Mexico 2003 100 million population PRI officially out of power –Vicente Fox PAN (center right)...
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![Page 1: Mexico 2003 100 million population PRI officially out of power –Vicente Fox PAN (center right) Protectionism relatively open, market driven –8 th largest.](https://reader036.fdocuments.us/reader036/viewer/2022062421/56649da65503460f94a90e07/html5/thumbnails/1.jpg)
Mexico 2003
• 100 million population
• PRI officially out of power– Vicente Fox PAN (center right)
• Protectionism relatively open, market driven– 8th largest exporter– NAFTA
• “Middle income” country
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• Post 9-11
• “Huge sucking sound to the East” China
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Social Indicators
• Under-five mortality rate dropped from 46 to 29 per 1,000 between 1990 and 2000
• Urbanization: 75%
• 86 percent have access to clean water
• Lliteracy rate is over 90 percent
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“Two Mexicos”
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• Post WWII Import Substitution Policy and Infrastructure Development
• Modernization of Agriculture in north
• Uneven subsidies
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“Two Mexicos”
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Two MexicosEconomic/Social Disparities
• Formal/Informal economies: 15% of pop.
• Infant Mortality: 13% v. 52% (20th percentiles)
• Education: ( 7 years av.) 12.1% v. 1.1% (10th percentiles)
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Blue Jeans in Torreon
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Torreon, Coahila, Mexico
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Blue Jeans in Torreon
• Shifting Power: better local development?• Commodity chain approach
– Production, Marketing, also Social Movements, Governments
• Gereffi, 2001: “By focusing on the chain or organizational network as the unit of analysis, rather than the firm, interesting questions about power, governance and the dynamics of chains emerge.”
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Maquiladora Growth
Industry Statistics - Mexico
The Maquiladora Industry in Mexico, January 1994-1999 Border Region
# Employees Jan '94
# Employees Jan '99
# Maquilas Jan '94
# Maquilas Jan '99
Baja California
111,728 217,366 822 1,090
Sonora 43,670 85,646 182 252
Chihuahua 166,134 274,998 305 379 Coahuila 47,830 99,604 185 268
Tamaulipas 100,027 152,276 293 351 Subtotal Border States
469,389 829,890 1,787 2,340
Other States 77,044 230,327 370 803 Total 546,433 1,060,217 2,157 3,143
Source: In: Coalition for Justice in the Maquiladoras, Annual Report 1999
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Table 1. Apparel industry indicators for Torreon /La Laguna
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Main clients for Torreon apparel exports
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Pre-Nafta Manufacturer Dominated Assembly Network in Torreon
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Post Nafta Full Package Networks in Torreon
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US¯Torreon apparel commodity chain activities and location.
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Top 10 apparel manufacturers in Torreon, Mexico¯¯July 2000
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Changing Labor Conditions?-upside
• Labor “shortages” due to need for more skilled labor
• High turnover- Labor wars• Higher wages• Upscale labels promote improved working
condition• New factories are often better than US apparel
factories• Codes of Conduct displayed (but in English!!)
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Changing Labor Conditions?-downside according to Bair and Gereffi
• Concentration of Ownership in few extended families
• Men more readily promoted to management positions
• Mexican Government has reduced the power of unions to a minimum
• Higher wages must be seen in context of 1994 devaluation of peso decline in living standards over last 5 years
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Maquila Solidarity Network Critique
• “Toxic Fashions” and “Blue jean blues” require toxic chemicals
• Mercerization: Sulphur, caustic soda, acid
• Tinting and Overdyes-manually crunched, rubbed and sponged
• Bleaching and Stonewashing: Amylase, Laccase
• Drying and Baking: Toxic fumes from ovens
• Pollution of Water Supplies
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Code Initiatives in North
• UK: Ethical Trading Initiative (ETI)• US/Europe: SA 8000 (Social Accountability 8000)• US:
• Workers Rights Consortium (University Clothing
• Fair Labor Association (FLA)– Adidas-Salomon, Eddie Bauer, GEAR for Sports, Joy Athletic,
Liz Claiborne, Nordstrom, Nike, Patagonia, Reebok, Phillips-Van Heusen, Polo Ralph Lauren and Zephyr Graf-X.
• WRAP (Worldwide Responsible Apparel Production) Lower Standards
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Steps to Socially Just Production
• “Network of Central American Women in Solidarity with Maquila Workers” negotiate code of conduct with Nicaraguan Labor Ministry
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Torreon Chamber of Commerce
http://www.torreon.gob.mx/index2.htm