Part II. Chapter 4 THE SAN DIEGO TIJUANA REGIONAL BORDER
(Written 1996)
In 1848 when the Treaty of Guadelupe Hidalgo was signed, Tijuana was the
largest of a group of cattle ranching villages in the Tijuana River Valley.
Ensenada was a development of a North American real estate company during the
Southern California land boom of the 1880s. Because of poor communications
and transportation, both communities were relatively isolated from the mainstream
of Mexican life. During the speculative land boom of the 1880s, two wealthy
Mexican families living in the United States, the Arguello and Olivera families,
developed the first urban plan for the town of Tijuana --- then called Zaragosa.
Much of the development was to be located close to the international border. By
1921, the population of the new town had grown to more than 1,000.
Two events marked the subsequent growth of Tijuana up to World War II.
First, the Mexican government allowed gambling in Baja California. The first
racetrack in Tijuana dates to 1916. Second, prohibition laws passed in the
United States led to a major boom in tourism from the United States. Tijuana
became best known for its gambling houses, bars, and other entertainment
establishments. By 1940, the population of Tijuana had growth to 16,486.
The growth of the city after World War II is traced basically to the Bracero
program. Many of those who worked in the United States would ultimately settle
in Tijuana. Those unable to find employment either north or south of the border
became a large group of extremely poor people living in colonias along the border.
From the end of World War II to the present, the population of Tijuana has grown
tremendously.
Year
1900
1910
1921
1930
1940
1950
1960
1970
1980
1990
Population of Tijuana
350
969
1,228
11,271
21,977
65,364
165,690
340,583
709,340
1,129,000
About two-thirds of this population growth was the result of migration from the
interior of Mexico. Many people settled in squatter settlements, especially in the
southwestern zone of the city, known as "popular neighborhoods" (colonias
populares). Squatter settlements are estimated to represent 38% to 42% of
Tijuana's population and to occupy about one-fourth of the urban area. The
population of Tijuana, as in all of Mexico, is very young. As of 1990, 34.1% of
the population of Tijuana was under age 15 (compared to 38% for Mexico as
a whole). 67.8% (roughly 2/3) of the population was under age 30.
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In Tijuana, high-income people tend to reside in areas near downtown, in the
hills to the south, or along the coast on the road to Rosarito. The wealthy thus tend
to live near the border in contrast to San Diego, where the wealthy tend to live
farther from the border. Middle and working class neighborhoods in Tijuana are
adjacent to the wealthy areas but are slightly farther from downtown. Generally,
social class becomes lower as one goes farther from the central business district
and the River Zone. In contrast, in San Diego, social class becomes generally
lower as one moves closer to the central business district.
Tijuana's economy has grown rapidly --- at an annual rate of 3.8% from
1970 to 1990. This was faster than the economic growth of Mexico as a whole.
However, income per capita has stagnated and may have even fallen slightly. This
means that, although income rose, it was not able to keep up with the very rapid
rise in population. By 1990, income per capita in Tijuana was 17% above that
of Mexico as a whole. Education levels are also higher (6.6 years of schooling on
average, compared to the Mexican average of 4.7 years) as are literacy rates
(95.6% in 1990 compared to 87.3% for all of Mexico). However, as of 1990,
22.2% of people in Tijuana did not complete grade school while another 21.5% of
people completed grade school but had no further education. Life expectancy in
Tijuana had risen to 71 years, about two years more than Mexico as a whole. And
during the 1970s and 1980s, the distribution of income in Tijuana became
more equal. This distribution is significantly more equal than that of Mexico
as a whole. Labor force participation is also higher in Tijuana than in Mexico
as a whole --- 51% in 1990 compared to 43%. This is especially true for
women, a result of the maquiladoras. And unemployment in Tijuana is
extremely low --- 1.4% as of 1994.
Between 1950 and 1980, the structure of Tijuana's economic activity changed
away from the primary (agriculture and ranching) and secondary (manufacturing)
sectors into services. By 1990, about 56% of Tijuana's employment was in
services. Several urban projects increased Tijuana's role as a tourist center.
However, 38% of Tijuana's employment was classified as "Industry", a
classification that includes manufacturing, construction, transportation,
communications, and utilities. As a comparison, only about 19% of San Diego's
employment was in these categories, meaning that Tijuana was much more
industrial than San Diego. Tijuana's industry is also much more concentrated
geographically; San Diego allocates twice as much land to industry as does
Tijuana. Much of this focus on industry is due to the maquiladoras. Of the total
number of jobs created in Tijuana in the 1980s, the maquiladoras were
responsible for 48%.
There are over 1,100 manufacturing firms in Tijuana. More than half of these
are maquiladoras. As of 1994, there were 510 maquiladora plants in Tijuana
employing almost 83,000 people. Of these, 42% have affiliate companies in San
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Diego. Maquiladoras were covered in an earlier section. In terms of importance,
the manufacturing industries of Tijuana are:
Number of Firms
Food Products, Beverages
and Tobacco
Textiles, Clothing, and
Leather
Wood Industry, Including
Furniture
Paper and Paper Products,
Printing and Publishing
Chemical Substances
Mineral products Without
Metals
Basic Metal Industries
Metal Products, Machinery,
and Equipment
Employment
Value of Production
26%
11%
24%
12%
7%
5%
10%
16%
9%
9%
4%
3%
6%
3%
12%
11%
NA
2%
1%
3%
25%
53%
44%
Notice the importance of the Metal products, Machinery, and Equipment
category. This is largely dominated by electronic equipment. The minimum
wage in Tijuana was 15.27 pesos per day as of 1994. The average wage in the
maquiladoras in Tijuana was 35.50 pesos. (In 1994, this would have equaled about
$11 per day.)
