Import Substitution Model and the Mexican Miracle

• 1917 Constitution is established

• Some of the achievements of the Revolution are palpable

• A religious armed struggle

• Maximato

• Cardenismo - Oil expropriation

1920 -1940

BASIC INDUSTRY

IMPORT SUBSTITUTION

CONSEQUENCES

CAUSES

From the Mexican Miracle to Petrolization of the Economy

The increasing development of the Mexican economy from 1940 to 1952 came to be known as the “Mexican miracle”. When Cardenism ended, the government began concentrating on the economic growth of the country. The “Mexican miracle” was achieved by both the import substitution model and the war economy, in which the world’s most powerful countries were involved due to World War II. During this period domestic production increased 3 times, the Mexican business class surged and the Mexican middle class grew.

The war led to an increase in the external demand for certain Mexican products such as steel, paper, and cement. But most importantly, oil.

The “Mexican miracle” occurred during the mandates of Manuel Avila Camacho to Gustavo Díaz Ordaz.

However, this was insufficient to consolidate the country's economy. During Cardenismo the focus was on the nationalization of Mexico's oil industry but we were not able to compete with other industrialized countries which had the capacity to turn crude oil into industrial products such as fuel.