican nation was deemed "The Indian Problem," and the breakup of communal landholding identified as the key to integrating of Indians into the Mexican nation. When the Liberals came to power in 1855, they embarked on a major reform that included the expropriation and sale of corporate lands, that is, those held by indigenous communities and by
16548-483: The country towards high levels of instability. The Peruvian armed forces grew frustrated with the inability of the García administration to handle the nation's crises and began to draft an operation – Plan Verde – to overthrow his government. The military's Plan Verde involved the " total extermination " of impoverished and indigenous Peruvians perceived as a drain on the economy, the control or censorship of media in
16745-423: The deaths of around one million people, mostly non-combatants. Although the decades-long regime of President Porfirio Díaz (1876–1911) was increasingly unpopular, there was no foreboding in 1910 that a revolution was about to break out. The aging Díaz failed to find a controlled solution to presidential succession, resulting in a power struggle among competing elites and the middle classes, which occurred during
16942-434: The defeat of Huerta, he located González's bones and had them reburied with full honors. In Morelos, Emiliano Zapata continued his rebellion under the Plan of Ayala (while expunging the name of counter-revolutionary Pascual Orozco from it), calling for the expropriation of land and redistribution to peasants. Huerta offered peace to Zapata, who rejected it. The Huerta government was thus challenged by revolutionary forces in
17139-463: The demands of the Plan de Ayala and in rebellion against every central government up until his assassination by an agent of President Venustiano Carranza in 1919. The northern revolutionary General Pascual Orozco , a leader in taking Ciudad Juárez, had expected to become governor of Chihuahua. In 1911, although Orozco was "the man of the hour", Madero gave the governorship instead to Abraham González ,
17336-451: The developed world was under threat from collectivist trends, which they outlined in their statement of aims: The central values of civilization are in danger. Over large stretches of the Earth's surface the essential conditions of human dignity and freedom have already disappeared. In others, they are under constant menace from the development of current tendencies of policy. The position of
17533-430: The direct control of the president. With these forces, Díaz attempted to appease the Mexican countryside, led by a stable government that was nominally civilian, and the conditions to develop the country economically with the infusion of foreign investments. During Díaz's long tenure in office, the Federal Army became overstaffed and top-heavy with officers, many of them elderly who last saw active military service against
17730-457: The domestic production of wheat, corn and livestock that peasants had lived on. Wealth, political power and access to education were concentrated among a handful of elite landholding families mainly of European and mixed descent. These hacendados controlled vast swaths of the country through their huge estates (for example, the Terrazas had one estate in Sonora that alone comprised more than
17927-444: The earliest nations to implement neoliberal reform. Marxist economic geographer David Harvey has described the substantial neoliberal reforms in Chile beginning in the 1970s as "the first experiment with neoliberal state formation", which would provide "helpful evidence to support the subsequent turn to neoliberalism in both Britain... and the United States." Similarly, Vincent Bevins says that Chile under Augusto Pinochet "became
18124-550: The early 1970s. After several years of socialist economic policies under president Salvador Allende , a 1973 coup d'état , which established a military junta under dictator Augusto Pinochet , led to the implementation of a number of sweeping neoliberal economic reforms that had been proposed by the Chicago Boys , a group of Chilean economists educated under Milton Friedman . This "neoliberal project" served as "the first experiment with neoliberal state formation" and provided an example for neoliberal reforms elsewhere. Beginning in
18321-575: The early 1980s, the Reagan administration and Thatcher government implemented a series of neoliberal economic reforms to counter the chronic stagflation the United States and United Kingdom had each experienced throughout the 1970s. Neoliberal policies continued to dominate American and British politics until the Great Recession . Following British and American reform, neoliberal policies were exported abroad, with countries in Latin America ,
18518-456: The economy. It is also commonly associated with the economic policies introduced by Margaret Thatcher in the United Kingdom and Ronald Reagan in the United States. Some scholars note it has a number of distinct usages in different spheres: There is debate over the meaning of the term. Sociologists Fred L. Block and Margaret Somers claim there is a dispute over what to call the influence of free-market ideas which have been used to justify
18715-567: The economy. It would not be until a succession of economic downturns and crises in the 1970s that neoliberal policy proposals would be widely implemented. By this time, neoliberal thought had evolved. The early neoliberal ideas of the Mont Pelerin Society had sought to chart a middle way between the trend of increasing government intervention implemented after the Great Depression and the laissez-faire economics many in
18912-431: The efforts of the Colloquium would be overwhelmed by the outbreak of World War II and were largely forgotten. Nonetheless, the Colloquium served as the first meeting of the nascent neoliberal movement and would serve as the precursor to the Mont Pelerin Society , a far more successful effort created after the war by many of those who had been present at the Colloquium. Neoliberalism began accelerating in importance with
19109-626: The ejido land and growing agricultural technology. Those who lived on ejido land but did not own the land were more inclined to leave the rural land as well. After these male figures would leave the household the families left behind would consist of the wife and her husband's family, which allowed women increased participation in household decision-making in the absence of male figures. Mexican Revolution Revolutionary victory [REDACTED] Pro-government: [REDACTED] Anti-government: Supported by: Supported by: The Mexican Revolution ( Spanish : Revolución mexicana )
