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The Enormous Task Ahead 

By Richard N. Baldwin T. /HispanicVista.com
   January 8, 2007
  From Mexico
   

 
     The new Mexican president, Felipe Calderón, has hit the ground running. Many in the business community and the world press are pleased in what they see. What is not that understood is the real task that awaits Calderón.

     One of the first things that he did was to cut the salaries of top government officials by 10%. This is a page right out of López Obrador's book (who ran against Calderón and lost by 0.56%.) Except that López recommended a 50% cut. Considering how much these officials make (among the highest in the world), Obrador's cut would have been more realistic.

     Calderón's first trip was to a tiny poor mountain village to announce that he was going to select 100 such villages to pave the streets and improve the infrastructure. A nice start, but it will take more than paved streets to make life livable for our vast underclass.

     He has raised the pay of the military forces. Again, so far, so good. But that is going to have to extend to law enforcement officers (not in Calderón's direct control) to make the law enforcement less vulnerable to bribery.

     And while Calderón has selected a mainly business friendly and "hard line" cabinet, there is little evidence so far that the real roots of México's problems will be addressed.

     In an excellent column by Denise Dresser, Job No. 1 for Calderón: Remake México, she states that in order to succeed, Calderón, if he wants to survive, will have to do all those things that Fox should have done but didn't. And that includes taming the "rapacious" monopolies and privileged unions and protected businessmen that block competition and growth and take them on. (See my prior column México's Parallel Government.)

     Meanwhile, Jorge Castañeda goes even further along this line of thinking. You may remember Castañeda, who was Fox's first foreign secretary, and who tried to run for the presidency in 2006 as an independent. He was prevented to do this by the Supreme Court because México only allows members of recognized political party to run.

     Castañeda identifies three critical areas that beg for attention to improve México:

     · Public and private economic monopolies that run up costs and defeat competitivity. Comment: Remember that both the oil monopoly and the electric monopoly were organized to assure a large voting block to keep the political sector in power. Efficiency was secondary.

    · The labor unions. One of the most undemocratic institutions in México with enormous political power and zero transparency.

    · The political monopoly. Castañeda points out that for 71 years, one party had a "complete lock" on Mexican politics. Now, after the 2000 election, they simply divided up that power between three parties. Comment: As far as political monopoly goes, consider that in the Mexican House of Representatives, 40% of the seats are appointed directly by the parties with no voter input. In the Senate, it is 30%. The parties make the selections based on the proportion of the total votes that each party receives in the election.

     Calderón has also presented a new anti-corruption package to the Congress with many details but no real way to enforce the initiative.

     And, of course, this brings us to the real bottom line. None of these things will come to pass without a total reform of the Mexican legal system.

     Remember that the legal system in México was designed to perpetuate a one party dictatorship. It was crafted with skill and it worked for 71 years. The problem is that México is now an emerging democracy and the situation has changed. And that means that the rules must be changed.

     We see all around us the deep-rooted desire of the people to progress to a better life in México. We also see in many cases that that this desire is erupting into protests that portend to get worse unless things change. And it doesn't help that so much of our Mexican population is living in that country to the north to send money home in order that their families can survive down in México.

     After the finish of the Fox administration, beginning with so many promises but producing so few results, it falls on the new Calderón administration to start addressing the root causes of México's problems.

     Mr. Calderón, the clock is running.
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Richard N. Baldwin T., a HispanicVista.com (http://www.hispanicvista.com/) contributing columnist, lives in Tlalnepantla, Edo de México. E-mail at: R1041643422@aol.com