The economic history of Aridoamerica: developmental contrasts with the U.S. East Coast and Southern Mexico

BACHELOR'S DEGREE IN BUSINESS ADMINISTRATION AND MANAGEMENT Depa men o Public Policy and Economic His o y Academic yea 2024/2025 Bachelo ’s Thesis: THE ECONOMIC HISTORY OF ARIDOAMERICA: DEVELOPMENTAL CONTRASTS WITH THE U.S. EAST COAST AND SOUTHERN MEXICO Au ho : Ad ián de la To e Eb o Di ec o : E nes o López Losa, PhD Bilbao, June 2025 2 ABSTRACT This essay aims o e iew he economic his o y o A idoame ica in ela ion o bo h he US Eas Coas and Sou he n Mexico and o o e a ealis ic pe spec i e on he u u e economic p ospec s o he egion. The ex begins by de ining wha A idoame ica is; la e , i con inues wi h an ex ensi e his o ical-economic analysis o he egion; as pa o his his o ical analysis, he au ho examines D . James Mahoney's Bou bonic De elopmen al Swi ch heo y and applies i o he case o No he n Mexico, explo ing how changes in Spanish colonial policy in he 18 h cen u y migh ha e in luenced he egion's long- e m economic ajec o y. In i s inal sec ion, he essay analyzes possible economic e en s and phenomena ha migh ake place in A idoame ica in he u u e aking in o accoun economic and poli ical ends cu en ly a ec ing he a ea. Key wo ds: economic his o y, A idoame ica, Vice oyal y o New Spain, Thi een Colonies, nea sho ing, Rio G ande, colonial de elopmen , economic g ow h, Mexico, Ame ican Sou hwes RESUMEN Es e ensayo iene como obje i o e isa la his o ia económica de A idoamé ica en elación an o con la cos a es e de los Es ados Unidos como con el su de México y o ece una isión ealis a ace ca del u u o económico de la egión. El ex o comienza de iniendo qué es A idoamé ica; más a de, con inúa p esen ando un ex enso análisis his ó ico-económico de la egión; como pa e de es e análisis his ó ico, el au o examina la eo ía del Bou bonic De elopmen al Swi ch del D . James Mahoney y la aplica al caso del no e de México, explo ando cómo cie os cambios en las polí icas coloniales españolas en el siglo XVIII pod ían habe in luido en la ayec o ia económica de la egión en el la go plazo. En su sección inal, el ensayo analiza posibles e en os y enómenos económicos que pod ían ene luga en A idoamé ica en el u u o eniendo en cuen a las endencias económicas y polí icas ac ualmen e p esen es en la zona. Palab as cla e: his o ia económica, A idoamé ica, Vi eina o de Nue a España, T ece Colonias, nea sho ing, Río G ande, desa ollo colonial, c ecimien o económico, su oes e de los EEUU 3 TABLE OF CONTENTS INTRODUCTION AND CONCEPTUAL FRAMEWORK ......................................................... 4 METHODOLOGY AND LIMITATIONS ................................................................................. 10 CHAPTER I – ECONOMIC LIFE IN ANCIENT ARIDOAMERICA: THE CASE OF THE AZTECS .................................................................................................................................. 12 CHAPTER II – ECONOMIC DEVELOPMENT IN ANCIENT SOUTHERN MEXICO: A CONTRAST WITH ARIDOAMERICA ................................................................................... 16 CHAPTER III – ECONOMIC DEVELOPMENT IN THE HABSBURG-CONTROLLED VICEROYALTY OF NEW SPAIN ............................................................................................ 26 CHAPTER IV – ECONOMIC DEVELOPMENT IN THE BRITISH THIRTEEN COLONIES: A COMPARISON WITH ARIDOAMERICA AND NEW SPAIN ................................................ 39 CHAPTER V – THE BOURBONIC DEVELOPMENTAL SWITCH WITHIN THE SPANISH EMPIRE: HOW ARIDOAMERICA STARTED CATCHING UP .............................................. 42 CHAPTER VI – THE MEXICAN WAR OF INDEPENDENCE AND THE SUBSEQUENT PROCESS OF ECONOMIC DESTRUCTION IN NEW SPAIN ............................................... 70 CHAPTER VII – THE MEXICAN-AMERICAN WAR AND ITS ECONOMIC IMPACT ON ARIDOAMERICA.................................................................................................................... 75 CHAPTER VIII – THE ECONOMIC HISTORY OF ARIDOAMERICA FROM THE END OF THE MEXICAN-AMERICAN WAR TO THE END OF THE PORFIRIATO IN MEXICO ....... 82 CHAPTER IX – RECENT AND POSSIBLE FUTURE ECONOMIC DEVELOPMENTS IN ARIDOAMERICA.................................................................................................................... 87 CONCLUSIONS .................................................................................................................... 105 REFERENCES ....................................................................................................................... 110 ADDITIONAL BIBLIOGRAPHY ............................................................................................ 114 APPENDIX A – INSTRUCTIONS ON HOW TO INTERPRET MAHONEY’S CONSISTENCY TABLES IN CHAPTER V ...................................................................................................... 120 4 INTRODUCTION AND CONCEPTUAL FRAMEWORK A idoame ica is a geog aphical and cul u al egion encompassing mode n-day No he n Mexico and pa s o he US Sou hwes . I is cha ac e ized by i s d y, a id landscape and he cul i a ion o he ha dy epa y bean – he Phaseolus acu i olius - , a key ood sou ce wi h deep cul u al signi icance o he communi ies na i e o he a ea. Unlike he lush and e ile Mesoame ican lands o mode n-day cen al Mexico and Cen al Ame ica o i s sou h, A idoame ica ea u es a much ha she clima e. Since A idoame ica is no a s a e o an explici poli ical en i y, he e a e di e en in e p e a ions a ound he exac e i o y ha belongs o he egion – same way people migh a gue abou he exac bo de s o he con inen o Eu ope and how a in o Russia i s e ches o whe he o no coun ies like Geo gia o A menia can be conside ed o be pa o i - . Fo he pu poses o his essay, i will be conside ed ha A idoame ica includes he Mexican s a es o Baja Cali o nia, Baja Cali o nia Su , Sono a, Sinaloa, Chihuahua, Du ango, Coahuila, Nue o León and Tamaulipas and he US s a es o Cali o nia, A izona, New Mexico and Texas. The no he n bo de s o he egion aguely coincide wi h he eal, de ac o no he n bo de s o he old Vice oyal y o New Spain a he highes -e e ex en o i s e i o y a ound he yea 1790; while Spain claimed ha he ice oyal y eached Alaska – and i is ue ha he Spanish did indeed es ablish he owns o Valdez and Co do a in Alaska in he 1790s - , Spanish au ho i y was p o oundly weak and mos ly non-exis en o he no h o sou he n Cali o nia and cen al New Mexico. The au ho o his essay has long ha bo ed a deep passion o economic his o y, pa icula ly in unde s anding how his o ical pa e ns o ade, p oduc ion, and ins i u ional de elopmen shape con empo a y socie ies. This endu ing in e es has na u ally ex ended o he s udy o A idoame ica, a egion whose p e-colonial and colonial economic dynamics o e unique insigh s in o adap a ion, esou ce managemen , and cul u al esilience in challenging geog aphical en i onmen s. D awn by bo h academic cu iosi y and pe sonal ascina ion, he au ho has isi ed he egion on h ee sepa a e occasions, each ip en iching his unde s anding o i s his o ical complexi y and deepening his commi men o explo ing he in e sec ion be ween ins i u ions, geog aphy, economy, and socie al de elopmen in ma ginal o ha sh en i onmen s. The Mexican pa o A idoame ica and he Ame ican pa o i sha e he same clima e, he same na u al biomes, he same geog aphy, he same geology, he same plan s, he same na i e species o animals and he same empe a u es and seasons h oughou he yea and ye weal h 5 and economic de elopmen a e much highe on he no he n po ion o i . Such a phenomenon migh make one hink ha heo ies ela ing o geog aphic economic de e minism – he belie ha geog aphy plays a big ole in he long- e m economic de elopmen o a socie y – hold li le alue, while heo ies ela ing o how i is ac ually he quali y o a socie y’s ins i u ions wha holds a bigge ele ance when p edic ing long- e m economic de elopmen - in he line o he wo k o ecen Nobel-winning economis s Da on Acemoglu, Simon Johnson and James A. Robinson - should be gi en mo e conside a ion in compa ison. Wha can A idoame ica ell abou his opic? Wha lessons can be aken om he economic his o y o his egion? This essay aims o explo e hese ques ions and how he case o A idoame ica can – o no – add alue o his “geog aphy- e sus-ins i u ions” deba e; i is he eeling o his essay’s au ho ha no much has been w i en abou A idoame ica’s economic his o y om a wholis ic s andpoin o abou wha s udying he a ea can e eal in ela ion o he discussions a ound he ma e o he ele ance o good and bad ins i u ions in he long- e m de elopmen o an economy. The Ame ican and he Mexican po ions o A idoame ica sha e a se ies o cul u al ai s; chie among hem, he cowboy – o , o iginally in Spanish, aque o, which is whe e he wo d bucka oo in English comes om – cul u e and all i s ele an symbols: he anch – om Spanish ancho - , he lasso – om Spanish lazo - , he odeo – a Spanish loanwo d - , he a madillos – ano he Spanish loanwo d – and so on. Figu e 1. The colo o ange shows he Mexican s a es mos gene ally accep ed as being pa o A idoame ica, he colo ed shows he US s a es mos gene ally accep ed as being pa o A idoame ica; i impo an o keep in mind howe e , ha he no he nmos pa s o Cali o nia do no belong o A idoame ica as hey lack he a id, d y landscape ypical o he egion. Sou ce: own c ea ion. 6 I is easy o see hen, e en om a pu ely linguis ic s andpoin , ha all elemen s o classic cowboy cul u e come om he Spanish coloniza ion o A idoame ica s a ing in he mid- 1550s; he adi ional cowboy a i e de i es om he clo hing ha he Spanish D agones de Cue a – an eli e Spanish mili a y uni cha ged wi h aking ca e o New Spain’s no he n bo de s and epelling aids by hos ile ibes like he Comanche o he Na ajo in places like New Mexico, Texas o A izona – wo e. The clo hing o he D agones de cue a, which included lea he coa s, wide-b immed ha s - ypical o Có doba, Spain – and boo s, was adop ed by ea ly se le s, anche s and cowboys in he egion. And o cou se, Comanche and Na ajo a e Spanish in e p e a ions o he names hose wo ibes called hemsel es by. This hesis is s uc u ed ch onologically and hema ically o p o ide a clea , compa a i e unde s anding o A idoame ica’s economic de elopmen . The i s chap e o e s a summa y o A idoame ica’s economic his o y in ancien imes, ocusing on he Az ecs du ing hei p esence in he egion. Thei mig a o y phase is used as a case s udy o illus a e he economic limi a ions and adap i e challenges in A idoame ica’s a id en i onmen . The second chap e ollows he Az ecs’ mig a ion sou hwa d, analyzing he economic his o y o Sou he n Mexico a e he Az ecs had es ablished hemsel es in he a ea bu be o e he a i al o Spain a Ve ac uz in 1519. This se s up a compa a i e amewo k o highligh he economic backwa dness o A idoame ica ela i e o Sou he n Mexico a he ime. The hi d chap e examines he economy o he Vice oyal y o New Spain du ing he Habsbu g e a (1535–1700), including i s expansion in o A idoame ica. The ou h chap e b ie ly analyzes he economic model o he B i ish Thi een Colonies du ing he same pe iod o allow a c oss-con inen al compa ison o economic ajec o ies. The chap e analyzing he economy o ancien Sou he n Mexico and he chap e analyzing he economy o he B i ish Thi een Colonies a e, hus, included in his essay in o de o co ec ly and p ecisely con ex ualize he economic his o y o A idoame ica, he same way one could no be able o accu a ely explain how – as an example – Hai i is a pa icula ly poo economy in he Ca ibbean wi hou aking a compa a i e look a he economies o he Dominican Republic, he Bahamas o Jamaica. The i h chap e s udies a de elopmen al heo y by D . James Mahoney and analyzes whe he o no i can help explain No he n Mexico’s economic di e gence om he sou h – a phenomenon ha s a ed in he 18 h cen u y - . This is ollowed by se e al chap e s acing A idoame ica’s economic his o y om he yea 1700 o he p esen . The inal chap e specula es on he egion’s u u e based on cu en ends. An appendix – Appendix A - expands on he me hodology behind he heo y discussed in Chap e V. 7 Th oughou he essay, ex ac i e ins i u ions will be discussed. Ex ac i e ins i u ions, o he pu poses o his essay, will be unde s ood as egula o y sys ems delibe a ely designed o concen a e powe and esou ces in he hands o a uling eli e by es ic ing economic oppo uni ies and poli ical pa icipa ion o he b oade popula ion. In he long un, hese ins i u ions inhibi inclusi e de elopmen , limi inno a ion, and supp ess dissen in o de o main ain exis ing powe s uc u es. A socie y uled h ough inclusi e ins i u ions, on he o he hand, would de i e in he opposi e case: a se ing whe e economic eedom and au onomy a e s imula ed and whe e poli ical exp ession is allowed i no di ec ly encou aged. A his o ical example o an ex ac i e ins i u ion could be he ins i u ion o sla e y in he US Sou h. Sla e y supp essed economic mobili y by keeping ensla ed people in pe manen po e y, p e en ing hem om owning p ope y, in es ing, o pa icipa ing in he consume economy. I also cu ailed poli ical eedoms, as an i-sla e y oices we e sys ema ically silenced by he dominan sla e-holding eli e. An example o an inclusi e ins i u ional model could be he one se up by he Magna Ca a in England in 1215. The Magna Ca a limi ed he powe o a p i ileged mino i y – he English oyal amily – while expanding he poli ical eedoms o he majo i y o he popula ion, which led o England de eloping a e y success ul poli ical ecosys em ha was eplica ed by many o he na ions all o e he globe in he ollowing decades and cen u ies. Whe he a human socie y is uled h ough ex ac i e o inclusi e ins i u ions is no a bina y ma e – a socie y o a de elopmen model is a ely o ally ex ac i e (0) o o ally inclusi e (1) – bu a he a spec um, an analogic a iable ins ead o a digi al one. An ins i u ional se up migh be jus a bi mo e ex ac i e o inclusi e han o he sys em, o i migh be a li le mo e ex ac i e in some aspec s while being mo e inclusi e in some o he s. All go e nance and ins i u ional models ha e some ex ac i e elemen s and some inclusi e elemen s, and while ex ac i e ins i u ions end o limi economic g ow h in he long un, a socie y can s ill expe ience economic de elopmen unde a mos ly ex ac i e ins i u ional model. This socie y will, howe e , expe ience less economic de elopmen han i i ollowed a mo e inclusi e model. Addi ionally, i is impo an o emembe ha an ins i u ional model migh ha e been ma kedly ex ac i e o inclusi e o he s anda ds o he ime i was es ablished in and no be so oday. While mos o he wo ld has mo ed owa ds ins i u ional inclusion models in he las ew cen u ies, i is possible o coun ies o eg ess owa ds ins i u ional ex ac ion – o example, by alling in o dic a o ship o by being in aded and u ned in o ex ac i e colonies designed o ope a e o he bene i o he in ading na ion - . 8 ASPECT SOOCIETIES RULED THROUGH EXTRACTIVE INSTITUTIONS SOCIETIES RULED THROUGH INCLUSIVE INSTITUTIONS Poli ical powe Concen a ed in he hands o a e y small eli e ha is ha d o join Dis ibu ed ac oss di e en sec ions o socie y Rule o law Weak and selec i ely en o ced in o de o bene i he eli e S ong and applies somewha equally o all indi iduals P ope y igh s Weak, insecu e and a bi a ily iola ed by hose in powe Clea ly de ined and p o ec ed o all Economic inno a ion Discou aged, as i can h ea en he s a us quo Encou aged, os e ing compe i ion and c ea i e des uc ion Ma ke access Res ic ed; eli es con ol key ma ke s and esou ces in o de o en ich hemsel es h ough monopolies and ca els Open; indi iduals and i ms can eely en e ma ke s and compe e Educa ion and human capi al Limi ed access, especially o hose ou side o he poli ical eli e B oad – and o en ee - access o quali y educa ion and skill de elopmen sys ems Social mobili y Ve y low, p ac ically non- exis en High mobili y; me i oc a ic ad ancemen possible Taxa ion and income dis ibu ion Designed o ex ac weal h om he majo i y o eli e gain Aimed a unding public goods and se ices o widesp ead bene i Poli ical pa icipa ion Supp essed o manipula ed o main ain eli e dominance Inclusi e and democ a ic; ci izens ha e eal, angible in luence o e policy and legisla ion 9 Likely long- e m economic esul s Economic s agna ion, inequali y and unde de elopmen Sus ained economic g ow h, inno a ion, and b oad-based p ospe i y His o ical examples o sys ems and e en s suppo i e o ins i u ional ex ac ion o inclusion Sla e y in he US Sou h, se dom in Tsa is Russia, he ins i u ional model cu en ly in place in No h Ko ea The Magna Ca a and he ins i u ions i se up, Spain’s T ansición and 1978 Cons i u ion Figu e 2. A able se es as a kind o summa y o he di e ences be ween ex ac i e ins i u ions and inclusi e ins i u ions. Sou ce: own c ea ion. 16 CHAPTER II – ECONOMIC DEVELOPMENT IN ANCIENT SOUTHERN MEXICO: A CONTRAST WITH ARIDOAMERICA On hei way sou hwa ds, he Az ecs encoun e ed o he g oups o people, de ea ing o subjuga ing di e en ibes, ci y-s a es and ie doms. The Az ecs spen he yea s be ween 1064 o 1065 and 1325 g adually gaining mo e powe , e i o y, weal h and oops as hey kep ma ching sou h and ei he de ea ing i al communi ies o annexing hem h ough eloquence, gi s o h ea s. I is es ima ed ha in he yea 1299, he Az ecs s a ed a acking he la ge ci y- s a e o Colhuacan a ound wha would oday be Mexico Ci y. By he yea 1323 he Az ecs had success ully de ea ed Colhuacan a e decades o wa , aking con ol o mos o he Valley o Mexico. In 1325, he Az ecs ounded Tenoch i lan as he capi al ci y o hei newly-es ablished empi e. By he 1340s, he Az ecs had become he undispu ed supe powe in Sou he n Mexico, as he Maya g oups o he eas o hem - which had once been powe ul and ich - had been in decline o cen u ies a ha poin and mos local opposi ion o he Az ecs a ound he Valley o Mexico had been ei he ex e mina ed o u ned in o a assal o some kind. The Az ecs quickly es ablished a ibu a y sys em by which all o he ibes, ci y-s a es and communi ies who had p omised hem allegiance - o en a e ha ing been soundly de ea ed in ba le - would ou inely make ips o Tenoch i lan o make hem aluable gi s in he o m o pe s, clo hing i ems, ools, weapons, deco a ion i ems, g ain, sla es, p ecious me als, jewel y, plan seeds and eally any hing ha he “dono s” hough he Az ecs would be sa is ied wi h. This sys em was e y simila o he one Impe ial China imposed on Indochina and Ko ea. Along wi h his ibu a y sys em, he Az ecs de eloped a highly sophis ica ed ade ne wo k ha connec ed all he g oups unde hei ule. The es ablishmen o a uni ied ne wo k o ibes, ci y-s a es and communi ies ha did no wage wa agains one ano he allowed Sou he n Mexico o expe ience a pe iod o apid economic g ow h. Thanks o his Pax Az