jose sosa on mexican federalism

8/14/2019 Jose Sosa on Mexican Federalism

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September 2001

Volume 4 Number 4

EMERGING DEVELOPMENTS AND KNOW LEDGE IN PUBLIC POLICY RESEARCH

The European conquerors who created NewFrance, New Spain, and New England, thussowing the seeds of Canada, Mexico and theUnited States, shared the old world they allcame from. Yet star ting at roughly the sametime in broadly the same place the th ree

countries that grew up on the North Ameri-can continent created their own very differ-ent versions of a new world. For half amillennium, these three universes existedside by side, sometimes warring with eachother, often times at peace, yet separated by

boundaries and prejudices far stronger thanany customs stations or border posts couldever be. Then, almost exactly 500 years afterColumbus stumbled into the new world, theharsh reality of a rapidly changing economicorder, combined with the ineluctable tug of

our own past, began to profoundly transformthe relationship among the t hree Americannations.

For more information, see DePalma, Anthony.Here: A Biography of the New American Cont i-nent. New York: Publ ic Aff airs, 2001.

Welcome!While there is a long historyof north-south exchangesin North America, there hasbeen fundamental chan gein recent years. Under th einfluence of the North Ameri-can Free Trade Agreementand other factors, new andmore intense linkages ofmany kinds are emerging

across the continent. Theselinkages are central featuresof the context for public pol-

icy making in Canada. Theyalso have impacts for thedomestic policy agenda, inthe immediate and mediumterms.

This issue ofHorizonsis devoted to Mexico. Itexamines recent political,economic and social develop-

ments, the diversification andstrengthening of Mexicosrelations with Canada and

implications for Canadianpublic policy. We are hon-oured that Mexicos Ambas-sador to Canada, H.E.Ezequiel Padilla Couttolenc,and Canadas Ambassadorto Mexico, H.E. Keith H.Christie, have contributedfeature columns. Their per-spectives confirm the impor-

tance of improving ourcapacity for policy researchon Mexico.

In this issue

Executive Brief 2

PRI UpdateNorth American Linkages

Research Project 3

Feature Columnistighbours at Last: Canada

and the New Mexico 4

EyewitnessThe New Dynamics

of North America 8

Feature Columniste New North American

Agenda and the Energy

Markets 10

nadian Connections 14

Cyberzone 15

Feature ColumnistState-Society Relations in

xico After the Fox Victory 16

Upcoming Events 19

Research Briefe New Democratic Lexicon:

The E-Mexico System 20

Across CanadaCanadian Foundation

for the Americas 23

Feature ColumnistThe Path to Democratic

Rule and Federalism

in M exico 24

Newsletter NoteMexico Inc. 27

Research BriefCanada-Mexico

Cooperation 28

EyewitnessMexico in Transition 29

Did You Know? 30

Chance favours

only the prepared

mind

Louis Pasteur

Policy Reflections

The New American Continent

Next Up!!!Communities are where citizens live. They are where peopleexperience change, but are also a source of stability and sup-port in the face of such change. Canadian society is currently

undergoing profound transformations that are affecting allcommunities and the t ies that bind them. The n ext issue of

Horizons will take a brief look at the research and discoveriesup for d iscussion at Bringing Commu nities Together, thefourth National Policy Research Conference. In particular, theconference will be examining innovative, sustainable, socio-cultural and virtual communities. It will be held on December5-7, 2001, at the Ottawa Congress Centre. If you know of anyresearch or programs th at might be of interest to readers,please contact us by e-mail at [email protected] or bytelephone at (613) 947-1956.

Mexico

Poste-publications - Publications MailCustomer no 7000274


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Virtually no facet of life in Canada is immune fromthe American influence, especially since the UnitedStates became Canadas most important trading part-ner in the early part of the last century. Not surpris-ingly and correctly the US and our bilateralrelationship are central preoccupations.

In contrast, there has historically been a lackof interest between Canada and Mexico. This islargely due to the absence of strong geographic,economic an d political ties.

For some, to focus onMexico and the Canada-Mexico relationshipbetrays a fundamen talmisunderstanding of theasymmetries that charac-terize the political andeconomic realities ofNorth America. For oth-ers, Mexico matters toCanada and to Canadian policy makers primarilybecause of the close ties it has to the United States

and the centrality of the latter to us. Using this logic,to the degree that the Bush administration pu rsuesa Mexi-cent ric policy agenda, reverberat ions forCanada would not be unexpected.

We believe, however, that in the post-NAFTA era,Mexico warrants serious and direct attention on thepart of Canadian policy makers, businesses, non-governmental organizations and citizens.

THEIMPORTANCE OFMEXICOConsider, for example, the n ature of economic t iesand opportunities. Trade linkages between Canadaand Mexico have intensified since 1993. Mexicanexports to Canada have jumped 350%to $USD 12.1-billion and Canadian exports to Mexico have in-creased more than 400%to $USD 6-billion. Whilethe United States continues to be Canadas leadingsource of imports, Mexico now holds fourth spot.

In the same period, the Mexican economy hasundergone a major d iversification. Mexico has alsoextended its market access by signing free tradedeals with the European Union and most coun tries

in Latin America. Further economic modernizationshould be expected to open the door to an evenstronger Canadian investment presence an d createthe conditions for increased trade between the twocountries.

Similarly, Canada and Mexico face many similarpolicy challenges and there is growing recognitionthat some of the key challenges are collective orsupranational in scope, if not continental. Whether itis addressing air and water pollution, promoting cul-

tura l diversity, improv-ing the quality of life ofAboriginal peoples, reju-venating transportationsystems, consideringoptions for energy policyor introducing measuresto promote and sustaina more innovative econ-omy and society, the twocountries have much to

learn from each other about what works, whatdoesnt and why. Lesson-drawing may also pointto opportunities for collaboration, for instance ondeveloping the more coordinated and integrated pol-icy approaches that are required in th e case of trans-boundary issues. Another area which merits closeattention is the increasingly evident non-economicdimension of the stronger ties between Canada andMexico and the consequent implications for publicpolicy.

GROWINGSALIENCE OFNORTH AMERICAIn parallel with discussions about furth er implemen-tation of NAFTA and strategies for ensuring its

benefits extend to all regions and social sectors, thesalience of North America and especially the ideaof a North American community has increased.While the idea is not yet well-understood, it is gener-ating critical thinking by scholars and policy makersalike. Significantly, Mexico is one of the ideasstrongest proponents. As one of the countries sharingthe North American space, Canada has a clear inter-est in examining a range of alternative futures forthe continent.

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EMERGING DEVELOPM ENTS AND K NOW LEDGE IN PUBLIC POLICY RESEARCH

Does Mexico Matter?

Executive Brief

w e mu st get to kn ow Mexico

better. Deepening our understanding

of the country an d its people is a

precondition for improving the

capacity of Cana dian policy makers

to factor Mexico in.

Continued on page 3


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EMERGING DEVELOPMENTS AND K NOW LEDGE IN PUBLIC POLICY RESEARCH

For these reasons and m any others, we must get

to know Mexico better. Deepening our understandingof the country and its people is a precondition forimproving the capacity of Canadian policy makersto factor Mexico in. It is necessary, too, if we areto fully realize the tremendous potential of NorthAmerica as agreed to by President Fox, PresidentBush and Prime Minister Chrtien at Quebec Cityin May.

For the Policy Research Initiative, helping toimprove policy capacity on Mexico and North

America more generally is a top priority. We hope

you will see th is edition ofHorizons as a launchingpad for learning more about Mexico and for under-taking policy resear ch to fill knowledge gaps th at ar emounting in importance.

In this issue --

Laura A. ChapmanExecut ive Director,Policy Research Init iat ive

Continued from page 2

The Policy Research Initiative(PRI) recently launched threehorizontal research projects onkey policy issues for Canada:North American linkages, socialcohesion and sustainable develop-ment. The three projects draw onthe expertise of researchers anddecision makers in the federal

governmen t, the academic com-munity and the private and non-profit sectors, to expand theknowledge base and researchcapacity needed for enlightenedpublic policy in these fields.

The project on North Ameri-can linkages (NAL) focuses onthe deepening of ties betweenCanada, the United States andMexico. The North American FreeTrade Agreement has been a dri-ving force behind the increase intrade and the growing integrationof markets in the three count ries.But the scope of the NAL projectis wider. It is examining not onlythe economic dimensions of thelinking up of North America,but also the social, institutional,environmen tal and other facetsand their implications for Cana-dian public policy.

The NAL Project is being ledby th e Deputy Minister of Indus-try Canada, V. Peter Harder, andAssistant Deputy Ministers AvrimLazar (Human Resources Devel-opment Canada) and AndreiSulzenko (Industry Canada). Over30 federal departments and agen-cies are actively involved.

In the months ahead,research activities will be address-ing four overarching themes:

What is the nature and scopeof North American linkages?

How can we ensure sustainablewealth creation?

