Just over 100 years, the journalist and historian, Francisco Bulnes published his famous book "Big Lies of our history," which demystified the life and deeds of Santa Anna. If at that time it was imperative to decode the lies, now our deficit is true. Felipe González, former English Prime Minister, said not long ago that Mexicans seem to be afraid of the truth and that fear leads to irresponsibility and that's perhaps the main source of paralysis today. When not facing the truth, the candidates promise the moon and the stars and no one can require that they meet because everyone knows at the outset that no more than a game. The problem is that this game is costing us the viability of the country.
It is no surprise that we face enormous problems. That's not unusual in the life of people or countries. What is unusual is no longer the absolute unwillingness to confront and solve them, but even to discuss them. The problems were not discussed but are circumvented because we face is politically incorrect. This leads to raise and discuss bills that are not susceptible to attack the underlying problems, which are adjusted to proposals that the legislature can tolerate and not what is required, or who simply evading the relevant issues.
This only nurture the circle of mistrust that characterized the relationship between politicians and citizens and, worse, to settle the cynicism that is the cousin of pessimism that pervades Mexican society nowadays.
dilemmas, wrongs and challenges facing the country can not be ignored. What follows is a small list of some of the most obvious.
- Oil is running out. It is true that traditional techniques can be exploited with improved technologies, but oil as a source of deficit financing and all the dreams of our politicians and, therefore, as a means of escape from reality is coming to an end. However, in recent years adopted a new regime for Pemex and decided to build a new refinery, none of which is appropriate to the current reality. Instead of recognizing the fiscal realities of the country and provide the parastatal of a functioning internal governance and sound, time passes without anything happening. Pure dreams.
- The other side of oil issue is the prosecutor. The financing structure of public expenditure is very poor, evasion is enormous, the bureaucracy in charge of tax collection impenetrable and, above all, the system promotes evasion and encourages the continued growth of the informal economy.
- The informal economy is the only sector that is growing steadily, but, paradoxically, is the only one who has absolute limits to growth. There are more and more Mexicans involved in the informal economy (some estimate includes up to two thirds of the economically active population) and this represents between a third and half of the total economy. The problem of the informal economy is that companies in the world can not achieve sufficient scale to thrive because they will not attract the attention of tax authorities or labor, but mainly because they lack access to credit, without which growth is impossible. The existence of the informal economy is the best proof of how bad our tax and labor policies.
- labor legislation was designed to satisfy the large unions and guarantee a generous system of benefits to trade union leaders in exchange for political control that they will contribute to the system . This system equalized the policy needs work 80 years ago, but today has become a burden for the country's development. What is needed is flexibility, ability to create and destroy businesses, transfer assets and create jobs appropriate to a service economy as the 21 century, totally different from the basic industry of the 30 of the last century. The union opposition to any change is understandable, but the sacrifice of the other 95 percent of the population is a little expensive ... is impossible to build a modern country while four or five unions extort the government.
- On taxes, the starting point is the suspicion, the authorities do not trust the public, why have developed a web of requirements, procedures, reports and payments only an army of accountants can meet. The result is a huge bias in the tax revenue that actually promotes evasion. As in the labor field, a modern country that aspires to be successful in leading sectors and economic development activities can not operate unless it has a collection system that simplifies and facilitates compliance with tax obligations, but above all, part of the responsibility and trust. Tax bureaucracy is as guilty of poor revenue such as tax evaders that they only use the system.
- The judicial system is one of our ills. On the executive side, government ministries are a disgrace: incompetence requires a total rethinking of corruption or sheer inability. On the side of the judiciary, the Supreme Court, although timid to assume its constitutional, has become a central pillar of governance in the country. However, the entire court system fails to meet its core purpose: they spend loads of money, but justice is not forthcoming. Not that everything is corruption, but everything is designed so that nothing works.
We have an extraordinary propensity to blame instead of finding solutions, or even clarify the nature of the problems. You can not expect the economy to function as fiefdoms prevail, privileges and preserves power. Can not create a competitive environment are excluded before you start, key sectors across the economy, such as oil, electricity and communications . Interest can be very powerful, but while the issues are not discussed in public is impossible to begin to defeat them, and reluctance to do it just being an accomplice. Things have to call them by name, and Mexico is a deep fear to address the issues that paralyze. "The people who does not love the truth," said Machiavelli, "is the natural slave of all evil."
