Poverty in New Mexico - Research Paper Example

? Poverty in New Mexico 23rd April Contents Contents 2 Introduction 3 Historical & Cultural reasons for poverty 3 Spanish Conquest and Gateway cities 3 Apache Raids 4 Harsh Terrain 4 Lack of Efforts by Spain and Mexico 5 Focus on California & Texas 5 Denial of Statehood: Cultural factors 6 Narrow Economic Base. 6 Mining and Agriculture 6 Shift to Service Economy 7 Mexican Crisis and Border Area Development 7 Impact of Federal Policies & socio-Demographic changes 7 IRCA Act 7 War on Drug Cartels 8 Border Control Policies 8 Cultural Diversity of New Mexico 9 Solutions 9 Geothermal & other clean energy base. 10 Food Security 11 Use Migrants to advantage in Manufacturing 12 Summary 12 References 14 Introduction New Mexico is the poorest state in United States with a recorded poverty at 22.2% in 2010.The median income for the state has dropped to levels of $44,270 in 2010 (TVC grant county).30% of children in New Mexico live in poverty. People are forced to either buy food or pay for healthcare. A recent USDA report says that 28% of the New Mexico population does not has access to medical insurance and are extremely vulnerable in case of ill-health (TVC grant county). Poverty is more prevalent in the rural areas, although it by no means spares the urban centers of the state. How did such massive poverty engulf the state of New Mexico? In this research paper we will analyze some of the historical and cultural reasons which have been responsible for high poverty rates in this state. In the last session we will analyze some solutions which can be implemented in order to ensure that the poverty levels decline in the state and people are able to sustain them. Historical & Cultural reasons for poverty Poverty in New Mexico is not a recent phenomenon. It has always been neglected by all its rulers. In this section we analyze the reasons for this historical neglect of the state of New Mexico. Spanish Conquest and Gateway cities The Spaniards move forward from Mexico in the late 1500s in order to secure their northern borders. While doing this they set the foundation for the development of 3 wealthy cities and the neglect of New Mexico. These cities are the centre of urban development even today and New Mexico still reels under massive poverty. These three cities were the gateway to the north for the Spaniards. The first gateway city was El Paso, Texas which was part of a fertile river valley and the lowest pass across the Rocky Mountains. The other gateway cities were Matamoros on the eastern edge and San Diego on the western edge (Roberts, Calvin A. Roberts and Chilton). The setting up of these cities led to the establishment of a North-South trade route, ignoring the east-west route at the expense of New Mexico region. As the New Mexican region was far away from Spanish seat of power, the development focused only on these three cities and the large hinterland of Arizona and New Mexico was ignored. After the independence of Mexico, the Mexican government continued the trend and focused only on the north south trade route; thus leading to the further growth of these cities .This caused prosperity in Texas and California while New Mexico and Arizona suffered from neglect (Roberts, Calvin A. Roberts and Chilton). Apache Raids It is not that no exploration was made by the Spaniards or the Mexicans in to the territory of New Mexico .Coronado made a famous exploration in 1540 through Northern Mexico. However all the settlers in this area had to face raids by the Apache Indians? These regular raids made it difficult to set up roads and communication in the area. The explorer’s also did not find enough gold or other minerals here which will make economic sense to fight these raids. The Apache Indian were terrified of foreigners since the Spanish took them into slave trade and thus worked overtime to drive away settlers and development from the New Mexican region (Lund). Harsh Terrain The harsh and rough terrain of New Mexico and the absence of an east-west road system frustrated the attempts of many merchants who wanted to establish trade links with Sonora. The geographical features of the area were not suitable for wagon travel. The rough terrain and the constant raids on the wagons by Apache Indians forced the traders to abandon the east-west route and focus on the north-south route instead (Frost). Thus the geographical and cultural features of New Mexico ensured that the state was once again neglected for development by successive rulers. Lack of Efforts by Spain and Mexico By the time the conquest of Mexico was completed, Spain was devoid of resources and thus could not venture further north .They were satisfied to have a minimal presence in the three gateway cities to ensure the protection of their trading interest. They were not inclined to move further north and fight with the Apache Indians. After Mexico gained independence it initially focused its attention on the three gateway cities but after the Centralista coup in 1834, the focus on the northern border of Mexico was reduced (Esparza and Donelson). The Mexicans were fearful that increased trade will lead to increasing