eca indi iduals we e now allowed o a el much u he away while s aying wi hin he same poli ical amewo k, me chan s we e allowed o sell hei p oduc s in a bigge numbe o loca ions and oads became sa e as bandi s g ew ea ul o he Az ecs’ u y. All hese ac o s con ibu ed o he egions a ound he Valley o Mexico expe iencing high le els o economic g ow h ollowing he es ablishmen o he Az ec Empi e. I is impo an o no e, howe e , ha he economic g ow h de i ed om he es ablishmen o he Az ec Empi e was no as high as i could ha e been. While he Pax Az eca led o bigge 17 ade ne wo ks, he ibu a y sys em imposed by he Az ecs was comple ely p eda o y. G oups unde he ule o Tenoch i lan would o en spend big amoun s o ime and human and economic esou ces o c a expensi e, high-quali y i ems only o gi hem o Az ec eli es, when hose i ems could ha e been sold o a p ice a a ma ke . Since ibu e paye s did no usually ecei e paymen s o any kind in exchange o he i ems hey ga e away, hey mos ly ended up in absolu e po e y and unable o hold on o economic esou ces o acqui e goods o se ices in ma ke s, which in he long e m limi ed p i a e consump ion le els. Many communi ies quickly s agna ed economically a e he e y i s ew yea s o Az ec domina ion as egula paymen s o Az ec eli es deple ed hei local esou ces, lea ing hei membe s wi h no capaci y o in es in hei own economies, in as uc u e o long- e m de elopmen . Ano he p oblem was ha he Az ec ibu a y sys em limi ed echnological inno a ion among he Az ec assals. Explo ing a hypo he ical scena io can be use ul he e: i a smi h made i e b onze swo ds and success ully gi ed hem o he Az ecs, ha same smi h was unlikely o e e go on o gi hem i e obsidian-blade swo ds - which would ha e been o highe quali y and mo e le hal – a e wa ds e en i he had la e lea ned how o c a hem unless explici ly old o do so o ea o punishmen o no gi ing wha had been “expec ed” o him. Mo eo e , he same smi h migh decide no o sell obsidian-blade swo ds in he p i a e ma ke la e , ea ing ha Az ec au ho i ies eli es could ind ou and ei he demand hem as ibu e o ques ion why he had no o e ed hem be o e. While his would be he opposi e o he p e iously men ioned hypo he ical case in which he Az ecs could eac nega i ely o being gi ed obsidian-blade swo ds, he key poin he e is ha ei he scena io could ealis ically occu , and he smi h would ha e no way o p edic ing which way he coin oss would land. The smi h, acing his dilemma, would likely simply decide o keep c a ing, gi ing and selling b onze swo ds o e e and o ne e p oduce obsidian-blade swo ds, which we e be e and mo e le hal - and he knew how o make - . I his kind o example is applied o e e y kind o good - clo hing i ems, ools, e c. - , i is easy o see how he Az ec ibu a y sys em likely limi ed economic g ow h in he long e m by disincen i izing inno a ion and he p oduc ion and ade o many high- alue-added, high-quali y goods. Az ec eli es held absolu e powe and we e accoun able o absolu ely nobody, so hey could execu e almos anybody wi hou any kind o epe cussions. The Az ec ibu a y sys em c ea ed a clima e o big unce ain y amongs he Az ecs’ subjec s - who cons i u ed he as majo i y o he popula ion o he empi e - , and unce ain y is bad o business and he economy a la ge in he long un. 18 Figu e 5. A page o he Ma ícula de T ibu os - T ibu e Regis y - , a eco d o he axes paid o he Az ecs by hei ibu a y p o inces. This speci ic d awing shows he ibu es paid by he p o ince o Tepecoacuilco - i s iden i ying glyph is loca ed in he bo om le co ne - and i s communi ies, including a paymen o 100 axe coins and 1600 cuach li - igh unde he mili a y uni o ms - , among o he objec s ha we e deli e ed. The Ma ícula was o iginally p oduced by anonymous Az ec sc ibes, and hen ep oduced in he 1520s by anonymous Spanish sc ibes. 19 Az ec punishmen s we e o en c uel e en s ha in ol ed i ualis ic human sac i ice and we e designed o ins ill absolu e ea among subjec s. Wi h a le el o public punishmen so high, communi ies we e e i ied o e e annoying o upse ing Az ec au ho i ies in any way, which in he long e m made subjec s p oduce “ he ba e minimum and expec ed” and no hing else o ea o being punished. This sys em, which was based on ea , unce ain y and a lack o anspa ency, ins illed pa alysis on he assals o he Az ec Empi e. In he long un, subjec s s opped ying o s udy new ways o c a ing goods o ea o annoying o upse ing hei Az ec o e lo ds, which migh ha e ul ima ely mean ha new, inno a i e p oduc ion echniques ha could ha e led o economic g ow h, p oduc i i y inc eases o e en en i ely new economic ac i i ies we e ne e disco e ed. Inno a ion and in es iga ion we e ac i ely punished unde his sys em, which o ce ully led o economic g ow h le els ha , while ini ially high, we e likely no as high as hey could po en ially ha e been. The Az ec ibu a y sys em was, in sum, highly inconsis en , comple ely opaque and some hing ha ended up becoming an ex emely ex ac i e ins i u ion ha ac i ely punished inno a ion and limi ed economic g ow h; mode n economis s ag ee ha ex ac i e ins i u ions a e big inhibi o s o economic p ospe i y in he long un; he e o e, he ele ance o he long- e mm economic ha m done by some o he Az ecs’ ins i u ions should no be unde s a ed. The Az ec ade ne wo k was no pe ec ei he . While i allowed many g oups o engage wi h mo e dis an cus ome s and selle s and o ob ain access o a bigge a ie y o goods and se ices, i also o en ac ed as a de ac o cus oms union agains p oduc s om he ou side. Fo example, ade wi h he Maya g oups in he Yuca án Peninsula, while mos ly allowed – hough no always, as he Az ecs would pe iodically aid Maya lands o unde mine hem and o ce hem o pay ibu e, weakening hose g oups and hei mili a ies and making hem dependable on comme ce, which ensu ed he Az ec Empi e would always ha e a o able ading condi ions when engaging wi h hem h ough ade - was se e ely con olled by Az ec poli ical eli es. These eli es o en demanded ee ibu e om Maya me chan s, e ec i ely monopolizing key esou ces and ensu ing ha only hemsel es and hei immedia e allies had access o hem, and ha egula commone s could ne e be able o acqui e he highes -quali y i ems a ailable wi hin he ade ne wo k, e en i hey had he money o he esou ces o acqui e hem. I can hus be said ha he Az ec ade ne wo k limi ed ade wi h ou side g oups and ended up becoming a p o ec ionis acke ha only bene i ed he Az ec eli es poli ically while limi ing he ading and economic possibili ies o commone s and me chan s. T ade limi a ions wi h he ou side we e designed o enhance Az ec poli ical powe and o bene i Az ec oliga chs and 20 poli ically-connec ed eli es. As a hypo he ical example, a me chan ha sold 50% o all his p oduc s o he Maya and sold he o he hal inside he Az ec ade ne wo k was less dependan on Az ec eli es and had less o an incen i e o comply wi h Az ec au ho i ies han a me chan who sold 80 o 90% o all his p oduc s o he Az ecs. Ou wa d ade es ic ions we e designed and in oduced o make he me chan class dependen on he Az ec poli ical eli e. Mode n economis s ag ee ha p o ec ionis measu es end up limi ing economic g ow h o e e ybody in ol ed in he long e m, meaning ha hese ade es ic ions we e ano he way Az ec poli ical eli es sac i iced po en ially highe economic g ow h a es in o de o enhance hei own powe and poli ical au ho i y. While ba e was common in he Az ec ade ne wo k, a a ious poin s be ween 1325 and 1521 h ee kinds o i ems we e used as a o m o cu ency o acili a e ade; cacao beans, cuach li – whi e-colo ed, co on-made blanke s ha gene ally held a alue equi alen o be ween 65 and 100 cacao beans depending on he quali y o hei ab ic – and wha Mexican his o ians ha e gene ally called “axe coins” (“monedas hacha”), small pieces o me al in he o m o axes made ou o b onze alloys. Whe he ba e o one, wo o all o hose h ee cu encies would be accep ed when pe o ming ansac ions depended gene ally on he speci ic ade one in e ac ed wi h, wi h some me chan s being open o ba e ing while o he p e e ed using di e en o ms o cu ency. Az ec eli es ne e es ablished a uni a y s anda d o any obliga ions when i came o he use o ba e o cu ency o ade. The Az ecs’ dominance o e su ounding g oups p o ided hem wi h a plen i ul labo o ce. The Az ec economy was o ganized h ough he calpulli, a communi y o amilies assigned speci ic plo s o land o cul i a e, ensu ing ha p oduc ion was dis ibu ed among he amilies, he S a e, he p ies s, and he head o he calpulli. Addi ionally, he collec ion o ibu e enabled he Az ecs o accumula e an abundance o aw ma e ials and goods. Ano he key ac o in hei p ospe i y was he use o ad anced ag icul u al and land managemen echniques – in ac , Tenoch i lan was cons uc ed on an island in he middle o Lake Texcoco - . The Az ecs employed a a ming echnique called chinampas, which in ol ed c ea ing a able land on wa e . To do his, hey d o e ou la ge wooden pos s in o he ma shy g ound, o ming a ec angula shape. They illed he a ea wi h b anches and g asses, hen co e ed i wi h mud. The pos s ook oo , secu ing he soil a he edges. The chinampa abso bed wa e om he lake, and he mud ac ed as a na u al e ilize , allowing peasan s o ha es mul iple imes a yea . The Az ecs also buil ag icul u al e aces in he moun ains and used bo h plan -based and animal-based e ilize s. 21 The economy was gene ally p ospe ous, e en i no as p ospe ous as i could ha e been based on he ac s exposed a ew pa ag aphs back. I is es ima ed ha Az ec socie y was ei he he second iches socie y in all o he Ame icas be o e 1492 - wi h i being only sligh ly poo e han ha o he Inca in Pe u – o he absolu e iches one. Howe e , GDP pe capi a es ima ions o ei he o hese wo ci iliza ions a e inc edibly di icul o pe o m since nei he o hem conduc ed subs an ial census epo s, meaning i is impossible o es ima e he o al popula ion igu es o ei he empi e a any poin in hei his o y wi h a high deg ee o ealism o p ecision. Figu e 6. A map o he Az ec empi e and bo de line s a es in he yea 1519 igh be o e he a i al o he Spanish in he a ea. Map designed by Wikimedia Commons con ibu o Gigge e. I is impo an o highligh he a ious economic ac i i ies he Az ecs de eloped a e se ling in he Valley o Mexico. O he g oups had al eady engaged in some o hese ac i i ies be o e he Az ecs, bu he Pax Az eca allowed many o hese ac i i ies o each new le els o p oduc i i y and sophis ica ion (Fishe , J. R., 1997). The Az ec Empi e de eloped me allu gy o a high deg ee o sophis ica ion – hough i ne e su passed Eu ope in his ega d - . The Az ecs we e able o wo k in, coppe , gold, sil e , obsidian and b onze amongs o he ma e ials, bu i on wo king was ne e independen ly 22 disco e ed in he Ame icas be o e he a i al o he Eu opeans. Coppe and gold appea in na u e in hei pu e o m and he Az ecs we e ac ually skilled a wo king hose; howe e , i on does no appea in i s pu e o m on Ea h, excep in a hand ul o me eo i es. All o he i on mus be smel ed om o e, and he hea needed o do so is high enough so ha i does no easily come abou by acciden . The Az ecs – along wi h e e y o he ci iliza ion in he Ame icas – ne e eached a le el o de elopmen high enough whe e hey we e able o c a indus ial o ens ha could each he empe a u es necessa y o wo k i on. S eel is an alloy o med by he mixing o i on and ca bon; since he Az ecs we e ne e able o wo k i on, hey we e ne e able o ab ica e s eel ei he . When he Spanish a i ed in 1519, hei s eel weapons we e a no iceable ad an age o e hose o he Az ecs, which we e made ou o b onze, coppe o obsidian, all weake ma e ials han s eel. Az ec me allu gy was he mos ad anced in he Ame icas, bu i could no hold a candle o wha Eu opeans had been able o ab ica e by he yea 1492. Mining – a a a he basic le el, admi edly – ended up becoming an impo an economic ac i i y o he Az ecs. Obsidian, a ype o olcanic glass, was sou ced om he Sie a Mad e Su and Sie a Mad e Occiden al moun ain anges in Sou he n Mexico and commonly used o he c a ing o bo h weapons and e e yday i ems like ce emonial kni es, pla es, wo k ools and jewel y. One no able mining a ea o obsidian was he olcanic egion o Zinápa o in wha is now he S a e o Michoacán, whe e he p ocess o ob aining he s one in p e-Hispanic imes has been ex ensi ely s udied. The mos equen me hod o ex ac ion was su ace mining, which was ela i ely simple. Howe e , i was also common o mine unde g ound, hough only a a a he shallow le el. Recen esea ch on old mining si es in Sou he n Mexico e eals ha unde g ound mining ypically in ol ed he c ea ion o ho izon al galle ies p ima ily buil along sloped e ain. La ge chambe s we e also exca a ed, and while i is no con i med, he e may ha e been some deepe sha s ha a e now co e ed. I is impo an o keep in mind hough, ha he mining echniques o he Az ecs we e no as ad anced as ha o Eu opean na ions. Tex ile wo k in he Az ec Empi e had among i s main p oduc s he manu ac u ing o co on ab ics and maguey ibe . The as majo i y o p e-Hispanic ab ics we e made wi h ibe s o plan o igin. Typically, co on - ei he whi e o b own - , was used o make so ga men s ha we e la e widely dis ibu ion ac oss Az ec-con olled e i o ies. Henequen - Aga e ou c oydes - , om he Yuca an Peninsula, he ix le – a kind o ege al ibe ex ac ed om maguey om egions such as hose ha oday cons i u e he s a es o Hidalgo, Tlaxcala and he S a e o Mexico - and he swee hespe palm – B ahea dulcis – we e widely dis ibu ed and 23 commonly used h oughou he empi e o he con ec ion o ha d ga men s. Some imes howe e , ea he s and u o skin o jagua s, abbi s o ha es we e also added o ab ics as o namen al elemen s. The p e-Hispanic p ocesses used o wea ing a e s ill applied by many indigenous peoples in Mexico oday. The ool commonly used o wea ing was he wais loom (iqui ihualoni) - a ho izon al loom so called because one end o i is placed on he wais while he o he hangs om a ee, a column o some o he ixed poin - con inues o be used abundan ly by Mexican indigenous peoples oday. Women we e gene ally expec ed o assume he ole o wea e s om a young age, as indica ed in he ce emonies dedica ed o he bi h o gi ls, in which hey would be p esen ed wi h he u ensils necessa y o wea ing. F om he age o ou , acco ding o he Mendoza Codex, gi ls began o lea n how o spin using a spindle - malaca l - , and om he age o 14 hey we e augh how o wea e wi h a loom and a s ick – zo zopaz li - . Fea he wo k was ano he impo an economic ac i i y; acco ding o Spanish his o ian Be na dino de Sahagún, he i s goods o be aded by he Poch eca guild, du ing he eign o he i s la oani – he i le he leade s o he Az ecs enjoyed, simila o empe o o sa - o Mexico-Tla elolco, Cuacuauhpi záhuac, we e ea he s om bi ds such as ed and blue pa o s. A he ime o he second o hi d la oani, Tlaca éo l, que zal ea he s also began o be aded, along wi h co on clo hing and u quoise and jadei e s ones. Al hough his indus y seems o ha e i s o igins in he Mayan ci iliza ion, whose me chan s had al eady been ading in ea he s since he 4 h cen u y in egions o he coas s o he Gul o Mexico and Oaxaca, Az ec ea he wo k eached i s peak du ing he eign o he empe o . Ahuízo l, in he 15 h cen u y, since i s as conques s b ough a a ie y o exo ic ea he s om a ious pa s o Mesoame ica. In ac , one o he main mo i a ions o he Az ec Empi e o in ade he dis an ie doms o Tehuan epec, Miahua lán and o he s in he egion was o ob ain hei iches in ea he s, since Az ec me chan s a eled o hese places e e y yea o ob ain hese easu es by ading. " As s a ed p e iously, hese economic ac i i ies and o he s made he Az ec Empi e a powe ul economy, especially o i s geog aphical con ex . Spanish conquis ado He nán Co és was so imp essed by he cen al ma ke o Tenoch i lan ha he w o e King Cha les I o Spain abou i in he ollowing e ms: “The e is one squa e wice as la ge as ha o he ci y o Salamanca, su ounded by po icoes, whe e a e daily assembled mo e han six y housand souls, engaged in buying, and selling; and whe e a e ound all kinds o me chandise ha he wo ld a o ds, emb acing he necessa ies o li e, as o ins ance a icles 24 o ood, as well as jewels o gold and sil e , lead, b ass, coppe , in, p ecious s ones, bones, shells, snails, and ea he s. The e a e also exposed o sale w ough and unw ough s one, b icks bu n and unbu n , imbe hewn and unhewn, o di e en so s. The e is a s ee o game, whe e e e y a ie y o bi ds ound in he coun y a e sold, as owls, pa idges, quails, wild ducks, ly-ca che s, widgeons, u le- do es, pigeons, eedbi ds, pa o s, spa ows, eagles, hawks, owls, and kes els hey sell likewise he skins o some bi ds o p ey, wi h hei ea he s, head, beak, and claws. The e a e also sold abbi s, ha es, dee , and li le dogs, which a e aised o ea ing and cas a ed. The e is also an he b s ee , whe e may be ob ained all so s o oo s and medicinal he bs ha he coun y a o ds. The e a e apo heca ies' shops, whe e p epa ed medicines, liquids, oin men s, and plas e s a e sold; ba be s' shops, whe e hey wash and sha e he head; and es au a eu s, ha u nish ood and d ink a a ce ain p ice. The e is also a class o men like hose called in Cas ile po e s, o ca ying bu dens. Wood and coals a e seen in abundance, and b azie s o ea henwa e o bu ning coals; ma s o a ious kinds o beds, o he s o a ligh e so o sea s, and o balls and bed ooms. The e a e all kinds o g een ege ables, especially onions, leeks, ga lic, wa e c esses, nas u ium, bo age, so el, a ichokes, and golden his le; ui s also o nume ous desc ip ions, amongs which a e che ies and plums, simila o hose in Spain; honey and wax om bees, and om he s alks o maize, which a e as swee as he suga -cane; honey is also ex ac ed om he plan called maguey, which is supe io o swee o new wine; om he same plan hey ex ac suga and wine, which hey also sell. Di e en kinds o co on h ead o all colo s in skeins a e exposed o sale in one qua e o he ma ke , which has he appea ance o he silk-ma ke a G anada, al hough he o me is supplied mo e abundan ly. Pain e s' colo s, as nume ous as can be ound in Spain, and as ine shades; dee skins d essed and und essed, dyed di e en colo s; ea henwa e o a la ge size and excellen quali y; la ge and small ja s, jugs, po s, b icks, and an endless a ie y o essels, all made o ine clay, and all o mos o hem glazed and pain ed; maize, o Indian co n, in he g ain and in he o m o b ead, p e e ed in he g ain o i s la o o ha o he o he islands and e a- i ma; pâ és o bi ds and ish; 25 g ea quan i ies o ish, esh, sal , cooked and uncooked ; he eggs o hens, geese, and o all he o he bi ds I ha e men ioned, in g ea abundance, and cakes made o eggs.” Figu e 7. A de ailed minia u e model o an Az ec ma ke in Sou he n Mexico on display a he Field Museum o Na u al His o y in Chicago. Pho og aph aken by Joe Ra i. As desc ibed, he economy o Sou he n Mexico was highly complex o i s ime, ea u ing o ganized ma ke s, ibu e sys ems, specialized labo and all he o he elemen s o sophis ica ion p e iously men ioned; on he o he hand, he economic sys ems ound in A idoame ica we e much simple and poo e . In he a id and semi-a id egions o he no h o he Valley o Mexico, en i onmen al cons ain s limi ed ag icul u al de elopmen , leading o mo e nomadic o semi-nomadic li es yles and subsis ence economies based almos en i ely on he hun ing o small animals and he ga he ing o some small plan s. These socie ies lacked he cen alized s a e s uc u es and in ica e ade ne wo ks ypical o hei sou he n coun e pa s. In sum, i is ai o say ha he economy o A idoame ica was cen u ies behind ha o Sou he n Mexico be o e he yea 1519. 