How can we enhance theCanadian way of life?

How can we manage our rela-tions with our North American

partners?These themes are currently

being examined in a range ofpolicy areas identified by depart-ments as key priorities in theemerging continental context:labour mobility and acquisitionof human capital, social protec-tion, border issues, sustainabledevelopment, investment andtrade, productivity and innova-

tion, governance and institutionalagreements, as well as questionsof identity, values and socio-cul-tura l space. Working groups aredeveloping detailed research pro-posals. In addition, an overviewreport on the current state ofknowledge re lated to North Amer-ican linkages and gaps in research

and data is being prepared.

The PRI is launching a semi-nar series on North AmericanLinkages in September. This willprovide an important forum forsharing knowledge both existingand new on t he issues notedabove, debating the latest findingswith leading researchers, identify-ing emerging issues and dis-cussing approaches to ensurethe knowledge generated throughthe project informs the policyprocess.

For the latest developments andactivities on the NAL project, consultour web site at the f ollowingaddress: http://policyresearch.gc.ca/nal-e.htm.

North American Linkages Team

PRI UpdateNorth American Linkages Research Project


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I remember well my firstencounter with an ExternalAffairs posting officer shortly afterI joined the Department in Jun e1976. We explored together post-ing options for the following sum-mer. He seemed to think I mighthave a promising future, butenquired rather sharply aboutwhy on earth I wouldwant to go to Latin

America as a first post-ing. Why would anyonewho wants to get aheadin the Department evergo there?, or wordsclose to that effect. Ioccasionally think ofthat meeting. So muchhas changed in thesepast 25 years in term sof Canadas role in LatinAmerica and its rela-

tions, in particular,with Mexico.

TURNINGPOINTSMuch has changed. It is importantto recognize key turning pointsin Canadas hemispheric relation-ship, particularly over the past10 years, and the place of Mexicoin that broader context. Amongmany influences, I would high-light four m ajor events.

First, the long overdue deci-sion by Canada to join the Orga-nization of American States in1991 with a determination, con-sistently applied, to make a differ-ence in the revitalization andgrowth of that central hemi-spheric institution.

Second, the Canadian Gov-ernments decision to join theUnited States and Mexico in thenegotiation of the North AmericanFree Trade Agreement during1991-93, at the time a controver-sial but forward-looking decisionthat am ong other impacts cer-tainly heightened the profile of

Mexico in Canada and our under-standing of Mexican society andmarkets.

Third, the launch of the Sum-mit of the Americas process in1994 by then President Clintonand the Canadian governmentsdecision to make a major commit-ment to ensuring the success andeventual institutionalization ofthe Summit as achieved through

the Santiago Leaders Meeting of1998. Most particularly, the extra-ordinarily dynamic third Summitheld in Quebec City last April,with its solid action plan andnew Executive Council, will seeus through to the fourth Summitin Buenos Aires.

And fourth, the democratictran sition in Mexico, a regionalheavyweight and by far ourlargest economic partner in LatinAmerica, as a result of the elec-tion of opposition candidateVicente Fox to the Mexican Pre-sidency in July 2000. Fox hasarrived with a vision and determi-

nation to ensure Mexicobecomes a full North

American partner.In a sense, these

four events becamefeasible and sustainablebecause of profoundchanges in th e approachof the region toward thekey principles ofdemoc-racy and free markets.These were changesimplemented by Latin

American leaders and populationsthemselves. Although faith ineach of these two fundamentalprinciples has more than oncebeen shaken over the past 10years, there is still a remarkablecommitment t o them part icularlywhen compared to 15-20 yearsago. Yet each of the four turningpoints that I have highlighted wasnot just the result of fundamentalshifts in Latin American societies,

but also created its own subse-quent dynam ic which has h elped,in turn, to strengthen democracyand markets as well as moredirect involvement of govern-ments (including very actively theCanadian government) in promot-ing these same principles.

In this issue --

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lume 4 Number 4


Neighbours at Last: Canada and the New Mexico

Continued on page 5

Feature Columnist

Why would anyone ever go to

Latin Am erica? I was asked

25 years a go. The answ er is so self-

evident today, especially with regard

to Mexico, that n o one wou ld even

dream of asking the question in

the first place.



5

September 20

Volume 4 N


Others view Canada andincreasingly Canadians and theCanadian government view them-selves as integral members of thebroader hemispheric family. Thishemisphere is our neighbourhood.And apart from the United States,this neighbourhood for Canadahas a strong Mexican look andfeel about it as exemplifiedthrough our joint participation in

NAFTA and the enormous interestcreated by President Foxs elec-tion last year.

PRESIDENTFOXSPRIORITIES-RECURRENTTHEMESAlthough Vicente Fox has r aised alarge number of issues during hiscampaign, the five-month transi-tion period before his inaugura-tion last December and the firstseveral months of his Presidency,

five themes in particular seemsalient . They focus on gover-nance, markets and geography.All have immediate and directimplications for Canada, provid-ing us with new opportunities towork with Mexico as an increas-ingly close partner to ensure eco-nomic growth and stability.

The first theme is trans-parency in government. President

Fox believes deeply in the impor-tance of the contribution th atcivil society can make to ensuringthat political and economicprocesses are more accessible,more understandable and moreopen to being influenced by manymore voices in Mexican society.He holds th is belief because inlarge m easure the increasing

demands of Mexican civil societyw rit large (NGOs, business asso-ciations, media, academics) overthe last 10-15 years helped to pre-pare the way for his stunning vic-tory last year. In practical terms,transparency in the cur rent Mexi-can context includes improvedaccess to government informa-tion, the radical recasting of secu-rity and intelligence services to

function in a democratic society,and a m uch m ore open, fluid anddemanding inter-relationship withthe Mexican Congress in whichno party has a majority.

A second theme is anti-corruption. The President an dseveral of his principal advisershave spoken openly and elo-quently about the need to combata culture of corruption which

had been allowed to infect manypublic and pr ivate aspects of Mex-ican n ational life. Some of theimplications of this anti-corrup-tion campaign include reform ofMexican customs, reorganizationand reform of police forces, moretransparent public procurementpolicies, and the simplificationand reform of the public servicemore generally.

Human security and in par-ticular th e promotion of humanrights is the third theme, bywhich President Fox meansimprovement at home in Mexicoitself and a remarkably open wel-come to outside observers, as wellas a more dynamic promotion ofhuman rights issues outside Mex-ico both in the hemisphere andmore globally.

Fourth, President Fox and histeam have emphasized the impor-tance of further economic reformand modernization. Reachingthese goals will require politicalskill and perseverance in the faceof a divided Congress. But a goodstart has been made in furtherreshaping Mexico through propos-als which include significant taxreform to increase government

revenue as a percentage of GDPto a level more in keeping withthe regional average in order tofinance social and economicdevelopments; energy sectorreform (most immediately interm s of possible furth er liberal-ization of private sector partici-pation in the generation ofelectricity and in the explorationfor natural gas which will be themain source of new energy in

coming years); a significantrestructuring of the state-ownedelectricity and oil companies sothat th ey are more responsive tomarket forces, functioning moreclearly as properly arms-lengthstate corporations operating inmore competitive energy markets;a massive overhaul of labour legis-lation both to remove inheritedcorporatist rigidities and toimprove union democracy; and afurther decentralization of financ-ing and policy responsibilities toMexicos 31 states and the FederalDistrict.

And finally, I would highlightthe Administrations inherentcontinentalism. The Fox Adminis-tration has been correctly activein promoting Mexican foreign


Continued on page 6Continued on page 6


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two-year term on the UN Security

Council), Mexico could graduallyshed its traditional hesitation toparticipate in peacekeeping oper-ations. If so, Canada would clearlywelcome such a change. In addi-tion, and still in the area ofhuman security/hum an rights,it has been gratifying to witnessand to en courage the furtherstrengthening of the close workingrelationship between ElectionsCanada and Mexicos Federal

Elections Institute (on-goingcooperation was recently formallyrenewed), and between the Cana-dian and Mexican Human RightsCommissions. On the basis ofrecent bilateral cooperation andconfidence-building, these twoCommissions were pivotal inorganizing and launching lastautumn the first-ever hemisphericnetwork of national human rightsorganizations.

During President Foxs Statevisit to Can ada last April, furthersteps were made. It was agreed toenhance cooperation in the areaof social and human developmentwith an initial emphasis on life-long learn ing and social cohesionissues. An additional agreementwas signed in the area of naturalresources, including energy effi-ciency, alternat ive energy, energy

supply, air quality, watershed andgroundwater m anagement, sus-tainable development and useof minerals and metals, remotesensing and geomatics. Duringthe same visit, both governmentsundertook to work toward extend-ing the existing highly successfulbilateral cooperation in the area

of temporary workers to other

provinces of Canada not yetincluded in the Seasonal Agricul-tural Workers Program, and toother econom ic sectors wherelabour market demand justifiessuch an extension to both coun-tries mut ual ben efit.

