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Anti-hunger campaign failed to meet its goal and is short 1.6 billion pesos

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Ex-president Peña Nieto visits a hunger crusade kitchen in 2015.
Ex-president Peña Nieto visits a hunger crusade kitchen in 2015.

The previous federal government’s main anti-poverty strategy not only failed to achieve its key objective to end hunger but also swallowed up more than 1.6 billion pesos (US $79.5 million) that is unaccounted for, statistics and audits show.

The National Crusade Against Hunger (CNCH) was announced by former president Enrique Peña Nieto in December 2012 and officially launched the following month at an event in Chiapas.

Its ambition was large: eradicate hunger in Mexico.

But recent statistics show that almost six years after the initiative was implemented, there are still more than 20 million Mexicans who don’t have access to enough food.

And now a new analysis of data from the National Institute of Statistics and Geography (Inegi) and the federal Secretariat of Health reveals that deaths from malnutrition or related illnesses increased in almost four of every 10 municipalities covered by the CNCH in its first phase.

Conducted by a team of journalists from two media organizations – Milenio and La Silla Rota – and an analyst from the non-governmental organization Data Cívica, the study shows that at least 33,668 people died in Mexico from malnutrition between 2014 and 2017 and just under half of those deaths occurred in municipalities where the CNCH was in place.

Deaths from malnutrition, which according to the World Health Organization refers to deficiencies, excesses or imbalances in a person’s intake of energy and/or nutrients, went down in 209 — 47% — of the 444 municipalities where the CNCH was implemented in 2013.

However, deaths rose in 173 municipalities, or 39% of the those included in the crusade, and the mortality rate from malnutrition remained the same in 62 municipalities or 14% of the total.

All told, 53% of municipalities where the CNCH was implemented saw no improvement in the rate of hunger-related deaths.

While 77.8% of the people who died from malnutrition between 2014 and 2017 were elderly, 311 children aged 12 or younger also died in municipalities where the anti-hunger crusade was in place despite one of its five main objectives being to eliminate childhood nutrition.

Marasmus – a form of severe malnutrition seen in countries where famine is present – claimed the lives of 160 people in municipalities covered by the CNCH.

Statistics from the social development agency Coneval also show that the percentage of people with inadequate access to food fell by a similar figure in municipalities where the crusade wasn’t implemented as those where it was.

In the former, the figure fell by 3.1% between 2010 and 2015 (no new data will be available until the 2020 census is conducted) to 20.9% of the population, whereas in the latter the number of people with inadequate access to food dropped by an only marginally better 3.3% to 22.3% of the population.

In 31% of the municipalities where the CNCH was implemented, residents’ capacity to access food became worse in the same five-year period.

A contributing – or perhaps primary – factor in the failure of the crusade against hunger to achieve its main goal is that funding allocated to the initiative likely didn’t reach its intended target in many cases.

Between 2013 and 2016, the government agencies charged with implementing the CNCH failed to explain how 1.63 billion pesos – 71% of the initiative’s entire budget – was used, according to the Federal Auditor’s Office (ASF).

The ASF has filed 13 criminal complaints with the federal Attorney General’s office (PGR) against the Secretariat of Social Development (Sedesol) and the Secretariat of Agriculture (Sagarpa) with respect to 917 million pesos (US $45.6 million).

Five criminal complaints stemming from a 2013 audit, including one relating to 845.5 million pesos, allege that Sedesol, the Autonomous University of México state and the Autonomous University of Morelos participated together in an embezzlement scheme.

The federal secretariat, which between 2012 and August 2015 was headed by Rosario Robles, awarded contracts to the universities to implement CNCH programs but auditors found a range of classic examples of corruption: services paid for were not provided, overpayments, the use of shell companies and fabricated financial documents, among other irregularities.

The ASF also uncovered conflicts of interest, such as the case of Hugo Manuel del Pozzo, who was the legal representative of a company that was supposedly subcontracted by the México state university to provide CNCH-related services as well as the same university’s financial director.

Del Pozzo was arrested last year for allegedly diverting 16 million pesos paid by the Oaxaca government for a contract not related to the CNCH.

Another main crusade goal was to boost food production and the income of small farmers, an objective that Sagarpa was charged with achieving.

However, the secretariat has not explained how it used 59 million pesos allocated for that purpose between 2013 and 2018.

A criminal complaint filed by the ASF in August says that an audit of the 2013 Sagarpa accounts detected that 362 farmers to whom the Secretariat of Agriculture said it had provided financial or material aid were in fact dead.

Auditors also found that Sagarpa had paid excessive prices to acquire materials that were distributed to farmers as aid.

Former Sedesol chief Robles, who has also been implicated in other alleged corruption schemes, said she didn’t dispute the statistics cited by the Milenio/La Silla Rota/Data Cívica investigation in relation to deaths from malnutrition but nevertheless defended the CNCH.