19306-445: The epicenter of the community as Europeans dominated the leadership roles. Established during a time when central planning was in the ascendancy worldwide and there were few avenues for neoliberals to influence policymakers, the society became a "rallying point" for neoliberals, as Milton Friedman phrased it, bringing together isolated advocates of liberalism and capitalism . They were united in their belief that individual freedom in
19503-410: The essential structure of the Díaz regime, including the Federal Army, was kept in place. Madero fervently held to his position that Mexico needed real democracy, which included regime change by free elections, a free press, and the right of labor to organize and strike. The rebels who brought him to power were demobilized and Madero called on these men of action to return to civilian life. According to
19700-477: The establishment of the Mont Pelerin Society in 1947, whose founding members included Friedrich Hayek , Milton Friedman , Karl Popper , George Stigler and Ludwig von Mises . Meeting annually, it became a "kind of international 'who's who' of the classical liberal and neo-liberal intellectuals." While the first conference in 1947 was almost half American, the Europeans dominated by 1951. Europe would remain
19897-577: The existing representative democracy acting on the behalf of the majority. To be neoliberal meant advocating a modern economic policy with state intervention . Neoliberal state interventionism brought a clash with the opposing laissez-faire camp of classical liberals, like Ludwig von Mises . Most scholars in the 1950s and 1960s understood neoliberalism as referring to the social market economy and its principal economic theorists such as Walter Eucken , Wilhelm Röpke , Alexander Rüstow and Alfred Müller-Armack . Although Hayek had intellectual ties to
20094-445: The experience or the ideological inclination to reward men who had helped bring him to power. Some revolutionary leaders expected personal rewards, such as Pascual Orozco of Chihuahua. Others wanted major reforms, most especially Emiliano Zapata and Andrés Molina Enríquez , who had long worked for land reform . Madero met personally with Zapata, telling the guerrilla leader that the agrarian question needed careful study. His meaning
20291-539: The firm of Washington lawyer Sherburne Hopkins , the "world's best rigger of Latin-American revolutions", to encourage support in the U.S. A strategy to discredit Díaz with U.S. business and the U.S. government achieved some success, with Standard Oil representatives engaging in talks with Gustavo Madero. More importantly, the U.S. government "bent neutrality laws for the revolutionaries". In late 1910, revolutionary movements arose in response to Madero's Plan de San Luis Potosí . Still, their ultimate success resulted from
20488-557: The former president, that were quickly put down and the generals jailed. They were both in Mexico City prisons and, despite their geographical separation, they were able to foment yet another rebellion in February 1913. This period came to be known as the Ten Tragic Days ( La Decena Trágica ), which ended with Madero's resignation and assassination and Huerta assuming the presidency. Although Madero had reason to distrust Victoriano Huerta, Madero placed him in charge of suppressing
20685-665: The former seeks to disrupt and overcome any institutions which stand in the way. Radhika Desai, director of the Geopolitical Economy Research Group at the University of Manitoba , argues that global capitalism reached its peak in 1914, just prior to the two great wars, anti-capitalist revolutions and Keynesian reforms, and the purpose of neoliberalism was to restore capitalism to the preeminence it once enjoyed. She argues that this process has failed as contemporary neoliberal capitalism has fostered
20882-429: The fringes of Chilean economic and political thought for a number of years, as the presidency of Salvador Allende (1970–1973) brought about a socialist reorientation of the economy. During the Allende presidency, Chile experienced a severe economic crisis, in which inflation peaked near 150%. Following an extended period of social unrest and political tension, as well as diplomatic, economic, and covert pressure from
21079-485: The gloves off", goes on to assert that the term was largely unknown by the general public in 1998, particularly in the United States . Lester Spence uses the term to critique trends in Black politics, defining neoliberalism as "the general idea that society works best when the people and the institutions within it work or are shaped to work according to market principles". According to Philip Mirowski , neoliberalism views
21276-437: The government, which was received with disapproval by Fujimori. USAID would go on to assist the Fujimori government with rewriting the 1993 Peruvian constitution, with the agency concluding in 1997 that it helped with the "preparation of legislative texts" and "contributed to the emergence of a private sector advisory role". The policies promoted by de Soto and implemented by Fujimori eventually caused macroeconomic stability and
21473-481: The governor of the state of Coahuila, Venustiano Carranza , along with Pablo González . Huerta expected state governors to fall into line with the new government. But Carranza and Abraham González , Governor of Chihuahua did not. Carranza issued the Plan of Guadalupe , a strictly political plan to reject the legitimacy of the Huerta government, and called on revolutionaries to take up arms. Revolutionaries who had brought Madero to power only to be dismissed in favor of
21670-438: The growth of a view of history which denies all absolute moral standards and by the growth of theories which question the desirability of the rule of law. It holds further that they have been fostered by a decline of belief in private property and the competitive market...[This group's] object is solely, by facilitating the exchange of views among minds inspired by certain ideals and broad conceptions held in common, to contribute to
21867-453: The high interest rates of the period which—while stabilizing inflation—hampered investment and contributed to widespread bankruptcy in the banking industry. Other scholars fault governmental departures from the neoliberal agenda ; for instance, the government pegged the Chilean peso to the US dollar, against the wishes of the Chicago Boys, which economists believe led to an overvalued peso. After
