"The 1982 peso devaluation crippled the Valley economy. By contrast, the 1994 devaluation barely slowed economic growth. The reason was a more diversified economy. Tourism, manufacturing, supply manufacturing and health care now complement agriculture. Retail sales in Texas cities bounced back strongly from the peso collapse, rising by $300m in 1996 to $5.5 billion. "Everyone's got a theme park. We ain't got a theme park," explained one Valley politician; "Mexico's our theme park.""

"Since the coming of NAFTA, foreign companies including BMW, Sony and Matsushita have set up maquiladoras in Reynosa and Matamoros. In turn, smaller supply companies have grown up in McAllen and Harlingen, where land is cheaper."

"McAllen (slogan: "It's Naftastic!") is the third-fastest-growing city in the United States and one of the cheapest in which to do business. Despite a 7% job-growth rate, unemployment runs at 16%. The city has concentrated on education and infrastructure to improve its prospects. The South Texas Community College has grown from 600 to 6,000 students in three years, and the city offers to train employees for companies coming in. The Texas State Technical College in Harlingen serves a similar purpose. The University of Texas Pan-Am in Edinburg ("Taco-Tech"), has seen enrolment grow by 400% since 1987. The region's cities on the American side are fiercely competitive for federal dollars; there are, for example, five international airports in a 50-mile radius. But they are trying to work together. Recently, they have combined to try to attract major-league baseball clubs for spring training. Officials are co-operating to bring I-69, the proposed Montreal-Mexico City freeway, through the Valley, a case strengthened by the fact that the region remains the largest urban area in the United States without an interstate highway. There is talk of consolidating cities on both sides into a single metropolitan sprawl known as "Borderplex"."

source:
http://www.uwec.edu/geography/ivogeler/w188/articles/txmx.htm
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