32 sha e - . This ex ac i e model con ibu ed o pe sis en economic inequali y and unde de elopmen in Sou he n Mexico, wi h e ec s ha las ed long a e he sys em was o mally abolished. I is impo an o emembe hough ha , as has been men ioned al eady, he Spanish C own did y o end o limi he encomienda sys em a a ious poin s in ime and did p omo e laws ha ied o p o ec he igh s o he na i es; howe e and as s a ed be o e, many imes hese laws we e simply igno ed by o icials and mili a y commande s on he g ound. In he 1535, he Mexico Ci y Coin Min - Casa de la Moneda - was es ablished hanks o he sil e and o he p ecious me als disco e ed in Zaca ecas. This coin min quickly became one o he mos impo an in he wo ld, wi h Spanish coins being used o comme ce all h oughou he globe – Spanish coins would be known as Spanish Dolla s in he English-speaking wo ld - . Spain’s la ge ese es o gold and o he p ecious me als ga e in e na ional ade s and inancie s good easons o use Spanish coins. By he yea 1783, when he US eally s a ed being ully independen om he Uni ed Kingdom, Ame ican au ho i ies s a ed using he Spanish eal de a 8 - he coin numbe ing pa e n was changed o an oc al sys em in he 18 h cen u y, so he weigh o sil e was known as eal de a 8 – as he s anda d, e e yday-use coin in he coun y while hey go hei own coin ab ica ion sys em up and unning (McCuske , J. J., 1992). These coins came mos ly om his e y min in Mexico Ci y. The eno mous low o me als om he Ame icas – mainly Zaca ecas in Mexico and Po osí in Boli ia, hough Boli ia was known a he ime as he p o ince o Al o Pe ú inside he Vice oyal y o Pe u – o Spain caused a spike in in la ion, and in la ion in Spain emained gene ally highe han in o he Eu opean coun ies du ing he 16 h and 17 h cen u ies. Spain became he la ges ading coun y in he wo ld, and New Spain was a la ge pa o he why o i . The Manila Galleon, also called he Nao de China o he Acapulco Galleon, was he name gi en o a se ies o ships ha c ossed he Paci ic Ocean once o wice a yea be ween Manila – Philippines - and some o he he po s o New Spain in he Ame icas, mainly Acapulco – in Gue e o - , Bahía de Bande as - Naya i -, San Blas – Naya i - and Cabo San Lucas - Baja Cali o nia Su - . The name o he galleon a ied depending on he ci y o des ina ion. F om 1565 o 1815, mo e han 300 oyages we e unde aken by hese galleons. Thus, New Spain became he bigges ade link be ween Asia and he Ame icas, b inging Chinese silk, po celain, and spices o he Ame icas in exchange o Mexican sil e ex ac ed in Zaca ecas. Th ough New Spain many goods om Asia go o Spain and hen Eu ope a la ge. 33 A he end o he 16 h cen u y, he g owing o he powe o he Spanish C own wi hin New Spain, coupled wi h a g adual dec ease in he s a us and powe o he encomende os, a new, somewha kinde o m o use o indigenous labo was in oduced by he Spanish C own: he epa imien o de indios (“dis ibu ion o Indians”), which became he main and mos las ing mechanism o domina ion o he indigenous peoples o sou he n New Spain. In acco dance wi h he p o isions o wo oyal dec ees om Ap il 21, 1574 and No embe 24, 1601, he epa imien o was a labo sys em ha e ol ed a ound he alloca ion o indigenous labo o he bene i o he Spanish. In exchange o a – a he negligible many imes – emune a ion, his new sys em pe iodically o ced he indigenous people o Sou he n Mexico o wo k seasonally, gene ally eigh days a mon h, in he houses and es a es o he local Spanish eli es. Once he season was o e , he indios had o e u n o hei espec i e educ ions, so ha hey could wo k on hei own asks o collec he ibu e hey had o pay o he C own o o he encomende os – some o me encomende os kep ac ing as such ou side he law and in spi e o hei g adual powe decline, e ec i ely becoming some hing simila o mode n-day mobs e s - , and hey we e eplaced in he dis ibu ion chain by ano he g oup o Indigenous people. The sys em was based on h ee p inciples: coe cion on he Indigenous people – hough o a lesse ex en ha unde he encomienda sys em - , weekly o a ion o wo ke s, and o ced emune a ion, in acco dance wi h a a e es ablished by oyal au ho i ies. (Gibson, 1964) E e y Sunday in New Spain, be ween 2% and 4% o he indigenous men aged 16 o 60 - in ce ain pe iods, his pe cen age inc eased o 8 o 10%, especially du ing he dobla o “doubling” - , and excluding he own mayo s and he sick, we e equi ed o ga he in he plaza o ano he public a ea wi hin hei espec i e se lemen (Haske , R. S., 1991). They awai ed he a i al o he o e see s om he Spanish es a es in he su ounding a eas o he mine o emen, who would ake he wo ke s he ollowing day acco ding o he quo as es ablished in a egis y c ea ed by he p esiden o he local Audiencia Real - . I was he p esiden who g an ed Spanish landowne s he igh o acqui e indigenous labo , a e he paymen o hal a sil e eal o each wo ke o he C own. The employe was also obliga ed o pay he Indigenous wo ke s o a el ime and one eal o each day wo ked, as well as p o ide he necessa y ools o he job. The Indigenous mayo s we e esponsible o ensu ing compliance wi h he sys em's ules, which we e o e seen by Spanish jueces de epa imien o – “dis ibu ion judges” - . In many cases hough – and no unlike wi h he p e ious encomienda sys em - , he ules ha a ec ed he exploi a ion o Indigenous people unde he epa imien o sys em we e simply igno ed. Wha many hacienda owne s would do is b ibe he p esiden s o he Audiencia o 34 dis ibu ion judges – o bo h – so ha hey would ea n mo e money han going he legal way bu he hacienda owne would s ill be spending less money in ne e ms by ei he being allowed o employ a bigge - han-legally-pe mi ed amoun o people, ha ing hem wo k o mo e hou s o o he mechanisms. The mi a sys em – a legal egime ha applied o mining-hea y egions o he Spanish Empi e; mainly Zaca ecas and Po osí – mean indigenous mine s we e compelled o wo k in mines o a se pe iod each yea , and in e u n, hey heo e ically ecei ed wages and p o isions, hough his sys em was b u al and o en led o high mo ali y a es – and o cou se, mine s we e o en unpaid unde h ea s o dea h and punishmen (Haske , R. S., 1991) - . In he 1570s, a new, massi e smallpox ou b eak se e ely educed he labo o ce a ailable in New Spain, leading o shi s in economic p oduc ion and a g ea e eliance on A ican sla es. While no many A icans we e mo ed o New Spain in compa ison o he coas al owns o New G anada, he Po uguese colony o B azil o he B i ish Thi een Colonies, a modes ly-sized A ican-Mexican communi y ended up es ablishing i sel in he coas s o Gue e o and wes e n Oaxaca. New Spain’s economic sys em was no one ha in used economic eedom. A se ies o an i- g ow h ins i u ions ha limi ed economic eedom we e es ablished by he Spanish C own du ing he 16 h cen u y. The Casa de Con a ación - House o T ade - , es ablished in 1503, played a c ucial ole in limi ing economic eedom and g ow h in New Spain and o he Spanish colonies. I s p ima y pu pose was o egula e and con ol all ade be ween Spain and i s o e seas colonies, bu he way i ope a ed se e ely es ic ed economic oppo uni ies o colonis s and s i led b oade economic de elopmen ; he Casa de Con a ación ended up e ec i ely monopolizing ade be ween New Spain and he es o he wo ld. Some speci ic goods coming ou o he colonies we e equi ed o pass h ough Spain be o e eaching o he pa s o Eu ope o o he colonies, e ec i ely blocking colonis s om engaging in di ec ade wi h o eign na ions o , some imes, e en o he Spanish colonies. This educed compe i ion and kep p ices high, making goods mo e expensi e o colonis s and limi ing hei abili y o ade eely in he in e na ional ma ke place (He nández, R., 2016). . The Manila Galleons did no ha e o pass h ough Spain i s . They we e di ec ly managed by he Spanish C own bu allowed a mo e lexible ou e be ween Asia and he Ame icas. This was in con as o o he colonial ade mo e igh ly con olled by he Casa de Con a ación, which 35 had o go h ough Spain - Se ille o Cádiz – wi hin a cen alized, monopolized sys em. O he colonies, like hose in he Ca ibbean and Sou h Ame ica, had hei ade igh ly egula ed by he Casa de Con a ación kand could no engage in di ec ade wi h o he colonies o o eign powe s. The Manila Galleon was an excep ion o he ule (He nández, R., 2016). The Casa de Con a ación also en o ced speci ic ade ou es, meaning ha colonial ships could only a el on ce ain p e-app o ed ou es be ween he colonies and Spain. Fo ins ance, New Spain could only send i s goods o Spain ia designa ed po s like Ve ac uz o Se ille, and he C own con olled who could engage in such ade (He nández, R., 2016). This o ced colonis s o use app o ed me chan s and go h ough bu eauc a ic ed ape, c ea ing ine iciencies and ex a cos s. These egula ions limi ed he lexibili y o ade s and me chan s, making i ha de o seize economic oppo uni ies ha a ose in o he pa s o he wo ld and o en making comme cial oyages mo e expensi e o longe han hey could ha e been had he Spanish C own allowed mo e eedom o ade s o decide whe e o sail and om which po s; o cou se, ha would ha e mean ha he C own could no ha e e ec i ely axed all comme cial ships, meaning ha long- e m economic g ow h was a i icially gu ed in o de o maximize C own ax e enues. The Casa de Con a ación was also esponsible o collec ing axes and o e seeing he low o sil e and o he p ecious me als om he colonies. Th ough i s sys em, i imposed a 20% ax on p ecious me al mining - he al eady men ioned Quin o Real o Royal Fi h- , which signi ican ly educed he p o i s a ailable o local en ep eneu s and mine s. Re enue gene a ed om ade was unneled di ec ly o Spain, lea ing he colonies wi h a ac ion o he p o i s, limi ing hei capaci y o local economic de elopmen o ein es men in o new indus ies. While simila axes did exis in Spain p ope , he Quin o Real only applied o he colonies. Colonis s we e no allowed o ope a e independen ly ou side o he o icial ade sys em con olled by he Casa de Con a ación. Only app o ed Spanish me chan s, who we e o en based in Spain, could legally ade wi h he colonies (He nández, R., 2016). This s i led he de elopmen o a local, sel -sus aining ma ke whe e colonis s could ade eely wi h each o he , en ep eneu s could in es in local indus ies, and new businesses could eme ge. Colonial en ep eneu ial ac i i y was hea ily cons ained by he cen al au ho i y o he Casa de Con a ación, meaning ha only hose who we e well-connec ed wi h he Spanish poli ical eli e could pa icipa e in he mos luc a i e ades. Since he C own con olled wha could be p oduced and aded, he e was li le oom o inno a ion in New Spain’s economy. Fo example, ag icul u e and mining we e egula ed in a way ha made i di icul o colonis s o di e si y p oduc ion o shi o new indus ies wi hou explici C own app o al. This limi ed economic di e si ica ion led o an o e - eliance on 36 mining, which e en ually caused economic s agna ion when sil e mining became less p o i able once he sil e mines in Zaca ecas s a ed deple ing in he 1600s. Wi h ade and inancial decisions in he hands o a cen al au ho i y in Spain, economic de elopmen was la gely dependen on wha he Spanish C own deemed p o i able. Colonis s had li le in luence o e policies ha di ec ly impac ed hei economic ac i i ies, such as a i s, es ic ions on manu ac u ing, o egula ions on he dis ibu ion o goods. This sys em slowed down economic g ow h because he ocus was always on ex ac ing weal h o he C own, no os e ing sel -sus aining, di e si ied local economies. Mining, a e y ele an economic ac i i y in New Spain, was comple ely con olled by he S a e, wi h no possibili y o p i a e companies being allowed o own mines o con ol physical access o hem a all. Only S a e-app o ed mine s could wo k he mines – h ough he al eady men ioned Mi a sys em - , which coupled he Quin o Real, hu he abili y o local en ep eneu s o p o i eely om he egion’s na u al esou ces. Addi ionally, he g emios - guilds - egula ed ades and c a s in New Spain, con olling who could engage in speci ic p o essions like blacksmi hing, ca pen y, o ex iles. These guilds limi ed compe i ion and eedom o en y in o a ious indus ies, essen ially con olling who could p ac ice ce ain ades and a wha p ices, main aining a sys em ha a o ed es ablished eli es and people who we e poli ically connec ed o hem and no necessa ily he mos p epa ed o p omising o app en ices. To sum up, in can be said ha New Spain’s economic sys em was i mly oo ed in me can ilism, cha ac e ized by s ic go e nmen al con ol o e ade and p oduc ion, limi ing economic eedoms and a o ing Spanish in e es s. E e y ime he Spanish C own had o make a choice be ween allowing highe le els o economic eedom and es ablishing p o-g ow h policies in an economic sec o o ying o exe high le els o con ol o e such economic sec o in o de o maximize ax e enues and oyal con ol o e i , he C own always ended up on he la e side o hings. This an i-libe al amewo k was s onges in he sou he n hea o he colony, pa icula ly in Mexico Ci y and i s ou ski s, whe e Spanish au ho i y was mos concen a ed. Howe e , as one mo ed u he no h, he Spanish g ip on land and economic a ai s waned, leading o a decline in he en o cemen o me can ilis policies. This ela i e au onomy allowed No he n Mexico o de elop a mo e libe al, ma ke -o ien ed economy, d i en by local en e p ise and ade ne wo ks less cons ained by colonial egula ions. Consequen ly, he economic landscape o No he n Mexico con as ed sha ply wi h ha o he sou h o he colony, whe e me can ilis es ic ions emained mo e igid and pe asi e. Fo example, i is known ha 37 ex ac i e ins i u ions such as he encomienda sys em – and i s subsequen a ia ions - , so p esen and ele an in Sou he n Mexico, was simply no a hing in no he n egions such as Sono a (B ading, D. A). ASPECT SOUTHERN MEXICO NORTHERN MEXICO Popula ion densi y High, wi h dense u ban and u al indigenous popula ions Low, wi h spa se, sca e ed indigenous and se le popula ions; big p opo ion o Spanish se le s Indigenous socie ies Cen alized, seden a y ci iliza ions unde he di ec , s ong ule o he ice oyal y – o example, he Zapo ecs and he Tlaxcal ecs - Nomadic o semi-nomadic g oups wi h e ec i e independence om he ice oyal y, like he Apache and he Comanche Economy Hea ily me can ilis ic and s a e-con olled; based on ibu e, ag icul u e, and g emio-con olled ac i i ies; he Ca holic Chu ch was a powe ul ins i u ion ha p omo ed ce ain economic ac i i ies Mo e in o mal and lexible, ocusing on ca le anching, mining and, la e on, ade – e en i illegal - wi h he Thi een Colonies/US; e y loosely egula ed, wi h elemen s o economic libe alism and au onomy Poli ical con ol o he land S ong impe ial p esence, wi h s ong ice oyal au ho i ies, eales audiencias, local cabildos and jueces de epa imien o Weak impe ial con ol, land only pa ly go e ned ia mili a y ou pos s, missions, local mili ias and he d agones de cue a Chu ch p esence Ve y s ong chu ch p esence and au ho i y; land domina ed by powe ul eligious ins i u ions: dioceses, monas e ies, ca hed als, e c. Ve y weak p esence o missiona y o de s – mainly he Jesui s and he F anciscans - in emo e missions and wi h li le eal au ho i y 38 U ban de elopmen Highly u banized, wi h Mexico Ci y, Puebla, Oaxaca and o he big ci ies as majo colonial cen e s Few u ban cen e s; mos ly p esidios, mining camps, o eligious mission owns Educa ion and cul u e Big uni e si ies, p in ing p esses, eli e schools, hea e s Sca ce o mal educa ion; eligious and mili a y ins uc ion we e mo e common; e y li le cul u al p oduc ion Mili a y p esence Mili a y p esence seconda y o adminis a i e and ecclesias ical au ho i y Mili a y c ucial and equen ly he only ice oyal p esence; equen con lic s wi h indigenous g oups; on ie de ense a c i ical ask Social hie a chy Socie y was e y s ongly s uc u ed and hie a chical; s ong cas e sys em; Spanish and c eole eli es, indigenous labo Social hie a chies we e mo e luid and less clea ; social oles blu ed by necessi y; su i al and landowne ship mo e immedia ely ele an o se le s; big ela i e p esence o Spanish ade s, en ep eneu s and libe al- minded people A ailabili y o labo o ce Ve y high due o he p esence o big indigenous popula ions; kidnapping and ensla ing o indigenous peoples common e en i illegal; when paid, indigenous labo e s ecei ed e y low wages Ve y low due o he low popula ion numbe s and he hos ili y o local indigenous g oups like he Apache; in o de o hi e labo , i one had o b ing wo ke s om he sou h, en icing hem wi h good sala ies and condi ions; encomienda sys em e ec i ely non-exis en Figu e 8. A able se es as a kind o summa y o he economic and social di e ences be ween Sou he n Mexico and Sou he n Mexico du ing he days o he Habsbu g-con olled Vice oyal y o New Spain. Sou ce: own c ea ion. 39 CHAPTER IV – ECONOMIC DEVELOPMENT IN THE BRITISH THIRTEEN COLONIES: A COMPARISON WITH ARIDOAMERICA AND NEW SPAIN A a ound he same ime he Vice oyal y o New Spain was ge ing es ablished, he B i ish Thi een Colonies we e doing he same o i s no heas . The B i ish Thi een Colonies we e mo e economically libe al and ee han New Spain. B i ish colonial sys ems allowed o g ea e economic au onomy, p i a e en e p ise and ma ke -d i en economies, while New Spain was con olled h ough a mo e cen alized, ex ac ion-o ien ed sys em designed o bene i he Spanish C own and poli ically-connec ed eli es. In he Thi een Colonies, he e was a s ong emphasis on p i a e p ope y igh s (Jones, A. H., 1984). Land was mo e eely a ailable o colonis s o own, cul i a e and use o pe sonal o business pu poses. Fo example, he sys em o head igh s allowed se le s o acqui e land in exchange o paying hei passage o he colonies. Landowne s had he eedom o a m, ade o sell hei land as hey saw i , encou aging in es men and economic g ow h. In New Spain, land owne ship was la gely con olled by he C own and he Chu ch, which mean s ha land dis ibu ion was o en based on poli ical conside a ions a he han economic a ionale o business iabili y. Indigenous peoples we e