The Mexican Congress isquickly emerging as important tounderstanding and tracking Mexi-can affairs and to promoting bilat-eral and broader hem isphericrelations. As a result of the July2000 federal elections, no partycommands a majority in eitherHouse of Congress and the rela-tionship between the Presidentand h is own party caucus in Con-gress is still being fashioned. Con-sequently, for the first time in itshistory, Mexicos Congress hasbecome a critically independentplayer in Mexicos overall gover-

nance structure. The old vertical,top-down Presiden t-dictating-to-Congress days are gone forever.Legislation m ust n ow be craftedin coordination with Congressand in anticipation of active ques-tioning and debate on all keybills, including those of interestto Canada. As a result, we haveestablished what is only Canadasthird Congressional Relationsoffice at an Embassy abroad.

Although minimally staffed at pre-sent, it is becoming an importantfeatur e of our opera tions in Mex-ico. It is in Canadas interest tosee the new Mexican Congressemerge as a vital and positiveforce in Mexicos new democracy.It will also be an important playerin our on-going dialogue with

Mexico on promoting Canadian

values an d interests in Mexico.Moreover, a Mexican Congres-sional delegation played a signifi-cant and constructive role in th einaugural session last March ofthe Inter-Parliamentary Forumof the Americas (FIPA). ThisCanadian initiative to promote agreater policy dialogue on hem i-spher ic issues amon g the regionsnational legislatures (in a processroughly parallelling the Leaders

Summit process) now has anexecutive committee led by Cana-dian M.P. Bill Graham, on whichMexico also sits. Moreover, Mex-ico has agreed to host the secondannual meeting of FIPA in 2002.

POSTSCRIPTPartly as a result of Canada recog-nizing the accelerating, on-goingactivity and new prospects earlyon, President Fox has been to

Canada twice over the past year,while appr oximately two-thirds ofthe Cabinet m embers of the twogovernmen ts have met either inCanada or in Mexico (sometimesmore than once) to promote thisspecial relationship. Th e likeli-hood of further expansion is quiterightly h igh. Why would anyoneever go to Latin America? I wasasked 25 years ago. The answeris so self-evident today, especially

with regard to Mexico, that noone would even dream of askingthe question in the first place.

H.E. Keith H. ChristieAmbassador of Canada to Mexico

In this issue --



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less priority in the United States. Combined witha stronger focus on the US-Mexican relationship,where there are perceived to be problems thatneed resolution (e.g. drugs, illegal immigration),these issues make our diplomatic efforts in theUnited States more diffi-cult to carry out andbring to a successfulconclusion.

Mexico City wasdifferent in more waysthan simply geographyand language. From thegenerally order ly andsymmet rical Washingtonto the teeming, chaoticand immense (22+million inhabitants)Mexico City requires a fundamental shift in attitudesand perceptions. The Administration of Vicente Foxis asking Mexicans to look at th emselves in new ways

how they are governed, what is important in theirlives, how they are viewed by and view the rest ofthe world. The manner in which Fox has organizedand characterized his Cabinet is an indication. Hehas three Cabinet groups: the Economic Cabinet,the Social Cabinet, and the Order and Respect Cabi-net. The last asks Mexicans to work with the newadministration to overturn centuries of bribery,corruption and violence, with the reward being anew order that will provide nothing less than equalopportunity to all citizens.

Underlying and affecting everything in Mexicois the grinding poverty that is the lot of 40-50%ofall Mexicans. There is high expectation that Foxwill change these numbers, that Mexicans whoseonly legacy has been poverty will shed it forever.The enormity of this task is clearly recognized; theprospects for success are not so clear. Fox has statedthat one of Mexicos goals is to achieve a standard ofliving equal to Canada and the United States. He has

translated this objective into specific targets for hisCabinet ministers and clearly has challenged themto manage the coun try differently than in the past.The enthusiasm for this massive change manage-men t exercise is palpable. It was most evident in

the exchan ge the grouphad at the Mexican Min-istry for Foreign Affairsat which Canada wasadmonished for beingtimid in its reaction toPresident Foxs at temptto open the dialogue onthe future of the NorthAmerican partnership.

INDEED, WHERE DOWE GO FROM HERE?Mexico is pushing the

envelope, beginning to articulate a vision for deeperand broader North American integration. Washingtonand Ottawa have yet to respond in kind. Canada hasgenerally followed a more incremental and pragmaticapproach in r ecognition of the asymmetry in t hetwo bilateral relations, and the inherent differencesin issues between the United States and Mexico andthe United States and Canada. Despite the close rela-tionship that President Bush seems to have estab-lished with his Mexican counterpart, this has not yettranslated into a significant difference in the practi-cal expression of US foreign policy toward Mexico.The traditional problems and the US approach tothem are still at the heart of the relationship. How

successful President Fox is in convincing Ottawaand Washington to be visionary will depend in parton his ability to work with the new Mexican Con-gress to accept his often ambitious proposal forchan ge. His journey will be fascinating to watch.

Doug RosenthalActing Director,Natural Resources Canada

In this issue --

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Volume 4 N


How successful President Fox is in

convincing Ottawa and Washingtonto be visiona ry will depend in part

on his ability to work w ith the new

Mexican Con gress to accept h is often

am bitious proposal for change. His

journey w ill be fascina ting to wa tch.



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energy needs and how theexchanges are happening inNorth America, it is possibleto observe that the three coun-tries are immersed in a symbi-otic relationship and that arevision of the tr ilateral energypolicies is ur gent.While the UnitedStates imports 58%ofits oil, 40%of Mexi-can oil exports go toits northern neigh-bour. Likewise, closeto 100%of US elec-tricity imports comefrom Canada, repre-senting 8%of US sup-ply; and Mexico sellsCalifornia part of itsexcess electrical

energy, which at themoment supplies power toat least 250,000 homes.

A study of the characteristicsof the energy trilateral coopera-tion illustrates that the senseof community in contrast towhat one might initially think has not been brought aboutonly by governments. An inno-vative cooperation schemeexists whereby businesses,civil society and different levelsof government from the threecountries have developed theirown synergy. Governmentaland non-governmen tal actorshave woven a network of inter-ests and opportunities thatnaturally begin to form a senseof a shared North Americanidentity. The meetings and

exchanges between said play-ers are occurring on anincreasingly frequent basis,and th is has brought about amore intense interaction. Justmentioning some of the eventsthat have been held in the

last four-month period willbe enough: a) two meetingsbetween President VicenteFox and the business leadersof the twelve top Canadianenergy companies; b) a meet-ing between Albertas PremierRalph Klein and US Vice-President Dick Cheney;c) a visit by Mexican Secre taryof Energy, Ernesto Martens,

to Regina and Calgary, duringwhich he exchanged views withPremier Klein and followed upon the dialogue with the dozenwestern Canadian ener gy com-panies that had m et previouslywith President Fox; and d) thecelebration of the Mexico-Canada Bilateral Energy Meet-ing in Mexico.

These exchanges demonstratethat a synergy dictated by theneeds of the trilateral energy mar-ket is a reality. In light of this andas part of the agreements reachedin Quebec City last April, thethree countries established a

North American WorkingGroup on Energy andcharged it with identify-ing from a purely tech-nical perspective thechallenges and opportuni-ties for strengthening andexpanding the field ofenergy cooperation in theregion. With the creationof this working group, t hethree governmen ts haveset aside the politicalframeworks in order for

technicians to analyzeobjectively the energy needs ofthe region. Today, before planningand implementing policies andstrategies, the North Americanleaders want to listen to therecommendations put forth byenergy experts. The conclusionsand recomm endations this groupwill ultimately come up with willbe crucial in determining thefuture of North America and

will probably act as th e basisfor a shared en ergy policy.

THEMEXICAN ENERGY MARKETThe techn ical work that the trilat-eral task force will eventually putforth will be of great relevance toMexico, as energy remains on eof Mexicos most important eco-nomic activities and continues to

In this issue --

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Although NAFTA has been th edriv ing force for the process of

regional economic integration, a

series of add itional issues that a re

not included in th e Agreem ent

should provide guidelines for

conceiving North America as a

region tha t interacts with an

increasing sense of comm un ity.

Continued on page 12



12

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lume 4 Number 4


be the main source of government

revenues. Energy related activitiesrepresent 3%of Mexicos GDP,while hydrocarbon revenuesmake up 36%of fiscal income.Almost 40% of the total publicinvestment is directed to energyprojects. In addition, Mexicoremains one of the top 10 pr o-ducers of crude oil worldwide,and taking into consideration itsreserves, it emerges as the fourth-largest source of natural gas in the

continent after th e United States,Venezuela and Canada. While oneof the worlds largest oil produc-ers, Mexico faces serious energylimitations, ergo, the count rysenergy future is not guaranteed.Official estimates indicate thatby 2009, local natural gas supplywill cover only 76% of nationaldemand. In addition, the demandfor electr icity will require a dou-bling or t ripling of the production

of natural gas in Mexico. Energymarkets are not flawless; there-fore cooperation among NorthAmerican neighbours is seen ascrucial.