22064-421: The idea that the word is nothing more than a political slur, or a term without any analytic power". Gary Gerstle argues that neoliberalism is a legitimate term, and describes it as "a creed that calls explicitly for unleashing capitalism's power." He distinguishes neoliberalism from traditional conservatism, as the latter values respect for traditions and bolstering the institutions which reinforce them, whereas
22261-401: The ideas of those who attended the 1938 colloquium. As a result, there is controversy as to the precise meaning of the term and its usefulness as a descriptor in the social sciences , especially as the number of different kinds of market economies have proliferated in recent years. Unrelated to the economic philosophy described in this article, the term "neoliberalism" is also used to describe
22458-485: The immediate suffering of poor Peruvians who saw unregulated prices increase rapidly. Those living in poverty saw prices increase so much that they could no longer afford food. The New York Times wrote that de Soto advocated for the collapse of Peru's society, with the economist saying that a civil crisis was necessary to support the policies of Fujimori. Fujimori and de Soto would ultimately break their ties after de Soto recommended increased involvement of citizens within
22655-466: The increased economic freedom he believed the neoliberal reforms had brought had put pressure on the dictatorship over time, resulting in a gradual increase in political freedom and, ultimately, the restoration of democracy. The Chilean scholars Javier Martínez and Alvaro Díaz reject this argument, pointing to the long tradition of democracy in Chile. They assert that the defeat of the Pinochet regime and
22852-477: The individual and the voluntary group are progressively undermined by extensions of arbitrary power. Even that most precious possession of Western Man, freedom of thought and expression, is threatened by the spread of creeds which, claiming the privilege of tolerance when in the position of a minority, seek only to establish a position of power in which they can suppress and obliterate all views but their own...The group holds that these developments have been fostered by
23049-532: The interventionist excesses of the Erhard ministry and the ordoliberals, Mises wrote: "I have no illusions about the true character of the politics and politicians of the social market economy". According to Mises, Erhard's teacher Franz Oppenheimer "taught more or less the New Frontier line of" President Kennedy's "Harvard consultants ( Schlesinger , Galbraith , etc.)". In Germany, neoliberalism at first
23246-432: The label "neoliberalism", criticized that development tendency and pressed for a more limited welfare program. Hayek did not like the expression "social market economy", but stated in 1976 that some of his friends in Germany had succeeded in implementing the sort of social order for which he was pleading while using that phrase. In Hayek's view, the social market economy's aiming for both a market economy and social justice
23443-549: The land but are allowed to use their allotted parcels indefinitely as long as they do not fail to use the land for more than two years. They can pass their rights on to their children. Opponents of the ejido system pointed to widespread corruption within the Banco Nacional de Crédito Rural ( Banrural )—the primary institution responsible for providing loans to ejidatarios —illegal sales and transfers of ejido lands, ecological degradation, and low productivity as evidence of
23640-482: The liberal focus on individualism and economic freedom must not be abandoned to collectivism. For decades after the formation of the Mont Pelerin Society , the ideas of the society would remain largely on the fringes of political policy, confined to a number of think-tanks and universities and achieving only measured success with the ordoliberals in Germany , who maintained the need for strong state influence in
23837-442: The market as the greatest information processor, superior to any human being. It is hence considered as the arbiter of truth. Adam Kotsko describes neoliberalism as political theology , as it goes beyond simply being a formula for an economic policy agenda and instead infuses it with a moral ethos that "aspires to be a complete way of life and a holistic worldview, in a way that previous models of capitalism did not." Neoliberalism
24034-404: The mid-1980s, after French philosopher Michel Foucault brought attention to it. At a base level we can say that when we make reference to 'neoliberalism', we are generally referring to the new political, economic and social arrangements within society that emphasize market relations, re-tasking the role of the state, and individual responsibility . Most scholars tend to agree that neoliberalism
24231-505: The military under the civilian government's control. The Revolution was a decade-long civil war, with new political leadership that gained power and legitimacy through their participation in revolutionary conflicts. The political party those leaders founded in 1929, which would become the Institutional Revolutionary Party (PRI), ruled Mexico until the presidential election of 2000 . When the Revolution ended,
24428-427: The miserable state of public services unaltered – most clearly in the case of health services." The candidacy of Pedro Castillo in the 2021 Peruvian general election brought attention to the disparities between urban and rural Peruvians, with much of his support being earned in the exterior portions of the country. Castillo ultimately won the election, with The New York Times reporting his victory as
24625-758: The months of the Interim Presidency and left in place the Federal Army. Madero had drawn some loyal and militarily adept supporters who brought down the Díaz regime by force of arms. Madero himself was not a natural soldier, and his decision to dismiss the revolutionary forces that brought him to power isolated him politically. He was an inexperienced politician, who had never held office before. He firmly held to democratic ideals, which many consider evidence of naivete. His election as president in October 1911 raised high expectations among many Mexicans for positive change. The Treaty of Ciudad Juárez guaranteed that
24822-420: The most important old age income source for a majority of the German population, therefore despite liberal rhetoric the 1950s witnessed what has been called a "reluctant expansion of the welfare state". To end widespread poverty among the elderly the pension reform of 1957 brought a significant extension of the German welfare state which already had been established under Otto von Bismarck . Rüstow, who had coined
