Pena Nieto Shakes Things Up in Mexico, But Tough Work Only Just Beginning Adam Thomson - The Financial Times
go to original December 4, 2012

How long should you wait before judging a president? One hundred days? A year? Perhaps more than that. What is certain is that in Mexico, where Enrique Peña Nieto was sworn in as head of state on Saturday, people are already starting to talk.

The reason is that the 46-year-old former state governor provided the nation with a surprisingly pointed speech as he donned the presidential sash. Much more specific on policy than previous inaugural speeches, Peña Nieto hit two themes that have plagued Mexico and its development: education and competition policy.

And he hit them hard. First came education where he said he would shortly send a bill to congress to overhaul the current system, which most people agree is inefficient and where jobs and promotions are handed out on the basis of contacts rather than ability.

“There will be clear and precise rules,” said Peña Nieto, “so that anyone who aspires to enter, remain and climb as a teacher, director or supervisor, does so based on effort and merit.”

That must have sounded something akin to a declaration of war to Elba Esther Gordillo, the imposing and powerful leader of the teachers’ union, who has used her position and the status quo to gain huge political and economic power.

Next up was competition policy and, more precisely, an urgent news bulletin for Mexico’s two colossal television networks, Televisa and Azteca, which, together, account for practically all of the country’s free-to-air viewing.

Peña Nieto said that in the coming months, he would open the bidding for two new television networks in what could amount to a significant increase in competition for two of the country’s most powerful business groups. Indeed, to the two incumbents, the announcement must have felt like the crushing blow of a sledgehammer.

There was a lot more than that, including, on Sunday, the signing with Mexico’s main political parties of a pact to promote Mexico’s development around five themes. The document is long (though it’s worth reading). But its signing by party leaders may provide an initial clue about Peña Nieto’s ability to forge political agreements that have hitherto proved impossible.

The tough work is only just beginning. But Peña Nieto has sent a clear signal that he is prepared to shake things up to bring about the reforms needed to turn Mexico into one of the world’s high-growth emerging markets. Gordillo of the teachers’ union may not agree, but that’s the political equivalent of a straight A.

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