Analysis Agenda. June 26, 2013

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week-ahead

June 11 marked the 11th anniversary of the publication of the Federal Law of Transparency and Public Information Access in the Official Journey. Despite it’s been more than a decade since it was enacted, transparency and accountability remain as rare qualities of an ambiguous comprehension among most citizens. Worse yet, given the experience of scandals made by public officers, legislators and politicians from all parties regarding the discretional, opaque and abusive use of public resources, the “crystal box” utopia has become as impenetrable as a plane’s black box in Mexican reality. On the other hand, there is clear progress: the general population has broader access to learn about these abuses, report them and exercise social pressure, even though what’s lacking is an effective justice procurement system.
1- The vast lack of transparency in the use of public resources. The recent scandals generated by the internal struggle at PAN are not notorious because of the political implications they may hold for the party’s future, but for the discretional and indiscriminate use of budget lines, not just from PAN members, but from all federal Congressmen. As regard to the Senate case, during 2013 legislators from all parties will have access to an amount of 707 million pesos, which may only be audited by endogenous authorities and are not subject of federal regulation on transparency and accountability. The IFAI (Federal Institute of Information Access) reforms’ proposal and its judicial framework – stalled since last September – contemplate the three powers of the State as regulated bodies, but leaves out entities such as political parties or unions. What is needed in order to keep the sham away from transparency in Mexico?
2- The second act in the opposition’s dismemberment. PRD starts presenting (once again) the first outlines of a potential division. This is occurring not only in the context of the coming discussions of energy reform but in the future renewal of the party’s national leadership. Just like it has happened with PAN, the support that Jesús Zambrano and his allies have showed for the Pact for Mexico has brought them a large wave of criticism coming from distinguished members of his own party. The most recent case is Marcelo Ebrard and his harangue to debate with President Peña about the details of the energy reform, which prompted Zambrano to call him “drunken” (because of the troublemaker connotation). What is next for PRD in the coming months? What differences will exist between its potential internal crisis and the one suffered by PAN?
3- Support provided to companies and entrepreneurs: a matter of rhetoric, efficiency or wastage? In an act held in the official residence, Los Pinos, President Peña announced that the National Employment Institute (INEM), which was created by decree on January 11, will provide 9 billion pesos to back the activities of micro, small and medium-sized enterprises (MSMEs). The Head of State issued four guidelines through which INEM should work upon: enhancing equity and capital (5 billion pesos), generating managerial skills (550 million pesos), supporting technology access (500 million pesos) and ensuring the access to adequate information through the National Network of Entrepreneur Support. According to official figures, INEM would cover more than 300 thousand entrepreneurs and 180 thousand MSMEs. Now, is this really the most adequate strategy of investing public resources in order to enhance development in the country?
4- Budgetary lack of expenditure: it’s not so much a matter of timing but transparency. The issue of “not unlocking the key” of public resources of the Ministry of Finance has been on the national agenda for some weeks now. By the beginning of June, it was said that about 21 billion pesos less had been exercised in the first five months of this year compared to the same period in 2012. However, federal authorities, which are led by President Peña, have claimed that the lack of expenditure is normal for a government transition period (on his first year in office, the administration of Felipe Calderón spent around 120 billion pesos). By agreeing this is a natural fact, several issues concern: why the lack of expenditure? Is it justified on certain cases? What is the destination of that money which is not spent?
5- The energy reform (according to PRD). On one of its headlines, newspaper La Jornada published “For 14 years, PRI and PAN have been trying to open up Pemex to private investment”. This is hardly a secret. Without even attempting to modify the Constitution, both parties have managed to make way for private initiative in several sectors of the oil company. Nowadays, upon the imminent reform proposal coming from Peña’s administration, the left is not as consolidated as before regarding its position of opposing an opening up of the sector. On June 25, on an act headlined by Cuauhtémoc Cárdenas, PRD will present his project on the matter- without Constitutional changes at stake -, which will eventually reach members of the Pact for Mexico as well as Congress. What positive aspects will the PRD plan have? What will be the disagreements with other factions of the left?

Antonio De la Cuesta

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