The Impact of Global Capitalism in Welfare Institutions and Living Standards: The Case of 19th- and 20th-Century Mexico

The purpose of this paper is to present a first approach to the study of charitable institutions in Mexico. I will overview the transformation of welfare institutions in Mexico from the end of the colonial period until the mid-twentieth century and how it was influenced by foreign ideas on welfare and philanthropy. The argument of this study is that the secularization of welfare institutions produced a disincentive among the population at large to actively cooperate with these institutions. The imposed secularization of welfare institutions was not the only cause behind the gradual disincentive of civil society to participate in charitable institutions; political instability and economic hardship suffered in Mexico at this time greatly influenced this process. Although many Catholics who were used to contributing to Catholic charities were opposed to the attack that the government was inflicting on the Catholic Church, it was the constant financial constraints that challenged the government as well as the threats of foreign invasion of the mid-nineteenth century that forced the governments to handle the secularization process in haste and often mismanaging the real estate acquired from charitable institutions. The financial chaos in which the secularization process took place opened the possibility for people who leased property belonging to charitable institutions or potential real estate buyers to behave opportunistically. An analysis of the interactions between private parties and the secularized welfare institute, Beneficencia Pública, can shed light on the nature of these opportunistic strategies. The management of the secularized Beneficencia Pública was full of challenges and operated with minimal efficiency. It did not improve welfare provision in Mexico.