The Megaproject of the Isthmus of Tehuantepec:
Globalization and Social and Environmental Deterioration.
By Miguel Angel Garcia

Two years from the end of the second millennium of the Christian era, there is a plan for constructing a four-lane highway and two-way railroad system for a bullet train that will transport merchandise in containers. The Tehuantepec Isthmus is a strategic region of Mexico due to its geopolitical location, renewable and non-renewable natural resources, and above all for being a narrow stretch of land connecting two oceans. The project's operation --the land it occupies, as well as the ports and transport systems, loading and unloading--will be primarily owned by transnational companies. Along with all this multi-mode transport system, the proposed megaproject is linked to the continuation of the process of privatization and transnationalizing the oil industry through the establishment of a proposed strip of maquiladoras and accelerated extraction of primary materials (precious woods and mineral resources) to be substituted by monospecific plantations characteristic of agro-industry and agro-exporting, such as eucalyptus and sorghum.

The possibility of constructing a model of trans-isthmus passage from the Golf of Mexico to the Pacific Ocean has profound implications for politics, national sovereignty, the environment, and social development; there is a strong need to open a new national debate in the context of an accelerated process of commercial and financial globalization that is very difficult--if not impossible---to avoid; especially under a government that has made a clear decision to continue policies of accelerated insertion in the world economy, without regard for the social or environmental costs.

THE TEHUANTEPEC ISTHMUS: RESOURCES, HISTORY, AND COMMUNITIES

a) The natural importance of the Tehuantepec Isthmus

The Tehuantepec Isthmus is home to the most important humid tropical jungles and forests in the country due to their biodiversity and the extensive preserves (Chimalapas, Uxpanapa, Mixe baja).This vast zone of contact between the flora and fauna of North and South America forms part of a group of ecosystems that account for between 30-40 percent of the planet's biodiversity.

The isthmus is also the only natural bridge that joins the country's tropical jungles (sub-humid and humid) between the coast of the Pacific and the Golf of Mexico. Likewise, it's the region with the greatest availability of accessible water according to national demand and hosts the largest lagoon systems of Mexico's Pacific coast (with enormous potential for fishing, especially shrimping) and also where the oldest costal plains extend, from the Golf and the Pacific, for enormous agricultural potential when and where parallel ecological restoration is carried out.

From a geological point of view, the Northern part of the Isthmus, apart from possessing a rich oil-bearing basin, whose potential has been revived with the discovery of enormous deep deposits in the marine subsoil of the zones referred to as "donut holes", where the petroleum reserves are believed to be similar or greater to those in the Campeche and that are currently in the process of territorial demarcation with the United States (La Jornada, February 12, 1998); there is also a lot of sulfurs (highly explosive) in the region which is situated on a vast alluvial prairie formed by the accumulation of gravel and limeston-- originally very rich soils-- which, added to the type of ore and the high precipitation levels, results in the vast extension of land with ample agricultural possibilities, today underutilized by extensive cattle ranching.

In the central part of the Isthmus, (Sierra Mixe, Chimalapas, and part of Uxpanapa) the topography is compressed by the pressure of the continental plates of the Golf of Mexico, and above all, the Golf of Tehuantepec, presenting the formation of abrupt sierras, covered by extensive forests and jungles with rocky influxes and the presence of tungsten, mica, phosphorite, and iron.

The Isthmus' enormous potential for wealth, due to its vast natural resources, has historically been both underutilized and abused due to an erroneous dual development model that damages natural resources of the local communities and the country. On the one hand, a model of technological, industrial development, coupled with a dependent, destructive and highly pollutive agro-industrial development that has provoked, among many other ecological catastrophes, the complete death of the mid and lower basin of Rio Coatzacoalcos; the industrial zone of the Minatitlan-Coatzacoalcos corridor is considered one of the areas of highest air pollution in the entire country (in terms related to its size) and near half a million hectares of medium and high-altitude rain forests in the Tuxtlas-Acayucan-los-Choapos zone have been totally stripped and transformed into pastures for large cattle ranches, including the Uxpanapa jungle, where with funding from the World Bank in less than four years (1974-1978), 200,000 hectares of high altitude jungle was harvested with heavy equipment. On the other hand, a polarizing and highly discriminatory socio-economic model, that has marginalized--by taking advantage of dominate sectors--a large indigenous and campesino population, forcing them to pillage to survive.