Tijuana has built 38 business parks to attract maquiladora business. The
major one has been built on Otay Mesa. The border crossing opened there in
1985. Many of the plants built there are "Twin Plants", with complementary
operations on each side of the border. Housing was planned for about 250,000 on
the American side of the border, but little of this has yet been built. On the
Mexican side of the border, the land on Otay Mesa was once part of two ejidos.
This land was expropriated by the government in 1970 and separated into two
areas: one for industrial development and the other for residences for about 10,000
people. Construction for the residential area began in 1972. The industrial park
was constructed on the eastern edge of Otay Mesa in 1977. There are about 100
companies located on this industrial park (called "New Tijuana"). Mexico is well
ahead of the United States in developing its side of the border. Besides the
industrial park, it has already built an international airport, two universities, and a
large regional shopping center. Mexico has added other industrial sites and
residential developments as well. The two nations have only begun to coordinate
their land use decisions. This lack of coordination has often resulted in
incompatible uses of the land. For example, the decision of the City Council of
San Diego to locate a major prison on Otay Mesa did not fit with the goal of
Mexico of having the area grow with new residences and businesses.
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International trade thus far has been a growing, but underutilized area in San
Diego. In 1993, international trade accounted for only about 7% of the gross
regional product of San Diego (up from 3.5% in 1987). In volume of export
sales, San Diego ranks 17th among the largest metropolitan areas. However, over
40% of San Diego's trade was with Mexico. And about 2/3 of San Diego's trade
involved the Pacific Rim countries of Mexico, Canada, Japan, etc. NAFTA should
lead to increased trade between San Diego and Mexico.
However, the infrastructure in Tijuana is woefully inadequate (as it is as well in
San Diego). (1) Only 40% of the roads in the Tijuana region are paved and
much of this is in disrepair. San Diego does not presently have enough road
space for the projected traffic flow. As a result, State Route 905 is being
considered to connect I-5 and I-805. And State Route 125 was built as a privately
financed and operated toll road. (2) Port facilities are also inadequate. The port
of Ensenada is now mainly used for recreational and cruise ship operations. It
plans a major increase in handling of cargo by 2003 with the goal of becoming a
major international port by 2015. The port of San Diego has been focusing on
hotel development along the bay. (3) Cargo shipping has been limited by the
lack of railroad facilities to transport the cargo once it reaches port. (Much of
the cargo presently shipped to the Port of San Diego is shipped by truck to Los
Angeles, where it is put on trains to head east.) The hope for rail facilities has
been the San Diego and Arizona Eastern Railway (SDA&E). However, this
railroad is currently not being utilized. Funding is needed for repairs and
improvements; this funding has thus far not been forthcoming. The SDA&E could
be a "NAFTA train", as it is scheduled to travel from downtown San Diego down
to Tijuana and then across to Tecate before coming back into the United States and
traveling north to Plaster City and Campo. It would ultimately join the Southern
Pacific Railway at El Centro. The Southern Pacific would then ships the goods to
Chicago for distribution to the east and midwest. If the repairs are completed, a
large increase in trade through the Port of San Diego could result. The ability of
San Diego to increase its trade (especially with Mexico) is a major component of
the ability of San Diego to grow economically.
Border crossings are also an important part of the San Diego economy. The
large majority of those who cross do so legally. In 1992, there were 56 million
border crossings. Tijuana residents spend an estimated $2.8 billion annually,
paying over $100 million in sales taxes to San Diego county. (Immigration
issues were considered in Chapter 3.)
Finally, many environmental problems have resulted from the rapid growth of
the region that began in the 1960s. First, there are problems of water. Because
Tijuana occupies a higher elevation than San Diego, urban runoff or sewage
discharge flow toward San Diego. Vast areas of Tijuana have remained without
any connection to a sewage discharge line. Only 50.8% of Tijuana households
are served by the sewer system. In the 1980s, about 10 million gallons per day
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of sewage spilled across the border daily. As a result, the beaches in the south
county have been quarantined on many occasions over the years. Farmlands are
threatened in San Diego, as are endangered plants and animals. An International
Wastewater Treatment Plant was completed in 1996, at a cost of $260 million.
This has a primary treatment plant with a capacity of 25 million gallons per day
and a secondary treatment plant. It is expected to be in full operation by 1997,
treating only the sewage headed for the United States.
Also, during heavy storms, enormous amounts of water flow from Mexico into
the United States. The flood plain on the American side of the Tijuana River
contains agricultural property, horse farms, and a wildlife refuge.
Air pollution is also a regional problem. The biggest polluter in the region is
the thermal electric plant in Rosarito. However, due to the wind conditions, San
Diego does not experience this pollution very often. But autos registered in
Mexico, where leaded fuel is still used, cause an estimated 12% of pollution in
the San Diego area.
Estimates were made (1993) that $7.6 billion is needed for wastewater
treatment, water supplies, solid waste disposal facilities, and other infrastructure in
the border area. The North American Development Bank (NADBANK) was
created with $3 billion in capital contributed by both Mexico and the United States
to promote projects for environmental purposes. The United States Environmental
Protection Agency (EPA) estimated that, from this and other sources, $8 billion
will be available for border infrastructure projects over the next ten years. In the
fall of 1996, the Final Border XXI Program Framework document will be
released. This will identify environment priorities of the border, divide them
geographically, and come up with implementation plans. It will act to coordinate
many federal, state, and local government agencies to deal with border
environmental problems.
The future of the relationship between San Diego and Tijuana will be very
different than the past. The populations are much greater in both cities. The
problems are greater and are clearly inter-regional. Better coordination of policies
will be essential to deal with these problems. That improved coordination has just
begun to be implemented. With improved coordination, San Diego - Tijuana may
become an economically integrated region, one of the few in the world to involve
two sovereign countries.