equen ly denied p ope y igh s and subjec ed o o ced labo , despi e such p ac ices being o mally illegal. The B i ish colonies had a ela i ely ee ma ke economy, and colonis s could engage in di ec ade wi h o he colonies, B i ain, and e en some o eign na ions - depending on he ime pe iod - . While he e we e B i ish Na iga ion Ac s ha egula ed ade, he colonies s ill enjoyed he lexibili y o c ea e hei own economic oppo uni ies, especially as he mos ly me can ilis sys em he B i ish had ini ially es ablished up s a ed o weaken o e ime. In con as , he Spanish C own con olled all ade be ween i s colonies and he es o he wo ld h ough he Casa de Con a ación. Some speci ic goods om he colonies had o pass h ough Spain be o e eaching o he pa s o he empi e so hey could ge axed in Se ille o Cádiz, and colonial ade was hea ily es ic ed. Colonis s could no eely ade wi h o he colonies o o eign na ions, which se e ely limi ed economic de elopmen and ma ke compe i ion. This would change somewha wi h he swi ch in egime o he Bou bon dynas y - ha will be discussed in a la e chap e - , howe e . The Thi een Colonies gene ally had mo e limi ed le els o go e nmen in e en ion in hei day- o-day economic ac i i ies. Colonial go e nmen s we e o en ela i ely hands-o , and he e was a ocus on allowing indi iduals and businesses o pu sue p o i s independen ly. Colonis s could es ablish businesses, engage in ag icul u e and ade wi hou acing cons an egula ion om he B i ish C own (Egnal, M., 1975). The No ohispanic colonial sys em, on he 40 o he hand, was highly cen alized and egula ed. The C own con olled mos economic ac i i ies, including mining, ag icul u e, and ade. The B i ish Thi een Colonies had g ea e access o p i a e in es men and capi al han New Spain did. Me chan s and landowne s could access inancial esou ces h ough local banks, p i a e in es o s, and e en c edi om B i ain. This access o capi al and c edi allowed o he g ow h o businesses and he de elopmen o in as uc u e, such as oads, po s, and ci ies (Egnal, M., 1975). In New Spain, access o capi al was con olled by he Spanish C own and poli ically-connec ed eli es. In es men was ocused on ex ac ing esou ces – pa icula ly sil e - o he S a e and local en ep eneu s had limi ed access o inancial esou ces. The ocus on mining and he C own’s ex ac ion o weal h ul ima ely led o inc eased C own ax e enues a he cos o long- e m economic s agna ion in many sec o s. Addi ionally, i is impo an o men ion ha he Thi een Colonies had a much mo e adical and iolen way o in e ac ing wi h na i es. In he Thi een Colonies, mos na i es we e mos ly ex e mina ed en masse (Lange, M., Mahoney, J., & om Hau, M., 2006); in New Spain, whe e he na i e popula ion was bigge – Tenoch i lan had a ound 200,000 o 300,000 inhabi an s by 1492 and no pe manen se lemen o he no h o he Valley o Mexico exceeded he 20,000 igu e; Cahokia, loca ed nea mode n-day Missou i, had an es ima ed popula ion o app oxima ely 15,000 people a ound he same ime (Lange, M., Mahoney, J., & om Hau, M., 2006) and is usually conside ed o ha e been he bigges se lemen o he no h o he Valley o Mexico - , ex e mina ion would ha e been much ha de o achie e e en i he Spanish C own had wan ed o eso o i , and i in ac did no . The Spanish C own ied o a oid he ex e mina ion o na i es whe e e possible, and he as majo i y o he dea hs o na i es in he Spanish Ame icas we e he p oduc o disease. Con e sely, he C own p omo ed a policy o mes izaje – miscegena ion - , legally allowing na i es and Spania ds o ma y and ha e hei mixed- ace sons and daugh e s conside ed legal hei s. In ac , he C own p omo ed be ween he yea s o 1803 and 1806 he Real Expedición Filan ópica de la Vacuna – Royal Philan h opic Vaccine Expedi ion – o cu e na i es s uck by smallpox. Since he Indigenous popula ion was much lowe in he Thi een Colonies – because he e we e ewe o hem he e and he ew ha we e he e we e apidly annihila ed - , exploi ing Indigenous peoples in economic ac i i ies such as anching o mining was no possible in places like New Yo k o Pennsyl ania (Jones, A. H., 1984). In sou he n New Spain, he quickes way o someone o ge ich was o es ablish connec ions wi h poli ical eli es, use hose connec ions o ge some land and o each he local juez de 41 epa imien o, b ibe him so ha he would look he o he way when hey unde paid hei indigenous wo ke s - o kidnapped hem o wo k o hem illegally - , and hen se up a big hacienda. Some hing like his was impossible in he Thi een Colonies: p i a ely-con olled land was much mo e common he e (Jones, A. H., 1984), meaning i was no easy o use b ibe y o poli ical connec ions o acqui e a piece o land, and he e we e no la ge amoun s o na i es o kidnap o exploi , meaning ha one had o ac ually pay somewha ai wages o people i hey wan ed o ha e somebody wo k o hem – supply o manpowe was much lowe han in New Spain bu demand was simila ly high; he e o e, he p ice o pay o employ somebody was highe as he equilib ium p ice o manpowe was highe - . I is sensible o a gue hen ha , gene ally speaking, he economy o he Thi een Colonies was much ee and p o-g ow h han ha o New Spain (Lange, M., Mahoney, J., & om Hau, M., 2006); i is also ob ious ha he e was a la ge p esence o ex ac i e ins i u ions in New Spain han in he Thi een Colonies, whe e ins i u ions – while no pe ec by any means – we e gene ally less p eda o y owa ds economic g ow h and en ep eneu ship. Figu e 9. A map o he Thi een Colonies. Maine was o iginally pa o he colony o Massachuse s. Delawa e was no i s own colony bu pa o Pennsyl ania; when he e olu ion began hough, Delawa e decla ed independence - sepa a ely om Pennsyl ania - along wi h he o he 12 and is hus coun ed among he 13 o iginal s a es o he Uni ed S a es. Sou ce: Encyclopædia B i annica Kids. 48 Figu es 11, 12 and 13. Mahoney designs h ee ables ha illus a e he ela i e de elopmen ankings o mos Hispanic Ame ican coun ies o e he pas cen u y. These ables se e o highligh he ema kable consis ency in he hie a chical posi ions occupied by each na ion wi hin he egion. Mahoney inds his phenomenon o coun ies each de eloping indi idually bu s ill occupying almos he exac same posi ions ela i e o each o he wi hin he egional de elopmen al anking o decades e y in e es ing and wo hy o u he s udy. Since Mahoney is a esea che o Hispanic Ame ican de elopmen al his o y, he wonde s i his phenomenon migh be ela ed o Spanish colonialism and he way Spain colonized each o he obse ed coun ies. Mahoney says he looked o a empo al “base poin ” o use as a kind o ancho o e e ence poin , a da e o wa d om which i would be use ul o ack he de elopmen al his o y o he egion. Mahoney ends up se ing he yea 1650 as his base poin . Mahoney explains ha by he yea 1650 he unc ions and oles and unc ions o each Spanish colony wi hin he empi e had been ully es ablished, meaning a e i o y would by hen ha e been de ac o posi ioned in o one o h ee colonial g oups: colonial cen e s, colonial semipe iphe ies and colonial pe iphe ies. I was a ound 1650 when he Spanish adminis a ion in he Ame icas had ully consolida ed. The yea 1650 comes decades a e he 49 conques -and-se lemen pe iod o he 15 h and 16 h cen u ies, and 50 yea s be o e he economic e o ms p omo ed by he Bou bonic dynas y in he ea ly 1700s. Mahoney a gues ha by he yea 1650 colonial Spanish ins i u ions in he Ame icas had de eloped o he poin whe e i migh be sensible o esea che s o heo ize ha Spanish colonial policies c i ically in luenced u u e de elopmen al s o ies in Hispanic Ame ica. Mahoney classi ies he s udied Hispanic Ame ican e i o ies unde he mode n s a es ha exis oday in he egion – so, o example, he di ides Pe u in o Pe u and Boli ia e en hough Boli ia was in 1650 a egion o Pe u called Al o Pe ú and no an en i y a all independen o Pe u - . Colonial cen e s we e, acco ding o Mahoney, he wo mos impo an egions in he Spanish Empi e in he Ame icas and he a eas whe e he bulk o colonial adminis a o s and ci il se an s li ed. These we e he loca ions whe e Spanish con ol o he land was s onges and mos di ec . Colonial semipe iphe ies whe e egions o he empi e whe e Spanish con ol and au ho i y was ela i ely weak bu s ill somewha p esen . These a eas we e less impo an o he Spanish c own han colonial cen e s bu sill cons i u ed egions o some ela i e ele ance. Colonial pe iphe ies, howe e , we e he absolu e “backwa e egions” o he empi e. These places held e y li le ele ance o he c own and we e no e y economically p oduc i e in absolu e e ms; e y ew – i any – colonial adminis a o s and ci il se an s li ed in hese loca ions. Ac ual, e ec i e impe ial con ol o he land was mos ly nominal in hese a eas. Mahoney p oduces a able – Figu e 14 – classi ying he di e en s udied e i o ies in o colonial cen e s, colonial semipe iphe ies and colonial pe iphe ies in he yea 1650: Figu e 14. Mahoney classi ies he di e en s udied Hispanic Ame ican coun ies in o h ee g oups based on hei ole wi hin he Spanish Empi e in he 1650s. 50 Using economic and social da a o he s udied na ions om Tho p (1998) and Jagge s and Gu (1996), Mahoney’s Table 4 – Figu e 15 in his essay - calcula es he co ela ion coe icien s be ween he le el o colonial pene a ion o a colony – whe he a colony was a colonial cen e , a colonial semipe iphe y o a colonial pe iphe y – and he p e iously explained le els o economic de elopmen - measu ed using GDP pe capi a - , social de elopmen – using again, a a iable aking in o accoun li e acy a es and li e expec ancy – and democ acy – using, again, “democ acy sco es” assigned by Jagge s and Gu (1996) - . Figu e 15. Mahoney designs a able ha shows Spea man co ela ion coe icien s be ween colonial pene a ion and he h ee p e iously men ioned de elopmen indica o s ac oss o me Spanish colonies om 1900 o 1990. The s ong and s a is ically signi ican nega i e co ela ions, especially o social de elopmen – like −0.72 in 1900 — indica e ha coun ies mo e deeply pene a ed by colonial ule - colonial cen e s - consis en ly ank lowe in de elopmen ou comes han hose wi h ligh e colonial p esence - colonial semipe iphe ies and colonial pe iphe ies - . This suppo s Mahoney’s a gumen ha quali a i e di e ences in colonial expe ience – and no jus colonialism pe se - help explain pe sis en inequali ies in pos colonial de elopmen . Mahoney s a s o ealize ha hose Hispanic Ame ican egions o he Spanish Empi e whe e impe ial au ho i y and con ol o he land we e s onges a e now, in mode n imes, some o he poo es and leas de eloped o he a ea, which would ha e been su p ising o someone li ing in he 1650s: 51 “A he heigh o he colonial empi e in he mid-17 h cen u y, one migh no ha e expec ed ha ma ginal e i o ies such as mode n A gen ina, U uguay, and Cos a Rica would become he egion’s mos de eloped coun ies. Mo e likely, one would ha e hough ha mo e p ospe ous a eas such as mode n Pe u, Boli ia, and Ecuado would emain he weal hies egions.” Mahoney explains ha a “g ea e e sal” in de elopmen seems o ha e ocu ed in Hispanic Ame ica a e he Bou bons gained con ol o he Spanish c own in he ea ly 1700s and s a ed implemen ing p o ound economic e o ms o all o he 18 h cen u y. These e o ms, d i en by Spain’s declining powe and he ise o global capi alism, libe alized colonial ade and adminis a ion. As ade ou es expanded and a i s we e educed, pe iphe al colonies like Venezuela, Chile, and he Río de la Pla a egion expe ienced apid economic and demog aphic g ow h. Buenos Ai es and Ca acas eme ged as impo an po s, while A gen ina and U uguay exploi ed ag icul u al and li es ock po en ial p e iously un apped. E en landlocked Pa aguay saw economic gains h ough ye ba ma e p oduc ion. Meanwhile, olde cen e s such as Colombia, Ecuado , Pe u, and Boli ia s agna ed o declined. Colombia los i s ade p ominence, Ecuado ’s wool indus y collapsed unde o eign compe i ion, and Pe u’s in luence diminished as sil e p oduc ion al e ed. By he ea ly 19 h cen u y, Mexico (especially i s sou he n egion), al hough s ill weal hy, began a p olonged economic decline, as did Pe u and Boli ia a e independence. In con as , coun ies like Cos a Rica and Pa aguay imp o ed hei ela i e s anding du ing his pe iod. By a ound 1850, he egion had se led in o a new de elopmen al hie a chy: he o me pe iphe ies had o en ou paced he old co es. This e e sal was shaped by colonial libe aliza ion, in eg a ion in o global ma ke s, and poli ical independence, al hough he easons why some coun ies succeeded mo e han o he s emain open o deba e. The au ho o his essay p oposes calling his g ea e e sal Mahoney e e s o he Bou bonic De elopmen al Swi ch o pu poses o cla i y and b e i y in he u u e, as e e ing o such a heo y wi h a single, clea name mo ing o wa d will make i easie o his o ians, economis s and sociologis s o e e ence i wi h p ecision and o u he s udy i . Like Mahoney explains, his Bou bonic De elopmen al Swi ch was likely made possible by a d ama ic econ igu a ion o impe ial economic policy in he 18 h cen u y. Unde he Habsbu gs, he Spanish Empi e ope a ed a s ic , me can ilis ic sys em ha c ea ed monopolis ic ade channels and a o ed ce ain ci ies and egions as manda o y hubs o 52 comme ce. Sou he n Mexico, wi h big po s like Ve ac uz o Acapulco and majo non-coas al ci ies like Mexico Ci y o Puebla, was deeply embedded in his amewo k. Goods en e ing and lea ing he empi e we e equi ed o pass h ough speci ic app o ed adminis a i e cen e s and o en aced hea y a i s, bu eauc a ic con ols, ins i u ional ic ion and co up ion in he o m o shakedowns and b ibes – as he manage s o hese app o ed po s ook ad an age o hei p i ileged posi ion o en ich hemsel es ou side he limi s o he law - . This p o ec ed ce ain ade and poli ical eli es and ensu ed e enue o he c own, bu also s i led egional economic dynamism and locked ou po en ially mo e ime-e icien – and hus economically cheape - ou es and ma ke s. The Bou bon e o ms, pa icula ly he Reglamen o de Lib e Come cio o 1778, sough o mode nize and e i alize he empi e’s economy. By li ing many in e nal and ex e nal ade es ic ions and allowing new po s and egions o engage ade di ec ly, he Bou bons unde mined he e y s uc u e ha had sus ained he dominance o colonial cen e s like Sou he n Mexico and Pe u. A he same ime, hey opened he doo o some pe iphe al egions such as Chile, Cos a Rica, A gen ina o U uguay o eme ge as iable comme cial al e na i es. As men ioned, be o e he Bou bonic e o ms, ade wi h ex e nal ma ke s - such as B azil o he Thi een Colonies - was o ced o pass h ough speci ic designa ed colonial cen e s. Fo example, comme cial exchanges wi h B azil had o necessa ily ou e h ough Pe u, and ade wi h he Thi een Colonies was cons ained by he need o pass h ough Sou he n Mexican po s like Ve ac uz, wi h o e sigh om Sou he n Mexican au ho i ies. These limi a ions we e no based on geog aphic e iciency o economic a ionale, bu a he on adminis a i e ine ia, poli ical in e es s and ins i u ional adi ion. Once he Bou bon e o ms li ed hese es ic ions, ade lows quickly adjus ed o new, mo e ime-e icien and cheape ou es. Goods could mo e om Buenos Ai es di ec ly o B azil wi hou be o e-hand supe ision o con ol om Lima, and comme ce wi h No h Ame ica could be conduc ed h ough no he n Mexican e i o ies wi hou sou he n Mexico ac ing as an in e media y o o e see . Habsbu g economic and comme cial legisla ion had, in essence, a o ed ade cen e s ha we e no he mos op imal om a cos o ime pe spec i e, which mean ha egions ha we e be e sui ed o ade om a pu ely economic o business poin o iew – a eas like A gen ina, U uguay, Cos a Rica o Chile - we e no “allowed” o expe ience no able economic g ow h un il he 18 h cen u y. The Bou bonic e o ms allowed hese egions o inally unlock hei ull economic po en ial. 53 Now, i is clea ha ha ing been a colonial pe iphe y did no au oma ically gua an ee high deg ees o long- e m de elopmen ; in Mahoney’s Table 5 – Figu e 14 in his essay – i can be seen ha some colonial pe iphe ies - like Hondu as and Nica agua – did no achie e a high deg ee o long- e m de elopmen in spi e o hem being colonial pe iphe ies. F om his, Mahoney a gues, i can be in e ed ha , while being a colonial pe iphe y was likely a necessa y o a leas use ul condi ion o achie e long- e m de elopmen , some o he equi emen s had o be me in addi ion. Mahoney hen decides o s udy wha condi ions we e necessa y – as in, wi hou hem a ce ain de elopmen al ou come did no occu , al hough hese condi ions jus by hemsel es did no au oma ically gua an ee he ou come – and su icien – jus he p esence o hese by hemsel es was enough o gua an ee a ce ain de elopmen al ou come - .To ind ou which condi ions hese a e, Mahoney uses uzzy-se me hods. Fo an in-dep h explana ion on wha uzzy-se me hods a e, how hey wo k, and how Mahoney uses hem o a i e a he consis ency sco es abou o be shown he e in his chap e , eade s should ead his essay’s Appendix A – Ins uc ions on how o in e p e Mahoney’s consis ency ables in Chap e V – page XXX - . In his Table 6 – Figu e 16 - , Mahoney g an s each s udied e i o y a se o uzzy-se sco es ac oss ou possible ou comes - economically de eloped, economically unde de eloped, socially de eloped and socially unde de eloped – based on hei de elopmen al s a us du ing he 20 h cen u y. These sco es can be 0,0.17., 0.33, 0.50, 0.67, 0.83 o 1.00. Again, o a mo e in-dep h explana ion, i is ecommended ha eade s ead his essay’s Appendix A. 54 Figu e 16. Mahoney g an s e e y s udied colony a se o uzzy-se sco es o ou possible de elopmen ou comes in he 20 h cen u y. In his Table 7, Mahoney in oduces a iables possibly explaining he long- e m ou comes o he di e en Hispanic Ame ican na ions s udied. Mahoney includes dense indigenous popula ion as a possibly ele an condi ion o s udy. He heo izes ha dense indigenous popula ions migh ha e led o egions wi h such a cha ac e is ic o ea u e acial and e hnic exclusion and ha such egions migh ha e had hei de elopmen cu sho du ing he 1700- yo-1850 pe iod. Addi ionally, egions wi h dense insigenous popula ions migh ha e had p oblems depelo ing a p o-ma ke economic en i onmen since indigenous people o en aced ins i u ional ba ie s when ying o p o ec hei p ope y igh s, and pas esea ch has shown ha ailu e o p o ec p ope y igh s can ha m en ep eneu ial ac i i y and he es ablishmen o p o-business policies. On he o he hand, Mahoney heo izes, e i o ies wi hou dense indigenous popula ions may ha e aced ewe in e - acial con lic s and a highe deg ee o social cohesion, which migh ha e been good o long- e m de elopmen . Thus, Mahoney includes bo h he p esence o dense 55 indigenous popula ions and he absence o such a hing as ele an plausible condi ions o s udy in his Table 6. Secondly, Mahoney includes he condi ion labo -in ensi e es a es; his s udies