It is no surprise that we face enormous problems. That's not unusual in the life of people or countries. What is unusual is no longer the absolute unwillingness to confront and solve them, but even to discuss them. The problems were not discussed but are circumvented because we face is politically incorrect. This leads to raise and discuss bills that are not susceptible to attack the underlying problems, which are adjusted to proposals that the legislature can tolerate and not what is required, or who simply evading the relevant issues.
This only nurture the circle of mistrust that characterized the relationship between politicians and citizens and, worse, to settle the cynicism that is the cousin of pessimism that pervades Mexican society nowadays.
dilemmas, wrongs and challenges facing the country can not be ignored. What follows is a small list of some of the most obvious.
- Oil is running out. It is true that traditional techniques can be exploited with improved technologies, but oil as a source of deficit financing and all the dreams of our politicians and, therefore, as a means of escape from reality is coming to an end. However, in recent years adopted a new regime for Pemex and decided to build a new refinery, none of which is appropriate to the current reality. Instead of recognizing the fiscal realities of the country and provide the parastatal of a functioning internal governance and sound, time passes without anything happening. Pure dreams.
- The other side of oil issue is the prosecutor. The financing structure of public expenditure is very poor, evasion is enormous, the bureaucracy in charge of tax collection impenetrable and, above all, the system promotes evasion and encourages the continued growth of the informal economy.
- The informal economy is the only sector that is growing steadily, but, paradoxically, is the only one who has absolute limits to growth. There are more and more Mexicans involved in the informal economy (some estimate includes up to two thirds of the economically active population) and this represents between a third and half of the total economy. The problem of the informal economy is that companies in the world can not achieve sufficient scale to thrive because they will not attract the attention of tax authorities or labor, but mainly because they lack access to credit, without which growth is impossible. The existence of the informal economy is the best proof of how bad our tax and labor policies.
- labor legislation was designed to satisfy the large unions and guarantee a generous system of benefits to trade union leaders in exchange for political control that they will contribute to the system . This system equalized the policy needs work 80 years ago, but today has become a burden for the country's development. What is needed is flexibility, ability to create and destroy businesses, transfer assets and create jobs appropriate to a service economy as the 21 century, totally different from the basic industry of the 30 of the last century. The union opposition to any change is understandable, but the sacrifice of the other 95 percent of the population is a little expensive ... is impossible to build a modern country while four or five unions extort the government.
- On taxes, the starting point is the suspicion, the authorities do not trust the public, why have developed a web of requirements, procedures, reports and payments only an army of accountants can meet. The result is a huge bias in the tax revenue that actually promotes evasion. As in the labor field, a modern country that aspires to be successful in leading sectors and economic development activities can not operate unless it has a collection system that simplifies and facilitates compliance with tax obligations, but above all, part of the responsibility and trust. Tax bureaucracy is as guilty of poor revenue such as tax evaders that they only use the system.
- The judicial system is one of our ills. On the executive side, government ministries are a disgrace: incompetence requires a total rethinking of corruption or sheer inability. On the side of the judiciary, the Supreme Court, although timid to assume its constitutional, has become a central pillar of governance in the country. However, the entire court system fails to meet its core purpose: they spend loads of money, but justice is not forthcoming. Not that everything is corruption, but everything is designed so that nothing works.
We have an extraordinary propensity to blame instead of finding solutions, or even clarify the nature of the problems. You can not expect the economy to function as fiefdoms prevail, privileges and preserves power. Can not create a competitive environment are excluded before you start, key sectors across the economy, such as oil, electricity and communications . Interest can be very powerful, but while the issues are not discussed in public is impossible to begin to defeat them, and reluctance to do it just being an accomplice. Things have to call them by name, and Mexico is a deep fear to address the issues that paralyze. "The people who does not love the truth," said Machiavelli, "is the natural slave of all evil."
Luis Rubio
www.cidac.org
www.cidac.org
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