Mexico: A Hard Road for Reforms

By Tom Long

Enrique Peña Nieto by Edgar Alberto Domínguez Cataño | Flickr | Creative Commons

Enrique Peña Nieto by Edgar Alberto Domínguez Cataño | Flickr | Creative Commons

During the campaign, Mexican President Enrique Peña Nieto proclaimed in thousands of advertisements, “Me comprometo y cumplo” – I make a promise and I keep it.  Offering a list of potentially transformative reforms – regulations, security, telecommunications, energy, and more – he began with one of the most intractable:  the struggling public education system.  In December, at his instigation, the Mexican congress passed a constitutional reform to create stricter standards for teachers and move hiring authority from the teachers’ union to the government.  Enough states had ratified the amendment by the end of February to make it law.  After years of stagnation and interest-group politics, education reform suddenly became politically expedient, passing with support from the PRI, PAN, and PRD.  Last week, the government put an exclamation point on the reform by arresting the teachers’ union boss, Elba Esther Gordillo, on charges of using her post for illicit gains surpassing $100 million.  A PRI apostate whose opposing alliance was credited with helping former President Felipe Calderón win his razor-thin victory in 2006, she was not just expendable, but an obstacle.

According to OECD education data, just 45 percent of Mexican students complete their secondary education, though the rate has improved over the last decade.  Mexico spends 3.7 percent of GDP on primary and secondary learning, — less than Chile, Argentina, and Brazil but in line with the OECD average.  Experts believe that Mexico’s educational  problems are largely political, not budgetary.  A full 97 percent of spending goes to salaries, feeding a teachers’ union that has a history of patronage and graft.  The problem has deep roots in the clientelistic structure through which the old PRI governed during its 70 years in power before losing in 2000 – and with which the PAN governments coexisted for 12 years.

The storyline shares certain similarities with PRI President Carlos Salinas’ sacking of the head of oil workers’ union in the 1990s, presaging limited reforms in that sector.  Peña Nieto probably intends the removal of the most visible representative of old-style patronage politics as a clear signal that the PRI will not bring back the bad old ways – despite the possible appearance of the firing and arrest being driven by revenge – but the reform legislation is widely seen as a positive step forward.  Rhetorically at least, the major parties have agreed to a multi-pronged effort for more reforms in the “Pact of Mexico.”  However, forging consensus on further reforms will be more difficult, as entrenched PRI politicians at the local level are already resisting many of the president’s proposals.  The PAN and PRD are already criticizing Peña Nieto for being too cozy with media barons and for handling telecommunications reform behind closed doors.  Security policies and proposed energy reforms are more contentious still.  Reforming other sectors will require going after harder targets than Gordillo and will pose greater tests of Peña Nieto’s ability to win votes in the Mexican Congress.

After Chávez?

Photo by:     UKBERRI.NET Uribe Kosta eta Erandioko agerkari digitala | Flickr | Creative Commons

Photo by: UKBERRI.NET Uribe Kosta eta Erandioko agerkari digitala | Flickr | Creative Commons

Venezuelan President Hugo Chávez’s solemn appearance on national television on December 8 may have marked more than his departure for a fourth round of cancer treatment in Cuba.  His designation of Vice President and former Foreign Minister Nicolás Maduro as his successor in the event he could not continue his duties indicated an initial farewell from politics as well – with wide-ranging implications in- and outside Venezuela.  Chávez asked “with all my heart” that his supporters elect Maduro to continue the Bolivarian revolution in the event of his death or inability to continue his mandate, with a clear eye to the constitutional requirement for emergency elections to be held within just 30 days should the president die or become incapacitated within the first four years of the term.  On Tuesday, Maduro announced that the president was recuperating after a six-hour procedure in Havana.  He did not declare a sure and speedy recovery but rather asked for Venezuelans’ prayers.

