Wednesday, November 28, 2007

Calderon stays focused on growth

Mexico's President Calderon appears to be working hard to jumpstart his nation's economy, pushing major new investment in infrastructure and pledging to promote more competition in telecom.Reuters reports.

Under the Mexican political system, he has one six-year term to accomplish his agenda. There is no reelection. If Mexico's economy can't do a better job of delivering better life to millions of Mexicans in that time period, the left wing has an excellent chance of getting into power.

But if Calderon can subdue drug rings and other criminal activity while getting Mexico's economy to come closer to its potential, he could establish a dynasty for his party and his economic philosophy.

Free market economic theory is highly suspect among many in Mexico. The last few presidents from the former ruling party, PRI, espoused an opening of Mexico's economy along free market lines, breaking away from the party's tradition of left-wing rhetoric to mask a system of old-fashioned cronyism and kleptocracy. The free market "neoliberals" talked a good fight, but many Mexicans felt that their prospects were getting worse instead of better. Vicente Fox, the first non-PRI president in decades, could not do much to reverse that trend--altho some observers say some of his measures did help Mexico's middle class.

But Lopez Obrador, promising a turn back to a more populist approach, came within an eyelash of winning the presidency--Calderon got little more than a third of the vote in a three-party contest. That's hardly a mandate.

So a lot is riding on the success of his economic policy. Mexicans may not be in a mood to give free-market, pro-U.S. policies another chance if Calderon's ambitious rhetoric turns out to be empty.

Tuesday, November 27, 2007

War on drugs

We talk about a war on drugs, but in Mexico the use of the word "war" is no exaggeration. In a Reuters report on U.S. efforts to extradite a drug lord (lady?) known as the Queen of the Pacific, the reporter notes in passing that the war between rival Mexican drug gangs has claimed 2,300 lives this year. You read that right.

Come to think of it, that's not a "war on drugs." More like a "war over drugs."

President Calderon, however, appears to be waging a "war on drugs," putting 25,000 troops into action against the drug gangs, in the evident belief that just waiting for them to kill each other would not really work, tempting though that might be.

I said he "appears to be waging" this war because things in Mexico are not always (not hardly ever) what they seem. I have no reason to doubt Sr. Calderon's integrity, I would hasten to add.

I would only observe that in Mexico, an attempt to crack down on illegal activity has sometimes been little more than an attempt by people in authority to take over that activity and the income to be derived from it.

I recall during my days in El Paso in the 1970s, a new governor in Chihuahua state launched a ballyhooed crackdown on prostitution in Cd. Juarez. The old Mexico hands were laughing about it. Every new governor does this, they said--getting the whorehouses on board, plugged into their power structure, paying the proper portion of proceeds.

Of course, that was the bad old days of the PRI's one-party control. One hopes that Calderon is what he appears to be.

Calderon wants more jobs

Mexican President Felipe Calderon says he's ready to cut power rates for big industrial users, lest energy costs inhibit economic growth. Bloomberg has a short report.

Monday, November 26, 2007

Oil spill

An oil spill and fire at an offshore platform operated by Pemex, the Mexican national oil company, hasn't gotten much publicity here, but it's apparently a big mess for the environment and a big black eye for Pemex.

The trouble started with

a collision that killed 21 workers and touched off fires that have been extinguished only to ignite again. The well apparently is belching flammable natural gas and toxic hydrogen sulfide--a nasty mix for sure.

As the Herald Tribune article above indicates, some people are seeing this as an example of Pemex incompetence.

Meanwhile, the lost oil production is costing Pemex $400,000 a day, according to El Financiero and other media outlets.

Some of the spilled oil has been contained, but some is showing up on Mexican beaches, where cleanup crews reportedly are excavating the contaminated sand for disposal. Somewhere.

Sunday, November 25, 2007

Music of Mexico

I like Mexican music, having acquired a taste for it listening to Juarez-based stations during my years in El Paso, Texas.

But now, living in Washington state, that music is a lot harder to find.

The answer:

Pandora Radio, an awesome online music service that's free. You simply register, then enter the name of a favorite artist, and Pandora will create a "radio station" that gives you music from that artist, plus other music that's similar. With a click of the mouse you can get more info on the artist or on the specific recording being played, and of course, you can also link to sites that let you purchase the music.

