A poor and underdeveloped state, Oaxaca relies mainly on the commercial value of its forestry products, fruit and vegetable crops and handicrafts created by indigenous artisans to support its economy. Past mismanagement has squandered some resources, and poor transportation systems have hindered the movement of produce and raw materials. In some cases, disagreements among indigenous cultures have prevented the development of the region’s resources.

In recent years, Oaxaca has experienced considerable political and social upheaval. Governor Ulises Ruiz, accused of fraud in the 2004 elections, was subjected to protests and guerilla-style attacks during the summer of 2006, and federal forces were sent to quell the protests. Tension still exists today among several segments of society, notably the teacher’s union, which has allied itself with the agricultural union in an effort to remove Ruiz from power.