Mexicos Secretary of Energy,Ernesto Martens, has indicatedthat the Mexican energy sectorwill require in the same periodof time an investment ofapproximately $USD 131 billion.

Currently, Mexican governmen tfunding will only cover 54%oftotal required investment; th eremaining 46%is expected to befinanced th rough foreign invest-ment. Some Canadian businesseshave initiated a dialogue with keyplayers within the Fox Adminis-tration regarding opportunitiesfor furthering investment in Mex-

ico and to explore ways by which

Canadians can contribute tothat 46%required from foreigninvestors. Given the limitednature of government funds andpressing energy needs, participa-tion of the private as well as theforeign sector is, th us, essential.

With the purpose of promot-ing this part icipation, the MexicanExecutive will soon present toCongress an initiative to carry outa structural reform of the Mexicanener gy sector. Although th e ulti-mate pur pose of such structur alreform will be to meet long termnat ional deman d for energy, it willalso carry out a gradual transfor-mation of the energy sector froma state monopoly to strategic con-trol by government companies.The initiative will create newmechanisms to encourage privateparticipation in the development

of Mexicos infrastructure in gas,electricity and renewable energy,thus avoiding the privatization ofstate companies such as PetrleosMexicanos (PEMEX). The idea isto transform state energy entitiesinto world-class companies, capa-ble of providing nationa l needs,internationally competitive interms of quality and cost. TheFox Administrat ion believes thatstrategic control of the energy

sector brings greater advantagesto Mexicans, and efforts ar e beingmade to consolidate the openingup of the industry and t o find newco-participation formulas for pri-vate and foreign investment.

However, without the need toimplement any sort of reform, theMexican energy industry todayoffers a wide range of investment

opportunities, particularly in the

areas of: a) new generation, co-generation and self-supply electricplants; b) exploration and produc-tion of non-associated natural gas;c) construction of maritimeterm inals for liquified natural gas;d) expansion of the natural gaspipeline network; e) new partici-pation mechan isms in the liqui-fied petroleum gas market;f) natural gas and electricityborder interconnections to facili-

tate the development of the NorthAmerican energy market; andg) new energy infrastructureassociated to the Puebla-Panamaproject which will promote theeconomic development of theregion that begins in South EastMexico and includes all of theCentral American countries.

POSTSCRIPTI am concluding my posting as

Ambassador of Mexico to Canadaat an exciting and intriguingmoment for North America. Toforesee the future of the regionwith precision and certainty is,without a doubt, a complex task.Nevertheless, this does not pre-vent adventuresome souls fromdesigning and presenting viablescenarios for the future of thecontinent . Although it is still earlyto know the destiny of our region,

the issue of energy, to mentionbut one, urges us to reflect on themedium and long term future ofthe region, in order to identifymore adequate and convenientformulas that respond to th e realNorth American dynamics.

H.E. Ezequiel Padilla CouttolencAmbassador of Mexico to Canada



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DECEMBER 5 to 7, 2001

2001

Research ConferenceNational Policy

Ottawa Congress Centre

BringingCommunitiesTogether

Register Early !Policy

Research

Recherche sur

les politiques

Expand your knowledge:

Learning Workshops

Plenary Sessions Concurren t Sessions

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Celebrate Excellence at the Third AnnualCanadian Policy Research Awards DinnerDECEMBER 6, 2001

w w w . p o l i c y r e s e a r c h . g c . c a

For Exhibit opportunities,Registration and more information visit:

In this issue --


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Extension School of the NationalAutonomous University of Mex-

ico (UNAM) in Canada[Escuela

de Extensin de la Universidad

Naciona l Autnoma de Mxico

en Canada] UNAMs ExtensionSchool in Canada is locatedin Hull, Quebec. Its aim is tostrengthen the academic bondbetween the different componentsof UNAM and its Canadian coun-terparts in the fields of teaching,

research and dissemination of cul-ture. To this end, the school offersongoing courses in culture andin Spanish as a second language.It also organizes all kinds of acad-emic and cultural activities inHull as well as at UNAMs maincampus in Mexico and its otherextension school in San Antonio,Texas, using the latest distanceeducat ion technology. Moreinformation about the ExtensionSchool can be found at:http://www.unameseca.com.

Continental Integration Research

Group [Groupe de recherche

sur l'intgration continentale]

(GRIC) of the Universit duQubec Montral GRIC isengaged in studying the phenom-enon of international economicintegration, part icularly as it isseen in the Americas, but also in

its new forms in other contexts.GRIC comprises two teams: oneworking more specifically onindustrial reconversion, and theother, on the civil dimensions ofcontinentalism. Background infor-mation and basic statistical dataon major sub-regional agreementsare available at the following

address: http://www.unites.uqam.ca/gric/index.htm.

Carleton Universitys new Centreon North American Politics and

Society is dedicated to the studyof the evolving relationshipsbetween Canada, Mexico and theUnited States. Its particular focusis the political, social and culturalprocesses defining the NorthAmerican region. The Centre

seeks to promote a dialogueamong a network of scholars andpolicy makers working in the areaof North American studies in thethree countries by establishinglinkages with other universityresearch centres, think-tanks,and governmental, inter-govern-mental and non governmentalactors. More information aboutthe Centre can be found athttp://www.carleton.ca/nac.

Viva Canada-Mexico is CanadasDepartment of Foreign Affairs andIntern ational Trades on e-stop-shop for information on Mexicoand Canada-Mexico relations.The latest news and events, factsand figures on trade and invest-ment, culture and education pro-

grams, activities and exchangesalong with travel and tourismideas and guides can be foundat http://www.dfait-maeci.gc.ca/mexico/menu-e.asp.

Quebec Network on Continental

Integration [Rseau qubcois

sur l'intgration continentale]

(RQIC) The RQIC is a coalitionof research teams and grassroots,union, international cooperation,

community and environmentalgroups. Its objective is to proposea vision of developmen t for theAmericas that is respectful ofsocial, labour and human rights,and t o promote democracy,involvement, respect for the envi-ronment and the eradication ofpoverty throughout the continent.The RQIC has developed linkagesand exchange initiatives withother similar networks in Canada,

Mexico, the United States and,more recen tly, Brazil, Chile, Peruand Central America. For moreinformation on the network,consult its site at the followingaddress: http://www.alternatives.ca/rqic.

KP

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Intelligent Transportation SystemsThe May 2001 issue ofHorizons highlights a growing and inno-vative area in transportation known as Intelligent TransportationSystems or ITS. For m ore information, see ITS Canadas websiteat ht tp://www.itscanada.ca and Transport Canadas web site athttp://www.its-sti.gc.ca.

Transport Canadas site includes a link to an invitation to pro-posals announced on June 11, 2001 by David Collenette, Ministerof Transport, for ITS deployment and integration initiatives.

Canadian Connections



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http://www.lib.duke.edu/ias/latamer/mexico.htm

The Duke Center for North American Studieshas developed Mexico within the North AmericanContext, a compilation of Mexican Internet sites ofinterest to researchers and policy developers work-ing on subjects related t o Mexico, and particularly,Mexico within the North American context. The siteoffers informat ion an d links to sources reflecting sixcentral areas of investigation: communication andcultural production, environment, sub-national

implications of regional integration, institu tionalchange, migration and regional and national iden-tities. Links are provided to several databases,including the Mexico Legal Database which con-tains information on government and laws relat-ing to trade.

http://www.conahec.org

The Consortium for North American Higher Educa-tion Collaboration (CONAHEC) seeks to improveacademic cooperation in the North American regionby building a strategic partnership among higher

education institutions, national associations, foun-dations, government agencies, and corporations.To advance this work, CONAHEC has establishedEL NET (The North American Educational Leader-

ship Network), the online networking tool forhigher education collaboration in North America.Along with a resource library and funding tips, ELNET offers a searchable Matchmaker Databasewhere you will find partners and opportunities insuch areas as research, internsh ips and consulting.

http://www.northamericaninstitute.org

The North American Institute (NAMI) was foundedin 1988 to promote new approaches to North Amer-ican issues and deepen trinational understanding.NAMI focuses on specific aspects of the NorthAmerican r elationship and r eaches out acrosssectors of society as a catalyst and convener inan effort to create networks and effect real changes

in the North American community. The organi-zation publishes NAMI-News, a quarterly news-letter of articles and reviews that looks at thesocio-economic, environmental and politicalissues affecting the North American area.

http://www.naalc.org

The North American Agreement on Labor Cooper-

ation (NAALC), NAFTAs labour supplementalagreement, adds a social dimension to the NorthAmerican Free Trade Agreement. It encourages thecontinental trading partners to improve working

conditions and living standards, and commit them-selves to promoting eleven labour principles toprotect, enhance and enforce basic workers rights.To accomplish these goals, the NAALC createsmechanisms for cooperative activities and intergov-ernmental consultations, as well as for independentevaluations and dispute settlement related to theenforcement of labour laws. Research reports onthe garment industry, migrant agricultural workers,the employment of women, plant closings, incomesecurity and productivity can be found on th e site.

http://www.internationalaffairs.com/Country/country.html

InternationalAffairs.com provides rapid access tonews, analysis and data on a coun try by countrybasis. It was created by Oxford Analytica, a politicaland economic news analysis organization based inthe UK, which draws on the expertise of professorsin more than 100 countries to provide analysis togovernmen ts, businesses and others who need toknow the implications of breaking news. The sitefor each country is organized into sections on news,numbers, players and analysis and by the following

topics: politics, economics, social, internationalrelations and industry. The site offers links to majorMexican government sites as well as Mexican andinternational news and data sources.

