Indigestible reforms.

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reforms

“We’re not here to manage but to transform the country”. The aforementioned has been repeatedly stated by President Peña in order to emphasize that his primary objective is to achieve the structural changes needed for the country’s economic development. During his first one hundred days in office, several individuals “hopped on the bandwagon” by mobilizing their reformist spirit as well as hailing the innovative tool of the Pact for Mexico that the President formulated. In fact, voices throughout the international media called this historic opportunity as “Mexico’s time”. Already embellished by the global gallantry and under the political backup of the Pact for Mexico, Peña presented several reforms. Nevertheless, a lot of them, originally planned to “move Mexico” (paraphrasing his 2012 Presidential campaign) have actually achieved that target, though not necessarily in a positive way.
Peña’s proposals have not satisfied the high demands generated within his own campaign rhetoric – in the end, not believable to many. Though the Congress discussions have been able to rescue or amend some faults – for instance, competition and telecommunications or the controversial issue of transparency – reforms have been marked more by deception and convulsion rather than enthusiasm. For example, the education reform – beyond street protests and the subsequent tension on social networks – seeks to limit the power of the teacher union through a barely comprehensible evaluation system, omitting to achieve the necessary changes to provide Mexican children (since youth is not even contemplated) with the tools needed to be successful in life. Discussion over a potential change in the education model is still lost in the political limbo. On the same context, what will happen over the coming days and weeks is of critical importance (the amparo trials of the currently apprehended Elba Esther Gordillo). The extraordinary rhetoric and political operation has not been accompanied by a similar capacity in issues that matter.
Nowadays, the main dishes on Peña’s banquet were the energy and tax reforms. The former promised opening up the energy sector as the cornerstone of the country’s economic growth. However, the proposal does not include – among other things – two fundamental aspects for the breakthrough of the hydrocarbon industry as well as lower costs and improving the country’s electricity quality: real changes on Pemex’s organic structure and reducing the monopolistic power of the Federal Commission of Electricity. Though currently the only thing that’s subject to a legislative decision is the Constitutional amendment, the project is conspicuous by the absence of what it intends to reform. On the other hand, the tax reform seems to be designed to hinder an efficient tax collection, ignoring tax avoidance and leaving informal sector without any scratches whatsoever, not even mentioning the effects that its implementation – in its current terms – would have over the industry’s competitiveness.
As if the promised “banquet” wasn’t enough, the Manuel and Ingrid hurricanes exhibited Mexico’s typical vulnerability when these kind of natural disasters emerge, not only because of its geographical position, but due to preventable human factors such as negligence, corruption, lack of long-term vision and a hypocritical sustainability policy. Likewise, the troubled waters have ended up sinking the insecurity issue. The aforementioned matter, far from being diluted, is perhaps showing its essential trait: isn’t its face a decomposition of social tissue due to economic stall, lack of employment and education opportunities as well as an access to credits and a worthy – not a minimal, like the one implemented in the Presidential reform –  network of social security? Summarizing, before binge eating with “major reforms”, President Peña’s administration needs (desperately so) better ingredients that will truly “move Mexico forward”.

CIDAC

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