dependence on the Americans and may lead to the USA meddling in the affairs of Mexico. Thus due to simple geographical calamity of being too far north, New Mexico was ignored both by the Spaniards and the Mexicans after independence. This limited the prospects of economic development. Focus on California & Texas The U.S. – Mexico war of 1846 and the Gadsden Purchase settlement of 1853 brought New Mexico under the control of USA. Even after acquisition by USA, New Mexico had to continue to fight for recognition and prominence while California got it in abundance. The urban centers of California and Texas received heavy influx of residents from mainland USA. California also profited from the gold rush and the opening of the railroad industry in the state (Grayson). Thus geography once again ensured that New Mexico remained poor and isolated. Its terrain was devoid of gold and was thus largely ignored by its new rulers (Grayson). Denial of Statehood: Cultural factors Both Arizona and New Mexico had to fight a long battle for statehood. Statehood was granted to these 2 states only in 1912 after decades of fight by the people of the 2 states. Lack of statehood was one of the reasons which delayed the economic development of the state. The statehood for New Mexico was denied primarily for 2 reasons. One was that it was a remote state and was not sufficiently developed. The lack of development would cause a drain on the resources of the federal government. The other reason was cultural. Most of the population of New Mexico was Hispanics .They spoke Spanish and was Catholics which was in contrast to the English speaking protestant population of USA. This different culture was perceived to be a threat by Americans and led to constant denial for the statehood of New Mexico (Prince). Narrow Economic Base. Mining and Agriculture Southern Arizona and New Mexico’s moment in the sun came in 1850 when U.S. government developed military forts and camps for the defense of the territory. The military captured the Apaches by 1886 and ended their frequent raids. This opened up the area for development. South Pacific railroad was opened in1880s which allowed mining companies to set up operation in New Mexico. Although Copper mining was started in New Mexico but the state was of little economic value other than the mines. This ensured that the region largely remained poor and backward. On the top of this, New Mexico received a flood of immigrants from Mexico after the Mexican revolutions of 1910 (Roberts, Calvin A. Roberts and Chilton).The mining operations were not profitable enough to accommodate this large influx of migrants. Thus the narrow economic base of New Mexico of mining and agriculture was not enough to sustain the large population. Shift to Service Economy New Mexico further received a jolt in 1960 when there was a shift to service economy. Most mining operations were either shut down or scaled down (Esparza and Donelson). Agriculture was also mechanized during this time leading to loss of employment for millions of people. Mexican Crisis and Border Area Development Mexico suffered major economic crisis in 1982 and 1994 which led to the devaluation of its currency. This devaluation made the Mexican labor cheap and thus it was lucrative for industrialists to set up their factories across the border. In addition to this the Mexican government also set up the border area development program which was aimed at attracting investors (Lund). Thus good could be made cheaply in Mexico and imported duty free across the border. There was no incentive for industrialists to invest in New Mexico where they had to pay higher wages. Thus geography again played spoilsport with the development plans of New Mexico .Historically it had to pay for its closeness to Mexico and this time was no exception. Impact of Federal Policies & socio-Demographic changes IRCA Act The Immigration Reform Control Act was passed in 1986 in order to stem the illegal immigrations from across the border. However this act had a lacuna which allowed long term residents and agricultural labors to stay in U.S.A. This drawback was utilized to the full by Mexicans who settled in droves in New Mexico. It granted permanent residency to 3 million agricultural workers. Apart from this the area also witnessed the influx of 11 million illegal workers in hope of future amnesty under the law. This influx has changed the demographics of the region, caused conflicts among the different sections of population and also put a strain on the resources and economy of New Mexico. The strict provisions of the IRCA act have also led to the reduction of entry level wages (Prince). War on Drug Cartels The Regan administration in 1980 launched a war on the drug cartels of Columbia. However this war on the drug cartels in no way eliminated the drug trade. It simply shifted to New Mexico. The unemployed and poor immigrants in New Mexico worked as perfect recruits for these cartels (Esparza and Donelson). The presence of drug cartels created immense law and order problems which ensured that companies stayed away from investment in New Mexico. Thus New Mexico was once again a victim of its