However, the Isthmus still possesses enormous natural resources in biodiversity (flora and fauna), water resources, and hydrocarbons and minerals that can be taken advantage of sustainably or over-exploited until their pillage and extinction.

b) History

The geopolitical location of the Tehuantepec Isthmus, and its enormous natural resources has awoken interest in and ambition for the resulting commercial potentials. Ever since the colonial era there has been interest in constructing a trans-isthmus canal. In 1982 the Isthmus' Megaproject was envisaged and planned out, and while it did not find the adequate conditions nationally, and above all internationally, for its implementation, it without doubt serves as a base for the actual proposal, which was set forth due to two specific conditions, the political and financial-technical developments in the Panama Canal:

1)The imminent end of the concessions of the Canal zone (533 square miles) by Panama to the United States stemming from the Torrijos-Carter treaty that established December 31, 1999 as the date for the complete surrender of the canal and the U.S. military bases, and, above all:

2)The technical obsolescence and inefficiency of the Canal, whose construction started over a century ago (1879) and whose locks system, not to mention the intense maritime traffic, results in cargo delays varying between 72 hours and 2 weeks to be able to cross 160 kilometers between Colon (Atlantic) and Panama City (Pacific), with the consequential financial costs for transnational interests.

c) The Communities

Of the total population that could be affected by the project (2,200,000 people), who inhabit 80 municipalities (31 in Veracruz nad 49 in Oaxaca), at least a quarter belong to 12 ethnic groups: Zapotecos, Popolucas, Nahuatlacos, Zoques, Huaves, Mixes, Chontales, Mixtecos, Tzotziles, Chinantecos, Mazatecos, and Chochos, divided into 539 communities, of which 61% are in Oaxaca and 39% in Veracruz. These social groups survive despite high levels of illiteracy, malnutrition, and lack of basic services, as well as with 75% of the PEA concentrated in primary activities.

However, in this same space (and perhaps surrounded by these conditions), these indigenous groups have created movements and social organizations, of relative regional importance, in defense of their territory and natural resources, some of which still remain active actors in the Isthmus zone including: the movement of the indigenous Popolucas of southern Veracruz, that at the end of the 70's opposed the construction of the "Ostion Lagoon" as a deep-sea port; the Isthmus' Campesino Student Workers Coalition (COCEI), that arose at the end of the 70's as a local movement in Juchitan, Oaxaca to defend their lands and Zapoteca culture. the Union of Indigenous Communities of the Isthmus' Northern Zone (UCIZONI), a multi-ethnic human rights organization (Mixe-Zapoteco); the Uxpanapa Indigenous Council (CIUX) in Veracruz, made up of indigenous Chinantecos resettled due to the construction of the Cerro de Oro dam; the campesino and indigenous ejidos in the Sierra de Santa Martha, Veracruz, who after an intense fight to avoid the establishment of eucalyptus plantations organized to carry out a community development and ecological conservation project; indigenous communities in the Sierra Mixe with a strong tradition of fighting in defense of their land and culture and the indigenous communities and municipalities of Santa Maria and San Miguel Chimalapa (the biggest in the state of Oaxaca) with a long experience in fighting in defense of their territory and natural resources, whose peaceful mobilization and ability to make alliances has impeded ambitious develpomentalist projects (Hydrological Complex, highways, and the Industrial Forest Complex).

THE "TEHUANTEPEC ISTHMUS INDUSTRIAL DEVELOPMENT PROGRAM (PDII)".

Zedillo's intention to implement the Tehuantepec Isthmus Megaproject was announced when the national newspaper La Jornanda published a front page article with a headline revealing the existence of a study-project called "Masters Consultation on the Integral Development of the Isthmus" (La Jornada, July 22, 1996).

Through this "Masters Consultation", a total of 146 projects which make up the first phase are analyzed and described. Some of these projects are being worked on and developed--in absolute secrecy and under a very low profile--as pieces of a macroeconomic puzzle whose total identity is unknown by the majority of Mexicans. Examples of these pieces, already in place, are the eucalyptus plantations in southern Vercruz, Tabasco, and Sierra Mixe; the establishment of a modern and dangerous alkaline plant in Salina Crua refinery; the construction of a modern subdivision and golf resort in Huatulco, and the recent inauguration of the international airport in Ixtepec, Oaxaca, all while public attention has been directed towards the bid by the Southwest Railroad for the Coatzacoalcos, Veracruz, Salina Cruz, Oaxaca route, which finally remained outside the recent bid won by the company TRIBASA.

The Consultation document gives us a generel idea of the conception of these actions in mentioning "the megaproject's positioning in the world market as an alternative option and not as competition with the Panama Canal, and taking advantage of the new projects in Central America to stimulate regional economic development for final assembly and parts manufacturing, through a tri-continental network of efficient transportation." In this way, the Program establishes the construction of a 411 kilometer highway, two electricity plants and the privatization of the trans-isthmus railway system, with the possible participation of Burlington Northern and Santa Fe Corporation, Railroad Development, Southern Pacific Mexico, Kansas City Southern Industries, CSX Transportation Incorporated, Genesee and Wyoming Industries and Union Pacific Railroad.

