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Economy and Land Tenure

1. Land Tenure: As regards land tenure, most of the territory is community property (53%), while 15% is in ejidos, or agrarian reform communities. The remaining 32% is privately held by both smallholders and private owners with larger tracts. Nonetheless, many lawsuits and administrative cases of agrarian communities are awaiting positive outcomes and rulings. In the state of Oaxaca there are several agrarian problems, many stemming from the lack of clearly documented agrarian claims. In some cases this has given rise to conflicts between communities and owners, as well as between communities. Some 43% of the land is used for forestry, 26% for livestock, and 12% for crop farming. The remaining 19% is put to other uses.

2. Agriculture: More than 50% of Oaxacans farm, mainly corn and beans. Nonetheless, most of the corn consumed in the state comes from outside, even though it is a predominantly rural state. Therefore, it is not self-reliant. One of the main reasons for this situation is the type of production, (i.e. production of basic food crops has been limited by the development of cash crops). In the 1989-1990 season, basic food crops accounted for only 3.9% of total crop output, the rest being commercial production, including feed grains, fruits, and vegetables. Among the most important cash crops are coffee, sugar, mango, and rubber.

3. Stock Breeding: Stock-breeding is developing mainly in the regions of Papaloapam and the Isthmus, and to a lesser extent in the Central Valleys and Coast. Extensive livestock has increased steadily in recent decades, almost always at the expense of farmland or forest land, and is largely responsible for the destruction of vast tropical forests. Livestock production is predominantly of beef and dairy cattle.8

4. Forestry: Forest resources are among the most important in the state. Of the total land area, 51% is forested; of this, more than 90% belongs to communities and ejidos. The area covered with trees comes to 3.1 million hectares, which includes forests and upland, midland, and lowland jungles. Non-tree forest vegetation covers almost 700,000 hectares, and the forest area that has been encroached upon, measures almost 2.7 million hectares.9
Forest resources have been extracted for commercial use and domestic use, for fuelwood and building materials. The principal forest areas are in the Sierra Juárez and the Sierra Sur. Forest resources, it should be noted, are threatened with destruction and degradation by the encroaching agricultural frontier, fires, legal and illegal cutting.

5. Fisheries: Oaxaca has a wide variety of species that inhabit the coast, lakes, and rivers. Nonetheless, the potential for fisheries is largely untapped. This is due to the lack of adequate equipment, market, and transparent, solid forms of social organization. Problems of silting of the lake and river systems, as well as pollution also stand as obstacles to the full use of maritime and riparian resources. Neglecting this resource base is tantamount to losing a major source of food that could help alleviate the difficulties faced by rural communities. As of 1990, 5,500 persons were listed in the National Fisheries Registry. Of these, 3,391 were organized in 62 cooperatives; the rest were in parastatals and the private sector.

6. Tourism: Oaxaca holds an important place within Mexico's multicultural mosaic. It has a heritage of cultures whose roots extend back to Mesoamerican times. The importance of Oaxaca for tourism is based on its cultural, historical, and archeological wealth, and its natural attractions and variety of climates. The main tourist centers are the cities of Oaxaca, Huatulco, and Puerto Escondido. The economic importance of tourism is evidenced in the annual income from tourism: in 1991 it came to 664.751 billion pesos, or approximately 12% of gross domestic product, which was 5.4456 trillion pesos, according to the INEGI. Nonetheless, the income generated in this sector benefits a small group, and in general only urban areas.

7. Industry: Industrial development in Oaxaca is very limited, and based primarily in agro-industries, such as forestry, which produces plywood, paper, and pulp. Others include the brewery in Tuxtepec, the PEMEX refinery at Salina Cruz, and production of mezcal, as well as smaller industries such as wooden trailers, plastics, packing operations, and soft drinks.

In summary, the predominance of rural communities, their dispersion, and the prevalent indigenous population have been considered synonymous with backwardness from the standpoint of developmentalist plans. Developmentalism has failed to appreciate the "...invaluable social basis for alternative approaches...10 " to Oaxaca's growth and development.

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