whe he a egion had a signi ican p esence o wha Mahoney desc ibes as la ge-scale, labo -in ensi e hacienda-s yle ins i u ions. Mahoney poin s ou ha p e ious esea ch has shown ha hese kinds o elemen s gene ally ha e nega i e long- e m economic consequences o he egions whe e hey a e loca ed. Fo s a e s, hese es a es usually elied on a poo , mos ly non- esiden wo k o ce, which – quo ing Mahoney he e – “may ha e unde cu local demand o manu ac u ed p oduc s and made i unp o i able o in es in mode n sec o s o he economy”. Addi ionally, since i was heal hy indi iduals ha owned hese haciendas and poo – mos ly indigenous – g oups hose who wo ked in hem, he whole phenomenon migh ha e c ea ed and e e nized an en i onmen ha p omo ed economic and social inequali y. The owne s o hese la ge haciendas – who we e usual e y well connec ed poli ically – migh in u n ha e pushed o an i-educa ion and an i-libe al measu es in o de o keep hei wo k o ce poo , weak and elian on hem. Mahoney also explo es he condi ion mine al/ opical expo s. Mahoney unde s ands ha he mass expo ing o opical p oduc s – by his, Mahoney likely e e s o i ems such as obacco, suga , co ee and cacao – and mine als – like sil e o gold – o e poo economic e u ns and make i ha de o local economies o in es in ac i i ies ha a e be e o long- e m de elopmen and he o ma ion o capi al. The condi ion s ong libe als, Mahoney says, e e o a egion con aining a signi ican ac ion o in ellec uals who, by he la e 18 h cen u y, ques ioned he legi imacy o Spanish ule in he Ame icas and who – quo ing Mahoney he e – “ad oca ed ee ade and ma ke s, a sepa a ion o chu ch and s a e, and an expanded s a e ole in p omo ing de elopmen ”. On he o he hand, s ong conse a i es e e s o he possibili y o a e i o y con aining a signi ican eli e o people opposed o ee ma ke s and open ade, and who a o ed he g an ing o p i ileges o he Ca holic Chu ch and he main aining o ex ac i e, p o ec ionis o me can ilis ic ins i u ions. 56 Figu e 17. Mahoney g an s e e y s udied o me colony a se o uzzy-se sco es o i e di e en po en ial explaining ac o s. Mahoney hen uses uzzy-se me hods o de e mine wha condi ions a e necessa y and su icien o a e i o y o end up in one o he conside ed ca ego ies – socially de eloped o socially unde de eloped and economically de eloped o economically unde de eloped. Table 8 shows he esul s o he consis ency es s be ween he di e en condi ions and ou comes s udied. Again, o an in-dep h analysis on wha hese numbe s mean and how Mahoney a i ed a hem, i is highly ecommended ha eade s ead his essay’s Appendix A. Appendix A also includes an analysis o he condi ions Mahoney’s me hod ended up classi ying as necessa y and su icien ha will be o g ea in e es o anybody in e es ed in de elopmen al his o y. 57 64 Mexico as one single, uni a y e i o y. I is he iew o his essay’s au ho ha his is a mis ake. I is mo e adequa e o spli Mexico in o wo ough hal es: No he n Mexico and Sou he n Mexico. While hese wo e i o ies belong oday o a uni ied s a e – he Uni ed Mexican S a es - , hey we e la gely unconnec ed be ween he 16 h cen u y and he la e 19 h cen u y, wi h No he n Mexico being a as on ie mos ly uncha e ed o he no ohispanos li ing o he sou h o Zaca ecas. The ma e ial condi ions in each o he wo e i o ies we e di e en – as shown in Figu e 8 - , and he economic sys ems de ac o es ablished in each loca ion we e also e y di e en , as he me can ilis ic, mos ly an i-libe al economic egime p esen in Sou he n Mexico was no nea ly as s ong in No he n Mexico. No he n Mexico was, hus, a bene icia y o he Bou bonic De elopmen al Swi ch while Sou he n Mexico was a ic im o i . Mahoney’s model Colony Dense indigenous popula ion Labo - in ensi e es a es Mine al/ opical expo s S ong libe als S ong conse a i es Colony ype Mexico 1.00 1.00 1.00 1.00 1.00 Colonial cen e ; impac o he BDS nega i e; ic im o he BDS P oposed model Colony Dense indigenous popula ion Labo - in ensi e es a es Mine al/ opical expo s S ong libe als S ong conse a i es Colony ype Sou he n Mexico 1.00 1.00 1.00 1.00 1.00 Colonial cen e ; impac o he BDS nega i e; ic im o he BDS No he n Mexico 0.00 0.17 1.00 0.33 1.00 Colonial pe iphe y; impac o he BDS posi i e; bene icia y o he BDS Figu e 20 – The i s able shows he way Mahoney i s Mexico in o his heo y; he second able shows he way he au ho o his essay would i Mexico in o Mahoney’s heo y, spli ing i in o wo ough hal es. The uzzy-se sco es gi en o No he n Mexico by he au ho , while based on a ailable quali a i e his o ical da a and in o ma ion, a e s ill subjec i e. Sou ce: own c ea ion. The way Mahoney p esen s i – wi h Mexico as uni ied poin o s udy and classi ied as a colonial cen e - , all o Mexico was a c i ical pa o he Spanish Empi e, and he en i e geog aphy o he ull e i o y was a colonial cen e . By classi ying all o Mexico as a colonial 65 cen e , Mahoney se s all o Mexico – including No he n Mexico – o be a ic im o he Bou bonic De elopmen al Swi ch – since i was he Spanish colonial cen e s ha we e nega i ely a ec ed by he Bou bonic economic e o ms s a ing in he ea ly 1700s – as a ic im o he Bou bonic De elopmen al Swi ch when, in eali y, i is e y likely ha Sou he n Mexico was a ic im o he Bou bonic De elopmen al Swi ch while No he n Mexico was a bene icia y o i . Mahoney’s classi ica ion o Mexico is a simpli ica ion ha o e looks he p o ound egional a ia ion wi hin ice oyal Mexico. As explained, a close eading o bo h empi ical e idence and Mahoney’s own heo e ical appa a us e eals a c i ical need o disagg ega e Mexico in o a leas wo analy ical egions: Sou he n Mexico, which did unc ion as a colonial cen e wi h hea y bu eauc a ic, ecclesias ical, and ade signi icance, and No he n Mexico, which was compa a i ely ma ginal in he ea ly colonial pe iod bu g adually eme ged as a dynamic on ie egion. This no h-sou h di ide aligns p ecisely wi h he pa e n Mahoney obse es elsewhe e wi hin he Spanish Empi e: a "swi ch” by which he economic ad an ages o p e iously p i ileged egions - he colonial cen e s - a e e oded ollowing Bou bon e o ms, while pe iphe al egions gain g ound due o he libe aliza ion o ade and he educ ion o ins i u ional igidi ies. Like Mahoney explains, his Bou bonic De elopmen al Swi ch was made possible by a d ama ic econ igu a ion o impe ial economic policy in he 18 h cen u y. Unde he Habsbu gs, he Spanish Empi e ope a ed a s ic , me can ilis ic sys em ha c ea ed monopolis ic ade channels and a o ed ce ain ci ies and egions as manda o y hubs o comme ce. Sou he n Mexico, wi h big po s like Ve ac uz o Acapulco and majo non-coas al ci ies like Mexico Ci y o Puebla, was deeply embedded in his amewo k. Goods en e ing and lea ing he empi e we e equi ed o pass h ough speci ic app o ed adminis a i e cen e s and o en aced hea y a i s, bu eauc a ic con ols, ins i u ional ic ion and co up ion in he o m o shakedowns and b ibes – as he manage s o hese app o ed po s ook ad an age o hei p i ileged posi ion o en ich hemsel es ou side he limi s o he law - . This p o ec ed ce ain ade and poli ical eli es and ensu ed e enue o he c own, bu also s i led egional economic dynamism and locked ou po en ially mo e ime-e icien – and hus economically cheape - ou es and ma ke s. The Bou bon e o ms, including he Reglamen o de Lib e Come cio o 1778, sough o mode nize and e i alize he empi e’s economy. By li ing many in e nal and ex e nal ade es ic ions and allowing new po s and egions o engage ade di ec ly, he Bou bons unde mined he e y s uc u e ha had sus ained he dominance o colonial cen e s like Sou he n Mexico and Pe u. A he same ime, hey opened he doo o pe iphe al egions such 66 as No he n Mexico, A gen ina o U uguay o eme ge as iable comme cial al e na i es o he i s ime. As men ioned, be o e he Bou bonic e o ms, ade wi h ex e nal ma ke s - such as B azil o he Thi een Colonies - was o ced o pass h ough speci ic designa ed colonial cen e s. Fo example, comme cial exchanges wi h B azil had o ou e h ough Pe u, and ade wi h he Thi een Colonies was cons ained by he need o pass h ough Sou he n Mexican po s like Ve ac uz, wi h o e sigh om Sou he n Mexican au ho i ies. These limi a ions we e no based on geog aphic e iciency, a desi e o achie e ime e iciency o economic a ionale, bu a he on adminis a i e ine ia, poli ical in e es s and ins i u ional adi ion. Once he Bou bon e o ms li ed hese es ic ions, ade lows quickly adjus ed o new, mo e ime-e icien and cheape ou es. Goods could mo e om Buenos Ai es di ec ly o B azil wi hou be o e-hand supe ision o con ol om Lima, and comme ce wi h No h Ame ica could be conduc ed h ough no he n Mexican e i o ies wi hou sou he n Mexico ac ing as an in e media y o o e see . Habsbu g economic and comme cial legisla ion had, in essence, a o ed ade cen e s ha we e no he mos op imal om a cos o ime pe spec i e, which mean ha egions ha we e be e sui ed o ade om a pu ely economic o business poin o iew – a eas like A gen ina, U uguay, Chile o No he n Mexico - we e no “allowed” o expe ience no able economic g ow h un il he 18 h cen u y. The Bou bonic e o ms allowed hese egions o inally unlock hei ull economic po en ial. No he n Mexico, wi h i s p oximi y o he B i ish Thi een Colonies – la e he Uni ed S a es - eme ged as a new, s a egic economic on ie . The libe alized ade amewo k allowed he egion o de elop mo e apidly, bene i ing om lowe ins i u ional ic ion, access o new ma ke s, and inc easing demog aphic and in as uc u al in es men s. Sou he n Mexico, by con as , began o lose i s p i ileged s a us. Wi hou he ins i u ional p o ec ions i had once enjoyed, i could no compe e as e ec i ely in he new, ee comme cial landscape. I s economic decline acks closely wi h Mahoney’s b oade indings abou colonial cen e s, ye i is only hal o he Mexican s o y ega ding he Bou bonic De elopmen al Swi ch. Mahoney igh ly ecognizes A gen ina as a bene icia y o he Bou bonic De elopmen al Swi ch, highligh ing i as a pe iphe al egion ha lou ished unde Bou bonic economic libe aliza ion. The o e sigh , howe e , lies in no ecognizing a pa allel ans o ma ion in No he n Mexico, which mi o s A gen ina’s ajec o y bo h in e ms o iming and mechanism. By insis ing on ea ing Mexico as a uni a y case, Mahoney’s model inad e en ly 67 obscu es in e nal a ia ion ha suppo s his own heo y. I Mexico is ins ead analyzed as comp ising wo di e en egions - Sou he n Mexico as a colonial cen e and No he n Mexico as a colonial pe iphe y - hen i s de elopmen al ajec o y pe ec ly aligns wi h Mahoney’s Bou bonic De elopmen al Swi ch heo y. Sou he n Mexico declined a e he collapse o i s ade monopolies and bu eauc a ic p i ileges, while No he n Mexico gained g ound as ade ba ie s ell and new oppo uni ies opened. Mahoney says ha Mexico is one o wo ou lie cases ha seem o con adic his Bou bonic De elopmen al Swi ch Theo y – he o he being Pa aguay - : “The co ela ion o colonial pene a ion and economic de elopmen is also consis en ly nega i e, bu wo ou lie s - Mexico and Pa aguay - educe i s s eng h. Fi s , Mexico is he mos hea ily colonized coun y in Palme ’s index, bu i pe o ms well on economic de elopmen ( hough no on social de elopmen ), he eby iola ing he in e se ela ionship.” Mahoney is co ec he e: his classi ica ion has Mexico – all o i , appa en ly – as a colonial cen e , bu mode n Mexico’s good economic da a con adic s Mahoney: i Mexico was a colonial cen e , hen why is Mexico now ai ly weal hy o he s anda ds o Hispanic Ame ica? Mahoney says he has an explana ion: “The abili y o Mexico o achie e a ela i ely high le el o economic pe o mance appea s o be a p oduc o he Mexican Re olu ion (especially he e o ms o Láza o Cá denas) and he p oximi y o i s no he n s a es (whe e mos indus y is concen a ed) o ma ke s in he Uni ed S a es.” The p oblem wi h his is ha he Mexican Re olu ion a ec ed he no h o he coun y much mo e han i did he sou h. Addi ionally, Mahoney admi s ha he good economic pe o mance o Mexico in mode n imes is due o he g ea economic g ow h in No he n Mexico speci ically – indeed he no h o Mexico has had much highe a es o economic g ow h in ecen decades, which has made he a e age economic da a o all o Mexico look be e han i only he sou h o he coun y was analyzed - . Mahoney hus seems o ha e ollowed his p ocess when applying his heo y o he case o Mexico: i s he ga e all o Mexico a se o uzzy-se sco es based exclusi ely on he eali ies o Sou he n Mexico – as explained p e iously - , hen he concluded ha all o Mexico was a colonial cen e – based, again, exclusi ely on sou he n da a - and hus mus necessa ily ha e been a ic im o he Bou bonic De elopmen al Swi ch; hen, he analyzed he – good – economic da a o Mexico nowadays o his su p ise, ealizing ha i mos ly de i es om he no h o he coun y bu wi hou choosing o modi y his model in any 68 way in o de o be e accommoda e he adical di e ences in economic da a and colonial legacies be ween he wo egions. To sum up, Mahoney is compa ing sou he n uzzy-se sco es wi h e y no h-in luenced mode n economic da a. Tha is whe e he p oblem lies and he eason o Mahoney’s con usion: he is e ec i ely compa ing pas da a om Sou he n Mexico wi h p esen da a om No he n Mexico. Had Mahoney spli Mexico in o he wo ough hal es p oposed in Figu e 20, he could ha e compa ed hose wo se s o da a wi h he economic da a o Mexico nowadays, ealizing wha is somewha clea : ollowing Mahoney’s heo e ical amewo k, i is highly likely ha No he n Mexico was a colonial pe iphe y ha bene i ed om he Bou bonic De elopmen al Swi ch, while Sou he n Mexico was a colonial cen e ha was ha med by he Bou bonic De elopmen al Swi ch. Wi h hese adjus men s, Mexico’s case goes om being an ou lie ha possibly unde mines Mahoney’s heo y o one o i s bigges suppo ing pilla s. This ee alua ion also con ibu es o a b oade me hodological poin in he s udy o colonial legacies and colonial de elopmen s o ies. Huge coun ies like Mexico, wi h complex colonial his o ies and as egional dispa i ies, canno be educed o single da a poin s o s udy uni s simply because hey a e one s a e hese days; a he , hey mus be examined a a subna ional le el, whe e he in e ac ion o impe ial policy, geog aphy, and ins i u ional legacy can be mo e accu a ely aced. The case o Mexico – when Mahoney’s me hodology is co ec ed - hus no only s eng hens Mahoney’s b oade heo y bu also highligh s he impo ance o g anula i y and his o ical nuance in compa a i e poli ical economy, bu only i i is acknowledged i s . One migh now wonde why his dis inc ion could no also be applied o – o ins ance – he coas al/cen al egions o Colombia and he Amazonic hal o he coun y. The answe is simple: Mahoney’s s udy – and i s uzzy-se me hods - explains ha , in o de o a colonial pe iphe y o become a bene icia y o he Bou bonic De elopmen al Swi ch, some addi ional equi emen s we e likely necessa y – o , a he e y leas , s ongly use ul - . I is likely ha Colombia’s Amazonic egion, while mos likely ha ing been a colonial pe iphe y i Mahoney’s e minology is o be applied, simply lacked he elemen s ha made A gen ina o No he n Mexico bene icia ies o he Bou bonic De elopmen al Swi ch, like being close o majo o eign ma ke s – B azil in he case o A gen ina, he B i ish Thi een Colonies o he Uni ed S a es in No he n Mexico’s case - , a la ge popula ion o libe al-minded people – see Mahoney’s Table 8 - , o simply a signi ican popula ion in absolu e e ms. The Colombian Amazonic egion is e y spa sely popula ed, much mo e so han No he n Mexico e e was – as o he yea 2025, a ound 30 million people li e in No he n Mexico and only 1 million people li e in he Colombian Amazon - . 69 In conclusion, he Bou bon e o ms o he 18 h cen u y ca alyzed a d ama ic eo de ing o he Spanish Empi e’s economic geog aphy. By disman ling he monopolis ic and p o ec ionis ade s uc u es es ablished unde he Habsbu gs, he e o ms ga e ise o a Bou bonic De elopmen al Swi ch: a e e sal in o unes whe e colonial pe iphe ies like no he n Mexico and A gen ina ose in economic signi icance while colonial cen e s like Pe u and sou he n Mexico declined. To ully app ecia e his ans o ma ion hough, Mexico mus be eclassi ied in e nally - ecognizing he di e gen pa hs o i s no he n and sou he n hal es - and analyzed no as a singula colonial cen e , bu as a composi e case ha e lec s he ull spec um o impe ial dynamics and pos colonial de elopmen wi hin i s bo de s. Once ha is aken in o accoun , i becomes clea why, ollowing Mahoney’s heo y, No he n Mexico s a ed o di e ge om Sou he n Mexico economically s a ing in he ea ly 1700s. 70 CHAPTER VI – THE MEXICAN WAR OF INDEPENDENCE AND THE SUBSEQUENT PROCESS OF ECONOMIC DESTRUCTION IN NEW SPAIN The Mexican Wa o Independence, which ook place be ween he yea s 1810 and 1821, had p o ound economic consequences ac oss he en i e y o he newly independen na ion, bu he in ensi y o i s economic e ec s a ied signi ican ly be ween he sou he n and no he n po ions o Mexico. These di e ences s emmed om he wo egions’ dis inc economic s uc u es, le els o in eg a ion in o colonial ma ke s, and deg ees o economic de as a ion su e ed du ing he con lic . The sou he n po ion o Mexico, wi h i s dense, majo i y- Indigenous popula ion, ag icul u al economy, and s onge and mo e di ec Spanish C own p esence, aced e y se e e dis up ions in i s economy and in i s socie y, while No he n Mexico, e y spa sely popula ed and mo e dependen on mining and ca le anching, su e ed economic s agna ion a i s bu , in he medium e m, expe ienced a be e adap a ion o he new pos -wa eali y by aking ad an age o i s g owing economic ies o he US. In gene al e ms again, while he wa a ec ed bo h egions, he dep h and pe sis ence o economic ha dship we e no ably g ea e in he sou h o he newly- ounded na ion (Ga duno-Ri e a, R., 2021). I is es ima ed ha mo e han a million people died in New Spain du ing he Mexican Wa o Independence. Tha is, one six h o he popula ion o New Spain had been annihila ed du ing he wa . Wa expenses, on he o he hand, bo h in Spain and in Ame ica, led he ice oyal y o bank up cy. The mines, many o hem abandoned, educed hei p oduc ion o a hi d o he le els hey had be o e 1810. The p oduc ion o he haciendas, likewise, was educed due o lack o labo . As a side e ec , he Chu ch s opped ecei ing he usual i hes. The Spanish me opolis con inued o impose economic es ic ions and eques he sending o esou ces o help wi h i s own c isis. The membe s o he ice egal a my we e dissa is ied wi h hei low sala ies and because, in he ice oyal a my igh ing he sepa a is s, he e was an open p e e ence o he expedi iona y oops who had a i ed om Spain since 1812, which made many no ohispano soldie s eel disen anchised and like hey we e igh ing o a coun y ha did no ca e ha much o people like hem. Be o e he wa , New Spain was a highly