25019-469: The nation and the establishment of a neoliberal economy in Peru. During his campaigning for the 1990 Peruvian general election , Alberto Fujimori initially expressed concern against the proposed neoliberal policies of his opponent Mario Vargas Llosa . Peruvian magazine Oiga reported that, following the election, the armed forces were unsure of Fujimori's willingness to fulfill the plan's objectives, though they planned to convince Fujimori to agree to
25216-577: The national health system of Peru" during the period of forced sterilizations. At least 300,000 Peruvians were victims of forced sterilization by the Fujimori government in the 1990s, with the majority being affected by the PNSRPF . The policy of sterilizations resulted in a generational shift that included a smaller younger generation that could not provide economic stimulation to rural areas, making such regions more impoverished. Though economic statistics show improved economic data in Peru in recent decades,
25413-626: The need for change." De la Barra's government sent General Victoriano Huerta to fight in Morelos against the Zapatistas, burning villages and wreaking havoc. His actions drove a wedge between Zapata and Madero, which widened when Madero was inaugurated as president. Zapata remained in arms continuously until his assassination in 1919. Madero won the 1911 election decisively and was inaugurated as president in November 1911, but his movement had lost crucial momentum and revolutionary supporters in
25610-623: The neoliberal policies of the Chicago boys. Some scholars attribute the successes to the re-regulation of the banking industry and a number of targeted social programs designed to alleviate poverty. Others say that while the economy had stabilized and was growing by the late 1980s, inequality widened: nearly 45% of the population had fallen into poverty while the wealthiest 10% had seen their incomes rise by 83%. According to Chilean economist Alejandro Foxley , when Pinochet finished his 17-year term by 1990, around 44% of Chilean families were living below
25807-463: The new President, Victoriano Huerta . This initiated a new and bloody phase of the Revolution, as a coalition of northerners opposed to the counter-revolutionary regime of Huerta, the Constitutionalist Army led by the Governor of Coahuila Venustiano Carranza , entered the conflict. Zapata's forces continued their armed rebellion in Morelos. Huerta's regime lasted from February 1913 to July 1914, and
26004-480: The new democratic system promoted by Madero, but it had its interests to promote, some of which were the forces of the old conservative Church, while the new, progressive Church supporting social Catholicism of the 1891 papal encyclical Rerum Novarum was also a current. When Madero was overthrown in February 1913 by counter-revolutionaries, the conservative wing of the Church supported the coup. Madero did not have
26201-457: The new meaning of neoliberalism became established as common usage among Spanish-speaking scholars, it diffused into the English-language study of political economy . By 1994 the term entered global circulation and scholarship about it has grown over the last few decades. An early use of the term in English was in 1898 by the French economist Charles Gide to describe the economic beliefs of
26398-401: The north of Mexico and the strategic state of Morelos, just south of the capital. Huerta's presidency is usually characterized as a dictatorship. From the point of view of revolutionaries at the time and the construction of historical memory of the Revolution, it is without any positive aspects. "Despite recent attempts to portray Victoriano Huerta as a reformer, there is little question that he
26595-570: The north. Both Zapata and Orozco had led revolts that had put pressure on Díaz to resign, and both felt betrayed by Madero once he became president. The press embraced its newfound freedom and Madero became a target of its criticism. Organized labor, which had been suppressed under Díaz, could and did stage strikes, which foreign entrepreneurs saw as threatening their interests. Although there had been labor unrest under Díaz, labor's new freedom to organize also came with anti-American currents. The anarcho-syndicalist Casa del Obrero Mundial (House of
26792-478: The northern state of Coahuila , announced his intent to challenge Díaz for the presidency in the next election , under the banner of the Anti-Reelectionist Party. Madero chose as his running mate Francisco Vázquez Gómez , a physician who had opposed Díaz. Madero campaigned vigorously and effectively. To ensure Madero did not win, Díaz had him jailed before the election. He escaped and fled for
26989-470: The operation prior to his inauguration. After taking office, Fujimori abandoned his campaign's economic platform, adopting more aggressive neoliberal policies than those espoused by his election competitor Vargas Llosa. With Fujimori's compliance, plans for a coup as designed in Plan Verde were prepared for two years and finally executed during the 1992 Peruvian coup d'état , which ultimately established
27186-501: The people responsible for the corruption, and regardless of its productivity, subsistence production is an important survival strategy for many peasants. As part of a larger program of neoliberal economic restructuring that had already been weakening support for ejidal and other forms of small-scale agriculture and negotiation of the North American Free Trade Agreement (NAFTA), President Carlos Salinas de Gortari in 1992 pushed legislation through Congress that modified article 27 of
27383-433: The percentage of the Chilean population living in poverty rose from 17% in 1969 to 45% in 1985 at the same time government budgets for education, health and housing dropped by over 20% on average. The era was also marked by economic instability. Overall, scholars have mixed opinions on the effects of the neoliberal reforms. The CIA World Factbook states that Chile's "sound economic policies", maintained consistently since
27580-588: The poverty line. Despite years of suppression by the Pinochet junta, a presidential election was held in 1988, as dictated by the 1980 constitution (though not without Pinochet first holding another plebiscite in an attempt to amend the constitution). In 1990, Patricio Aylwin was democratically elected, bringing an end to the military dictatorship. The reasons cited for Pinochet's acceptance of democratic transition are numerous. Hayek, echoing arguments he had made years earlier in The Road to Serfdom , argued that
