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==Economy== {{Main|Economy of Oaxaca}} [[File:Inauguración de Central Eólica Sureste I, Fase II.jpg|thumbnail|The Central Eólica Sureste I, Fase II in [[Asunción Ixtaltepec]]. The Isthmus of Tehuantepec is the region of Mexico with the highest capacity for [[wind energy]].]] [[File:Benito Juarez Market Oaxaca Mexico.jpg|thumb|right|Benito Juárez Market, Oaxaca]] According to the Mexican government agency [[Conapo]] (National Population Council), Oaxaca is the third most economically marginalized state in Mexico.<ref name="turdes"/><ref name="pobreza ">{{Cite journal |last=Alvarado Juárez |first=Ana Margarita |title=Migración y pobreza en Oaxaca |trans-title=Migration and poverty in Oaxaca |journal=El Cotidiario, Revista de la Realidad Mexicana Actual |url=http://www.elcotidianoenlinea.com.mx/pdf/14808.pdf |language=es |access-date=August 15, 2010 |archive-date=July 22, 2011 |archive-url=https://web.archive.org/web/20110722223200/http://www.elcotidianoenlinea.com.mx/pdf/14808.pdf |url-status=dead}}</ref> The state has 3.3% of the population but produces only 1.5% of the GNP.<ref name="standardpoors ">{{cite web |url=http://www2.standardandpoors.com/portal/site/sp/es/la/page.article/2,1,7,0,1069424853819.html |title=Fundamento: Estado de Oaxaca, México |publisher=Standard & Poor's |language=es |trans-title=Fundamentals:State of Oaxaca, Mexico |access-date=August 15, 2010}}</ref> The main reason for this is the lack of infrastructure and education, especially in the interior of the state outside of the capital. Eighty percent of the state's municipalities do not meet federal minimums for housing and education. Most development projects are planned for the capital and the surrounding area. Little has been planned for the very rural areas and the state lacks the resources to implement them.<ref name="pobreza "/> The largest sector of Oaxaca's economy is agriculture, mostly done communally in [[ejido]]s or similar arrangements. About 31% of the population is employed in agriculture, about 50% in commerce and services and 22% in industry.<ref name="oaxgobter"/> The commerce sector dominates the gross domestic product at 65.4%, followed by industry/mining at 18.9% and agriculture at 15.7%.<ref name="actecon">{{cite web |url=http://www.e-local.gob.mx/work/templates/enciclo/oaxaca/ |title=Actividad Econónica |year=2009 |work=Enciclopedia de los Municipios de México Estado de Oaxaca |publisher=Instituto Nacional para el Federalismo y el Desarrollo Municipal |location=Mexico |language=es |trans-title=Economic activity |access-date=August 15, 2010 |archive-date=January 10, 2013 |archive-url=https://web.archive.org/web/20130110091824/http://www.e-local.gob.mx/work/templates/enciclo/oaxaca/ |url-status=dead}}</ref> ===Migration=== In 45.5% of Oaxaca's municipalities, the population has declined due to migration. Poverty and migration are caused mostly by the lack of economic development in the state, which leaves most of the population working in the least productive sector. This has led to wide scale migration, mostly from the rural areas, to find employment. Within Oaxaca, many people leave rural villages to work in the city of Oaxaca, the Papaloapan area and the coast. Within Mexico, many leave for Mexico City, [[Mexico State]], [[Sinaloa]], [[Baja California]] and [[Baja California Sur]]. Most of those leaving the state are agricultural workers. As of 2005, over 80,000 people from Oaxaca state live in some other part of Mexico.<ref name="pobreza "/><ref name="movimientos">{{cite web |url=http://cuentame.inegi.org.mx/monografias/informacion/oax/poblacion/m_migratorios.aspx?tema=me&e=20 |title=Movimientos migratorios |publisher=[[INEGI]] |location=Mexico |language=es |trans-title=Migratory movements |access-date=August 15, 2010}}</ref> Most of those leaving Oaxaca and Mexico go to the United States. Much of the current wave of emigration began in the late 1970s, and by the 1980s Oaxaca ranked 8th in the number of people leaving for the US from Mexico. Today, that percentage has fallen to 20th. Most of those migrate to the United States, concentrated in California and Illinois.<ref name="pobreza "/> In 2007, estimates of the number of Oaxacans residing in [[Los Angeles]], California ranged from 50,000 to 250,000.<ref>{{cite web |title=Sounds in Oaxacalifornia: Gala Porras-Kim Investigates Indigenous Tones, 18th Street Arts Center |work=Artbound – KCET – Los Angeles |access-date=2012-08-07 |date=2012-07-31 |url=http://www.kcet.org/arts/artbound/counties/los-angeles/sounds-in-oaxacalifornia-gala-porras-kim-investigates-indigenous-tones.html}}</ref> ===Agriculture=== [[File:Mercado3 2008-10-31.JPG|thumb|right|A market in Oaxaca]] The economy of Oaxaca is based on agriculture, especially in the interior of the state.