egionalized economy, and he colonial s uc u e ensu ed ha economic ac i i y was concen a ed in di e en ways. Sou he n Mexico – and pa icula ly a eas like Oaxaca, Chiapas, and pa s o mode n-day Gue e o - was an ag icul u al hub wi h signi ican Indigenous popula ions – a ound 70 o 80% o he popula ion in hose h ee s a es is o Indigenous o igin hese days - . I s economy elied on cash c ops such as cacao, suga , and cochineal, which we e mos ly expo ed o Spain. La ge 71 landowne s con olled as haciendas and encomiendas, whe e Indigenous labo e s wo ked unde exploi a i e condi ions – e en i hose condi ions we e illegal, since many imes he Spanish C own u ned a blind eye o abuses in o de o a oid con lic s wi h local eli es and powe ul indi iduals - . T ade ne wo ks linked his ag icul u al p oduc ion o u ban cen e s in Sou he n Mexico like Mexico Ci y, Guadalaja a o Puebla, while a isan indus ies such as ex iles and po e y supplied local and egional ma ke s. The economic s uc u e o Sou he n Mexico was deeply ied o Spanish colonial sys ems, making i pa icula ly ulne able when hose sys ems collapsed. No he n Mexico – as a eminde , his essay conside s No he n Mexico o include he s a es o Baja Cali o nia, Baja Cali o nia Su , Sono a, Sinaloa, Du ango, Chihuahua, Coahuila, Nue o León and Tamaulipas - , had a as ly di e en economic s uc u e. Mining was he backbone o he economy; howe e , unlike he ac i i ies in he cen alized ag icul u al economy o he sou h, he mining indus y in he no h equi ed signi ican ex e nal inpu s - such as me cu y o sil e e ining - and depended on a s eady labo o ce ha was di icul o main ain due o he egion’s lowe na i e popula ion densi y. As explained p e iously in Chap e VI: since he e was almos nobody li ing in places like Sono a o Chihuahua – and he e y ew Indigenous communi ies li ing in he a ea main ained a nomadic li es yle, inhabi ed no pe manen se lemen s and we e usually hos ile o ou side s - , indi iduals in need o a wo k o ce in No he n Mexico had o hi e employees wi h ai wages and could no eso o kidnapping o he encomienda o epa imien o sys ems like in Sou he n Mexico. This led o an en i onmen wi h economic condi ions mo e simila o hose in he Thi een Colonies han in Sou he n Mexico. Addi ionally, in No he n Mexico, ca le anching was ano he big sec o o he economy, as la ge haciendas domina ed li es ock p oduc ion in he a id en i onmen s ypical o A idoame ica. Unlike Sou he n Mexico, No he n Mexico had e y ew Spanish se lemen s – and mos o hem amoun ed o small eligious missions and small mili a y o s and p isons; big ci ies we e exclusi ely ound in he sou h - , and i s economy was less in eg a ed in o colonial ade ne wo ks, gi ing i a le el o economic au onomy ha would la e p o e bene icial when Spanish ule me i s end. Di ec con ol o ci il socie y by he Spanish C own was much weake he e han in he sou h, and economic ac i i y was no as limi ed and coe ced by oyal Spanish au ho i ies (Ga duno-Ri e a, R., 2021). The wa de as a ed Sou he n Mexico’s ag icul u al sec o in ways ha ook decades o eco e . The des uc ion o haciendas was widesp ead as insu gen o ces and Spanish oops clashed in u al a eas, o en bu ning down es a es o seizing hei esou ces. The displacemen o labo 72 was ano he majo issue, as Indigenous peasan s and labo e s led iolence o joined e olu iona y o ces, leading o se e e labo sho ages. The collapse o expo s, pa icula ly o cochineal and suga , u he damaged he economy, as ade ou es became unsa e and Spanish me chan s wi hd ew om he egion. The once- h i ing ag icul u al economy ound i sel wi hou ma ke s o he in as uc u e o ebuild quickly, lea ing la ge pa s o he popula ion in economic uin (Ga duno-Ri e a, R., 2021). Be o e he wa , Sou he n Mexico had s ong comme cial links o Spain and u ban cen e s like Mexico Ci y, bu he wa dis up ed hese connec ions. T ade ou es and oads became insecu e as insu gen s equen ly a ge ed con oys, leading o highe anspo a ion cos s and educed economic ac i i y. Local ma ke s con ac ed as u al un es and wa - ela ed dis up ions weakened demand o goods, leading o widesp ead economic s agna ion. Addi ionally, o eign ma ke s declined as Spain p io i ized o he colonies o ade, cu ing o c i ical expo s om Sou he n Mexico. Wi h he collapse o hese economic ne wo ks, me chan s and landowne s ound hemsel es s uggling o main ain hei li elihoods, and many businesses ailed. The Manila Galleon disappea ed comple ely as well, disconnec ing Mexico om Asia in e ms o ade. Sou he n Mexico also su e ed om he wa ’s dis up ion o colonial economic policies. The ax collec ion sys ems – howe e p eda o y a imes - ha had once p o ided e enue o main ain in as uc u e and go e nance b oke down, leading o iscal ins abili y ha pe sis ed well beyond independence. Local go e nance weakened as well, leading o a u he inc ease in bandi y and economic diso de , which u he discou aged in es men and ade. Cu ency sho ages became p e alen , as he colonial go e nmen could no longe sus ain sil e coin p oduc ion as i los con ol o he Zaca ecas mines, leading o in la ion and a gene alized loss o con idence in he inancial sys em. These economic dis up ions le Sou he n Mexico in a agile s a e, equi ing subs an ial ebuilding e o s ha we e hinde ed by ongoing poli ical ins abili y in he newly independen coun y and a decades-long con lic be ween ede alis s and cen alis s. One o he mos signi ican pos -wa economic consequences in he sou h was he a emp a land edis ibu ion, hough wi h mixed esul s. A e independence, new land policies sough o b eak up he hacienda sys em, empo a ily allowing Indigenous communi ies o egain los lands (Ga duno-Ri e a, R., 2021). Howe e , hese gains we e o en sho -li ed, as poli ical ins abili y and co up ion enabled new local eli es o consolida e land and weal h. Many hacienda owne s s uggled o eco e om he economic de as a ion o he wa , and in some cases, he land was eabso bed in o la ge es a es a he han being dis ibu ed equi ably. This 73 con ibu ed o long- e m economic s agna ion in u al a eas, whe e po e y emained widesp ead, and ag icul u al p oduc i i y was pain ully slow o eco e . Co up ion a ound land use simply changed hands, and p ope y igh s weakened as many comme cial and inancial con ac s we e deemed in alid by he new Mexican au ho i ies a e independence. I can be said hen, ha No he n Mexico’s economy, while also a ec ed by he wa , was less de as a ed and mo e adap able. The sil e mining indus y su e ed p o oundly due o he des uc ion o mines and qua ies, as bo h e olu iona y and oyalis o ces a ge ed mines o make he opposi e ac ion unable o exploi hei aluable esou ces o mili a y objec i es. The loss o capi al and skilled labo u he compounded he issue, as many Spanish adminis a o s and expe ienced mine s s opped wo king o le he coun y, lea ing behind an indus y in p o ound decline ha ul ima ely ook decades o eco e . Addi ionally, dis up ions in he supply chain - pa icula ly in ensi ied by he sca ci y o me cu y due o Spanish ade es ic ions wi h he goal o making i impossible o sepa a is s o exploi he mine al esou ces o he ice oyal y - made sil e p oduc ion di icul . The depa u e o he Spanish d agones de cue a also led o a ise in insecu i y and a acks agains ci ilians om hos ile na i e g oups in No he n Mexico – like he Apache - , which made mines easie a ge s o s ikes om hose g oups. Unlike he ag icul u al sec o in he sou h, he anching sec o in he no h showed g ea e esilience. As Mexico’s in e nal ma ke s collapsed, anche s ound new oppo uni ies in bo de ade wi h he Uni ed S a es, supplying bee , hides, and wool o Ame ican cus ome s. This shi allowed No he n Mexico o main ain a deg ee o economic s abili y ha he sou h lacked. The less in ense igh ing in he no h also mean ha haciendas and li es ock a ms we e no as equen ly a ge ed, allowing economic ac i i y o pe sis e en as he coun y was engul ed in con lic . E en back in he 1810s, he economy o No he n Mexico was al eady somewha dependen on ade wi h he US – and less dependen on Spain economically – in compa ison o he economies in he sou h o he coun y. The wa signi ican ly al e ed go e nance in No he n Mexico, bu in ways ha ul ima ely bene i ed local eli es and businesses. Wi h he weakening o Spanish con ol, local eli es gained g ea e economic independence, allowing hem o di ec ade and economic policies in ways ha sui ed hei in e es s. Many anche s and me chan s inc easingly aded wi h he US a he han elying on Mexico Ci y, c ea ing a new economic o ien a ion ha would shape No he n Mexico’s de elopmen in he decades o come. Wi h his inc eased ade wi h he US 80 se le s wes wa ds and con ibu ed signi ican ly o he na ion’s economic expansion. The new e i o ies opened up new oppo uni ies o a ming, anching, and mining, which boos ed he economy o he na ion. Addi ionally, he acquisi ion o hese lands s eng hened he US’s posi ion in global ade by p o iding access o he Paci ic Ocean. The wa was, o sum up, a con lic deeply oo ed in economic mo i a ions, wi h he desi e o land, esou ces and access o new ade ou es ueling bo h he s uggle i sel and he d i e o independence in egions like Texas. The con lic had a - eaching economic consequences o bo h coun ies in ol ed: he US eme ged om he igh wi h as new e i o ies ich in na u al esou ces, while Mexico was le s uggling o eco e om he loss o i s no he n hal . The con lic and i s immedia e a e ma h ma ked a u ning poin in he economic his o y o bo h A idoame ica and No h Ame ica a la ge, se ing he s age o he US o become he wo ld's la ges supe powe and o Mexico o become an economic and poli ical subo dina e o he US. In 1848, once Mexico had su ende ed, he e we e discussions be ween Mexico and he US on whe e he new bo de should be se . Mexico ied o limi i s e i o ial losses bu in he end accep ed all o he US’s demands. The US could ha e annexed all o Mexico – he US a my easily occupied Mexico Ci y and la ge pa s o Sou he n Mexico as hei in e en ion was no limi ed o he no h o he coun y - . The e was a g oup o Ame ican au ho s, jou nalis s and poli icians who suppo ed he idea o annexing all o Mexico; hey we e known as he All o Mexico Mo emen . P oponen s o his mo emen belie ed ha acqui ing all o Mexico's as lands would p o ide economic bene i s h ough esou ces, e ile land, and access o he Paci ic Ocean. They en isioned a US s e ching om he A lan ic o he Paci ic and o he Yuca an Peninsula o he sou heas . The All o Mexico Mo emen aced esis ance om bo h wi hin he US and in Mexico. Some Ame icans ea ed he expansion would in ensi y he deba e o e sla e y – since mos Mexicans we e an i-sla e y and Mexico had abolished i in 1829 - , while o he s wo ied abou he challenges o in eg a ing a la ge Mexican popula ion ha was mos ly Ca holic and mixed- ace. Racis Ame ican lawmake s and sena o s p e ailed and decided ha i was bes o “only” annex he no he n hal o he coun y, which had a low popula ion densi y and lacked a s ong Mexican iden i y. The idea o All o Mexico emained a con en ious issue bu was la gely abandoned a e he wa . 81 Figu e 22. A map shows he en i e e i o y James K. Polk – P esiden o he USA be ween 1845 and 1849 – wan ed Ame ica o annex, including all o No he n Mexico, Cuba and a po ion o he Yuca án Peninsula. Sou ce: Encyclopædia B i annica. 82 CHAPTER VIII – THE ECONOMIC HISTORY OF ARIDOAMERICA FROM THE END OF THE MEXICAN-AMERICAN WAR TO THE END OF THE PORFIRIATO IN MEXICO Following he wa wi h i s neighbo o he no h, Mexico was le wi h a much educed e i o y. The new bo de be ween Mexico and he Uni ed S a es c ea ed a clea di ision be ween wo di e en economies, as he con lic only in ensi ied he economic dispa i ies be ween he wo na ions. On he US side, and pa icula ly in ecen ly-ob ained sou he n and wes e n s a es like Texas and Cali o nia, he economy was inc easingly becoming indus ialized, d i en by high-in ensi y ag icul u e, mining, and new u ban indus ies. In con as , No he n Mexico, while much less economically hu by he wa han Sou he n Mexico, s ill aced signi ican economic challenges, wi h a popula ion dispe sed ac oss a as , a id landscape wi h limi ed in as uc u e and economic oppo uni ies. The economic changes ha ollowed he Guadalupe-Hidalgo ea y – which pu an o icial end o he wa - we e pi o al in de ining he de elopmen ajec o y o bo h egions. A e he Mexican-Ame ican Wa , Mexico aced wo incu sions om o eign – mainly Ame ican – ad en u e s, o en e e ed o as ilibus e s, who sough o exploi he coun y’s poli ical ins abili y o pe sonal gain o o ad ance ce ain poli ical causes. These ilibus e s we e a signi ican challenge o he hen weak Mexican epublic, especially in i s no he n e i o ies, whe e he ede al go e nmen s uggled o main ain e ec i e con ol o e he land. Se e al Ame ican-led ilibus e ing expedi ions occu ed in Sono a and Baja Cali o nia wi h he desi e o eplica ing he Texas Re olu ion. While each d i en by di e en mo i a ions, hey all sha ed a common goal: o unde mine Mexican so e eign y o he bene i o o eign in e es s. The mos amous o hese pos -1848 ilibus e ing expedi ions was he one ha ended up wi h he es ablishmen o he so-called Republic o Sono a. In 1853, a g oup o Ame ican and Eu opean ad en u e s, led by William Walke , ied o ake con ol o he Mexican s a e o Sono a. Walke , who had p e iously a emp ed o conque Nica agua and o he Cen al Ame ican e i o ies, led a small in asion o ce in o Sono a in 1853, wi h he goal o es ablishing a ilibus e epublic. His ambi ions we e cen e ed on expanding Ame ican in luence in o No he n Mexico, pa icula ly in e i o ies ha we e s a egically impo an . Walke ’s g oup, which as s a ed included me cena ies om all o e he globe, seized he Sono an own o Guaymas and decla ed he es ablishmen o he Republic o Sono a. 83 Howe e , hei e o s we e sho -li ed, as Mexican o ces quickly mobilized o pu down he ebellion. Walke ’s o ces aced local esis ance and la gely lacked he esou ces needed o sus ain hei occupa ion. A e a b ie pe iod, he ilibus e s we e de ea ed, and Walke was o ced o e ea . His ailu e was a signi ican blow o he ilibus e mo emen , hough i did no end he p ac ice al oge he . Baja Cali o nia also became a ho spo o ilibus e ing ac i i ies, pa icula ly in he 1850s and 1860s. One p ominen ilibus e leade du ing his pe iod was he Ame ican businessman and ad en u e Hen y W. Halleck. Halleck led an expedi ion in o Baja Cali o nia in 1853, seeking o es ablish a oo hold o Ame ican se le s. His goal was o claim he egion o he Uni ed S a es, aking ad an age o Mexico’s dis ac ed go e nmen and he egion's spa se popula ion; howe e , his a emp also ailed due o logis ical di icul ies and esis ance om he Mexican a my. The ilibus e s we e quickly de ea ed and Halleck was o ced o lee back o he Uni ed S a es wi h his d eam o a ilibus e epublic soundly c ushed. Following he Guadalupe-Hidalgo ea y, one o he mos signi ican changes was he shi ing economic ela ions along he US-Mexico bo de . As bo h coun ies became mo e connec ed h ough ade, he No he n Mexican economy began o pi o owa ds e en close ies wi h he Uni ed S a es – as p e iously men ioned, hese ies we e al eady no able be o e he wa ; hey jus in ensi ied a e i - . This pe iod ma ked he beginning o la ge c oss-bo de ade, wi h big in luxes o goods lowing back and o h ac oss he bo de , o en h ough in o mal o illegal channels, such as smuggling. The new economic in e dependence was bo h a challenge and an oppo uni y o he Mexican economy, pa icula ly in he bo de lands. The US side o he bo de became an impo an ade hub, wi h he de elopmen o ade ou es and in as uc u e such as ail oads and oads ha acili a ed he mo emen o goods. No he n Mexico, howe e , lagged behind in in as uc u e de elopmen , o en elying on ade ou es ha bypassed i s in e io and ocused on ci ies like Tijuana, Pied as Neg as, and Ciudad Juá ez, which de eloped in o key bo de owns. Smuggling was a pe sis en pa o his ea ly ade ela ionship, as a i s, axes, and egula ions in bo h coun ies o en c ea ed incen i es o illici exchanges. Goods such as ex iles, ools, and ood we e smuggled ac oss he bo de o e ade a i s. In No he n Mexico, his unde g ound economy p o ided an essen ial li eline o many amilies, pa icula ly in Sono a, Chihuahua and Coahuila. Clandes ine Mexican swea shops dedica ed o he ab ica ion o cheap ex ile p oduc s loca ed in bo de owns like Juá ez became known as 84 maquilado as; hese days, many o hese maquilado as ha e g own o become legal, legi ima e businesses. Despi e many challenges, c oss-bo de ade opened up a channel o o eign in es men , pa icula ly om he Uni ed S a es, which saw he No he n Mexican e i o ies as an a ea o oppo uni y. US ade s and businessmen began o in es in Mexican ag icul u e and mining, pa icula ly a e he disco e y o new mine al deposi s in he egion. In he 1850s, he expansion o Ame ican-owned mining ope a ions in No he n Mexico - pa icula ly in Sono a and Du ango - began o shape he economic p o ile o he egion. These mines p oduced sil e , lead, and o he mine als, which we e essen ial o bo h Mexican and global ma ke s, especially as global demand o sil e g ew du ing his pe iod. A e a decades-long hia us, mining had inally s a ed o become he powe ul economic sec o i had been in he old ice oyal days again. Wi h i s as expanses o dese and semi-dese e i o ies, he egion’s ag icul u al lands was no as e ile as hose in he cen al and sou he n pa s o Mexico; howe e , he in oduc ion o new i iga ion echniques, he expansion o he ca le indus y, and he a i al o new, smalle wa es o Ame ican se le s – who now aced much highe es ic ions and limi s imposed by he Mexican go e nmen so as o a oid ano he Texas Re olu ion - seeking land o ag icul u e con ibu ed o he g ow h o he No he n Mexican economy. By he mid-19 h cen u y, ca le anching in No he n Mexico had began o e- lou ish in mode n ways, pa icula ly in Nue o León, Coahuila, and Chihuahua, which p oduced signi ican amoun s o bee and lea he , goods ha we e in high demand in bo h he Uni ed S a es and Mexico. The ca le indus y was an essen ial economic pilla o No he n Mexico’s economy and became closely linked o US mea ma ke s, which saw an inc easing demand o bee due o hei expanding popula ion and u baniza ion. Sono an bee became eno mously amous in he US o i s high quali y and g ea as e. A he same ime, he de elopmen o co on and whea p oduc ion in No he n Mexico began o ise, pa icula ly in a eas whe e new i iga ion p ojec s we e unde way. The ag icul u al po en ial o he no he n e i o ies was slowly ealized, despi e en i onmen al challenges like wa e sca ci y and di icul e ain – No he n Mexico can be qui e moun ainous - . In con as , he economy o Sou he n Mexico emained mo e ocused on adi ional o ms o ag icul u e and ag icul u