Only 12 years ago Mexican voters kicked out the Institutional Revolutionary Party (PRI), which had ruled for seven decades through a mixture of consent, co-option, corruption and coercion. Vicente Fox, a former Coca-Cola salesman who defeated the PRI, brought high hopes that his country would match the economic promise of the North American Free-Trade Agreement (NAFTA), between Mexico, the United States and Canada, with a correspondingly vibrant democracy. Yet unless the opinion polls are wildly wrong, Mexicans are about to vote the PRI back to power on July 1st, in the person of Enrique Peña Nieto. Aged 45, the telegenic Mr Peña cuts a seemingly fresh figure, with his team of bright technocrats from the world’s best universities. Yet he is a scion of the PRI’s most retrograde regional political machine. His allies include several old-fashioned caudillos, and his opponents say (though he denies) that he has engaged in old-fashioned practices, such as buying favourable television coverage (see article). Why is Mexico poised to take this apparently backward step? The answer starts with the disappointments of the past dozen years of rule by the conservative National Action Party (PAN), first under Mr Fox and then Felipe Calderón. Buffeted by Chinese competition and then by the American recession, the economy grew at an annual average rate of just 1.8% between 2000 and 2011. Poverty has edged up, not helped by the woes of the broader world economy. Lacking both a congressional majority and negotiating skills, neither president managed much in the way of structural reforms, leaving more or less intact the PRI’s legacy of public and private monopolies that stifle the economy and the education system. Mr Calderón chose to make security and battling powerful drug mafias the centrepiece of his presidency. Yet, with 60,000 dead, Mexicans are tiring of a “drug war” they at first supported.
So Mr Peña, to some extent, wins by default; but there are also positive reasons to support him. He promises some welcome reforms, such as breaching Pemex’s energy monopoly by opening up petrochemicals, refining and some bits of the oil business to private investment. He would reduce the state’s dependence on oil revenue by abolishing tax breaks. On security, he wants a much bigger federal police, backed by a new rural gendarmerie. He would focus on curbing violence, kidnapping and extortion, rather than ending drug trafficking (an impossible task which he would be wise to leave mainly to America, which buys the stuff). When PRI allies have been accused of corruption, Mr Peña has quickly cut them loose.
Full Article: Mexico’s presidential election: Back to the future | The Economist.
