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rms and sound macroeconomic policies have strengthened the resilience of the Mexican economy despite a complex national scenario and challenging global conditions, ctivity and ensure that growth is inclusive enough to achieve better living conditions for all, according to a new report from the OECD.
Mexico recognises that the Mexican economy is facing strong external headwind ld trade, the depreciation of the peso following expectations of monetary policy certainty linked to the forthcoming change of US Administration – that will hold some things, given more time,” he says with regret. In his opinion, regulators are too removed from those
they are regulating, resulting in less transparency.
by OECD SecretaryC-GReEne’sraGl Aanrgceíal GAulrcríoacaenrd, oMnextihcoe’sotMhineirstheraonfdF,insaenecsetJhoesé
s Mexico Reforms expected to yeild large impacts Expected gain in GDP growth after five years, assuming effective implementation
Petroleum Electricity & Gas Tax Structure Telecoms Legal Reform t Employment Protection
SOURCE: OECD Ecomomic Survey of Mexico 2017
.
ntry can ensure mpotrengtroiawlthfoarndgrmeoarte tinrcalnusipoanrbeynrcey-.pAriosritaisninegxitasmppubleli,c he ing, health and poverty reduction while pushing ahead with reforms in a range of
cites the management structure of the Mexican Pe-
ender-based policies to better integrate women in the labour market and take
troleum Fund (FMP), a new agency that administers the revenues from the oil sector. The FMP “is man- aged by the Bank of México, whose president–gov-
e working, with peorsnitiovre eisffeacptsppoainrtticeudlarblyinththee Spreicneastea.n”d Tachcesgsoinvethrenor’s said. “Productivity is increasing in some sectors but there is still much more to be
term, which spans two presidential administrations,
re resilient. This will require that Mexico continues to implement the reforms that
is designed to be politically independent and there-
ducation, tackling the high level of informality, and gender inequality, to ensure tha
fore more transparent.
rtunity to succeed,” Mr Gurría said. (Read the full speech ).
John D. Lawrence, the CEO of energy services
firm Petricore, agrees with García Alcocer. “The en-
isparities between the highly-productive modern economy in the northern and
ergy reform has been totally transparent.” He offers
er-productivity traditional economy in the south. It lays out a series of new recommendations for maintaining economic resilience, raising productivity and fostering
a caveat, however: it was the execution that did not
go as well. The Mexican government anticipated a
rapid response, with international investors “lining working on increasing government accountability and trans-
up for opportunities” that never happened, since reforms be- parency in order to reduce the space for corruption,” said Sec-
of inclusive growth, notably through more and better social spending, should be a priority. Reducing inequalities, via policies to better fight poverty, promote women’s
came effective just as oil prices plummeted.
retary of Economy Ildefonso Guajardo Villarreal.
Criticism of the reforms has largely been focused on the
country’s rural inhabitants; nearly one-third of the popula-
it reforms with cutting costs for many Mexicans, increasing
competition and investment, and boosting economic growth
LTE network, which will be completed by 2018, will make the
nation a leader in coverage. “We are closing the gap in tele-
usiness practices, is also essential, the Survey said.
Despite today’s low revenues, these massive undertakings have already put the country on the right track, according
growth, Mexico should move forward with reforms to key sectors of the economy, seek to maintain and improve its place in global value chains, lower regulatory barriers,
to a report from the International Energy Agency. After the
tion lives with no mobile service. Supporters, however, cred-
reduce corruption through reforms to governance and legal procedures, the Survey said.
sharp decline of recent years, Mexico’s total oil production, which was at 2.2 million barrels per day in January 2017, is
should make productivity and inclusivity the focus of the government and the different stakeholders,” Mr Gurría said. “Given the wide range of political and economic
projected to “turn a corner” around 2020 and increase to 3.4
for the country.