e-based economies. Sou he n Mexico’s economy was s ill domina ed by plan a ions, wi h suga , co ee, and obacco emaining majo expo c ops and la ge Spanish-inhe i ed haciendas con olling he majo i y o p oduc ion. These sou he n 85 indus ies we e a less in eg a ed wi h global ma ke s han he p e iously men ioned g owing economic ac i i ies in No he n Mexico, howe e . The la e 19 h cen u y saw he expansion o he ail oad sys em on bo h sides o he bo de . Rail oads we e c ucial in connec ing p e iously isola ed egions o No he n Mexico wi h he Ame ican economy, c ea ing he in as uc u e needed o mo e goods mo e e icien ly and apidly ac oss he bo de . This in as uc u e boom led o he ise o majo indus ial cen e s in bo de owns like Tijuana, Ciudad Juá ez, and Nogales, which acili a ed he exchange o goods and se ices ac oss he bo de . Rail oads helped es ablish new mining egions in No he n Mexico, including pa s o Sono a and Chihuahua, which we e now mo e easily accessible o Ame ican mining companies. Ame ican in es o s we e ins umen al in b inging in he capi al, echnology, and expe ise equi ed o de elop hese mines, u he in e wining he economies o he US and No he n Mexico. The de elopmen o ail oads also led o g ea e u baniza ion in No he n Mexico, wi h new owns and ci ies eme ging along he ail lines, ca e ing o bo h Ame ican se le s and Mexican labo e s. Wi h he ise o Po i io Díaz o powe in 1876, he economic ajec o y o No he n Mexico saw mo e signi ican changes. Díaz, known o his au ho i a ian ule, sough o mode nize Mexico and in eg a e i s economy in o he global capi alis sys em. His policies p io i ized o eign in es men , ail oad cons uc ion, and he expansion o mining and ag icul u e - especially in No he n Mexico, which was seen as a key a ea o economic g ow h - . Du ing he Po i ia o, he expansion o ail oads con inued a an accele a ed pace, connec ing No he n Mexico mo e closely o he Uni ed S a es. Fo eign capi al, pa icula ly om he US, pou ed in o No he n Mexican mining ope a ions, ag icul u e, and in as uc u e p ojec s. Ame ican companies con inued o domina e mining and ag icul u e in No he n Mexico, wi h majo in es men s in egions like Sono a, Chihuahua, and Coahuila. Annual economic g ow h be ween 1876 and 1910 a e aged 3.3% (COMITAN, 2007); unde Díaz, Mexico a guably expe ienced i s i s pe iod o subs an ial economic g ow h since he 1810s. The Po i ia o also saw he de elopmen o la ge es a es and ag icul u al plan a ions, wi h la i undio – la i undios we e la ge landholdings, he ul ima e e olu ion o he adi ional Spanish hacienda, eally - sys ems becoming mo e en enched in No he n Mexico. This sys em was closely ied o o eign in es men , as la ge Ame ican-owned businesses sough o ake ad an age o cheap land and labo in he egion. The expansion o i iga ion p ojec s, he sp ead o Ame ican-s yle a ming, and he inc eased demand o mine al expo s call ea ed a boom in No he n Mexico’s economy, al hough his de elopmen was no equally dis ibu ed. 86 The bene i s o his economic g ow h we e o en concen a ed in he hands o a small eli e, lea ing much o he u al popula ion in po e y. The pe cep ion ha his newly ound economic g ow h only eached he e y op o Mexican socie y was widesp ead among mos common Mexicans o he ime. The Mexican Re olu ion, which las ed be ween 1910 and 1917, was d i en by deep- oo ed economic inequali ies. Unde Po i io Díaz’s egime, economic g ow h was indeed hea ily concen a ed in he hands o a ew eli es and o eign in es o s, pa icula ly in mining, ail oads, and ag icul u e. Land was inc easingly p i a ized o mos ly posi i e mac oeconomic consequences, bu his displeased peasan s and Indigenous communi ies who had adi ionally a med communal lands. By 1910, nea ly 90% o u al Mexicans had no land a all, o cing many in o exploi a i e labo in haciendas and la i undios when hey had been able o enjoy be e wo king condi ions be o e. This g owing inequali y ueled widesp ead discon en , pa icula ly among peasan s and wo ke s. F ancisco I. Made o’s call o democ a ic e o m esona ed wi h hose who sough no only poli ical change bu also land edis ibu ion and economic jus ice. The e olu ion de as a ed he economy in he sho e m, des oying in as uc u e, educing indus ial ou pu , and causing massi e displacemen . Howe e , in he long e m, i laid he ounda ion o impo an e o ms. The 1917 Cons i u ion included p og essi e labo laws, mode a e land edis ibu ion, and es ic ions on o eign owne ship o na u al esou ces. These changes weakened he old eli e and p omo ed a mo e s a e-d i en economic model in he 20 h cen u y. While i s implemen a ion was une en, he e olu ion ma ked a u ning poin in Mexican economic his o y, ini ia ing he decline o oliga chic capi alism and laying he g oundwo k o na ionalis economic policies in he decades o come; howe e , e en hough he e ol ’s leade s p omised social jus ice and economic e o m, he e olu ion’s long- e m economic consequences we e a guably e y much nega i e. P io o 1910, Mexico had been expe iencing s eady g ow h, indus ializa ion, and in eg a ion in o global ma ke s unde he Po i ia o. Al hough his g ow h was unequal and exclusiona y, he Re olu ion disman led many o i s ounda ions h ough a decade o iolence, des oying in as uc u e, dis up ing p oduc ion, and sca ing o eign in es men away. Wha ollowed he Mexican Re olu ion was no he eme gence o inclusi e, economically libe al ins i u ions, bu he consolida ion o absolu e powe unde he Ins i u ional Re olu iona y Pa y – o PRI, by i s Spanish ac onym - , which es ablished an au ho i a ian egime ha las ed o e 80 yea s and was a guably as co up as Po i io and his c onies. In e ec , one se o ex ac i e ins i u ions was simply eplaced by ano he . The Re olu ion did no libe alize Mexico’s economy o democ a ize i s ins i u ions meaning ully, i simply al e ed who held he eins o cen alized powe , s alling po en ial o b oad-based, sus ained economic de elopmen . 87 CHAPTER IX – RECENT AND POSSIBLE FUTURE ECONOMIC DEVELOPMENTS IN ARIDOAMERICA In ecen decades, he economic ajec o y o he no he n Mexican s a es has con inued o be shapedd by hei geog aphical p oximi y o he US and hei dependence on c oss-bo de comme ce, mig a ion, and in es men . In con as , he sou he n egions o Mexico ha e emained mo e ag icul u al, and expe ienced slowe economic g ow h a es. These e e - g owing egional dispa i ies ha e laid he ounda ion o bo h poli ical mo emen s like “No exi ” – a mode n endi ion o his o ical No he n secessionis aspi a ions - and a g owing he o ic ha No he n Mexico’s economic au onomy migh be be e se ed by close ies o he US han by emaining unde he con ol o he ede al go e nmen in Mexico Ci y. While many No he n leade s ha e always been o his mind e e since he Bou bonic De elopmen al Swi ch – as he cases o Texas and Rio G ande e eal - , i seems ha his ain o hough is now eaching many common No he n Mexicans who a e no in posi ions o powe . As explained h oughou his essay, No he n Mexico began o di e ge economically om he es o he coun y a e he Bou bonic De elopmen al Swi ch, bu la e e en s in ensi ied i s e ec s. The ea ly 20 h cen u y Mexican Re olu ion had i s oo s in he socio-economic inequali ies be ween he landed eli e, mos ly in he sou h, and he g owing labo o ces in he indus ializing no h. By he ime he e olu ion was o e , No he n Mexico began o see an e en bigge in lux o US capi al and business en u es owa ds i . Maquilado as – he p e iously men ioned ac o ies ha we e es ablished o ake ad an age o lowe wages in Mexico while p oducing goods o expo o he US – ha e played a c ucial ole in shaping he egion's economic landscape in ecen decades. Bo de ci ies like Tijuana, Ciudad Juá ez, and Nogales – he Nogales on he Sono an side o he bo de , ha is; Nogales had been one single own be o e he T ea y o Guadalupe Hidalgo spli i in o wo: Sono an Nogales and A izonan Nogales - ha e become hubs o his g owing indus y, acili a ing he low o bo h labo and capi al om he US in o Mexico. O e ime, he ela ionship be ween hese bo de ci ies and hei Ame ican coun e pa s has g own inc easingly symbio ic, wi h many ac o ies and indus ies elying on labo , goods and se ices om bo h sides o he bo de . As he 20 h cen u y p og essed and pa icula ly a e he implemen a ion o NAFTA in he 1990s, No he n Mexico has become deeply in eg a ed in o he global supply chain o goods and se ices. This economic ela ionship has accele a ed he indus ializa ion o bo de s a es such as Baja Cali o nia, Sono a, and Nue o León, while he sou he n pa s o Mexico ha e 88 mos ly emained dependen on ag icul u e, ou ism, emi ances – many o he Mexicans li ing in he US come om Sou he n Mexico - . US businesses, pa icula ly hose looking o minimize labo cos s, con inue o in es hea ily in Mexican manu ac u ing, especially in he ex ile, au omo i e, and elec onics sec o s. The de elopmen o maquilado as in ci ies such as Ciudad Juá ez – igh ac oss he bo de om El Paso – has become a symbol o his p ocess o g owing economic in eg a ion. C oss-bo de ade has con inued o lou ish, pa icula ly in goods like elec onics, au omo i e pa s, and medical de ices. This has helped c ea e an economic zone ha s addles bo h coun ies, wi h an inc eased dependency on Ame ican cus ome bases ha is el on he Mexican side. The USD has become an inc easingly impo an cu ency in many no he n ci ies, wi h many wages and p ices being ied o i – one is likely o be allowed o buy any p oduc in a No he n Mexican g oce y s o e wi h Ame ican dolla s - . The in e connec edness o he wo economies has mean ha economic down u ns in he US o en nega i ely a ec No he n Mexico, c ea ing ulne abili ies o he egion. Fo example, a phenomenon s a ing in he 2010s is ha o many Ame icans om US bo de owns like San Diego o El Paso mo ing o he equi alen owns on he Mexican side o he bo de – Tijuana in he case o San Diego, Ciudad Juá ez in he case o El Paso – o ake ad an age o lowe p ope y p ices in Mexico. These people wo k in he US and ea n big sala ies – in US dolla s – in he US bu , e e y nigh , once hey a e o wo k, hey e u n o hei homes in Mexico. This has esul ed in a big case o gen i ica ion in hese Mexican bo de owns, as many eal es a e companies in hese municipali ies now p e e o sell housing uni s o Ame icans o high p ices ha mos Mexican locals canno a o d, pushing p icing o all housing uni s highe . 89 Figu e 23. A map shows he p opo ion o he wo k o ce employed in in o mal employmen , by s a e. In o mal employmen is highe in he sou h han in he no h. The lowes alue is ound in he no he n s a e o Chihuahua – 32% - , while he highes alue can be ound in he sou he n s a e o Oaxaca – 73% - . Sou ce: INEGI’S México, ¿cómo amos? 2022 epo . INEGI is Mexico’s Na ional Ins i u e o S a is ics and Geog aphy – Ins i u o Nacional de Es adís ica y Geog a ía - . As No he n Mexico has g own o become e e iche han Sou he n Mexico, mode n equi alen s o his o ical mo emen s o inc eased No he n poli ical empowe men ha e epea edly popped up. In ecen yea s, he "No exi " – no e means no h in Spanish - , a poli ical mo emen aiming o exp ess he g owing desi e o g ea e au onomy in No he n Mexico - o e en ull secession om he es o he epublic - , has gained ac ion on social media. The mo emen e lec s an inc easing sense o us a ion wi h he cen al go e nmen ’s policies and he economic dispa i ies be ween he no h and he sou h some No he n Mexicans eel. The mo emen ’s ollowe s a gue ha No he n Mexico, wi h i s close ies o he US, would be be e o economically we e i o be g an ed g ea e au ho i y in ma e s such as ax collec ion, and while secession i sel is no a widely suppo ed o p ac ical poli ical s ance, he ideas behind No exi e lec he sense ha No he n Mexico’s economic u u e is inex icably mo e ied o he Uni ed S a es han o he es o he Mexican epublic. Nue o León Go e no Samuel Ga cía made headlines in 2021 wi h he ollowing commen s in e e ence o Mexico’s egional s uc u e: “En el no e abajamos, en el cen o adminis an 96 signi ican po ion o hei ax e enues, in Mexico, he majo i y o axes a e collec ed by he ede al go e nmen and hen edis ibu ed o he s a es h ough a se ies o mechanisms – in some s a es, 50 o 60% o all s a e unds de i e om ede al ans e s; o mo e in o ma ion, see Figu e 29 - . The mos impo an mechanism is he Pa icipaciones Fede ales – a ede al e enue sha ing p og am o gene al adminis a i e pu poses - , which dis ibu es unds o s a es based on a non-publicly-disclosed o mula ha conside s ac o s such as popula ion size, economic ac i i y, and pas his o y o e enues and expendi u es. Ano he key mechanism is he Apo aciones Fede ales sys em – “ ede al con ibu ions” - , which comp ises mo e conc e e unds mean o inance speci ic sec o s such as educa ion, heal h and secu i y. Addi ionally, he e a e special unds in ended o in as uc u e p ojec s, disas e elie , and economic de elopmen p og ams. While hese mechanisms a e designed o ensu e equi able dis ibu ion and suppo less-de eloped egions, hey ha e led o us a ions among weal hie s a es ha eel like hey con ibu e mo e han hey ecei e. This ension is pa icula ly e iden in no he n s a es like Nue o León, Baja Cali o nia, and Chihuahua, which gene a e a la ge sha e o Mexico's GDP bu ecei e less ede al unding pe capi a han poo e s a es in he sou h. The no he n s a es a e ue economic powe houses. No he n ci ies like Mon e ey, Tijuana, and He mosillo a e home o majo high alue-added indus ies, including manu ac u ing, so wa e de elopmen , consul ing, inance, ad e ising, au omo i e enginee ing and insu ance. E e y yea , millions o Mexicans om he sou h o he coun y mo e o he no h. STATE IMMIGRATION EMIGRATION NET RESULT Aguascalien es 276,430 144,612 +131,818 Baja Cali o nia 1,463,949 211,540 +1,252,409 Baja Cali o nia Su 313,283 42,130 +271,153 Campeche 199,443 141,018 +58,425 Coahuila 398,612 438,541 -39,929 Colima 193,703 114,254 79,449 Chiapas 174,961 678,362 -504,401 Chihuahua 561,040 259,407 301,633 Du ango 210,697 464,734 -254,037 97 Guanajua o 557,773 646,602 -88,829 Gue e o 195,093 966,482 -771,389 Hidalgo 609,940 654,244 -44,304 Jalisco 1,067,778 841,477 226,301 Mexico Ci y 1,679,063 4,955,432 -3,276,369 Michoacán 433,109 953,793 -520,684 Mo elos 500,693 220,687 280,006 Naya i 252,605 244,381 8,224 Nue o León 1,319,964 268,647 1,051,317 Oaxaca 293,054 1,030,645 -737,591 Puebla 660,918 1,080,205 -419,287 Que é a o 686,545 211,297 475,248 Quin ana Roo 945,101 88,963 856,138 San Luis Po osí 294,725 684,423 -389,698 Sinaloa 312,601 656,351 -343,750 Sono a 425,906 284,860 141,046 S a e o Mexico 5,190,562 1,344,291 3,846,271 Tabasco 210,156 446,038 -235,882 Tamaulipas 764,320 526,943 237,377 Tlaxcala 210,269 211,661 -1,392 Ve ac uz 762,798 1,990,971 -1,228,173 Yuca án 269,765 305,166 -35,401 Zaca ecas 177,107 503,806 -326,699 Figu e 26. A able con aining he igu es o in e nal mig a ion wi hin Mexico be ween Ma ch 15, 2019 and Ma ch 15, 2020 acco ding o o icial go e nmen da an omnINEGI. Table made by he au ho . In only one yea , millions o Mexicans le he sou he n po ion o he coun y o he iche cen al and no he n s a es. The ne mig a o y esul o he nine no he nmos s a es is +2,617,219, while he ne mig a o y esul o he nine sou he nmos s a es – Chiapas, Oaxaca, Gue e o, Ve ac uz, Tabasco, Campeche, Yuca án, Quin ana Roo and Puebla – is -3,017,561. 98 The o al popula ion o Mexico is app oxima ely 128 million people and he whole popula ion o hese 9 sou he nmos s a es is app oxima ely 47 million; aking ha in o accoun , he scale o he cu en mo emen o Mexicans om he sou h o he coun y o o he egions o i is no some small ickle bu a ull- ledged exodus. The only hing p e en ing massi e d ops in he o al popula ion igu es o he sou h as o now is bi hs, bu as e ili y a es keep d opping in all o Mexico, he sou h’s popula ion will s a sh inking in a ew yea s. STATE POPULATION Aguascalien es 1,493,459 Baja Cali o nia 3,779,050 Baja Cali o nia Su 872,439 Campeche 949,481 Coahuila 3,457,516 Colima 719,445 Chiapas 5,914,879 Chihuahua 3,900,629 Du ango 1,890,563 Guanajua o 6,313,504 Gue e o 3,603,188 Hidalgo 3,222,994 Jalisco 8,732,495 Mexico Ci y 9,352,517 Michoacán 4,943,602 Mo elos 1,964,164 Naya i 1,237,293 Nue o León 6,130,641 Oaxaca 4,242,791 Puebla 6,586,805 Que é a o 2,530,655 Quin ana Roo 1,917,252 San Luis Po osí 2,874,010 Sinaloa 3,169,760 99 Sono a 3,039,967 S a e o Mexico 17,728,216 Tabasco 2,537,961 Tamaulipas 3,575,756 Tlaxcala 1,469,900 Ve ac uz 8,093,517 Yuca án 2,375,403 Zaca ecas 1,674,227 Figu e 27. A able shows INEGI’s 2024 es ima es o he o al popula ion o e e y Mexican s a e. Table made by he au ho . No he n s a es con ibu e signi ican ly o Mexico’s o al expo s, mainly h ough ade wi h he Uni ed S a es. Howe e , much o he ax e enue gene a ed om hese economic ac i i ies goes o he ede al go e nmen , which hen edis ibu es unds using a o mula ha , as p e iously men ioned, does no di ec ly co ela e wi h he amoun con ibu ed by each s a e bu ins ead akes in o accoun mul iple a iables indi e en o he amoun o money a s a e collec s o he ede a ion. F om he pe spec i e o some no he n leade s, his means ha hei s a es wo k ha d o g ow he economy, ye much o hei weal h is sen elsewhe e o und less p oduc i e egions. This c ea es a eeling o pe cei ed injus ice, as hey see hei in as uc u e and public se ices no “be as good as hey could be” despi e hei economic success. Sou he n s a es, including Chiapas, Oaxaca o Gue e o, ecei e p opo ionally highe ede al ans e s. These s a es main ain lowe le els o indus ializa ion and high-quali y employmen , elying ins ead on ag icul u e, ou ism, s ee ending and o he mos ly in o mal ac i i es. Gi en hei highe po e y a es, he go e nmen p io i izes hem when dis ibu ing unds o educe egional inequali ies. While suppo e s o his app oach a gue ha edis ibu i e policies help le el he playing ield and imp o e na ional cohesion, no he n s a es a gue ha his discou ages economic sel -su iciency and punishes s a es ha a e economically success ul. They con end ha consis en ly channeling unds o unde de eloped egions wi hou obus accoun abili y mechanisms os e s dependency a he han sus ainable long- e m de elopmen , c ea ing pe e se incen i es o sou he n poli ical leade s o main ain hei ju isdic ions in po e y in o de o secu e g ea e ede al ans e s - pa o which is 100 equen ly misapp op ia ed by poli icians and bu eauc a s, as co up ion emains a e y p oblema ic issue all o e he coun y - . Despi e being weal hie , no he n s a es can some imes s uggle wi h in as uc u e and public se ice issues ha hey belie e could be add essed by ecei ing highe ede al unding. They a gue ha Mexico Ci y p io i izes in es men in he capi al egion and unde de eloped s a es while neglec ing he needs o no he n ci ies ha sus ain much o he economy. Fo ins ance, while la ge-scale p ojec s like he T en Maya – a ain planned o connec a ew sou he n s a es so ha ou is s can isi he en i e egion using i and goods can be anspo ed mo e quickly - in he Yuca án Peninsula, he AIFA – a ecen ly-es ablished ai po in Mexico Ci y – and he opening o he Dos Bocas oil e ine y in Tabasco ha e ecei ed subs an ial ede al unding since 2018, in as uc u e in no he n ci ies, such as highways, public anspo , and wa e supply sys ems, o en aces se e e budge a y cons ain s. This has ueled esen men , as many in he no h belie e hei ax con ibu ions should be e lec ed in be e local in as uc u e a he han being spen on p ojec s in a away s a es ha hey pe cei e as “undese ing” o his compa a i ely la ge inancial suppo . The e is also a poli ical componen o his economic dispu e. No he n s a es end o ha e mo e business- iendly policies, while he ede al go e nmen , especially unde le is adminis a ions, has his o ically a o ed social spending in poo e egions. This ideological di ide in ensi ies he pe cep ion o un ai ea men . In ecen yea s, he uling pa y, MORENA – a po man eau o Mo imien o de Regene ación Nacional o Na ional Regene a ion Mo emen - , has placed a s ong emphasis on social p og ams and di ec cash ans e s o low-income popula ions, which a e concen a ed in he sou h. C i ics a gue ha his app oach p io i izes elec o al conside a ions o e economic e iciency, as unding decisions o en bene i egions ha a e poli ically aligned wi h he uling go e nmen . The sou he n egions o Mexico end o o e o MORENA mo e and one o he easons why is his decision o s eng hen cash ans e s and di ec ci izen suppo p og ams. No he n an i-MORENA poli icians a gue ha MORENA has used hese mechanisms o se up a clien elis sys em ha will keep he pa y in powe o yea s o come; MORENA suppo e s ind hese accusa ions absu d exagge a ions and claim ha cash ans e s o ci izens and o he di ec public suppo p og ams we e e y much needed o educe po e y in he poo e a eas o he epublic. 