Speculation about the domestic scenario, including struggles within the ruling party, is intense.  Maduro’s most frequently mentioned rival to succeed Chávez is Diosdado Cabello, who was also alongside Chávez as he made the announcement last week.  While Maduro and Cabello both have had years of government experience and demonstrated political loyalty, questions remain about whether they – or anyone else – could replicate Chávez’s connection with poor voters and keep their weak political party together.  Informed speculation about the long-term impact on the region, if the succession stumbles, ranges from predictions of a cutoff of subsidies and subsidized oil, that would destabilize Cuba, Nicaragua and others to, among those who never saw Chávez as effective regionally, shrugged shoulders.

An even greater unknown is how well the opposition would do in the event of a snap election.  It is far from certain that these forces would re-unite around former candidate Henrique Capriles so shortly after he lost the October 2012 election.  The new system of primary elections that produced the single candidate last year would be difficult to replicate so quickly.  With both the ruling and opposition parties vulnerable to tensions and splits, a scenario of instability could easily result.  If Chávez’s health permits, he could conceivably resign the presidency and oversee elections that, although probably skewed, will help maintain the institutional order. If Venezuela is indeed on the brink of a succession process, the fortunes of both Chavismo and the opposition, and indeed of the Venezuelan population, will depend in large part on the capacity of both sides to maintain unity around alternative candidates for the Presidency.

Peru: Humala’s Difficult Balancing Act

Photo: Peruvian mine | Mihai (clandestino_20) | Flickr | Creative Commons

Peru’s new cabinet installed in July – President Ollanta Humala’s third since his inauguration a year earlier – faces the daunting task of sustaining national development while increasing social enfranchisement.  The reshuffle came amid loud criticism of a crackdown, which killed five people, on protests against the proposed $5 billion Conga mining project in Cajamarca.  The incident underscored the difficulty for Humala as he endeavors to implement a dual strategy of capitalizing on the growth potential of Peru’s mining industry – primarily gold and copper (60 percent of exports) – while respecting community concerns about the environmental consequences of extraction.  Mining wealth is needed to improve the lives of ordinary people –28 percent of Peruvians live in poverty – but unlike preceding governments this administration has committed itself to consultation with residents of localities that will be affected directly.    The new prime minister has announced suspension of the Conga project until the U.S. mining company involved provides better environmental guarantees.

Humala’s popularity has plummeted.  Despite new laws increasing Peru’s mining revenue, the creation of a new Ministry of Social Inclusion, and a new Prior Consultation Law, indigenous protesters feel betrayed by Humala.  They accuse him of continuing the aggressive extractive policies of his predecessor, Alán García, and insist his administration has not given adequate attention to concerns of local communities on issues such as the integrity of the water supply in zones affected by the mining ventures.  Recent signs of a resurgence in violence by the Sendero Luminoso (Shining Path) guerrillas and of setbacks in efforts to curtail the influence of the narcotics trade are also eroding Humala’s support.

Humala narrowly won the presidency as a center-left candidate, committed to creating a framework for the more equitable distribution of the wealth generated by Peru’s natural resources.  Now, some of his political allies say he has courted foreign investment for the mining sector without adequate consultation, and further protests seem likely.  Humala’s challenge is not unlike that of other countries, including Bolivia and Ecuador, trying to balance between these competing interests.  His success or failure will have an impact beyond Peru’s borders, as South American countries dependent on commodity exports struggle to walk the tightrope between satisfying foreign investors and domestic electorates.

El Salvador’s “Constitutional Crisis”

Photo by: rosaamarilla via Flickr http://www.flickr.com/photos/amccy/3395160591/

A months-long political feud over the Supreme Court in El Salvador has blossomed into what observers are calling a constitutional crisis.  The first shot was fired in April when legislators from the FMLN engineered a “legislative decree” to replace five court Magistrates, the outgoing Assembly’s second shot at choosing justices during its three-year term.  The court’s Constitutional Chamber in June declared the decree unconstitutional – because each Legislature gets to vote only once for Magistrates.  At the same time, the Chamber invalidated a similar move by the opposition ARENA party affecting Magistrates chosen in 2006.