For Mexican music, I have Pandora stations based on Flaco Jimenez, for an accordion-based "norteno" sound (Jimenez was from south Texas) and Lola Beltran. On the Beltran channel you'll hear Mariachi Vargas, Vicente Fernandez, Pedro Infante and others in a mariachi "ranchera" style. Both excellent accompaniments to a good Mexican dinner.

I also have channels based on Elmore James, Art Pepper, Don Cherry, Coleman Hawkins, Gene Autry, Son House...It's pretty addictive, if you have a lot of odd musical tastes that aren't indulged by your local radio stations and you don't feel like shelling out money for a satellite radio subscription.

Mas o menos

More or less. That was the answer that Washington Post reporter Ceci Connolly got when she visited Oaxaca and asked people if the city had gotten back to normal after the social upheavals that paralyzed the once-renowned tourist mecca last year. Her report is a nuanced one that portrays a city struggling to regain its bearings and revive its economy.

Bottom line: if the city can avoid further upheavals, tourists will find their way back for the food, the art, the colonial landmarks and the pre-Columbian ruins.

Meanwhile, blogger Jill Freidberg reminds Connolly (and the rest of us) that the upheavals in Oaxaca were symptoms of political and economic distress that have not gone away. Read her perspective here.

Oaxaca is high on the list of places I wish I had visited. May get there yet.

But while we enjoy Mexico's charms as a place to visit, we need to remember how deep and profound are its political and economic problems. Millions of Mexicans take huge risks to cross our borders because their own country offers them so little.

Saturday, November 24, 2007

Cathedral to reopen today

With some gracious remarks directed toward the Federal District government and the PRD political party of Lopez Obrador, church officials announced that the Metropolitan Cathedral will reopen today after six days of closure. The government and the church agreed on a plan that will provide security for the cathedral without turning it into a "bunker," according to news reports.

La Jornada's account is here.

The Cathedral was ordered closed after a group of protesters burst in to demand that its bells be silenced. The ringing of those bells was apparently disrupting a big political rally outside--a rally called by Lopez Obrador, who continues to insist he is the rightful president of Mexico.

Lopez Obrador and his allies were relatively quick to disavow the disruption of religious services, although some also grumbled that the ringing of the bells may have been done on purpose, to disrupt their event or even to provoke an angry reaction that would make them look bad. Some even went so far as to suggest that the people who burst into the Cathedral were part of the whole plot to discredit them.

The whole episode was an interesting illustration of the delicate balance of power between church and state in Mexico. For much of its history, the Mexican church hierarchy allied itself with the powerful, wealthy rulers of the country, helping to crush rebellious priests like Miguel Hidalgo. The church also opposed the revolution that began in 1910 but this time found itself on the losing side. The government that emerged from the Revolution imposed stiff controls on the church to curb its power and influence--curbs stiff enough to provoke a bloody coda to the Revolution when devout Catholics rose up in an unsuccessful effort to try to overthrow the new regime.

Today, a lot of people left-of-center remain suspicious of the Church, but a lot of people are still devout Catholics. It appears that the PRD was not above stirring up the anti-Church sentiments of some of its followers, but was also leery of appearing to be too extreme in its anti-church stance.

For its part, church officials seemed to enjoy the opportunity to exploit the cathedral incident, but they stopped short of saying or doing anything that would have put them in direct opposition to Lopez Obrador and his followers.

The bottom line: after a lot of huffing and puffing, everything went back to normal.

Thursday, November 22, 2007

FAW--Cars made in China

See previous post.

Maybe you already knew all about FAW but I did not. Now I know that the company has previously partnered with Toyota and VW on manufacturing in China.

The bare facts are available here.

Company website here.

Chinese-made cars in Mexico

Several Mexican newspapers are reporting today that Elektra, a Mexican retailer, has struck a deal to begin importing Chinese cars that will sell for five or ten percent less than comparable cars now available in Mexico. El Universal's version of the story is available here.

The cars will be on sale early in 2008, if all goes as planned. The Chinese manufacturer is First Automobile Works Group.

Perhaps most significant, FAW has pledged to build a factory to begin building its cars in Mexico (Michoacan state) three years from now. It's supposed to be a $150 million investment that will produce enough cars for the Mexican and Central American market.

Wednesday, November 21, 2007

Foreign investment in Mexico

Foreign investors appear to be discounting the political strife and the pipeline attacks that disrupted industrial production earlier this year.