geographical location. Border Control Policies New Mexico is famous for its colonias. Colonias are rural shantytowns which are lacking in adequate physical and social infrastructure. Colonias are suffering from acute poverty and are similar to the slums in third world countries. These Colonias have grown up due to the border control policies of the federal government. The federal government tried to free the cities of San Diego and El Paso of illegal immigrants through an intense crackdown. However the geographically close states of New Mexico and Arizona had to bear the brunt of this crackdown as immigrants fled from cities to the rural areas of New Mexico (Esparza and Donelson). Thus wrong federal policies, combined with the geography of New Mexico have ensured that the state has been flooded with immigrants who are an immense drain on its resources. As the number of immigrants continues to grow all economic developments made by the state are nullified and standards of living are further reduced. Cultural Diversity of New Mexico Large scale immigration from Mexico has ensured the New Mexico is a very culturally diverse state. Hispanics make up 47 % of the population. Due to this there have been sharp divergent views on how to deal with the immigrant population. Hispanics are in favor of lax laws and favorable treatment of the immigrants – whether they are legal or illegal (ARCHIBOLD). However the non-Hispanic population considers the immigrants a big drain on the economy and wants them to be shunted out with force. The role of immigrants in developing the economy of New Mexico has been the major point of debate in the state which continues even today. Hispanics claim that they are discriminated against when they apply for loans or want to start their own business. This discrimination occurs in spite of a Bill of rights in the New Mexican constitution which protects the rights of all people to speak their language and protect their culture. New Mexico is a unique state because it has a lot of cultural diversity which is usually not witnessed in American states. With 47 % of the population, the Hispanic population whether legal or not cannot be left behind in the march to development by the state. The Hispanic population also suffers from much greater poverty than non-Hispanics and thus need to be the focus of any poverty alleviation program which is launched in the state of New Mexico. Solutions Although Geographical location of New Mexico has been responsible for its economic backwardness and the reason for it being ignored by successive governments; it is geography which can ensure the development of the state. In this section we will discuss some methods which can be used to improve the economy of the state and provide employment and benefits to the large section of poor living in the country. Geothermal & other clean energy base. New Mexico’s mountainous regions provide immense potential for the generation of geothermal energy. This potential is still untapped and can be utilized to generate more jobs for the rural and urban poor of New Mexico. The only impediment to setting up geothermal energy project is the high initial capital costs. The state of New Mexico is already dependent on federal government spending and may not be able to provide resources for the development of this resource. However the problem can be circumvented by the use of private capital. Cyraq international has already pledged an investment of $100 million dollars for the development of geothermal plant in New Mexico (New Mexico Bureau of Geology). The government can attract many more private entrepreneurs by providing them tax incentives. The government is already providing a subsidy of up to 30% for the installation of geothermal ground-coupled heat pump system. In addition to this the state is also paying up to 30% in federal tax credit to individuals and corporate to attract investments (Geothermal Energy Program Mission). Apart from direct jobs, geothermal energy will also have a domino effect on the rural economic development. Geothermal energy can be used for Chile and onion drying, cheese and milk processing and for bio fuels refining (New Mexico Bureau of Geology). This will be a boost to the agriculture based rural economy of New Mexico. Rural areas are the hub of Colonias where maximum poverty exists. Geothermal energy will help these people with a vehicle to move out of their poverty. Apart from geothermal energy, the state also has immense potential for wind power in its southern parts. This potential also needs to be tapped in order to increase employment opportunities. Food Security The greatest blot on the economic development of New Mexico is the fact that 16.5% of its population is facing massive food insecurity (Spotlightonpoverty.org.). The government of New Mexico is dependent on the SNAP initiative in order to provide solution to this problem. SNAP stands for Supplemental Nutrition assistance programmed .SNAP provides food stamps to people with low income and allows them to purchase pre-packaged edible food. However the programmed has shown little improvement in food security in New Mexico as it does not puts