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Reversal of Fortunes: Changes in the Public Policy Environment and Mexico’s Energy Reform

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Abstract

From recent reexaminations of the relationship between politics and public policy, it has been found that the structure of public policy produces its own politics, just as politics produces its own type of public policy . The argument is that public policy generates its own incentives and resources and provides actors with information and cues that encourage their political views and convictions, but they also influence other actors – including political opposition groups, interest groups, and the masses – to articulate their own alternatives more accurately and push back, sometimes threatening public policies that appeared to have enjoyed a broad political consensus.

Recent developments in Mexico do suggest that the public policies of the last three decades have indeed produced significant political consequences – and resistance – all of which now threaten the sustainability of the public policies of democratization and liberalization that the country has pursued over the last three decades. The main political consequence is observable in the electoral results of 2018. The last general election caused a major change in the political and policy alignment of the country because the winning party of the presidency and both chambers, The National Regeneration Movement (MORENA) , is a relatively new Leftist political party that ran against the country’s status quo.

To explore these feedback loop dynamics and the resulting shift in the policy environment we focus on energy reform precisely because it came to be identified as the last (and major) step in what had been a steady pursuit of economic liberalization – or, as MORENA put it, the ultimate symbol of neoliberal politics that had to be reversed.

Tony Payan, Ph.D., is the Françoise and Edward Djerejian Fellow for Mexico Studies and director of the Mexico Center at the Baker Institute. He is also a professor at the Universidad Autónoma de Ciudad Juárez. He has a doctorate degree in international relations from Georgetown University and his research focuses primarily on border studies, particularly the US-Mexico border, border governance , border flows and immigration, as well as border security and organized crime . Email: tony.payan@rice.edu.

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Notes

  1. 1.

    Secretaría de Relaciones Exteriores (2012). Pacto por México; at: https://embamex.sre.gob.mx/bolivia/images/pdf/REFORMAS/pacto_por_mexico.pdf (8 January 2019).

  2. 2.

    This is a general observation, as Mexico has received various rankings on both scores by different organizations. On politics, Varieties of Democracy shows substantive progress on certain components of Mexico’s liberal democracy (see https://www.v-dem.net/en/news/liberal-democracy-mexico/), but others show a deterioration on many scores, including The Economist , which labels Mexico a flawed democracy (https://www.economist.com/graphic-detail/2018/01/31/democracy-continues-its-disturbing-retreat), Freedom House , which ranks Mexico as only partly free (https://freedomhouse.org/report/freedom-world/2018/mexico), and Transparency International , which places Mexico 29th out of 100 countries, primarily due to high levels of corruption (https://www.transparency.org/country/MEX#), as well as The World Justice Project, which downgrades Mexico on rule of law issues (https://worldjusticeproject.org/sites/default/files/documents/WJP-ROLI-2018-June-Online-Edition_0.pdf). On economic freedom, Mexico has been ranked as number 60 out of 177, indicating that progress has been made, but there is much more to be done (https://www.theglobaleconomy.com/rankings/economic_freedom/) (All accessed on 8 January 2019).

  3. 3.

    Centro de Estudios Sociales y de Opinión Pública (2008). “Iniciativa de Reforma en Materia Energética” (April).

  4. 4.

    “Make or Break for Peña Nieto: Mexico’s President Should Push for a Bolder Energy Reform .” 2013. The Economist (23 November). See at: https://www.economist.com/leaders/2013/11/23/make-or-break-for-pena-nieto (8 January 2019). Time magazine showed Mr. Peña Nieto on its 13 February 2014 cover with the headline reading Saving Mexico.

  5. 5.

    There is a demonstrable link between economic growth and energy. This is certainly the case in Mexico. It is sufficient to examine the link between Mexican power production and manufacturing and the Texas natural gas that fuels it. See Travis Bradford (2017) Adrian Duhalt (2018).

  6. 6.

    See, for example, Kehoe (2010) and Hanson (2012) .

  7. 7.

    In a poll conducted in May 2018 Consulta Mitofsky also asked: “Do you believe that the next president of the republic must carry out a complete change, some change, or no change?” Around 58% of Mexicans answered that the next president must carry out a complete change and 26% expressed their desire for some change. Only a little over 6% believed that the country should stay the course. See Consulta Mitofsky (2018) .

  8. 8.

    Article 19 . “Mexico and Central America.” See: https://www.article19.org/regional-office/mexico-and-central-america/ (8 September 2018).

  9. 9.

    Etellekt (2016) .

  10. 10.

    See WikiLeaks at: https://search.wikileaks.org/plusd/ (8 September 2018).

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Payan, T. (2020). Reversal of Fortunes: Changes in the Public Policy Environment and Mexico’s Energy Reform. In: Le Clercq, J., Abreu Sacramento, J. (eds) Rebuilding the State Institutions. Springer, Cham. https://doi.org/10.1007/978-3-030-31314-2_14

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  • DOI: https://doi.org/10.1007/978-3-030-31314-2_14

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