The Mexican government reports in Milenio that foreign investment is up more than 30 percent this year. I was surprised to learn that barely 50 percent of this investment is from the U.S. The Netherlands is second with 12 percent; Spain third with about 10 percent, followed by France with nine percent.

Foreign investment is controversial in a lot of places, including the U.S. Remember the furor when a Dubai firm wanted to buy port facilities here?

But in Mexico, there is quite a bit of a tradition of isolationist nationalism that views all foreign investment, especially U.S. investment, as a threat to national sovereignty.

In a related story,
President Felipe Calderon met with a group of Lebanese business people--apparently Mexican citizens/residents-- and brushed aside that tradition, saying that Mexico's economic transformation requires lots of investment, foreign and domestic--not demagoguery. To encourage investment, Calderon said the government needs to provide security, legal certainty and clear regulations.

Smoking

It might surprise some people, but Mexico appears to be joining the worldwide movement to restrict smoking in workplaces, public transport and other public spaces. A legislative committee has approved what sounds like a fairly restrictive anti-smoking law that would appear to impose rather stiff fines on violators.

This committee appears to have representatives of the three major parties, all of whom voted in favor of the main features of this new law. The head of the committee said he is aware that a lot of Mexicans smoke, but nonsmokers have a right to a healthy environment.

Johns Hopkins reports that 32 percent of Mexican men and 16 percent of women are smokers. Read a full report from Johns Hopkins here.

I don't pretend to understand the Mexican lawmaking system but I assume that this committee approval is a significant step toward full legislative approval.

Tuesday, November 20, 2007

Cathedral controversy simmers down

The Federal District government and the Catholic archdiocese held closed-door talks aimed at reaching an accord on future security measures to prevent any more political incidents and intrusions into the religious precincts. W Radio has details.

Church officials seem to feel they have the upper hand in this. They want the government to agree to help track down the people responsible for Sunday's incident.

In other news, President Calderon reasserted his determination to defeat the nation's powerful drug cartels. He was speaking at a medal ceremony for members of the armed forces.

"We Mexicans continue to advance in this war against organized crime, until we see our country freed from the claws of criminals," he said. (my translation)

Read it here.

Monday, November 19, 2007

Conversation in the Cathedral II

As El Universal tells it, the Cathedral incident seems to be a perfect catalyst for a favorite Mexican pastime--conspiracy theories.

PRD officials are suggesting that the Cathedral bells were rung on purpose to provoke an angry response that would discredit AMLO's Sunday political meeting. They even go so far as to suggest that those who burst into the Cathedral may have been infiltrators, playing the role that had been assigned to them. One PRD official said he saw a "black hand" at work in the whole affair.

In any event it is clear that the PRD fears that the whole mess will damage its image.

Immigration

Maureen Dowd of the New York Times has a recent column that makes a passing favorable reference to Hillary Clinton's about-face on driver's licenses for illegal aliens.

Dowd remarks that if Clinton had continued to support Gov. Spitzer's licensing plan, it could have cost her the election. Dowd seems to appreciate Clinton's political saavy here. (Spitzer has also dropped the plan in the face of loud, if not necessarily widespread, opposition.)

Making licenses available to all people who are driving cars strikes me as sensible. But Dowd's column is evidence that sensible immigration policies are now perceived as political suicide. Also political suicide: sensible Social Security policies; sensible national health care policies; sensible energy policies; sensible environmental policies; sensible budgetary policies; sensible foreign policies. Am I missing anything?

Conversation in the Cathedral

Sunday's incident in the Cathedral seems to be overshadowing Lopez Obrador's convocation outside. (See earlier posts)

Catholic authorities have ordered the Cathedral closed, saying it isn't safe to practice religion in Mexico City. Milenio has second day coverage with a picture of the Cathedral intrusion itself.

Meanwhile, Marcelo Ebrard, the elected head of the federal district, says there is no need to close the cathedral and in any event, the Church can't do it without government approval because the cathedral belongs to the whole country.

Ebrard also endorsed freedom of worship and said people ought to be able to worship without being interrupted.

Guadalupe Acosta Naranjo, secretary general of the PRD, Lopez Obrador's political party, said the PRD didn't approve of the cathedral intrusion. He said it was inappropriate to interrupt the worship service of any religion. But he also called for an investigation of the bell-ringing that supposedly provoked the intrusion. He said it was suspicious that the ringing started 15 minutes before the beginning of the noon mass.

