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 Editorials | September 2005 
Mexico Continues to Advance Under Vicente Fox
 Carlos Luken - mexidata.info
| | The progress gained during this administration — needs such as a democratic state that fostered legislative independence, freedom of the press, and democratic dissent — will surely be the irreversible legacy of Vicente Fox. |
Elected five years ago as president of Mexico, Vicente Fox ended a 71-year power grip by the Institutional Revolutionary Party (PRI). And in doing so he raised expectations and enthusiasm by promoting ambitious political and economic reforms while eliminating corruption.
Fox soon found that his constituents were yes amenable but too impatient. As such, today many are disappointed and questioning his programs.
Yet Fox has rectified Mexico. This with far reaching reforms, many of which have been implemented without fanfare — whereas others, such as guaranteeing freedom of the press, have opened Pandora’s boxes.
With this administration newspapers are no longer hassled by the government or forced to close for expressing contrary views, and journalists have not been murdered for political motives. But with this many of the emancipated reporters are now and persistently harassing and attacking Fox, trying to gain forgotten public respect after decades of supporting the PRI and spinelessly keeping quiet as past presidents and administrations ignored the Mexican Constitution, the nation’s laws, and its institutions.
And now they boldly assert that things “have never been worse.”
Hogwash!
Economically things are better under Fox. Mexico now has single digit inflation for the first time in 30 years. Its dollar reserves have increased to US$67 billion, government interest rates are steadily low at 8.7 percent, and Mexico has one of the world’s best yield stock markets with a highly favorable international investment grade. Over the past five years, Mexico’s 2 percent-adjusted economic growth surpassed Japan and the European Union that had 0.9 percent and 1.3 percent growth respectively.
More importantly, during Fox’s tenure the peso has held solid, decreasing only 14 percent in value against the U.S. dollar, as opposed to adjusted currency fluctuations of 31 to 2,195 percent during previous administrations. Mexico’s foreign debt has been reduced by 16 percent, reaching its lowest level in 34 years — and expectations are that the economic achievements of Fox will end Mexico’s ritual of end-of-term devaluations.
There are still challenges. Fox has been criticized for using Mexico’s recent oil windfall earning to increase federal spending and not to improve infrastructure. Accordingly, his 2006 budget proposal incorporates a 6 percent spending cut.
Even after an influx of US$7 billion in the first six months of 2005, foreign investment has slowed in Fox’s five years. Consequentially growth and employment expectations have not been met, having also dimmed considering Mexico’s competitiveness with China. Remittances sent home by migrants living in the U.S. could reach US$17 billion this year, surpassing multinational investments.
Unprecedented housing and social program investments have grown annually. Comprehensive medical insurance has been implemented nationally.
Although drug related crime increased significantly, forcing Fox to use the military against the cartels, there have been no student or peasant massacres or political murders as recorded during past PRI administrations.
In foreign policy, the president has been unable to achieve his objective of a far-reaching Mexico-U.S. immigration accord. Initially Fox and Bush established a promising relationship, however after 9/11 the U.S. dramatically redirected its strategic priorities away from Latin America.
One of Fox’s real accomplishments is in the political arena, since he has ushered in a culture of fair play that gives credibility to Mexico’s voting procedures and institutions. He has ended Mexico’s infamous “Imperial Presidency,” and he has abided by his campaign promise to share executive power with the legislative and judicial branches of government, thus creating a previously inconceivable balance.
Regrettably however, opposition lawmakers have used this newfound clout to systematically block most of Fox’s reform initiatives. Thus he has been criticized for an inability to reform PEMEX, Mexico's the state-owned oil monopoly that painfully needs private capital to modernize its infrastructure so as to increase oil and gas production.
Reducing presidential power also decreased omnipotence, and following Fox future Mexican presidents will no longer be above the Constitution and the Congress as were their PRI predecessors. Nor will they be able to capriciously issue and discard laws to benefit friends and family, or to harm enemies. They will also find it hard to finish their terms owning federally funded tourist complexes like Acapulco or Cancun.
In 2006 Mexico will democratically elect a new president, and (as should be at this stage) who will win is uncertain. Too, unless the next president gains a rubber-stamping congressional majority from his own party, the progress gained during this administration — needs such as a democratic state that fostered legislative independence, freedom of the press, and democratic dissent — will surely be the irreversible legacy of Vicente Fox.
Carlos Luken, a MexiData.info columnist, is a Mexico-based businessman and consultant. He can be reached via email at ilcmex@yahoo.com. |
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