The Mexican path toward agricultural capitalism

This article discusses the traditional interpretation of Mexican agriculture. The inefficiency of large agricultural estates, their feared absentee landowners, reduced and captive markets, antiquated technology, and absence of efficient institutions are traditionally considered to account for the failure of rural Mexico to embark on the path toward capital development. It is suggested that while this characterization of hacienda estates was valid in the last third of the nineteenth century for certain regions, in others linked to urban expansion and the railroad system agricultural estates were in fact productive undertakings with advanced technology and efficient management. The article argues that the main obstacles to capitalist agricultural development were compulsive forms of labor organization; the lack of high-output agricultural products; insufficient monetary circulation preventing the formation of more cohesive agricultural markets; a salary system based on payments in cash; and the scarcity of agricultural credit.