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A coalition of Ciudad Juarez business groups made a joint pitch yesterday, Nov. 11, for the United Nations to send U.N. peacekeepers to the city to help subdue continued drug-related violence.  The coalition, which represents sectors from the maquiladora plants to retail, stated its intent to submit a proposal to the Mexican government and the Inter-American Human Rights Commission to formally ask for U.N. assistance.

The last week brought several positive developments for the Calderón administration.  First, the Mexican Senate approved the revenue portion of President Calderón’s 2010 budget bill.  Despite strong resistance from opposition parties and much of the business sector, the bill was passed with few changes from the lower house-approved version.

Although estimates of the number of American citizens residing in Mexico are varied, most analysts conclude that there are about 800,000 to 1.2 million living in Mexico.  Many of these citizens are retirees seeking to take advantage of Mexico’s much lower cost of living.  One of the biggest impediments to retiring in Mexico, however, is the inability of retirees to access Medicare benefits while in Mexico.  This issue presents numerous problems for these retirees.

Since Wednesday, U.S. authorities have arrested 303 people, in a nationwide raid that targeted the La Familia Mexican drug ring. Supporting the raid, Attorney General Eric H. Holder commented, “These are drugs that were headed for our streets and weapons that often were headed for the streets of Mexico.”  The operation was part of a 44-month investigation named Project Coronado, and took place in 38 U.S. cities. 

Duncan Wood

Office of the William E. Simon Chair

Since the closing of Mexico City’s electricity provider, Luz y Fuerza del Centro (LyFC) on October 10th, massive protests, intense political debate and close media attention (both national and foreign) have focused on the issue. The government and its supporters argue that the losses of the monopoly, requiring $1.9 billion a year in subsidies, were unsustainable and that the people of the valley of Mexico deserve a better service than the one they were receiving.

Duncan Wood

Office of the William E. Simon Chair

The water problems of the Federal District and the valley of Mexico highlight many of the broader challenges facing Mexico. A lack of investment in infrastructure, a failure to plan ahead in terms of urban services, and an inability to adapt to rapidly changing conditions have meant that the people of this region are confronting a serious crisis that will only worsen as climatic conditions change and the population increases. This is the first of a number of blog entries that will look at the water problems of the Mexico City area.

Speculation is increasing that Manilo Fabio Beltrones, a member of the Institutional Revolutionary Party (PRI), will bring a formal request before the Mexican Supreme Court this week that may end with Citigroup being forced to sell off its Mexican subsidiary, Banamex.  Following the U.S. purchase of a 34 percent stake in Citigroup as a result of the financial crisis, members of the Mexican Senate pointed out that this violated Mexican law, which forbids foreign governments from owning a share in domestic banks.

As a result of the recent economic crisis in the United States, economic ideology has shifted from dogmatism to pragmatism.  Statements such as private markets are self-correcting or Keynesian economics is dead, while still espoused, have shown themselves bereft of the ability to add insight to current economic policymaking.  Instead, current debates, such as focusing on the proper mix of the government and private sector in stimulating the economy, have adapted a more flexible approach to solving the recent economic downturn.