Mexico Before and After the 1973 Oil Boom

Before the Oil Boom:

• Poor, struggling economy; heavy foreign debt.
• Underdeveloped infrastructure.
• Widespread poverty and inequality.
• Authoritarian, corrupt political system.

After the Oil Boom:

• Rapid economic growth and modernization (GDP +6%/year avg).
• Oil wealth invested in infrastructure, education, healthcare.
• Poverty and inequality decreased significantly.
• Political system became more democratic and open.

Negative Consequences:

• Over-dependence on oil; severe crisis when prices crashed in 1980s.
• Corruption and inequality resurged.
• Significant environmental damage from oil production.

The boom's legacy continues to shape Mexico today.