The cathedral incident also got big play in El Universal, La Jornada and W Radio.

Sunday, November 18, 2007

PEMEX

Apparently Calderon's new tax and revenue package referred to in an earlier post was designed to reinvigorate Pemex. The national oil company will get to keep more of its revenues, presumably to reinvest in the company. To make up for the lost revenue to the government, Calderon got the Congress to agree to a retail tax on gasoline, which is probably not one of the more popular ideas on the streets of Mexico.

But if there's any serious privatizing being proposed, I'm missing it.

Read a commentary written by an Exxon Mobil official here:

Petroleum World guest editorial

Zocalo update II

Addressing a gathering described as consisting of "tens of thousands" of people, Lopez Obrador said he would organize non-violent civil disobedience to stop privatization of the petroleum industry.

It is not clear to me how much privatization is proposed or even likely--A lot of Mexicans who want nothing to do with AMLO or his party might strongly oppose privatization of oil. Its nationalization in the 30s is considered a hallmark achievement of the revolution.

Of course, Mexico's national oil company (PEMEX) needs capital. If that capital comes from other countries, multinational energy companies, etc., it will involve conditions--share of profits--that some would call "privatization."

Any thoughts?

Zocalo update

The incident of the cathedral bells mentioned below was apparently a bit nasty.



Rubén Avila Enríquez, cathedral rector, complained that about 150 people burst into the cathedral shouting political slogans to demand that the bells be silenced. He denied the suggestion that the bells were rung to annoy or disrupt the political gathering outside; it was simply time to call the faithful to Mass, he said.

But the AMLO people thought the bells were a provocation.


Milenio's report

http://www.milenio.com/index.php/2007/11/18/149874/

AMLO in the Zocalo

Andres Manuel Lopez Obrador, the presidential candidate who finished a close second in a three-candidate race to Felipe Calderon, called his followers to the Zocalo today for a "National Renovation Convention" at which he gave the Mexican equivalent of a state of the union address. AMLO and his followers consider him the "legitimate president" because they believe Calderon stole the election. (The Zocalo is the gigantic plaza outside the Cathedral in the heart of Mexico City, big enough to hold hundreds of thousands of people.)

El Universal reports that AMLO's crowd was relatively sparse.

He told his followers that he expects Calderon to try to privatize electrical generation and the oil industry--both of which would be considered betrayals of the national interest by the left-wing, and probably by many other people in Mexico.

He also expressed concern about corn imports and rising prices, as well as the new taxes that the government is imposing on fuel, among other things. ( Some people are calling the new taxes a major victory for Calderon and a step forward for Mexico, providing much needed public funds for all kinds of neglected public services...)

An interesting note: El Universal reports that the cathedral bells rang nonstop for 9 minutes during this meeting and didn't stop until AMLO's people went in to ask or demand that they be stopped.

Is there any steam left in AMLO and his movement? Comments welcome.

Bienvenidos and Welcome

A long time ago--in the 1970s--I was a newspaper reporter at the El Paso Times, just across the Rio Grande from Ciudad Juarez, Chihuahua. I was there long enough to become fascinated by Mexico and its culture and politics. I was also there long enough to acquire the ability to read Spanish, thanks partly to a fellowship at the University of Michigan where I could study the language with an intensity I lacked as an undergrad.

I moved to the other border, Bellingham, Wash., in 1980, and felt cut off from Mexico for many years. I would occasionally amble down to the local international news stand to get a week-old copy of La Jornada or Excelsior, but that wasn't usually very satisfying. And U.S. newspapers and broadcast news pretty much ignored Mexico (and still do...)

At some point since then, the Internet happened, and now the news from Mexico is at all of our fingertips--not just the newspapers but the online comments to the news articles (often more interesting than the articles themselves) as well as other sources.

I'm guessing there are other people out there who want to know more about Mexico but may be hampered by language barriers. I'm going to try to do a quick, daily look at news from Mexico, looking for big news or news tidbits that interest me, and may interest you. I don't pretend to be an expert, so I'm not going to do a lot of pontificating on what it all means. Maybe experts, real or self-appointed, will find this blog and weigh in. Maybe nobody will read it but me.

Here goes.