101 Figu e 28. A g aphic made by he hink ank Cen o de Es udios Espinosa Yglesias shows he esul s o a s udy conduc ed by hem in 2019 ha concluded ha a pe son ha is bo n poo has a 54% chance o ge ing ou o po e y a some poin in hei li e in he no h; ha igu e p og essi ely dec eases he u he sou h one goes o 58% in he he cen al-no h egion, 62% in he cen al-wes e n egion, 68% in he Bajío and in he egion encompassing Mexico Ci y and i s ou ski s, and 86% in he sou h. A a na ional le el, only 26% o Mexicans who a e bo n poo ge o escape po e y a any poin in hei li es. As s a ed, he e ha e been whispe s o inc eased egional au onomy, wi h some oices sugges ing ha no he n Mexico should unc ion mo e independen ly in economic and iscal ma e s. While ou igh secession is no a se ious possibili y, he idea ha no he n s a es should ha e mo e con ol o e hei inances is gaining ac ion. To p e en escala ing ensions, he ede al go e nmen may ind i a good idea o econside how i alloca es esou ces. One possible solu ion is implemen ing a mo e dynamic iscal sys em whe e s a es ha con ibu e mo e ecei e p opo ionally mo e ede al unding while s ill main aining some 102 le el o in e - egional solida i y. Ano he op ion could be o allow s a es o aise and manage a g ea e po ion o hei axes, educing hei dependence on ede al ans e s in he i s place. Some a gue ha e e y s a e should manage all o i s unding and public in es men s, wi h he ole o he ede a ion signi ican ly educed in ega ds o he unding o egional public inances – a model like ha would mean ha e e y s a e could go on o es ablish hei own e sion o he Concie o Económico Vasco o Basque Economic Ag eemen he Spanish egion o he Basque Coun y enjoys oday; his ag eemen means ha Spain and he Basque Coun y a e almos comple ely sepa a e en i ies when i comes o iscal ma e s - . Figu e 29. Fede al unds – in millions o pesos - ecei ed by each s a e and p opo ion o each Mexican s a e’s o al unds de i ed om ede al g an s. Da a is o he yea 2021 and ex ac ed om he P esupues o de Eg esos de la Fede ación 2021. Table ex ac ed om Hablemos de ing esos en los es ados (2021), a epo by Mexican hink- ank Ins i u o Mexicano pa a la Compe i i idad. I can be said hen ha he cu en ede al iscal model p io i izes edis ibu ion o poo e sou he n s a es, which no he n leade s a gue os e s dependency and co up ion and ails o ewa d economic p oduc i i y. In he u u e, as economic dispa i ies con inue o wo sen and poli ical di isions keep on deepening, his deba e will likely in ensi y, po en ially eshaping 103 Mexico’s iscal policies. Add essing hese conce ns h ough a mo e balanced and anspa en sys em could help alle ia e egional ensions and c ea e a ai e app oach o na ional de elopmen . Keeping on igno ing he demands o he no he n s a es – howe e alid one migh hink hey a e – is unlikely o b ing any good esul s o Mexico’s cohesion as a so e eign na ion in he long un. Figu e 30. Tax money collec ed by each Mexican s a e in millions o pesos. Da a is o he yea 2021 and ex ac ed om he P esupues o de Eg esos de la Fede ación 2021. Table ex ac ed om Hablemos de ing esos en los es ados (2021), a epo by Mexican hink- ank Ins i u o Mexicano pa a la Compe i i idad. In gene al, sou he n s a es ecei e mo e ede al unding. As an example o he cu en deba e aking place, Chiapas ecei es a ound wice as much ede al unding as Nue o León on a yea ly basis, e en hough Nue o León con ibu es o ede al inancials wi h much highe ax e enues 104 and he wo en i ies ha e e y simila popula ion numbe s – see Figu e 27, Figu e 29 and Figu e 30 - . Some migh ind his ai since Chiapas is he poo e s a e; naysaye s migh a gue iche , mo e p oduc i e s a es like Nue o León a e no su icien ly ewa ded o hei good economic pe o mance o e en ha hey a e ac i ely “punished” by he ede a ion. I is also impo an o ake in o accoun ha p icing o all goods and se ices is lowe in he sou h han in he no h, so one peso o ede al paymen s goes much u he in he sou h han in he no h when i comes o he numbe o goods and se ices i can und. 105 CONCLUSIONS A idoame ica’s economic his o y p esen ed no no iceable de elopmen o ad ancemen un il he a i al o he Spanish in he a ea in he ea ly 16 h cen u y. Be o e he Spanish in oduced he popula ion o A idoame ica o a a ie y o ools hey lacked - like ho ses - , anspo a ion o goods in he egion was se e ely limi ed, which pa alyzed communi ies and made ade be ween di e en ibes almos impossible, as c ossing he a id dese s o loca ions like A izona, Sono a o Chihuahua on oo o en led o a pain ul dea h de i ed om exhaus ion, hi s o hunge . While communi ies o en a eled and mo ed om place o place - in expedi ions ha we e always somewha likely o su e human losses - , hey la gely igno ed each o he ; when ade be ween g oups did happen, i was limi ed o he exchanging o basic, non-c a ed i ems like plan s o animal u s. Con a y o he s agnan A idoame ica, Sou he n Mexico h i ed economically in he cen u ies p eceding he yea 1519, as he Pax Az eca led o inc eased comme ce and allowed ade s o each as a eas wi h ela i e secu i y and all while s aying inside one uni ied poli ical en i y. A idoame ica - and uly he en i e a ea o he Ame icas o he no h o he Az ec ade ne wo k - was back hen much poo e han Sou he n Mexico. The economic sys ems es ablished by he Az ecs in Sou he n Mexico did, howe e , limi economic eedoms in mul iple ways. In he long e m, hese limi a ions – pu in place by Az ec poli ical eli es in o de o main ain hei au ho i y and powe - capped po en ial economic g ow h. A e gaining con ol o he Spanish c own in he ea ly 1700s, he Bou bons implemen ed a se ies o economically libe alizing e o ms in hei newly-acqui ed Spanish colonies. These e o ms included he emo ing o ade es ic ions and he weakening o colonial monopolies; hanks o hese e o ms, ma ginal, la gely igno ed e i o ies wi hin he empi e – a eas whe e di ec Spanish au ho i y was ela i ely weak - s a ed expe iencing high a es o economic g ow h o he i s ime. Addi ionally, hese e o ms made he cen al egions o he empi e – like, o example, Pe u – be less comme cially shel e ed, causing hem o be mo e easily exposed o he unce ain ies o he ma ke . In sum, hese economically libe alizing e o ms caused a empi e-wide e e sal, allowing hese p e iously ma ginal a eas o g ow weal hie and ul ima ely su pass he o me 'co e' egions o he empi e in p ospe i y. While he did no disco e i , he au ho o his essay p oposes calling his heo e ical phenomenon he Bou bonic De elopmen al Swi ch o pu poses o cla i y and b e i y in he u u e, as e e ing o such a concep wi h a single, clea name mo ing o wa d will make i easie o economis s and his o ians o e e ence i wi h p ecision and o u he s udy i . 112 Jones, A. H. (1984). Weal h and G ow h o he Thi een Colonies: Some Implica ions. The Jou nal o Economic His o y, 44(2), 239–254. h ps://www.js o .o g/s able/2120701 Lange, M., Mahoney, J., & om Hau, M. (2006). Colonialism and De elopmen : a Compa a i e Analysis o Spanish and B i ish Colonies. Ame ican Jou nal o Sociology, 111(5), 1412–1462. h ps://doi.o g/10.1086/499510 Maddison, Angus. 1989. The Wo ld Economy in he 20 h Cen u y. Pa is: OECD. Mahoney, J. (2003). Long‐Run De elopmen and he Legacy o Colonialism in Spanish Ame ica. Ame ican Jou nal o Sociology, 109(1), 50–106. h ps://doi.o g/10.1086/378454 Ma ícula de ibu os. (2020). Ma ícula de ibu os. 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Na u al Resou ces: Cu se o Blessing? Jou nal o Economic Li e a u e, 49(2), 366–420. h ps://www.js o .o g/s able/23071620 Wikipedia Con ibu o s. (2024, Sep embe 8). Lis o OECD egions by GDP (PPP) pe capi a. Wikipedia; Wikimedia Founda ion. h ps://en.wikipedia.o g/wiki/Lis _o _OECD_ egions_by_GDP_(PPP)_pe _capi a Wo ld De elopmen Indica o s | Wo ld Bank Da aBank. (n.d.). Da abank.wo ldbank.o g. h ps://da abank.wo ldbank.o g/sou ce/wo ld-de elopmen - indica o s/Se ies/NY.GDP.PCAP.PP.KD 120 APPENDIX A – INSTRUCTIONS ON HOW TO INTERPRET MAHONEY’S CONSISTENCY TABLES IN CHAPTER V Fuzzy-se me hods can help pinpoin which Spanish colonies we e bene icia ies and ic ims o he Bou bonic De elopmen al Swi ch. Mahoney uses hem o help de e mine his. Fuzzy- se me hods, pa icula ly Fuzzy-se Quali a i e Compa a i e Analysis o sQCA, a e a esea ch app oach used o analyze complex causal ela ionships by combining he s eng hs o bo h quali a i e and quan i a i e analysis. Unlike adi ional me hods ha ea a iables as ei he p esen o absen – 0 o 1 - , uzzy-se me hods allow o deg ees o membe ship in a se - anging om 0 o 1, meaning some hing like 0.2 is alid - , cap u ing he nuanced ways in which cases - such as coun ies, o ganiza ions, o indi iduals - may pa ially exhibi a condi ion o ou come. sQCA iden i ies combina ions o condi ions - called con igu a ions - ha a e su icien o necessa y o p oducing a gi en ou come. This app oach is especially use ul in social sciences such as economics, whe e causali y is o en complex, conjunc u al - mul iple causes migh be ac ing oge he a he same ime - , and asymme ical - di e en pa hs may lead o he same esul - . By sys ema ically compa ing cases and simpli ying causal pa e ns in o logical ules, uzzy-se me hods help esea che s d aw meaning ul insigh s om small o medium-sized da ase s. In sQCA, subs an i e knowledge is he poin one s a s a ; i e e s o he e ical o con ex ual knowledge used o de ine ele an causes and ou comes, i in o ms he esea che wha o measu e and which condi ions migh be ele an and wo hy o s udy. Subs an i e knowledge hen guides he selec ion and de ini ion o he desi ed ou come and he po en ial causes. Cases a e he indi idual uni s o analysis – i.e., coun ies, o ganiza ions, people - , wi h each case ha ing alues o he desi ed ou come and a k amoun o po en ial causes. Based on he k po en ial causes, a 2^k numbe o combina ions - candida e causal “ ecipes” - a e o med. These combina ions a e wha he sQCA so wa e will es o see which o hem bes explains he ou come. The me hod hen applies uzzy logic o compu e a u h able, educe i using Boolean algeb a, and de i e simpli ied causal con igu a ions – sQCA compu a ions - . I iden i ies pa e ns whe e combina ions o causal condi ions lead o he ou come. The me hod hen applies uzzy logic o compu e a u h able, educe i using Boolean algeb a, and de i e simpli ied causal con igu a ions – sQCA compu a ions - . I iden i ies pa e ns whe e combina ions o causal condi ions lead o he ou come. The mos ep esen a i e o consis en cases ha suppo he iden i ied con igu a ions he bes a e known as he Bes ins ances. Co e age indica es how much o he ou come is explained by 121 he con igu a ion o con igu a ions. Highe co e age means mo e cases a e explained by he ules. Figu e 31. A g aphic ep esen a ion o he p ocess sQCA ollows in o de o ind condi ions necessa y o su icien o a ce ain ou come o ake place. Sou ce: Fuzzy se Quali a i e Compa a i e Analysis (Fas sQCA) by Je y M. Mendel and Mohammad Ko jani. As explained by Mahoney, uzzy-se logic is di e en om ha o adi ional s a is ics as i looks a se ela ions a he han co ela ions. These a e no s a is ical p obabili ies, bu a he necessi y and su iciency consis ency sco es: hey measu e how consis en ly a condi ion appea s when a ce ain ou come is also p esen . Fuzzy se logic e ol es a ound consis ency. In uzzy-se QCA, necessi y consis ency sco es a e calcula ed using he ollowing o mula: Whe e: - Xi = membe ship o e i o y i in he condi ion se , like dense indigenous popula ion 128 - Xi = membe ship o e i o y i in he condi ion se , like dense indigenous popula ion - Yi = membe ship o e i o y i in he ou come se , like economically de eloped - min(Xi,Yi) is he deg ee o which he condi ion is included in he ou come o ha coun y. An example will be use ul o unde s anding how su iciency consis ency sco es a e calcula ed: one migh wan o, o ins ance, s udy he ela ion be ween he condi ion s ong libe als and he ou come economically de eloped. Te i o y S ong libe als (X) Economically de eloped (Y) Min (X, Y) A 0.9 0.8 0.8 B 0.6 0.6 0.6 C 0.5 0.3 0.3 D 0.2 0.4 0.2 Sum 2.2 2.1 1.9 Su iciency consis ency sco e = 1.9 / 2.2 = 0.864 This esul poin s o s ong libe als a e a p e y consis en su icien condi ion o economic de elopmen : in 86.4% o he “p esence” o s ong libe als, he ou come was also p esen o a simila o highe deg ee. Fo example, unde Cause ≤ Economically De eloped Coun y, a alue o .23 o Dense indigenous popula ion means only 23% o coun ies wi h dense indigenous popula ions a e economically de eloped. Low p opo ion equals weak su iciency; since 77% o coun ies wi h dense indigenous popula ions a e no de eloped, i can be in e ed ha ha ing a dense indigenous popula ion is no a su icien condi ion o be economically de eloped. The ilde (~) ep esen s he absence o a condi ion; o example, ~Dense indigenous popula ion means lack o a dense indigenous popula ion. How o in e p e he alues: - Values close o 1.0 sugges ha he condi ion is su icien o he ou come. 129 - Values abo e 0.65 a e ypically conside ed po en ially signi ican , and his is why some a e lis ed wi h signi icance le els - like 0.90 (0.07)†). - A signi ican su icien condi ion would be one whe e almos all o all cases wi h ha condi ion ha e he ou come. These a e he in e p e a ions o e e y sco e in Mahoney’s Table 9: Column 1: Cause ≤ Economically De eloped Coun y 1. Dense indigenous popula ion → 0.23 No su icien . 2. ~Dense indigenous popula ion → 0.60 Absence o a dense indigenous popula ion is almos su icien ; i does no pass he 0.65 h eshold, hough. 3. Labo -in ensi e es a es → 0.31 No su icien . 4. ~Labo -in ensi e es a es → 0.46 No su icien . 5. Mine al o opical expo s → 0.20 No su icien . 6. ~Mine al o opical expo s → 0.57 Rela i ely close o he 0.65 h eshold, bu s ill no su icien . 7. S ong libe als → 0.40 No su icien . 8. ~S ong libe als → 0.36 No su icien . 9. S ong conse a i es → 0.23 No su icien . 130 10. ~S ong conse a i es → 0.42 No su icien . No single ac o o absence o a ac o is a su icien condi ion o economic de elopmen in his da a. Column 2: Cause ≤ Economically Unde de eloped Coun y 1. Dense indigenous popula ion → 0.38 No su icien . 2. ~Dense indigenous popula ion → 0.50 No su icien . 3. Labo -in ensi e es a es → 0.54 No su icien . 4. ~Labo -in ensi e es a es → 0.62 Ve y close o he h eshold. 5. Mine al o opical expo s → 0.27 No su icien . 6. ~Mine al o opical expo s → 0.53 No su icien . 7. S ong libe als → 0.53 No su icien . 8. ~S ong libe als → 1.00 (0.01) A comple ely su icien condi ion: he absence o s ong libe al eli es is a s a is ically signi ican su icien condi ion o economic unde de elopmen . Jus by no ha ing a s ong libe al ac ion – and ega dless o any o he condi ion - , a egion was on a pa h owa ds economic unde de elopmen . This makes sense, since libe als would ha e been he ones o push o measu es designed o b ing abou economic libe y, he disman ling o economically es ic i e, ex ac i e o p o ec ionis ins i u ions and ade. 9. S ong conse a i es → 0.46 131 No su icien . 10. ~S ong conse a i es → 0.58 Rela i ely close o he 0.65 h eshold, bu s ill no necessa y. Column 3: Cause ≤ Socially De eloped Coun y 1. Dense indigenous popula ion → 0.31 No su icien . 2. ~Dense indigenous popula ion → 0.90 (0.07) The absence o a dense indigenous popula ion seems o be a su icien condi ion o social de elopmen , a a ma ginal s a is ical signi icance (p = 0.07). This makes sense when one akes in o accoun ha , in Hispanic Ame ica, i is usually he indigenous g oups who a e he mos socially conse a i e and eligious elemen s o socie y. 3. Labo -in ensi e es a es → 0.46 No su icien . 4. ~Labo -in ensi e es a es → 0.46 No su icien . 5. Mine al o opical expo s → 0.27 No su icien . 6. ~Mine al o opical expo s → 0.43 No su icien . 7. S ong libe als → 0.40 No su icien . 8. ~S ong libe als → 0.36 No su icien . 9. S ong conse a i es → 0.31 No su icien . 132 10. ~S ong conse a i es → 0.58 No su icien . Column 4: Cause ≤ Socially Unde de eloped Coun y 1. Dense indigenous popula ion → 0.54 No su icien . 2. ~Dense indigenous popula ion → 0.60 No su icien , hough close o he 0.65 h eshold. 3. Labo -in ensi e es a es → 0.62 No su icien , hough close o he 0.65 h eshold. 4. ~Labo -in ensi e es a es → 0.62 No su icien , hough close o he 0.65 h eshold. 5. Mine al o opical expo s → 0.33 No su icien . 6. ~Mine al o opical expo s → 0.43 No su icien . 7. S ong libe als → 0.53 No su icien . 8. ~S ong libe als → 0.82 (0.14) High consis ency, bu only ma ginal signi icance (p = 0.14); he absence o s ong libe als likely con ibu ed o social unde de elopmen , bu comple e su iciency jus by i sel canno be assumed. 9. S ong conse a i es → 0.54 No su icien . 10. ~S ong conse a i es → 0.58 No su icien , hough ela i ely close o he 0.65 h eshold.