<ref name="standardpoors "/> Only 9% of the territory is suitable for agriculture due to the mountainous terrain, so there are limits to this sector.<ref name="1schmal"/><ref name="pobreza "/> The production of food staples, such as corn and beans, is mostly for internal consumption but this production cannot meet demand.<ref name="pobreza "/> The total agricultural production of the state was estimated at 13.4 million tons with a value of 10,528 million pesos in 2007. As of 2000, 1,207,738 hectares are used for the raising of crops, most of which occurs during the annual rainy season, with only 487,963 having crops growing year round. Only 81,197 hectares have irrigation.<ref name="actecon"/> The variation of climate allows for a wider range of agricultural crops than would otherwise grow in a geographical region of this size.<ref name="mediofisico"/> Oaxaca is the nation's second highest producer of grains and [[agave]]. It is third in the production of peanuts, [[mango]] and sugar cane. It is the second largest producer of goat meat, providing about 10% of the national total.<ref name="oaxgobter"/> In the more temperate areas crops such as corn, beans, [[sorghum]], peanuts, [[alfalfa]] and wheat are grown. In more tropical areas, crops also include coffee, [[sesame seed]], rice, sugar cane and pineapple.<ref name="actecon"/> Livestock is raised on 3,050,106 hectares or 32% of the state's land. Cattle dominate in the Tuxtepec, Isthmus and Coast regions, with pigs dominating in higher elevations such as the Central Valleys Region. Other animals include sheep, goats, domestic fowl and bees. The value of this production was estimated at 2,726.4 million pesos with cattle comprising over half of this.<ref name="actecon"/> Coffee is grown in mountain areas near the Pacific Ocean in municipalities such as [[Santa María Huatulco]], [[Pluma Hidalgo]], [[Candelaria Loxicha]], [[San Miguel del Puerto]] and [[San Mateo Piñas]]. The growing of coffee here dates back to the 17th and 18th centuries when English pirates introduced the plant. Coastal fishing is also a major source of income and in 2007 the total fishing catch was estimated at 9,300 tons with a value of over 174 million pesos.<ref name="actecon"/> ===Mining and industry=== Mining has traditionally been important to the economy and history. Hernán Cortés sought and received the title of the Marquis of the Valley of Oaxaca in order to claim mineral and other rights.<ref name="1schmal"/> Currently coal, salt, chalk, petroleum, marble, [[Agricultural lime|lime]], [[graphite]], [[titanium]], silver, gold and lead are still extracted.<ref name="mediofisico"/><ref name="actecon"/> Most mines today are located in Etla, [[Ixtán District, Oaxaca|Ixtlán]], [[San Pedro Taviche]], [[Pápalo]] and [[Salina Cruz]]. There is an oil and natural gas refinery in Salina Cruz, which provides products to the state and other areas on Mexico's Pacific coast.<ref name="actecon"/> ===Commerce=== {{multiple image | align = right | image1 = ShambalaZipolite.JPG | width1 = 245 | alt1 = | caption1 = | image2 = Old stone building in Oaxaca.jpg | width2 = 130 | alt2 = | caption2 = | footer = Left: [[Shambala Hotel]] at Zipolite Beach. Right: Hosteria de Alcala, Oaxaca city. }} Tourism is important to the state as it is the only sector that is growing and brings substantial income from outside the state, although most tourism is concentrated in the capital and along the coast.<ref name="turdes"/><ref name="standardpoors "/> In 2007, there were 1,927 small grocery stores, 70 tianguis and 167 [[Traditional fixed markets in Mexico|municipal markets]]. Tourism accounts for about 30% of the commerce sector of Oaxaca's economy.<ref name="actecon"/> The state attracts visitors from Mexico and abroad.<ref name="turdes"/> The state government has been pushing this sector heavily as a means of growing the economy,<ref name="turdes"/> with major infrastructure projects such as the Oaxaca-Puerto Escondido-Huatulco highway (scheduled to finish in 2018) and the Iberdrola hydroelectric dam.<ref name="standardpoors "/> In 2000, there were 612 hotels with 15,368 rooms. Thirteen of these were classed as five stars. The state received 1,564,936 visitors that year, over 80% of whom were from Mexico. The Central Valleys region receives the most visitors (60%), followed by the La Mixteca and Papaloapan regions (29%) and the coast (11%), in spite of the fact that only 7% of the state's attractions are in the Oaxaca city area.<ref name="actecon"/> One reason for this is that the city of Oaxaca is only four and a half hours away from Mexico City via the federal highway.<ref name="consular "/>
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