restrictions on the type of food which can be purchased. Even soft drinks can be purchased by families under this program which is defeating the purpose of the program.21% of the population of India suffers from food insecurity. New Mexico with a figure of 16.5 % is not far behind. As the problem has assumed proportions which are similar to third world countries, the solution should also be similar to third world countries; customary programmers like SNAP will not help. I propose that the state of New Mexico should pass a comprehensive Food Security bill which will entitle every citizen earning below a threshold level to subsidized food grains. This subsidy can be distributed in the form of food stamps. However the food stamps should be redeemable only for food items like rice, wheat, meat etc. and not for improving the sales of Coke and Pepsi. The Food security law drafted by India can be used as a template in order to form the New Mexican law. Although there are claims that this intensive food distribution programmed can lead to malpractices, corruption and excessive state interference but these voices need to be ignored. New Mexico has suffered from extreme poverty for too long and market forces have failed to reduce it. It is time now for some socialist style measures in order to ensure that people of New Mexico do not sleep on a hungry stomach. Use Migrants to advantage in Manufacturing This suggestion goes against the current U.S. policy to restrict migration and strictly control it. In this suggestion I propose removal of these restrictions in order to boost the manufacturing industry in New Mexico. Most companies prefer to open their manufacturing base in Mexico due to low labor costs there. It has been shown that labor costs in Mexico are 1/6th of the costs in USA (Shorris). By allowing controlled migration from Mexico, New Mexico and other border states can provide cheap labor to industries which is not available in other states of USA. This arrangement will be beneficial for both the Border States as well as immigrants. Additional tax breaks can be provided to companies to make this arrangement beneficial to them also. The migrant labor from across the border should be given resident passes which will allow them residency but not citizenship in America. Increase in manufacturing industries will also boost the service sector and create high tech jobs for the population of New Mexico. Due to higher levels of educational attainment, the service sector jobs and the high end jobs will be lapped up by the New Mexicans, resulting in increased standard of living for them. The domino effect of increased industries will benefit the entire economy of the state and help in poverty alleviation. Summary New Mexico has long been neglected and suffered from poverty due to its geographical location. The policies of various rulers have been adverse to the growth of the state. However the state can break free from its historically high poverty by using the same geography to its advantage. Both the state as well as private industry needs to contribute in order to remove poverty. This paper has provided some radical solutions to remove the poverty levels in the state. Although these measures may be controversial but can lead to the overall growth and prosperity of the state. References ARCHIBOLD, RANDAL C.. "Side by Side, but Divided Over Immigration." The New York Times. 11th May 2010. 2013. Web. 23rd April 2013. [http://www.nytimes.com/2010/05/12/us/12newmexico.html?pagewanted=all&_r=0]. DERUY , EMILY. "New Report Breaks Down Poverty Levels Among Latinos." ABC News. 21st February 2013. 2013. Web. 23rd April 2013. [http://abcnews.go.com/ABC_Univision/Politics/report-details-hispanic-poverty/story?id=18557721#.UXZCYqJ-534]. Lund, Bill. The Apache Indians. New York: Capstone, 1999. 17 -22. Print. Esparza, Adrian X. and Angela J. Donelson. Colonias in Arizona and New Mexico: border poverty and community development solutions. San Diego: University of Arizona Press, 2008. 18 -23. Print. Frost, Max . New Mexico: Its resources, climate, geography. Santa Fe: New Mexican printing company, 2007. Print. Geothermal Energy Program Mission. "EMNRD Energy Conservation and Management." 2010. Web. 23 Apr 2013. <http://www.emnrd.state.nm.us/ecmd/RenewableEnergy/geothermal.html>. Grayson, Robert . California's Gold Rush. North Mankato: ABDO, 2012. Print. New Mexico Bureau of Geology. Geothermal Energy in New Mexico. Santa Fe: New Mexico Bureau of Geology, 2006. Print. Prince, L. Bradford . New Mexico's Struggle for Statehood: Sixty Years of Effort to Obtain Self-Government. Santa Fe: Sunstone Press, 2010. Print. Roberts, Susan A, Calvin A. Roberts, and Kathy Chilton. A History of New Mexico. Albuquerque: University of New Mexico Press, 2004. Print. Shorris, Earl. The Life and Times of Mexico. Mexico city: W.W. Norton and Company, 2006. Print. Spotlightonpoverty.org. "Spotlight on Poverty and Opportunity." n.d.. Web. 23 Apr 2013. <http://www.spotlightonpoverty.org/map-detail.aspx?state=New-Mexico>. TVC Grant County. "Hunger and Poverty in New Mexico." 2013. Web. 23 Apr 2013. <http://www.tvcgrantcounty.org/pdf/hunger_stats.pdf>. Read More