KP

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Governance in Mexico is undergo-ing radical change. The electionof Vicente Fox from the Partidode Accin Nacional (PAN) inAugust 2000, defeating the candi-date of the traditional governingparty, the Partido RevolucionarioInstitucional (PRI), sent shock-waves th rough th e Mexican politi-cal system. Mexicans, accustomedto long decades ofde facto oneparty rule, suddenly face anapparent dramatic change in theway they are governed. Amongthe ruins of the old regime a truemulti-party system and a vibrantcivil society have emerged. Never-theless, the system of power inplace for decades will not disap-pear over night bu t continues toinfluence how Mexicans are gov-erned. For Canadians interested

in engaging with Mexico, it is vitalto understand this shifting terrainof state-society relations an dthe challenges faced by thenew regime.

Between 1920 and 1988, th ePRI faced no real challenge to itsrule. Although opposition part iesdid exist, they were unable to winoffice at any level of government.The election of Fox thus repre-sents the first time that presiden-tial power has changed handsthrough free and fair elections.What apart from his obviouscharismatic appeal does theFox presidency mean for relationsbetween the state and society inMexico? The answer to this ques-tion is still unclear, but willdepend on two factors: Foxs will-ingness and ability to unravel the

dense network of ties that subor-dinated society to the state underthe previous regime, and thecapacity of civil society to con-tinue to push for change. UnderPRI rule, a complex set of rela-tionships tied groups and individ-uals to the state, guaranteeingpolitical stability, but undermin-ing the autonomy of civil society.Without access to the same typeof mechanisms of control, Foxwill have to find a new way ofmaintaining political stabilitywhile also making space forautonomous grassroots partici-pation in decision making.

TRADITIONAL FORMS OFSTATE-SOCIETY RELATIONS IN MEXICOPolitical analysis of the previousMexican regime traditionallyfocused on the governing partysextraordinary ability to promotepolitical stability after the tum ul-tuous decade of the Mexican Rev-olution (1910 to 1920). One partyrule is often fragile, since it usu-ally lacks flexibility as well aspolitical legitimacy, and t hus mustrely heavily on the use of heavy-handed coercion. The Mexicansemi-authoritarian system differedfrom this pattern in several ways.

First, it achieved some flexibilitythrough the rule that the execu-tive branch, particularly the presi-dent, is limited to a six-year term.This rule guaranteed a certaindegree of alteration in state policydespite the continuity in officialparty rule. More important, how-ever, was the skill with which thegoverning party managed its rela-

tions with civil society, diffusingand coopting challenges to itspower. One tool used was a well-entrenched system of electoralfraud and vote-buying. Thanks toa process of electoral reform in iti-ated in the 1980s and expandedby the previous president, ErnestoZedillo, these mechanisms havebeen largely disbanded. However,the PRI also maintained its powerthrough three other aspects ofthe political system: corporatism,clientelism , andpresidentialism.

Corporatism is a form ofpolitical system in which a for-mal relationship exists betweenselected groups in society and thestate. In contrast to pu re liberaldemocracies where individualsare seen as the relevant politicalactors, in corporatism groups are

seen as valid representatives ofthe interests of classes. Corpo-ratist systems come in variousguises, ranging from the heavilyrepressive fascist regimes of pre-war Spain and Germany to themuch more democratic versionsin several European countries likeSweden. This system was adoptedby the reformist Mexican presi-dent General Lzaro Crdenas(1934-1940) as a way of limitingthe power of the dominant classand empowering subordinategroups like workers and peasantsin order to achieve the ideals ofthe Mexican revolution. In orderto enact his populist program ofstate intervention in th e econ-omy, Crdenas also required astrong support base to defend

Feature Columnist

State-Society Relations in Mexico After the Fox Victory




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him against conservative forcesopposed to these reforms. Toachieve th is support, Crdenasreorganized the dominant partyalong corporatist lines by creatinga four-sector structure represent-ing each of the partys sectors:labour, peasants, the military,and the so-called popular sectorwhich r epresented the middleclass, public sector workers andbusiness. Each sector was sup-posed to play an equal role instate decision making (the mili-tary sector was subsequentlydisbanded).

After Crdenas left office,his democratic and participatoryversion of corporatism was grad-ually dismanteled. The Confed-eracin de Trabajadores d e

Mxico (CTM), which represents

workers, and th e ConfederacinNacional Camp esina (CNC) grad-ually became more and more thetools of the dominant party andless and less representative ofthe interests of their members.Leaders were imposed fromabove, rather th an democrati-cally elected from below. Asone obser ver put s it, Many largeunions have been instruments ofgovernmen t policy, an unfailingsource of electoral support for thePRI, and an ally of managementrather than a countervailing forcein economic life.1 Participationin these corporatist bodiesbecame the main way in whichpeople outside the countrys smalleconomic elite could advance

themselves socially and economi-cally, and corruption becameendemic. The government couldcount on the votes of peasants,workers, and the popular sectorin return for some considerationof their interests in state policy.

In addition to the formalmechan isms of corporatism, otherinformal mechanisms guaranteed

political cont rol. Clientelism, asystem of hierarchical reciprocityin which higher-placed membersof society do favours for less pow-erful clients in exchan ge forpolitical support, pervades Mexi-can society. As well, despite aconstitution t hat guarantees arule of law and the separation ofpowers, power has in fact beenhighly centralized in the handsof the president, and the judiciary

and Congress have been subordi-nated to the executive branch.Abuses of power and corruptionat all levels of government werethe inevitable result.

As the result of theseentwined mechan isms of controlover society, Mexicans lacked asense of political efficacy theconfidence that their vote andtheir political participation makes

any difference in how they aregoverned. Widespread corruptionmeant that Mexicans wereunlikely to trust public officials oreven their fellow citizens. Politicalapathy and cynicism were wide-spread. Mexicans lacked a senseof citizenship and viewed them-selves as subjects of rights.However, the system remained

stable and br oadly legitimate formany years, largely because ofthe Mexican miracle the rapideconomic growth the countryexperienced from the 1940s tothe 1970s. Internationally, humanrights abuses in Mexico receivedlittle attention for three reasons:because they were much lessextreme than those committedby the military dictatorshipsin many Latin American states;because of US support for theMexican regime on its doorstep;and because of the absence of astrong human rights m ovementwithin Mexico.

THEREGIMECRUMBLES:POLITICAL ANDECONOMICCHANGE INMEXICOIn the late 1970s and early1980s, the Mexican miracleevaporated. Much of the miraclewas based on unsustainable levelsof debt, and the benefits of growthwere not well distributed. Mexi-cans began to challenge the oneparty system and demanded moreindependence and accountability.An independen t trade unionmovement emerged to challengethe corporatist CTM in the 1970s.In the early 1980s, the debt crisis

struck Mexico, creating evenmore profound changes in state-society relations. The structuraladjustment program imposed bythe International Monetary Fundin return for a restructuring of thedebt required cut-backs in stateprograms, including the fundsthat greased the corporatist and

1 Hellman, Judith Adler. Mexican Lives.New Press, 1995.





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clientelist n etworks. Public dis-

content with the harsh impactof structural adjustment on livingstandards fueled th e em ergenceof urban social movements,largely composed of women (whowere previously largely excludedfrom the political system), whichprotested against the state cut-backs. Gradually, as well, a citi-zens movement emerged todemand electoral reform an ddemocratization. Hundreds of

non-governmental organizations(NGOs) have sprung up, dedi-cated to such issues as sustain-able development, womens rightsand indigenous rights.

