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by blahyawnblah 488 days ago
What was their boom based on?
1 comments

Manufacturing.

Mexico was the original "China". China began booming in the 2000s because Mexico became expensive so a lot of low margins manufacturing left Tijuana and Guadalajara for Tianjin and Guangzhou [0], the same way how you now see manufacturing leaving China for cost reasons having a similar economic impact/shock [1].

It's telling that China only caught up with Mexico's GDP per Capita and HDI around 2019-20, and economic issues similar to those in Mexico in the 2000s (excluding the drug war related ones) began manifesting in China as well.

For example, NPR [2], NYT [3][4], and BBC [5] reports from the early 2000s about Mexico are pretty similar to those you'd hear about China today.

History doesn't repeat but it sure does rhyme.

[0] - http://international-economy.com/TIE_Sp03_Rosen.pdf

[1] - https://www.degruyter.com/document/doi/10.1515/cfer-2024-002...

[2] - https://www.npr.org/2003/12/22/1556267/mexican-economy-strug...

[3] - https://www.nytimes.com/2003/09/20/business/mexico-s-jobless...

[4] - https://www.nytimes.com/2003/05/16/business/mexico-misses-gr...

[5] - http://news.bbc.co.uk/2/hi/business/812893.stm

> Tijuana and Guadalajara for Tianjin and Guangzhou

Off-topic kindof but it tickles my brain that the names are similar (Ti~, Gua~)

Haha yep! I chose those cities on purpose. Who doesn't love alliteration.