Tag Archives: PRD

New political parties line up for public funds

JackpotIn early July 2014, Mexico’s National Electoral Institute (INE) granted official registrations to three new political parties. As of August 1, these parties joined with the existing seven parties holding national registration to make a total of 10 political parties now slurping at the trough of public monies provided to parties with registration. The INE granted each of the new groups a welcome gift of approximately US$230,000 to tide them over through the end of the current year before their full annual subsidies kick in next year. Continue reading New political parties line up for public funds

Lopez Obrador scuttles unified reform referendum proposal

Frenemies
Frenemies

In a post earlier this year on President Peña’s energy reform proposal, we predicted that the leftist opposition PRD’s efforts to organize a nationwide referendum calling for the repeal of the reform legislation would suit Mr. Peña just fine, as it would lead to indefinite fiddling around with no results. And now, just as it fuzzily appeared in our crystal ball, eternal caretaker of the fatherland Andrés Manuel López Obrador (AMLO) is working hard to make us look smart. On August 21, a group of high profile intellectuals from academia and the creative arts presented a letter to the media calling upon the country’s leftist political forces, led by the PRD and Mr. López Obrador’s new Morena party, to unify behind a single referendum in order to maximize the potential for repeal of the reform. The group included long-time AMLO supporters such as writer Elena Poniatowska and other stalwarts of the intellectual left. Continue reading Lopez Obrador scuttles unified reform referendum proposal

Peña signs historic energy reform into law

InvestorsFollowing marathon legislative sessions last week, the Mexican Congress finally approved the long awaited secondary laws associated with President Enrique Peña Nieto’s energy reform, clearing the way for implementation of the reform. Once President Peña signs the laws into effect today, August 11, 2014, we may become a monkey’s uncle, since that is what we have always said would happen if Mexico’s energy industry was opened to the private sector. We are astonished this is occurring in our lifetime.

Of course, no one, starting with Mr. Peña himself, knows exactly what will happen now. One thing we do know will not happen, however, is that national oil company Pemex will be “privatized,” as professional tear-factories and guardians of the national mythology such as Andrés Manuel López Obrador and his allies on the far left customarily wail. Pemex won’t be privatized, not because Peña and his allies in the right-wing opposition PAN wouldn’t do it if they could, but because no for-profit, private-sector oil company would want to buy Pemex. The value is in the oil and gas, not in the shamefully dysfunctional national oil company, and if you can drink the milk without buying the cow, well, you know. And Pemex is one hideous, bloated, corrupt and inedible cow.

So there is the challenge to the stewards or our national development and prosperity, and in this, the left may yet be proven right. The Mexican government must permit incentive-based contracts, concessions, partnerships or whatever they will be called to obtain the private sector capital and technology that will allow for the explotiation of the country’s energy resources. We are hoping this will result in a new Scandanavian-model dawn that will bring us cheaper energy and greater revenue for the national coffers while foreign oil companies receive a profitable return on their investments. If the foreign oil companies pollute the environment and make sweetheart deals with corrupt politicians, well, then nothing really will have changed. But if the nefarious foreign capitalists make a fortune off our oil in exchange for increased national oil revenues, updated technology and infrastructure development, then at least the nation will be receiving some benefit from our national resources. At present, all we have is the indignity of being the laughing stock of the Petroleum Workers Union and the political parties as they gorge themselves at the trough that is Pemex.