By the time of the 1988 elec-tions, opposition to the governingparty was widespread, comingboth from the left (the Partido deRevolucin Dem ocrtica) and theright (the PAN). The transparent

fraud in these elections, whichbrought to power Carlos Salinasof the PRI, led to widespread pub-lic outrage. Salinas implementedeconomic reforms that pushedthe liberalization program evenfarther, and also initiated NAFTA.These economic reforms contin-ued to marginalize the traditionalcorporatist sectors of the party workers and peasants and thepower of these parts of the party

continued to decline. Salinas rec-ognized that the decline of corpo-ratism posed real risks for hisparty, and initiated the ProgramaNacional de Solidaridad to shoreup popular support. The Solidar-ity program distributed funds tosmall organized groups th rough-out the country which had pro-posed development programsfor their communities. Critics

charged, however, that this pro-

gram represented a thinly-dis-guised form of neo-clientelism,with power and resources concen-trated even more t han before inthe hands of the president. The1994 indigenous uprising in Chia-pas, the state which had r eceivedthe most money from the Solidar-ity program, demonstrated thatthese time-honoured techniquesof rule could no longer guaranteepolitical stability. As well, with

NAFTA underway, the traditionalwillingness of the United States tooverlook human rights problemsin Mexico ended. Under pressureboth from citizens groups withinthe country, and allies outside,Salinass successor, ErnestoZedillo, undertook significantelectoral reforms that eventuallyresulted in Foxs election.

FOXSCHALLENGE: REFORMING

GOVERNANCEIn order to ensure fundamentalchange in the Mexican politicalprocess, reforming governance iskey. President Fox came to poweron a program that promiseddemocracy, poverty alleviationand social justice, but is alsofirmly committed to free marketprinciples. Simultaneously meet-ing the pent-up demands of bothbusiness and non-business civil

society groups presents a hugechallenge to the new regime.

In this context, ther e are fourparticularly tr icky challenges forgovernance in the new Mexico:

Poverty Perhaps the mainchallenge facing Fox is address-ing the problem of poverty,which is even more widespread

since NAFTA than before.

Poverty is most extreme inrural areas, where the liberal-ization of agriculture has hitpoor farmers hard. Mexicancivil society organizations havedemanded a more equitableeconomic model which meetsthe n eeds of women, th eindigenous population, andcampesinos.

Labour rights Under th eprevious regime, workersrights to collective bargainingand independent organizingwere curtailed. It is not clearwhat the new regime meansfor changes in labour relations,given Foxs pro-business orien-tation. In March 2001, anelection was held at the DuroBag Company, a maquiladorain Rio Bravo, Tamaulipas,in which intimidation was

allegedly used. Mexican tradeunions are calling for theenforcemen t of existing labourlaws, but a recent World Bankreport has called for increasedlabour flexibility in Mexico,implying the elimination ofexisting labour guarantees.

Indigenous Rights Duringhis campaign, Fox boastedthat he could solve the prob-

lems in Chiapas in 15 min-utes and observers had highhopes for the peace process.However, in April, the newMexican congress passed legis-lation on indigenous rights thatfailed to meet the demands ofthe Zapatistas (the indigenousarmy in Chiapas) as well asthe recomm endations of theCOCOPA (the Congressional




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In this issue --

DATE EVENTS

SEPT. 24,2001

OCT. 14-15,

2001

NOV. 22-24,

2001

Upcoming Events

Taking Action: Canadian Solutions forClimate ChangeMexico CityIndustry Canada is leading Taking Action: Canad ian Solu-tions for Climate Change a climate ch ange workshop andmission to Mexico City on September 24, 2001. The one-dayworkshop will showcase Canadian climate ch ange products,services and technologies, as well as provide a forum for dis-cussions and present ations addressing various issues. Topicswill include transportation, sinks opportunities throughforestry and agriculture, and the use of technology to addressKyoto Protocol reporting requiremen ts. To be held the dayprior to Enviro-Pro at the Canadian Embassy, the workshop

will attract private sector partners and Latin American gov-ernment decision makers. For more information please con-tact Mich le Kingsley via email at [email protected] by phone at (613) 946-2578.

Visioning North America: Building North American Studieshttp://www.carleton.ca/nacOttawaAs connections between Canada, the United States, andMexico intensify, North America is increasingly the focusof analysis for scholars in a wide variety of disciplines. Car-leton Universitys Centre on North American Politics andSociety and School of Canadian Studies, the Center forNorth American Studies at Duke University and the Centerfor International Studies, El Colegio de Mxico are co-hostinga conference organized around the themes of borders, gover-nance and sovereignty, techn ology, culture and region, sus-tainable development and environmental management. Formore information please visit ht tp://www.carleton.ca/nac.

Linking Research to Policy and Practice:Working Together for Child ren and Youthhttp://www.cfc-efc.ca/cccf/pdf/reg_pack_en.pdfOttawaAs the first of five annual conferences featuring the work ofHealth Canadas Centres of Excellence for Childrens Well-

Being, the Linking Research t o Policy and Practice Confer-ence, co-sponsored by the Canadian Child Care Federation,the Canadian School Boards Association, and the Centre ofExcellence for Early Childhood Development, will providediverse stakeholders with an opportunity to share informationand knowledge on five key child and youth health issues:early childhood development, ch ild welfare, child and youthcentred prairie communities, children and adolescents withspecial needs and youth engagement . Speakers will include:Senator Landon Pearson, Ken Dryden, Judith Maxwell, DanielKeating and Cherry Kingsley. For more information, pleasevisit ht tp://www.cfcefc.ca/cccf/pdf/reg_ pack_en.pdf or contactGatane Huot at (613) 729-5289 or 1-800-858-1412.

Commission for Peace and

Concord). As a result, the con-flict in the region continues tosimmer.

NGOs The PRI regime wasextremely suspicious about therole of NGOs in the politicalprocess at both the nationaland international levels. Foxhas signaled an unprecedenteddegree of openness towardNGOs. To move beyondrhetoric, however, a thorough-going reform is needed both ofthe ru les that govern th e non-profit sector and of the policyprocess itself, to guaran teemuch greater transparencyand inclusion of a wide rangeof voices.

As indicated at the beginning,political change depends t o a largeextent on the willingness of thenew governmen t to address these

and other pressing challenges togovernance. As well, however, itrequires increased openness tocivil society. In many other LatinAmerican countries undergoingdemocratization, the vibrancy ofcivil society under authoritarian-ism has tended to die out afterdemocracy has been pu t in place.Political cynicism and apathyare widespread in many newlydemocratized states, partlybecause the n ew democraticregimes fail to fulfill the promiseson the basis of which they cameto power. Avoiding this outcomeis thus one of the main challengesfacing both state and societyunder Fox.

Laura Macdonald

Carleton University



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Connectivity is one of the main competitiveadvantages an economy can have. Being connectedmeans knowledge, vanguard and prosperity; there-fore, access by our societies to communications andinformat ion system s will multiply th e possibilitiesfor human development and economic growth.

President Vicente Fox Quesada

Puebla, May 2, 2001

The challenge of defining the term democracyhas been a constant in political science, yet the

recent change of power in Mexico is proof that thecurrent concept of democracy goes beyond a mer eexplanation of controversial electoral races or politi-cal party quotas. A new lexicon is emerging and withit new forms of governance are being put in placeand linked with the traditional concept of democ-racy. The study of methods for accessing democraticregimes continues to be an essential part of the effortto classify political systems. Nevertheless, timelyresponses by governments to problems such aspoverty, corruption and lack of education, amongothers, are fundamental to the establishment as

well as consolidation of democratic institutions.

Speaking of the democratic reality in LatinAmerica, Mexican in tellectual Carlos Fuentesrecently stated in a Spanish n ewspaper that ifdemocratic institutions do not soon produce eco-nomic and social results that will benefit the masses,overcome the rift between the rich and the poor,and narrow the gaps between modern ity andtradition, we risk a return to our oldest and mostdeeply-rooted tradition: authoritarianism.1 Thenew Administration in Mexico is aware of th is plea.

Therefore, the key challenge for Mexican democracywill be the efficient implementation of a strategy forsocial developmen t with justice in a sensitiveperiod of economic growth stron gly influenced bythe slowdown of the US economy and adjustments

to the countrys national budget. The currentdilemma for Mexican decision makers is not toget by with less, but to use less more efficiently.

President Foxs Administration has set for itselfthe goal of shaping a modern democracy throughthe use of new rules for political practice and thecreation of a quality governmen t that will allowMexico to make a definitive leap forward as a nation,in both quantitative and qualitative terms.2 The newway of doing public policy management in Mexicowill require an unlimited amount of creativity, aswell as innovative tools that will slim down the listof pending and unresolved issues while ben efitinglarger sectors of the population.

In light of the latter, the Fox Administrationprivileges and promotes the use of technology asa stra tegic resource for satisfying some of the basicneeds of Mexican society. Proof of this com mitmen tis the launching of the E-Mexico system in January2001, which some have characterized as being Presi-dent Foxs most ambitious project.

The principal aim of the E-Mexico system isthe construction of a modern and m ore just countrythat enjoys full access to information and to themyriad of opportunities and advantages that implies.The first step toward reaching this goal is ensuringthat the 2,427 Mexican municipalities can communi-cate with each other, as well as with the rest of theworld. In order to make this scenario a reality, theexisting infrastructure is being interconnected, andstate-of-the-art telecommunication and networktechnology is being incorporated into the systemin order to create a mega-network that will reach

almost every corner of Mexico.