The Megeproject plants, apart from the establishment of plants related to the foresting industry, by exploiting precious semi-precious woods, and the paper industry through eucalyptus plantations in Santiago Yaveo and San Juan Cotzocan (Southern Mixe) and in Uxpanapa, Veracruz; intensive technological (altering the natural mangroves in the coastal lagoons of the Pacific) shrimping projects; exploiting non-metalic minerals such as marble, phosphoric rock, lime, and sea salt; installing maquiladoras for textile and electronics production; opening the tourist complex in Huatulco and converting large areas of corn and bean cultivation to sorghum in the coastal plains of the Pacific.

Regarding employment--one of the most used justifications of this type of "development" project violently introduced into rural regions--the Megaproject claims that the first phase will generate 12,200 permanent jobs annually (20.5% industrial, 19% oil and oil refinery; 16.9% mining; 14% in fishing; 12.4% in foresting; 7.4% in infrastructure; 5% tourism; 4% agro-industrial and .9% urban equipment) with a total goal of 43,600 jobs over a period of 13 years (1997-2010). This number of total employees, in a zone that possesses a total population estimated to be 2,200,000, leads us to deduce that the positive real impact in this area will be minimal, especially if we consider that a high percentage of fixed jobs require education and training levels out of reach for the local inhabitants.

In sum, in the first phase of implementation of PDII (1997-2000), the goal is to promote 146 "stimulation projects", among them, 80 productive and 65 infrastructure projects. The productive projects cover diverse ranges of industry: chemical and petrochemical, automotive, metalworks, maquiladora, warehousing, steel and its derivatives, construction, agroindustry, forestry (extractive and plantations) fishing and salt mining. The infrastructure projects would be urban development, communications, tourism, infrastructure for industries and above all, the multi-mode transportation project whose priority is to modernize, privatize and regulate the railway system; terminal ports; the loading and unloading systems of contained cargo, as well as highway transportation systems for transnational commerce. A pathetic example of the focus of the }Megaproject consists of 2 projects considered in the phase 1 package: widening rural roads and the construction of a golf resort in Huatulco. In the first case, ("rural roads to marginalized communities") $47.5 million pesos were invested which generated no new jobs (taking advantage of the indigenous "tequio" tradition of free manual labor for projects benefiting the community); in the second case, ("Tourist installments, "La Entrega" golf resort, first phase) $50.9 million pesos were designated and only 125 non-specialized jobs created! 3.5 million pesos and 125 more jobs for a golf resort than for roads to marginalized communities!

Of course there are concrete things "left out" of the Megaproject in terms of greater structural importance for medium and long-term sustainability; these "oversights" or "missing pieces" not considered by the official plan are, among others, land tenancy, as well as the socio-cultural and environmental impacts which will obviously affect the 80 municipalities affected.

The above leads us to conclude that the original objective of the PDII leans towards the following consequences: high concentration of benefits favoring huge transnational capital, including supposedly "national" business groups in Mexico (TRIBASA, GMC, PULSAR, CARSO) taking advantage of the possibility of obtaining products, prime materials and cheap labor and a fast connection to transport merchandise (primary resources, manufactured goods and high-demand products) to the various regional economic blocks established (all of the U.S. and Canada along both costs, Europe by the Golf of Mexico and Southeast Asia by the Pacific); grave risks related to national sovereignty, for the real lost of state political control in an extensive strip of national territory; visible militariztion of this strip; the violent creation of industrial "development" sites, with the inevitable consequence of misery, marginalization and social pathology; in addition, the already unacceptable increase in high social risks in the municipalities and communities affected by further environmental destruction, easily foreseen in the medium and long-term impacts that projects of this type bring about. (Particularly if we recall the damage done by earlier "development" projects, for example, in the mid and lower basins of Río Coatzacoalcos) Another example of an unfortunate ecological experience that should be taken into account are the eucalyptus plantations in other parts of the world which have developed under the disguise of supposed reforestation activities, always with merely commercial interests in mind, whose result has been: impoverishment of soil quality, disappearance of other species, the indiscriminate use of agro-chemicals, not using important portions of agricultural lands to their full potentials and the pressure that this generates on the preserved or recuperating forests, as well as the affect on community subsistance due to the damage to lands and unjust economic compensation for their work.

In our final reflection we look to the words of Dr. Alejandro Toledo in the book "Geopolitics and Development in the Tehuantepec Isthmus": "The twenty-first century... Will it be the final triumph of this one-dimensional vision that promotes globalization under the aegis of the market and the disappearance of the isthmus' indigenous cultures? Will there be time to construct a notion of development that does not imply amputating our past, destructing our present and technocratic and authoritarian control over an uncertain future?