The Mexican Crisis and the Maquiladora Boom: A Paradox of Development or the Logic of Neoliberalism?
Author(s)
Cooney, Paul
Abstract
In December 1994, the Mexican peso collapsed and the ensuing devaluation required a tremendous bailout by the International Monetary Fund (IMF). Mexico entered its worst depression since the 1930s. The Mexican economy overall experienced a -6.2 growth rate. The maquiladora industry, however, grew by thirty percent in1995. Foreign exchange generated by the maquiladora industry was the largest source of foreign revenues for Mexico by 2001. This article examines the causes and consequences of the peso crisis and the depression it caused and also looks at the factors underlying the success of the maquiladora industry. The impact of the maquiladora industry on key social sectors and actors is discussed. A wider discussion of maquiladoras and development is also presented.
