One of the chief drawbacks of Latin American Dependency Theory (aside from the fact that it immorally restricts trade) is that it renders domestic industries decrepit due to isolation from innovations in global markets.
Such is now the case with Mexico’s ailing, inefficient, and outdated oil industry which is controlled by the foundering Pemex. Since 1938, the Mexican government has barred any foreign control over oil reserves in Mexico. This has led to a long slow downward spiral for the Mexican oil industry. Infusions of foreign capital are effectively outlawed, so Pemex has no funds for better extraction methods or state of the art equipment.
Unfortunately for the Mexicans, there is no shortage of nationalism among them (much like the Americans) and the populist elements think that free trade and free flows of capital will ruin their economy. The opposite is true of course, and if the old oil monopoly is not softened soon, the Mexicans may be forced to relive the eighties and will fall victim to economic isolationism yet agan.