Access to the mega-network will be available atthe now called Community Telecentres, formerly,the old telegraph offices.3 The centres will be sup-

In this issue --

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The New Democratic Lexicon: The E-Mexico System

Research Brief

1 Fuentes, Carlos. Democracia latinoamericana: anhelo,realidad y amenaza in El Pas , May 15, 2001.

2 For further details, see the Introduction to Mexicos PlanNacional de Desarrollo 2000-2006presented on May 29, 2001,by President Vicente Fox Quesada.

3 Most rural and remote areas in Mexico have a telegraph office,for which rea son they were selected as key locations for theconstruction of the mega-network. As of today 1,800 telegraphoffices exist th roughout the 31 Mexican states and t he FederalDistrict.



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plied with computers to offer basic telecommunica-tion an d finan cial services, as well as access to infor-mation networks. At each Telecentre, communitieswill have access to at least one two-mega bits routethat will provide access to four gateways: one forgovernment, one for health, one for education, andone for trade. The project to create the CommunityTelecentres is taking place in two phases. From Jan-uary to March 2001, 60 were set up in rural commu-nities and rural-urban areas. From April 2001 toDecember 2003, 2,000 Telecentres are scheduled to

enter into operation. The first Community Telecen-tre was inaugurated by President Fox himself in ElSalto, municipality of Pueblo Nuevo, in the northernstate of Durango. Although it may be too much toexpect that every Mexican will possess a computerright away, the E-Mexico system will ensure thateventually it will occur. In the medium term, everyfamily will have access to a computer connectedto the Internet through the 2,000 CommunityTelecentres that will be set up in the country.

E-Mexico makes evident inter alia two charac-

teristics of what could be qualified as a modern-daydemocracy:

1) A new role for the governm ent , which act s firstas the entity responsible for determining anddefining the priorities on the national agenda,and subsequently, as the body accountable forresolving these priorities through the establish-ment of an intelligent and productive relationshipwith the pr ivate sect or and civil society. Withinthe framework of E-Mexico, the governmen t isthe coordinator of public policies, but is not the

only player responsible for responding to theemerging needs. By acting according to this newscheme, the Mexican government is burying old

paternalistic practices and instead promoting agreater equilibrium among public, private initia-tive and civil society activity. Under this innova-tive pattern, the body in charge for makingE-Mexico a reality is a Technical Committeecomprising telecommunications network special-ists, private companies with access to resourcesand the latest technology,4 public officials fromthe three levels of government5 and organizedcivil society.6

2) With the launching of E-Mexico, the Fox Admin-istration is implementing a new and unprece-dented model of development, while maintaininga local focus; the priorities have been estab-lished from the bottom up, that is, beginningwith the municipalities. There are very few, ifany, development plans in Mexico that have hada local focus.

For th e new Mexican governmen t, globalizationboosted principally by the dramatic and relentlessdevelopment of technology has presented a uniqueopportunity to make headway in the area of humandevelopment for the Mexican people. As of Decem-ber 1, 2000, Information Communication Technolo-gies have not only been included in governmentalstrategy for the first time, but have also been cata-logued and employed as an instrument of progress.Along with the spirit of this years edition of UnitedNation Development ProgramsHum an DevelopmentReportProgram,7 which was recently made publicfrom Mexico City by President Vicente Fox, thenew Mexico places technology at the very centreof human progress.

Ana Paola BarbosaEmbassy of Mexico


4 E-trade project. Such asAxtel, Lastra, Unefon, Pegaso, Iusa-cell, Telcel, Avan tel, Telm ex , among others.

5 From theNational Centre for Municipal Developmentandfrom th e National System of Municipal Information of theSecretariat of the Interior.

6 Such as the group Convergencia Digital, which is concernedwith the generation and use of content that highlights Mexicoscultural richness.

7 Human Development Report 2001 of the United Nations Devel-opment Program (UNDP): Making New Technologies Work forHuman Development.



The extraordinary performanceof the US economy from thebeginning of the 1990s to early2001 fueled much debate, evenhype, about the New Economy.The sharp decline in technologystocks and the current weaknessof the US economy only make thedebate about t he New Economythat much more interesting. Wasthe USs economic per forman ce

over the past decade an aberra-tion, or is there something funda-men tally new and of longer-termduration at work? What does itmean for public policy? Toexplore these and other ques-tions, the Policy Research Initia-tive (PRI), in partnership withFinance Canada, Industry Canadaand Human Resources Develop-ment Canada, hosted Policies forthe New Econom y, a symposium

held at Chteau Vaudreuil onJune 26-27, 2001.

The symposium opened withdiscussions about the differentproductivity growth rates of theUnited States, Europe and Canadaand whether these rates indicatethe existence of a New Economy.For many economists, the litmustest for the existence of the NewEconomy is whether there has

been a sustained increase in pro-ductivity growth.

Symposium participantswere told in the opening sessionthat longer-term US productivitygrowth has indeed increased

because of investments in infor-mation and communication tech-nologies (ICTs), and will continueto increase because the acceler-ated pace of investments in semi-conductors is likely to continuefor the medium term. Othermacro-economists argued thatless productivity evidence for theNew Economy exists for Europeand Canada, though there is some

hope that Canada might followthe United States with a lag.

The growing recognition ofthe crucial role that innovationplays in economic and produc-tivity growth served as the basisfor the second session. The ses-sion looked at how innovationhas accelerated and ch anged inOECD countries, with some morefocused attention on th e role that

clusters and other agglomerationdynam ics play in knowledge-based economic activity.

Day two of the symposiumexplored a range of policy areasfor which the New Economywould likely have importan timplications. The morning ses-sions looked at policies relatedto education, training, organiza-tional design and social policy.The implications of the NewEconomy for tax policy and fora range of legal issues occupiedthe part icipants for th e rest ofthe symposiums pr oceedings.

Rapporteur Richard Lipseysummarized the discussions by

acknowledging that the NewEconomy means different thingsto different people. Without deny-ing the importance of the discus-sion on productivity, he wasnonetheless critical of thosemacro-economists who insist totalfactor productivity is the sine quanon of the New Economy. ForLipsey, it is patent ly obvious thatICTs are general purpose tech-

nologies that are leading to radicachanges throughout th e economyand society, from reorganizingproduction and management, tomaking English th e lingua francaof the world; from altering thebasis of democracy, to makingmajor new areas of discovery fea-sible, such as genomics and nan-otechnology. Whether thesechanges are reflected in anincrease in total factor productiv-

ity or not, for Lipsey they arefairly compelling evidence tha ta New Economy has emerged andthat a range of policies needs tobe revisited in that light.

AL & GS

A number of the presentationsfrom the symposium, along withseveral articles on related issues,wi ll be published early next year ina special issue of ISUMA: CanadianJournal of Policy Research, with

guest editors Pierre Fortin andRichard Lipsey. Advance copies ofsome of the papers can be ob tainedby getting in t ouch wit h NicoleValli res of the PRI via e-mail [email protected] or by phoneat (613) 992-9356.

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Despite its constitutional structure formally estab-lished as a federal form of government since 1917,Mexico was throughout the 20th century what can beregarded as one of the most centralized political andadministrative systems of the world. This feature hasbeen explained and in more than one way justified with several arguments and visions that empha-sized the need t o centralize power and resourcesin the hands of the federal government namely inthe Presidency in order to secure a single rule thatcould promote the creation of a nation-wide market,

the supply of social services for the population, andthe construction and m aintenance of the basic infra-structure th at the development of the count ry con-tinually demanded. Beyond the rationality orcommon sense that these arguments can offer, thetruth is that all of them served adequately to create,and afterwards reproduce, a highly authoritarianregime and anti-democratic political institutionsin Mexico for more than 70 years. This is not tosay that a decentralized mode of governance couldnot be used for the same purposes, but to insiston th e close relationship that existed between the

authoritarian rule and the centralized governmentalstructure.

After the federal elections of July 2000, thecountry has initiated a period in which the previousbalance of power is being profoundly modified. Thisis particularly the case in the territorial dimension,where the formerly silent and dependent-on-federal-aid state and local governments have transformedthemselves and now play an active role in setting thepolitical agenda at an y level. This tr ansformation is,at the same time, a cause and a by-product of the

democratization process. These governments playeda key role in the upsurge and final victory of a newway to carr y out public affairs.

Several factors must be considered to under-stand the situation in Mexico. First, the emergenceof a long-scale crisis, which occurred in 1982, servedto erode the governments social support. Some of

the previously supporting entrepreneurial and mid-dle class groups, especially those located in the northof the country, decided to defy the status quo andbegan to deploy political and electoral activitiesand, as a result, the opposition parties were ableto increase substantially their resources and theirchances to reach electoral positions in both thelegislative and executive bran ches of governmen t.