27777-476: The power of the Mexican state. The isolation from the central government that many remote areas had enjoyed or suffered was ending. Telegraph lines constructed next to the railroad tracks meant instant communication between distant states and the capital. The political acumen and flexibility Díaz exhibited in his early years in office began to decline after 1900. He brought the state governors under his control, replacing them at will. The Federal Army, while large,
27974-484: The power of the federal government. Carranza became President of Mexico in 1917, serving a term ending in 1920. He attempted to impose a civilian successor, prompting northern revolutionary generals to rebel. Carranza fled Mexico City and was killed. From 1920 to 1940, revolutionary generals held the office of president, each completing their terms (except from 1928-1934). This was a period when state power became more centralized, and revolutionary reform implemented, bringing
28171-539: The power of the military, reining in provincial military chieftains, and making them subordinate to the central government. He contended with a whole new group of generals who had fought for the liberal cause and who expected rewards for their services. He systematically dealt with them, providing some rivals with opportunities to enrich themselves, ensuring the loyalty of others with high salaries, and others were bought off by rewards of landed estates and redirecting their political ambitions. Military rivals who did not accept
28368-446: The power structure of the old regime remained firmly in place. Francisco León de la Barra became interim president, pending an election to be held in October 1911. Madero considered De la Barra an acceptable figure for the interim presidency since he was not a Científico or politician, but rather a Catholic lawyer and diplomat. He appeared to be a moderate, but the German ambassador to Mexico, Paul von Hintze , who associated with
28565-404: The present-day Constitution of Mexico , which aimed to create a strong central government. Revolutionary generals held power from 1920 to 1940. The revolutionary conflict was primarily a civil war , but foreign powers, having important economic and strategic interests in Mexico, figured in the outcome of Mexico's power struggles; the U.S. involvement was particularly high. The conflict led to
28762-624: The preservation and improvement of the free society. The society set out to develop a neoliberal alternative to, on the one hand, the laissez-faire economic consensus that had collapsed with the Great Depression and, on the other, New Deal liberalism and British social democracy , collectivist trends which they believed posed a threat to individual freedom. They believed that classical liberalism had failed because of crippling conceptual flaws which could only be diagnosed and rectified by withdrawing into an intensive discussion group of similarly minded intellectuals; however, they were determined that
28959-454: The presidency along with his vice president, Ramón Corral, by the end of May 1911 to be replaced by an interim president, Francisco León de la Barra , until elections were held. Díaz and his family and a number of top supporters were allowed to go into exile. When Díaz left for exile in Paris, he was reported as saying, "Madero has unleashed a tiger; let us see if he can control it." With Díaz in exile and new elections to be called in October,
29156-413: The proper role of the state . A group of "true (third way) neoliberals" centered around Rüstow and Lippmann advocated for strong state supervision of the economy while a group of old school liberals centered around Mises and Hayek continued to insist that the only legitimate role for the state was to abolish barriers to market entry. Rüstow wrote that Hayek and Mises were relics of the liberalism that caused
29353-451: The ranks were now filled by draftees . There was a vast gulf between officers and the lower ranks. "The officer corps epitomized everything the masses resented about the Díaz system." With multiple rebellions breaking out in the wake of the fraudulent 1910 election, the military was unable to suppress them, revealing the regime's weakness and leading to Díaz's resignation in May 1911. Although
29550-519: The rebels under Félix Díaz (Bernardo Reyes having been killed on the first day of the open armed conflict). U.S. Ambassador Henry Lane Wilson , who had done all he could to undermine U.S. confidence in Madero's presidency, brokered the Pact of the Embassy , which formalized the alliance between Félix Díaz and Huerta, with the backing of the United States. Huerta was to become provisional president following
29747-404: The recession, Chilean economic growth rose quickly, eventually hovering between 5% and 10% and significantly outpacing the Latin American average (see chart). Additionally, unemployment decreased and the percent of the population below the poverty line declined from 50% in 1984 to 34% by 1989. This led Milton Friedman to call the period the " Miracle of Chile ", and he attributed the successes to
29944-454: The regions under the greatest stress were not the ones that rebelled. Díaz effectively suppressed strikes, rebellions, and political opposition until the early 1900s. Mexicans began to organize in opposition to Díaz, who had welcomed foreign capital and capitalists, suppressed nascent labor unions, and consistently moved against peasants as agriculture flourished. In 1905 the group of Mexican intellectuals and political agitators who had created
30141-522: The republic, drove Díaz officials from the vicinity, seized money and stamps, and staked out spheres of local authority. Towns, cities, and the countryside passed into the hands of the Maderistas." Díaz sued for peace with Madero, who himself did not want a prolonged and bloody conflict. The result was the Treaty of Ciudad Juárez , signed on 21 May 1911. The signed treaty stated that Díaz would abdicate
30338-415: The resignations of Madero and his vice president, José María Pino Suárez. Rather than being sent into exile with their families, the two were murdered while being transported to prison—a shocking event, but one that did not prevent the Huerta regime's recognition by most world governments, with the notable exception of the U.S. Historian Friedrich Katz considers Madero's retention of the Federal Army, which
