International News International News International News TOWARDS THE SECOND MEXICAN REVOLUTION

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67 per cent of Mexico's population now lives in cities Since the 1930s industry formation industries by has developed in Mexico 1,470% (7.5% per year). perhaps more rapidly and Producer goods industries

Bas Hardy concludes his articles on

looking at

contradictions of the development of capitalism in Mexico since the 1930s.

IN every Latin American country the working class and peasantry faces the bullet more often than the ballot.

Argentina, Chile, Brazil, Uraguay, Bolivia all have military dictatorships. Guatemala, # Salvador, and Honduras have civil wars.

The few democracies would. be regarded as caricatures by the British working class.

Yet it would be a mistake to conclude from all this that Latin American societies are all 'the same' Some countries have conditions of feudalsim and semi-colonialism. Others are quite highly industrialised, with economies in advance of the Balkan and Iberian nations.

States like Rrazil embrace vast regional differences in terms of economic development - "countries within a country' almost.

In Mexico, as we have seen, a relatively stable state bureaucracy has ruled continuously since 1914. That bureaucracy smashed the political and economic power of the landowners and the church, returned land to the mainly Indian peasantry and nationalised the ou industry. consistently than in any other major capitalist country but Japan. Overall industrial production increased 1,150% between 1939 and 1976 (6.8% per year, un average, walle grew at an average 9.6% per year between 1950 and 1976. By industrial production Mexico ranks 10th among the world's capitalist powers.

Machinery and other equipment had become 19% of Mexico's exports by 1979, other manufactured goods 20%. 64% of the labour force was in industry and services by 1980 las against 45% in 1960). So far as a comparison can be made, Mexico's level of industrial development is roughly on a par with France, for example, around 1900.

So, a capitalist success story? There is another side: the continual dependence of Mexico on US capital, its indebtedness to the western banks, and the fact that half the population has an average monthly wage of $30. Inequality is acute and increasing, and about 40% of the workforce is unemployed or only casually employed.

Some Mexicans, even on the left, look down on the backwardness of their southern neighbours. Clearly, however, they are ın a relationship of inequality with and imperialist domination by the US.

The exodus of 3 million or more Mexicans into the United States over the last decade is but one proof ofthis. The South Western US States and California have employed illegal wetback labour for 50 years or more.

The Mexican export of cheap labour is matched by its import of foreign capital, particularly from the USA. Over 80% of total foreign investment comes from the States, as do over 70% of all goods imported into Mexico.

Investment

The role of foreign capital is qualitatively smaller than it was in the early years of the century under Diaz, when American capitalists are said to have owned more of Mexican industry than Mexicans did, and also owned a lot of the land.

Foreign capital now accounts for about 5% of all investment and reinvestment, and Mexican state capital for about one third. But in strategic sectors, the foreign, especially US, capital retains dominance. According to 1972 figures, 36% of the capital in the 300 biggest manufacturing companies was US-owned.

The Mexican oil boom has further increased US business penetration. Pemex - the state oil corporation - has been farming out contracts . to US companies to exploit certain oil concessions. in return, these officials have received millions of dollars in the form of bribes.

This corruption is being investigated, but by the US government, not the Mexican!

Corruption is built into the system. Through their offices in the state, the Mexican middle class have set themselves up in business. The upper ranks of government have spread out to become owners of private companies.

A new Latifundio system has been established through agricultural corporations formed by former agricultural ministry employees. The rural population once again faces dispossession.

Corruption extends through all levels of the state. Mexico City's police chief, in a replica of the General Durazo, Parthenon. How he could afford a £14 million home on an annual salary of £6,000 doesn't tax the minds of most Mexicans.

Mansion

The Mayor of Mexico City has a modest mansion in New England worth They owe their posts and opportunities for enrichmént to the 'institutionalfor lucrative employn ent from Mayor to traffic 1 op. This is important in the stability and survival of the system.

Corruption

Organised corruption has never of course been popular with the Mexican people as a whole, since it is they who pay tor it in labour and blood. Deaths in police custody of Mexicans unwilling or unable to pay 'fines' into the pockets of the police have prompted popular protests.

The growing Indian struggle against the state bourgeoisie's land grabs have also witnessed repression and massacre in the recent past.

The student rebellion of 1968 disturbed the stable facade of the 'institutional revolution' • It was a sign of things to come.

Today the state cannot buy off sections of the population outside of its own ranks. It borrowed to pay for its own security in the past but now Faust must give his body to the devil. The future is 'austerity' and repression for the Mexican masses.

Factories

That is the major condition of the renegotiated international loans. For all the attempts to hail the recent bank nationalisation as a new nationalist gain, it is more likely to to with moves to bring Mexico into closer dependence, and increase the exploitation of workers in the factories and on the land.

The struggle of the Mexican masses is a struggle against the capitalist class and its state. It will be a struggle led by the working class - a second revolution to complete the first.

The Villas and Zapatas of tomorrow will come from the factories.

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DUNCANS BUTE

SUTER GUERETAR CANSTLA