Mexican miracle

The Mexican miracle (Spanish: Milagro mexicano) is a term used to refer to the country's inward-looking development strategy that produced sustained economic growth.

An important factor helping sustained growth in the period 1940–1970 was the reduction of political turmoil, particularly around national elections, with the creation of a single, dominant party.

Ávila Camacho used part of the accumulated savings to pay off foreign debts, so that Mexico's credit standing substantially improved (increasing investors' confidence in the government).

With increased revenues coming from the war effort, the government was now in a position to distribute material benefits from the Revolution more widely; he used funds to subsidize food imports that especially affected urban workers.

The enrollment rates of the country's youth increased threefold during this period;[10] consequently when this generation was employed by the 1940s their economic output was more productive.

The founding of the Instituto Politécnico Nacional (IPN) in 1936 as a government-funded institution in the northern part of Mexico City, trained a new generation of Mexicans.

From a small, private inception, the Tec de Monterrey built a major campus inaugurated by President Alemán in 1946, and has been a magnet for students from other areas of Latin America.

[11] In the years following World War II, President Miguel Alemán Valdés (1946–52) instituted a full-scale import-substitution program which stimulated output by boosting internal demand.

The government fostered the development of consumer goods industries directed toward domestic markets by imposing high protective tariffs and other barriers to imports.

Manufacturing remained the country's dominant growth sector, expanding 7 percent annually and attracting considerable foreign investment.