30535-402: The restoration of the Mexican republic under liberal control did land reform begin to take effect. Under liberal general Porfirio Díaz , who came to power by coup in 1876, policies to promote political stability and economic prosperity, "order and progress", meant that large haciendas began expanding and many villages lost their lands leaving the peasantry landless. Many peasants participated in
30732-551: The result of other factors; in particular, some scholars argue that after the Crisis of 1982 the "pure" neoliberalism of the late 1970s was replaced by a focus on fostering a social market economy that mixed neoliberal and social welfare policies. As a response to the 2019–20 Chilean protests , a national plebiscite was held in October 2020 to decide whether the Chilean constitution would be rewritten. The "approve" option for
30929-497: The retrenchment of New Deal programs and policies since the 1980s: neoliberalism, laissez-faire or "free market ideology". Other academics such as Susan Braedley, Med Luxton, and Robert W. McChesney, assert that neoliberalism is a political philosophy which seeks to "liberate" the processes of capital accumulation . In contrast, Frances Fox Piven sees neoliberalism as essentially hyper- capitalism . Robert W. McChesney , while defining neoliberalism similarly as "capitalism with
31126-525: The return of democracy came primarily from large-scale mass rebellion that eventually forced party elites to use existing institutional mechanisms to restore democracy. In the 1990s, neoliberal economic policies broadened and deepened, including unilateral tariff reductions and the adoption of free trade agreements with a number of Latin American countries and Canada. At the same time, the decade brought increases in government expenditure on social programs to tackle poverty and poor quality housing. Throughout
31323-529: The revolutionaries in Morelos refused to do. The cabinet of De la Barra and the Mexican congress was filled with supporters of the Díaz regime. Madero campaigned vigorously for the presidency during this interim period, but revolutionaries who had supported him and brought about Díaz's resignation were dismayed that the sweeping reforms they sought were not immediately instituted. He did introduce some progressive reforms, including improved funding for rural schools; promoting some aspects of agrarian reform to increase
31520-416: The revolutionary fighters who had helped bring him to power. In the aftermath of his assassination and Huerta's seizure of power via a military coup, former revolutionaries had no formal organization through which to raise opposition to Huerta. Madero's "martyrdom accomplished what he was unable to do while alive: unite all the revolutionists under one banner." Within 16 months, revolutionary armies defeated
31717-424: The revolutionary forces with the promise of promotion. Madero's plan was aimed at fomenting a popular uprising against Díaz, but he also understood that the support of the United States and U.S. financiers would be of crucial importance in undermining the regime. The rich and powerful Madero family drew on its resources to make regime change possible, with Madero's brother Gustavo A. Madero hiring, in October 1910,
31914-549: The role of the private sector in the economy and society . Additionally, the neoliberal project is oriented towards the establishment of institutions and is inherently political in nature, extending beyond mere economic considerations. The term is rarely used by proponents of free-market policies. When the term entered into common academic use during the 1980s in association with Augusto Pinochet 's economic reforms in Chile , it quickly acquired negative connotations and
32111-552: The service of wealthy landowners or hacendados . Diaz rigged elections, arguing that only he knew what was best for his country, and he enforced his belief with a strong hand. "Order and Progress" were the watchwords of his rule. Díaz's presidency was characterized by the promotion of industry and the development of infrastructure by opening the country to foreign investment. Díaz suppressed opposition and promoted stability to reassure foreign investors. Farmers and peasants both complained of oppression and exploitation. The situation
32308-445: The society believed had produced the Great Depression. Milton Friedman , wrote in his early essay "Neo-liberalism and Its Prospects" that "Neo-liberalism would accept the nineteenth-century liberal emphasis on the fundamental importance of the individual, but it would substitute for the nineteenth century goal of laissez-faire as a means to this end, the goal of the competitive order", which requires limited state intervention to "police
32505-603: The state of Veracruz, the Mexican army gunned down Rio Blanco textile workers and put the bodies on train cars that transported them to Veracruz, "where the bodies were dumped in the harbor as food for sharks". Since the press was censored in Mexico under Díaz, little was published that was critical of the regime. Newspapers barely reported on the Rio Blanco textile strike, the Cananea strike or harsh labor practices on plantations in Oaxaca and Yucatán. Leftist Mexican opponents of
32702-497: The supporters of the old [Díaz] regime are the main causes of the unsettling situation in which the government that emerged from the revolution finds itself ... The regime appears relentlessly bent on suicide." Huerta, formally in charge of the defense of Madero's regime, allowed the rebels to hold the armory in Mexico City—the Ciudadela—while he consolidated his political power. He changed allegiance from Madero to
32899-456: The system's failure. Proponents countered these arguments by pointing out that every administration since that of Cárdenas had been either indifferent or openly hostile to ejidos, that the land assigned to ejidos was often of lower quality and inherently less productive than privately held land. Also, the majority of agricultural research and support was biased towards large-scale commercial enterprises. The politicians complaining about Banrural were
33096-480: The system, establish conditions favorable to competition and prevent monopoly , provide a stable monetary framework , and relieve acute misery and distress." By the 1970s, neoliberal thought—including Friedman's—focused almost exclusively on market liberalization and was adamant in its opposition to nearly all forms of state interference in the economy. One of the earliest and most influential turns to neoliberal reform occurred in Chile after an economic crisis in