The theater came to a head this month when two feuding Supreme Courts met in different wings of the same building and claimed legitimacy – one with five members elected in 2009 and the other with the 10 invalidated members.  The rightwing ARENA party and its allies in Washington are claiming the crisis represents a shift against democracy by the FMLN.  Two Cuban-American members of the U.S. Senate have called on the Obama Administration to impose sanctions – principally suspending negotiations on a second Millennium Challenge Corporation compact potentially worth hundreds of millions of dollars – if the crisis is not ended quickly and in the manner they wish.  The Inter-American Commission on Human Rights (IACHR) has called for prompt resolution, and the U.S. Ambassador in San Salvador and the State Department have expressed “concern.”  A Washington Post editorial this week lambasted the FMLN for shifting toward Chávez-style authoritarianism and President Funes for failing to stop it.

This episode reflects maneuvering within the FMLN – fueled by frustration that President Funes’s soft line toward ARENA has only weakened the party’s influence – and poor judgment among activists on where and how to pick the fight.  The legislators rushed the decree because they anticipated correctly that they were about to lose control of the Assembly in elections several weeks later.  The crisis falls into a much more ominous pattern, however, in that – like the coups in Honduras (2009) and Paraguay (2012) – the right wing and its coreligionists in Washington exploit events to challenge the democratic credentials of a democratically elected reformist government to rationalize weakening it, while the Obama Administration responds timidly.  ARENA is again demonstrating its superior lobbying skills in Washington, which have already severely disadvantaged President Funes on issues such as relations between his security cabinet and its U.S. counterparts – resulting in a serious erosion of his own influence over security issues.  If the current political impasse is not resolved to the satisfaction of U.S. conservatives, Washington’s threats – ironically directed against the Administration’s “best friend” in Central America – will likely continue and relations will be strained, further persuading hardliners around Funes that moderation pays no dividends.

Washington Politics: Fast and Very Furious

Photo by Ryan J. Reilly via Flickr, using a Creative Commons license

The operation codenamed “Fast and Furious” remains a hot topic in Washington two years after it went awry.  Conducted by the Bureau of Alcohol, Tobacco and Firearms and Explosives (ATF), the operation was intended to monitor the flow of weapons – through a “controlled delivery” – from Arizona gun dealers into the illegal channels by which tens of thousands of arms clandestinely enter Mexico each year.  Tracking the arms would allow the U.S. Government to disrupt the network.  However, ATF lost track of the weapons – and they reached their intended buyers.  The failure was made worse when traces showed that two of the weapons were used to kill a U.S. Border Patrol agent near the Mexican border in December 2010.

While both political parties in Washington have expressed disappointment, the Republicans have made the failed operation the centerpiece of efforts to weaken Attorney General Eric Holder (ATF is an agency of the Department of Justice, over which the Attorney General presides) and to discredit President Obama, according to numerous press reports.  The vote in the House of Representatives last week [[June 28]]to find Holder “in contempt” – for not handing over all of ATF’s internal documents on Fast and Furious that the Republicans demanded – was a party-line vote.  Many Democrats walked out of the chamber.

The political maneuvering around Fast and Furious has nothing to do with foreign policy, but the weakening of ATF undermines what modest efforts were under way to stanch the flow of illicit arms into Mexico and Central America.  “Controlled deliveries” are a standard operation for intelligence and law-enforcement agencies, and every agency involved in border issues has suffered similar mistakes.  ATF is the smallest such agency (2,500 special agents compared to FBI’s 13,400 and DEA’s 5,500) and is therefore more vulnerable to the internecine backstabbing.  In addition, ATF’s enforcement of laws relating to the use, manufacture, and possession of firearms often puts it at odds with American politicians who feel the agency threatens their interpretation of the gun rights under the Second Amendment of the U.S. Constitution.  The attacks on the ATF appear intended to weaken enforcement of U.S. law and embarrass the Attorney General and the President.  The obstacles to a sound policy of limiting the flow of weapons into Latin America are evidenced by the virulence of the debate over Fast and Furious.