Economic history of Spain

Faced with political disruptions, civil wars, unstable currency, and the constant threat of banditry in the countryside, most wealthy Mexicans invested their assets the only stable productive enterprises that remained viable: large agricultural estates. Later generations accused these entrepreneurs of preferring the symbolic wealth of tangible, secure, and unproductive property to the riskier and more difficult but innovative and potentially more profitable work of investing in industry, but the fact is that agriculture was the only marginally safe investment in times of such uncertainty.

The seeds of economic modernization were laid under the restored Republic (1867–76). President Benito Juárez (1857–72) sought to attract foreign capital to finance Mexico's economic modernization. His government revised the tax and tariff structure to revitalize the mining industry, and it improved the transportation and communications infrastructure to allow fuller exploitation of the country's natural resources. The government let contracts for construction of a new rail line northward to the United States, and in 1873 it finally completed the commercially vital Mexico City-Veracruz railroad, begun in 1837 but disrupted by civil war and the French invasion from 1850 to 1868. Protected by high tariffs, Mexico's textile industry doubled its production of processed items between 1854 and 1877. Overall, manufacturing grew, though only modestly.

The history of Mexico, a country located in the southern portion of North America, covers a period of more than two millennia. First populated more than 13,000 years ago, the country produced complex indigenous civilizations before being conquered by the Spanish in the 16th Century.

Since the Spanish Conquest, Mexico has fused its long-established native civilizations with European culture. Perhaps nothing better represents this hybrid background than Mexico's languages: the country is both the most populous Spanish-speaking country in the world and home to the largest number of Native American language speakers on the continent.

From 1519, the Spaniards absorbed the native peoples into Spain's vast colonial empire. For three centuries, Mexico was a colony, during which time its indigenous population fell by more than half. After a protracted struggle Mexico declared its independence from Spain in 1810. In 1846, the Mexican American War broke out, ending two years later with Mexico ceding almost half of its territory to the United States. Later in the 19th century, France invaded Mexico (1861) and set Maximilian I on the Mexican throne, which lasted until 1867. The Mexican Revolution (1910–1929) resulted in the death of 10 percent of the nation's population, but brought to an end the system of large landholdings that had originated with the Spanish Conquest.

Mexico (ⁱ/ˈmɛksɨkoʊ/; Spanish: México, IPA: [ˈmexiko] ( listen)), officially the United Mexican States (Spanish:  Estados Unidos Mexicanos (help·info)), is a federal constitutional republic in North America. It is bordered on the north by the United States of America; on the south and west by the Pacific Ocean; on the southeast by Guatemala, Belize, and the Caribbean Sea; and on the east by the Gulf of Mexico. Covering almost two million square kilometres (over 760,000 sq mi), Mexico is the fifth largest country in the Americas by total area and the thirteenth largest independent nation in the world. With an estimated population of over 113 million, it is the eleventh most populous country and the most populous Spanish-speaking country. Mexico is a federation comprising thirty-one states and a Federal District, the capital city.

In Pre-Columbian Mexico many cultures matured into advanced civilizations such as the Olmec, the Toltec, the Teotihuacan, the Zapotec, the Maya and the Aztec before the first contact with Europeans. In 1521, Spain conquered and colonized the territory from its base in México-Tenochtitlan, which was administered as the Viceroyalty of New Spain. This territory would eventually become Mexico as the colony's independence was recognized in 1821. The post-independence period was characterized by economic instability, the Mexican-American War and territorial cession to the United States, a civil war, two empires and a domestic dictatorship. The latter led to the Mexican Revolution in 1910, which culminated with the promulgation of the 1917 Constitution and the emergence of the country's current political system. Elections held in July 2000 marked the first time that an opposition party won the presidency from the Institutional Revolutionary Party.