33293-523: The term "neoliberal" as an insult or slur used by leftists against liberals and varieties of liberalism that leftists disagree with. British journalist Will Hutton called neoliberal "an unthinking leftist insult" that "stifle[s] debate." On the other hand, many scholars believe it retains a meaningful definition. Writing in The Guardian , Stephen Metcalf posits that the publication of the 2016 IMF paper "Neoliberalism: Oversold?" helps "put to rest
33490-430: The term] reduces its capacity as an analytic frame. If neoliberalism is to serve as a way of understanding the transformation of society over the last few decades, then the concept is in need of unpacking". Historian Daniel Stedman Jones has similarly said that the term "is too often used as a catch-all shorthand for the horrors associated with globalization and recurring financial crises". Several writers have criticized
33687-560: The theories they had developed in the 1930s and 1940s and contributed to West Germany's reconstruction after the Second World War. Erhard was a member of the Mont Pelerin Society and in constant contact with other neoliberals. He pointed out that he is commonly classified as neoliberal and that he accepted this classification. The ordoliberal Freiburg School was more pragmatic. The German neoliberals accepted
33884-531: The villagers' land and water rights. With the expansion of Mexican agriculture, landless peasants were forced to work for low wages or move to the cities. Peasant agriculture was under pressure as haciendas expanded, such as in the state of Morelos , just south of Mexico City, with its burgeoning sugar plantations. There was what one scholar has called "agrarian compression", in which "population growth intersected with land loss , declining wages and insecure tenancies to produce widespread economic deterioration", but
34081-485: The wealth earned between 1990 and 2020 was not distributed throughout the country; living standards showed disparities between the more-developed capital city of Lima and similar coastal regions while rural provinces remained impoverished. Sociologist Maritza Paredes of the Pontifical Catholic University of Peru stated, "People see that all the natural resources are in the countryside but all
34278-430: The widespread uprisings, showing the military's weakness and encouraging the rebels. Díaz resigned in May 1911 and went into exile, an interim government was installed until elections could be held, the Federal Army was retained, and revolutionary forces demobilized. The first phase of the Revolution was relatively bloodless and short-lived. Madero was elected President, taking office in November 1911. He immediately faced
34475-561: The working class were reduced. In 1982, Chile again experienced a severe economic recession . The cause of this is contested but most scholars believe the Latin American debt crisis —which swept nearly all of Latin America into financial crisis—was a primary cause. Some scholars argue the neoliberal policies of the Chicago boys heightened the crisis (for instance, percent GDP decrease was higher than in any other Latin American country) or even caused it; for instance, some scholars criticize
34672-648: The world's first test case for 'neoliberal' economics." The turn to neoliberal policies in Chile originated with the Chicago Boys , a select group of Chilean students who, beginning in 1955, were invited to the University of Chicago to pursue postgraduate studies in economics. They studied directly under Milton Friedman and his disciple, Arnold Harberger , and were exposed to Friedrich Hayek . Upon their return to Chile, their neoliberal policy proposals—which centered on widespread deregulation , privatization , reductions to government spending to counter high inflation, and other free-market policies —would remain largely on
34869-573: The world. The term neoliberalism has become increasingly prevalent in recent decades. It has been a significant factor in the proliferation of conservative and right-libertarian organizations, political parties , and think tanks , and predominantly advocated by them. Neoliberalism is often associated with a set of economic liberalization policies, including privatization , deregulation , consumer choice , globalization , free trade , monetarism , austerity , and reductions in government spending . These policies are designed to increase
35066-416: The years military men were largely replaced by civilians loyal to Díaz. As a military man himself, and one who had intervened directly in politics to seize the presidency in 1876, Díaz was acutely aware that the Federal Army could oppose him. He augmented the rurales , a police force created by Benito Juárez , making them his private armed force. The rurales were only 2,500 in number, as opposed to
35263-603: Was a key member of the Científicos , the circle of technocratic advisers steeped in positivist political science. Another potential successor was General Bernardo Reyes , Díaz's Minister of War, who also served as governor of Nuevo León. Reyes, an opponent of the Científicos, was a moderate reformer with a considerable base of support. Díaz became concerned about him as a rival and forced him to resign from his cabinet. He attempted to marginalize Reyes by sending him on
35460-436: Was a muddle of inconsistent aims. Despite his controversies with the German neoliberals at the Mont Pelerin Society, Ludwig von Mises stated that Erhard and Müller-Armack accomplished a great act of liberalism to restore the German economy and called this "a lesson for the US". According to different research Mises believed that the ordoliberals were hardly better than socialists. As an answer to Hans Hellwig's complaints about
35657-456: Was a self-serving dictator." There are few biographies of Huerta, but one strongly asserts that Huerta should not be labeled simply as a counter-revolutionary, arguing that his regime consisted of two distinct periods: from the coup in February 1913 up to October 1913. During that time he attempted to legitimize his regime and demonstrate its legality by pursuing reformist policies; and after October 1913, when he dropped all attempts to rule within
35854-463: Was an extended sequence of armed regional conflicts in Mexico from 20 November 1910 to 1 December 1920. It has been called "the defining event of modern Mexican history". It saw the destruction of the Federal Army , its replacement by a revolutionary army , and the transformation of Mexican culture and government . The northern Constitutionalist faction prevailed on the battlefield and drafted