Second, in t he m id 1980s, once th e chances forreaching electoral positions were open for other par-ties, new voices inside and outside the States corpo-ratist apparatus started to push for a response fromthe political system in order to cope with what wasnamed an unavoidable democratization bias.According to th is expression, the political systemwas in such a situation that the social pressure forfully democratic rule could reach uncontrollabledimensions. To avoid th e risks involved, th e systemwould have to promote change from within and, bydoing it, th e official party would be able to maintainits power. In the opposite extreme, the groups thathad opened the path for winning local elections were

suspicious of the actual intentions that the rulingparty could hide in the proposal of a democratiza-tion from within. These groups were convinced ofthe benefits that the growing differen tiation of localpolicies was producing in terms of new sources oflegitimacy for governm ents (output legitimacy),and in terms of the new solutions produced bythe democratically elected authorities to oldsocial needs and demands.1

Third, there was also a clear territorial dividebetween these two visions. On th e one h and, thenational groups those located at the federal level considered that the federal form of governmentoffered significant advantages for the implementa tionof a new era of democratic rule, and for the elimina-tion of the regional disparities that motivated much

The Path to Democratic Rule and Federalism in Mexico

Feature Columnist

1 Victoria E. Rodriguez and Peter M. Ward (eds.) Oppositiongovernm ent in Mexico, Albuquerqu e, N.M., University ofNew Mexico, 1995.



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of the oppositions act ivism. The issues stressedby this perspective insisted on the need to en sure abalance among the different regions in the country.Instead of promoting regional development on acase-by-case basis, the solution would come throughthe use of a strategy dominated by regional solidar-ity criteria. This strategy demanded that a centrecontrols the exchanges and promotes territorialequalization, through the use of nation-wide policiesand programmes. The federal government is, forobvious reasons, the best equipped to play the role

of the centre.2 On th e other hand, regional andopposition groups rejected the idea of maintaining acentralized structure. They assumed that t he use ofa centralized strategy of development was to blamefor many of the problems facing the country and itsregions. Local initiative had to be resurrected as thecentral tool for running government. This wouldinvolve the explicit avoidance of a cent ral strategy.3

Fourth, the consolidation of the electoralprocesses as the central political arena mean t th atthe two visions were sanctioned by the population

in different parts of the country, with varying resultsand one dominating trend. The results showed howthe parties and their visions have specific regionalbases of support. The trend suggested that partiescould improve their chances of electoral success bypaying attention to and serving local communities.

The final result of the combination of thesefactors is a new territorial distribution of power inwhich no single party is able to control the politicalsystem as a whole. In terms of the functioning of thefederal system, the changes have served to reducethe distance between what the Constitution pre-

scribes, especially th e distribut ion of responsibilitiesamong levels of government, and the actual practiceof inte rgovernmenta l fiscal and policy relations. Thenew federal agenda is no longer dominated by thepriorities and objectives of the federal government.A new configuration is under construction in whichthe ideological and party interests compete with theparticular economic, social and political needs ofevery region.

The role that the state level governments areperforming is, by far, the m ost significant featureof this new configuration. As I said before, this isan outcome of the democratization process, eventhough not the only one. It has to be remem beredthat the political strategy that took Vicente Fox andthe Partido Accin Nacional to win the Presidencyin July 2000 started several years before, when thefirst opposition governments appeared at the locallevel in the states of Baja California and Chihuahua.The second step was, precisely, the state level gov-ernments of Baja California, Chihuahua, Jalisco andGuanajuato.4 The demands of these state govern-

ments to change federal policies and the implemen-tation of programmes devised to obtain socialsupport in th e states tran sformed th e federal system.Opposition governors were able to defy the presiden-tial authority based upon the results of their ownadministra tions. By doing so, they were able to offera new vision of government, a vision that in manyways embraced the idea of change that became sopowerful and attractive for the population in the lastgeneral election.

Jos Sosa

El Colegio de Mxico

2 This position was clearly offered by the Programa para unNuevo Federalismo (Programme for a New Federalism) thatthe Secretara de Gobernacin (Interior Ministry) publishedin 1997.

3 The opposition governors opinions were discussed and for-malized during a Conference held in the Summer of 1995sponsored by th e Guana juatos state government. See Foro

Nacional Hacia un Autntico Federalismo: Guadalajara:

1995 Com promisos para u n au tntico federalismo,Guanajuato: Gobierno del Estado de Guanajuato, 1995.

4 Vctor Alejandro Espinoza Valle (coord.),Alternancia y transi-cin poltica: cmo gobierna la oposicin en Mxico?, Mxico:El Colegio de la Frontera Norte -Plaza y Valds, 2000.




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Universidad Nacional Autnomade Mxicos Centro de Investiga-ciones Sobre Amrica del Norte

(CISAN) is an interdisciplinaryresearch centre dedicated tothe study of the North Americanregion. CISAN first originated asa research centre for US studies.However, the changing NorthAmerican context pointed tothe n eed to broaden th e centres

research capacity to includeCanada. CISAN is home to manytop Mexican Canadianists who areextremely active in developingCanadian studies at CISAN andother Mexican institutions.

CISANs goals are to produceresearch and knowledge that leadto a better understanding of thecomplexities that define NorthAmerica, and to come to a more

comprehensive understanding ofCanada and th e United States andthe ir relationship with Mexico.

Aside from its knowledge generat-ing activities, CISAN also pro-motes dialogue and exchange ofexperiences by providing a policyspace where North Americanactors can discuss relevant issuesand make informed decisions.

The research centres work isextremely relevant and valuableto Canadian policy makers forseveral reasons. Its publications,conferences, seminars an d lectureseries not only contribute toknowledge of North Americanissues, but also provide a forumfrom which Canadian policy mak-ers can present the Canadianperspective and influence theMexican position on a numberof issues. CISAN is also importantbecause it educates and informsmany Mexican students who

eventually have a career in gov-ernmen t and t he private sector inCanada. Finally, CISANs work is

valuable because it providesCanadians with a Mexican viewof Canada and North America,often serving as a reality checkfor Canadian policy makers.

CISAN publishes both anewsletter and a journal whichmay also be of interest to Cana-dian policy makers.Am rica delNorte HOYis a monthly newslet-ter that informs readers of rele-vant events and news in NorthAmerica. Voices of Mexico isa quarterly journal publishedin English and mainly geared toa foreign audience . It deals withMexican issues as well as them esrelating to North American poli-tics, economics and culture.

For mor e information on CISAN,please consult it s web sit e athttp://www.cisan.unam.mx. Voicesof Mexico is available on t he int er-

net at ht tp://serpiente.dgsca.unam.mx/voices/2001/.

Centro de Investigaciones Sobre Amrica del Norte (CISAN)

Looking Outward

Industry Canadas Conference Opportunities

and Challenges for Canada t ook place in Calgaryon June 20-22. The conference sessions exploredNorth American linkages issues including themotivation, desirability and impacts of furtherintegration, an d different views regarding multi-national and regional trade agreements. A specialconference edition ofHorizons summarizing thediscussions will be accessible on the PRI web sitein the near future.

Soon AvailableNORTH AMERICAN LINKAGES:Opportunities and Challenges

for Canada

There are now four or five cities the size ofCleveland, Ohio, [] and 25 years from nowas much as 40%of the entire Mexican popula-tion may be living on the border. The region

is Mexicos economic engine, a huge commer-cial classroom where the unskilled workerswho were making gauze eye patches in 1980now make cash machines and modems and themost popular Sony color TV sold in the US.

For more inf ormat ion, see Nancy Gibbs, A Who leNew World, Time(Canadian edit ion ), July 11, 2001,p. 20-29.

The Mexico-US borderin Transformation


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The economic and political stability which Mexico is experiencingand the policies, plans and challenges of the new administrationresult in a number of implications for Canadian firms doing businessor planning to do business in the market.

Tougher competition for the Mexican market demands that Cana-dian firms establish a strong market presence and access essentialmarket intelligence. Partnerships with Mexican firms are thereforea key strategy, but partners will need to be evaluated more closelythan ever before to ensure that t hey have the requisite techn ical,

financial and marketing capability to match and beat competition.

Canadian firms do have some competitive advantages on theirside. Firstly, Mexico sees Canada as a valuable par tner, and some-times m odel, for th e significant political, social and economicchanges it is intent on undertaking. Canadian companies can buildon this synergy. Secondly, Canadas NAFTA relationship with Mex-ico generally remains privileged in the face of Mexicos other freetrade agreements. In particular, Canada retains the lowest overalltariff levels with Mexico and has a good foothold in many sectors.

Opportunities will emerge for Canadian companies to play abigger role in such sectors as electric power, natural gas, andtelecommunications as the reform process moves forward. Sig-nificant opportunities will continue to develop with the large,industrial conglomerates (Grupos) who have established theirinternational creditworthiness. In th

jose sosa on mexican federalism

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