Telecomm’s Juraidini believes that Mexico’s nationwide 4G
of action is more important than ever.”
million barrels per day, including natural gas liquids and tight
oil, by 2040. Over the next five years, reforms are expected
to account for a nearly 8 percent increase in GDP from gas,
with the main conclusions, is accessible at: http://www.oecd.org/economy/surveys/economic-survey-mexico.htm .
electricity, and petroleum. communications,” he explains, with wireless, shared, and land
networks, as well as satellite communication. The numbers
GREAT LEAPS FORWARD prove Juraidini right: since 2013, the year the reforms were released this week during the visit of Secretary-General Gurría look at skills, governance, tourism and how public procurement at Pemex is adapting to the opening of the
The problems inherent in Mexico’s telecommunications sector
have long been debated, yet the government took little action.
A 2012 OECD study, for example, found that lack of compe-
enacted, fixed lines in Mexico have increased by 15 percent,
mobile subscribers by 16 percent, broadband subscribers by
42 percent, and 3G and 4G subscribers by a whopping 224
Report: Mexico will be available from 18h CET/11h Mexico on Tuesday 10 January. The report provides a strategic assessment of the national skills system in Mexico,
tition had led to “inefficient markets that impose significant percent.
tivated and used, and will contribute to the design of effective policies and strategies to meet Mexico’s future skill needs.
costs to the Mexican economy,” resulting in low penetration
rates and weak infrastructure. Peña Nieto’s reforms aim to A LEGACY TO BE DECIDED
exioc's PEMEX: Adapting to Change in the Oil Industry will be available from 18h CET/11h Mexico on Wednesday 11 January (in Spanish). The Review finds that more can
encourage greater competition in a market dominated by two
President Peña Nieto’s legacy depends in large part on how
nt procedures at Pemex and introduce more competitive tenders.
huge companies, broadcaster Televisa and mobile network op-
the reforms perform in the future. But Miguel Treviño, the
Director of RISKOP, a strategic intelligence and risk control
company, believes that another reform is needed for the oth-
erator América Móvil. Already, prices in the sector have fallen
by more than 24 percent.
: Taking a stronger stance against corruption will be available from 01h CET Thursday 12 January/18h Mexico on Wednesday 11 January (in Spanish). It examines Mexico’s
“Because of the reforms in telecommunications, we have an ers to be ultimately successful: “Mexico needs a justice system
ommends the strengthening of enforcement and accountability mechanisms and the integration of anti-corruption policies into areas such as open government, education
open and equal market,” notes Jorge Alberto Juraidini Rumil-
that works,” he declares, and not just for those with money. “This system continues to administer justice in a very dark en- vironment. The challenges of legal reform are to bring justice
ess, productivity and trust in government.
la, Director General of Mexican telecommunications agency
Telecomm. He highlights the regulatory power of the Federal
, which finds thatTtehlerceoismsmignuinficicaantiuontaspIpnesdtpitoutetneti(aIlFtoTc)r,eawtehincchluwsivilelgcrroewattheintrMuesxtico thrionutgohtnheewlitgouhrtis,”mhmeocdoenlstifnocuuese,danondltoocalel dtetvheelojpumdiecnita,rwyillkbneoawvatihlaabtle
ay 12 January. and eliminate doubts about the autonomy and independence of decisions. The IFT guarantees that investors can rely on legal procedures and that “the same law will apply to all play-
citizens are always watching.
President Peña Nieto’s ambitious reforms have received in-
ternational praise. Few, if any, emerging economies have tack-
invited to contact Carolina Ziehl (+52 559 138 6235) in the OECD’s Mexico City Centre or the OECD Media Division (+33 1 4524 9700).
ers,” he says.
As with energy, the telecom reforms open the pathway for
foreign investment. International reception has been encour-
aging, but corruption is still a lingering concern. To eradicate
such suspicion, the reforms include provisions to tackle cor-
led so much at once. Some sectors, like education, have not
flourished, while others, like telecom and fiscal reform, seem
successful. But do the reforms go far enough? Or in the right
direction? Disconnects remain between industrialized and ru-
ral Mexico, between the formal and informal economies, be-
mexico-reforms-starting-to-bear-fruit-but-further-action-needed-to-ensure-inclusive-growth.htm Page 1 of 2
ruption, strengthen the rule of law, and promote transparency. tween the powerful and the vulnerable. Mexico stands at a “We are carrying out a regulatory improvement process and crossroad. Which way will it go?
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