36051-519: Was brought under control. Between 1970 and 1985 the infant mortality rate in Chile fell from 76.1 per 1000 to 22.6 per 1000, the lowest in Latin America. Unemployment from 1980 to 1990 decreased, but remained higher than the South American average (which was stagnant). And despite public perception among Chileans that economic inequality has increased, Chile's Gini coefficient has in fact dropped from 56.2 in 1987 to 46.6 in 2017. While this
36248-545: Was channeled peacefully. The National Catholic Party became an important political opposition force during the Madero presidency. In the June 1912 congressional elections, "militarily quiescent states ... the Catholic Party (PCN) did conspicuously well." During that period, the Catholic Association of Mexican Youth (ACJM) was founded. Although the National Catholic Party was an opposition party to
36445-438: Was clear: Madero, a member of a rich northern hacendado family, was not about to implement comprehensive agrarian reform for aggrieved peasants. In response to this lack of action, Zapata promulgated the Plan de Ayala in November 1911, declaring himself in rebellion against Madero. He renewed guerrilla warfare in the state of Morelos . Madero sent the Federal Army to deal with Zapata, unsuccessfully. Zapata remained true to
36642-431: Was defeated by the revolutionary forces and resulted in Díaz's resignation, "was the basic cause of his fall". His failure is also attributable to "the failure of the social class to which he belonged and whose interests he considered to be identical to those of Mexico: the liberal hacendados" (owners of large estates). Madero had created no political organization that could survive his death and had alienated and demobilized
36839-399: Was employed principally by critics of market reform and laissez-faire capitalism . Scholars tended to associate it with the theories of economists working with the Mont Pelerin Society , including Friedrich Hayek , Milton Friedman , Ludwig von Mises , and James M. Buchanan , along with politicians and policy-makers such as Margaret Thatcher , Ronald Reagan , and Alan Greenspan . Once
37036-452: Was further exacerbated by the drought that lasted from 1907 to 1909. The economy took a great leap during the Porfiriato, through the construction of factories, industries and infrastructure such as railroads and dams, as well as improving agriculture. Foreign investors bought large tracts of land to cultivate crops and range cattle for export. The cultivation of exportable goods such as coffee, tobacco, henequen for cordage, and sugar replaced
37233-616: Was increasingly an ineffective force with aging leadership and troops conscripted into service. Díaz attempted the same kind of manipulation he executed with the Mexican political system with business interests, showing favoritism to European interests against those of the U.S. Rival interests, particularly those of the foreign powers with a presence in Mexico, further complicated an already complex system of favoritism. As economic activity increased and industries thrived, industrial workers began organizing for better conditions. Díaz enacted policies that encouraged large landowners to intrude upon
37430-413: Was inherently social and did not need to be made so. He hoped that growing prosperity would enable the population to manage much of their social security by self-reliance and end the necessity for a widespread welfare state. By the name of Volkskapitalismus , there were some efforts to foster private savings. Although average contributions to the public old age insurance were quite small, it remained by far
37627-574: Was insulting. After Madero refused to agree to social reforms calling for better working hours, pay, and conditions, Orozco organized his army, the Orozquistas , also called the Colorados ("Red Flaggers") and issued his Plan Orozquista on 25 March 1912, enumerating why he was rising in revolt against Madero. In April 1912, Madero dispatched General Victoriano Huerta of the Federal Army to put down Orozco's dangerous revolt. Madero had kept
37824-426: Was introduced as an important component of the land reform in Mexico . Under Cárdenas, land reform was "sweeping, rapid, and, in some respects, structurally innovative... he promoted the collective ejido (hitherto a rare institution) in order to justify the expropriation of large commercial estates." The typical procedure for the establishment of an ejido involved the following steps: Ejidatarios do not actually own
38021-407: Was marked by the willingness to place humanistic and social values on par with economic efficiency. Alfred Müller-Armack coined the phrase "social market economy" to emphasize the egalitarian and humanistic bent of the idea. According to Boas and Gans-Morse, Walter Eucken stated that "social security and social justice are the greatest concerns of our time". Erhard emphasized that the market
38218-439: Was seen as giving way to a social liberal desire to control markets. This shift in thinking was shaped by the Great Depression and manifested in policies designed to counter the volatility of free markets . One motivation for the development of policies designed to mitigate the volatility of capitalist free markets was a desire to avoid repeating the economic failures of the early 1930s, which have been attributed, in part, to
38415-463: Was synonymous with both ordoliberalism and social market economy. But over time the original term neoliberalism gradually disappeared since social market economy was a much more positive term and fit better into the Wirtschaftswunder (economic miracle) mentality of the 1950s and 1960s. In the 1980s, numerous governments in Latin America adopted neoliberal policies. Chile was among
38612-498: Was the journalist Charles Peters , who, in 1983, published "A Neoliberal's Manifesto". Historian Elizabeth Shermer argued that the term gained popularity largely among left-leaning academics in the 1970s to "describe and decry a late twentieth-century effort by policymakers, think-tank experts, and industrialists to condemn social-democratic reforms and unapologetically implement free-market policies"; economic historian Phillip W. Magness notes its reemergence in academic literature in
38809-466: Was unravelling, to no one's surprise except perhaps Madero's, whose support continued to deteriorate, even among his political allies. Madero's supporters in congress before the coup, the so-called Renovadores ("the renewers"), criticized him, saying, "The revolution is heading toward collapse and is pulling the government to which it gave rise down with it, for the simple reason that it is not governing with revolutionaries. Compromises and concessions to
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