MAIN PAGE | SPEECHES & EDITORIALS | 2000 | HISTORIC MEXICO ELECTION
PACIFIC BASIN ECONOMIC COUNCIL
MAIN PAGE | SPEECHES & EDITORIALS | 2000 | HISTORIC MEXICO ELECTION
Historic Mexico Election Creates Opportunity for Business
THE MEXICAN PEOPLE recently elected a new political leadership that shall drive Mexican public affairs for the next several years. This election has been one of the most pivotal in the history of Mexico, because there were great expectations among the voters as a result of the intensive campaigns developed by the different party candidates and the new electoral institutions established by President Zedillo. One of the most interesting conclusions derived from this election is that, for the first time, there were more voters from the cities than rural areas. I may say the "concrete vote" was much larger than the "green vote." Likewise there was outstanding participation from first-time voters, millions of youngsters voting for the first time. All these brought as a result the largest numbers of votes cast in Mexican electoral history. It has been said this process is an historic one, not only because of its result (having elected a president from a different party for the first time in 70 years), but for the maturity of the process - a process that has been rated by international observers as one of the most complete and exact in the world. Mexico enjoyed a quick and professional vote count, immediate acknowledgement by the losers, high credibility of the Federal Electoral Institute, etc. All these factors shall secure for Mexico not just economic stability at the end of President Zedillo's term, but the foundation from which the next President can improve the economic performance of the country. It is expected that by the end of this year, inflation will be around 9.3 percent, and next year 8.5 percent. The Current Account Deficit shall be 3 percent this year and the next. Foreign Direct Investment is expected to reach US$12.5 billion this year and at least the same amount in 2001. The Public Deficit is expected to be around 1 percent and 0.5 percent next year. And the Foreign Exchange Rate by December of this year is expected to be 11.1 pesos per US dollar. The President-elect has said the peso/dollar rate will be around 9.2 Pesos per US dollar in 2001. But the President-elect will have to be able to compromise in order to create the consensus needed for many reforms he promised to undertake. No single party in Mexico has the enough number of votes to enact any federal legislation by itself. There is no "carro completo" (full car) for any political party. Even in Mexico City - with around 20 million people, one of the largest cities in the world - the Democratic Revolution Party (another opposition party that retains for a second consecutive term the city's government) has to rule having no majority at the local Assembly of Representatives, or local congress. This is the moment for the Mexican Business Sector to rise to the challenge and cultivate greater influence and impact on government issues. This is the moment to propose what we see as the measures that will foster development and the creation and distribution of wealth. It is time, surely, for greater reform. The Mexican people have decided that greater improvement and deeper reform can and should be achieved, and that the status quo is no longer an option. |