“I believe that the crusade was a great interdisciplinary effort by [government] secretariats. We reached 30,000 locations where no public policies had reached before,” she said.

“[The key objective] wasn’t achieved but hunger decreased and that’s something that is very important,” Robles added.

The former cabinet secretary conceded that a single death due to malnutrition represented a failure of the CNCH but stressed that three million people who were in situations of extreme poverty now have food to eat including “children who went to school without anything in their stomachs [and] women who took food out of their mouths so that their children had something to eat.

The investigative team pointed out to Robles that Coneval statistics showed that in fact only two million people had seen their access to food improved under the CNCH and that millions more remain in the same precarious situation as before and therefore have nothing to celebrate.

“Accept that at least,” the investigative reporters said to the ex-secretary. “No, yes, of course, of course,” Robles responded.

Source: Milenio/ La Silla Rota (sp) 

Los Pinos plays leading role in screening of award-winning Roma

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An aerial view of the screening of Roma at Los Pinos.
An aerial view of the screening of Roma at Los Pinos.

Los Pinos, which until last month was the official residence of the Mexican president, continues to enhance its reputation as the new people’s palace.

President López Obrador opened the doors of the opulent home to the public for the first time on the day of his inauguration earlier this month, a move that has drawn thousands of visitors to see where presidents have lived since 1934.

Then last Thursday, there was another reason to visit. More than 3,000 people flocked to Enrique Peña Nieto’s former digs for a special screening of the new Mexican film Roma.

Despite the cold weather, film lovers lined up for more than two hours to ensure they got a spot on the grounds in front of the 120-square-meter screen.

Palomitas y ponche, or popcorn and (non-alcoholic) punch – a popular Christmas drink – were handed out free of charge to the most punctual arrivals.

Before the film, which has been nominated for three Golden Globe Awards, Oscar-winning director Alfonso Cuarón appeared on screen to offer a message to the attendees.

“Does it still smell of sulfur or has it been aired out now?” he asked about the presidential mansion, taking a cue from former Venezuelan president Hugo Chavez’s comment about George W. Bush before he delivered a speech to the United Nations General Assembly in 2006 a day after the former U.S. president had done the same.

The reference to sulfur was meant to imply that the devil — in the form of Bush — had preceded him.

After Cuarón’s introduction, filmgoers sat back for the next 135 minutes and watched the drama of Roma unfold

The protagonist, Cleo, represented a sharp contrast to the luxury that successive presidents have enjoyed at Los Pinos.

Yalitza Aparicio, an actor from Oaxaca with no previous experience, has won acclaim for her performance as a domestic worker in Cuarón’s movie, which has been described as a cinematic lover letter to 1970s Mexico City.

“It was just what we expected. A faithful portrait of our society and a call to rescue the [lost] love in our families,” said Fernanda Kuykendall, who watched the film with her son.

Roma, which had only a limited theatrical release before being added to the Netflix streaming service last Friday, has been touted as a front-runner for best picture at next year’s Academy Awards. The nominations will be announced on January 22.

Source: El Financiero (sp) 

Minimum wage to go up 16% to 103 pesos and will double in northern border region

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Labor Secretary Alcalde is flanked by wage commission head Peñaloza, left, and López Obrador.
Labor Secretary Alcalde is flanked by wage commission head Peñaloza, left, and López Obrador.

The daily minimum wage will increase by 16% on January 1 to 102.68 pesos (US $5.10), the federal labor secretary announced today.

Luisa María Alcalde also announced an even bigger hike in the northern border area, where a free zone with lower taxes will be implemented at the start of next year. There, the minimum wage will double from its current level to 176.72 pesos (US $8.80) per day.

Speaking at an event attended by President López Obrador, other cabinet secretaries, members of the private sector and workers’ representatives, Alcalde said that for the first time in many years the minimum wage has been set at a point that is on par with the minimum threshold for individual wellbeing, or the poverty line, which is determined by the social development agency Coneval.

“[It’s] a first step in the right direction,” she said.

López Obrador, who has pledged that “the poor will come first” during his government, described the salary increase as “an historic event because together we begin a new stage in the salary policy of our country.”

Economy Secretary Graciela Márquez Colín said the larger increase in the border region “won’t have inflationary implications” but “will have a positive effect on the purchasing power of workers.”

Prior to today’s announcement, the Mexican Employers Federation (Coparmex) said the National Minimum Wage Commission (Conasami) had reached the decision to increase the wage unanimously.

At his morning press conference, López Obrador said that workers’ representatives, the business sector and the Bank of México had all participated in negotiations and reached an agreement that avoided any impact on inflation.

Conasami’s resetting of the minimum wage level today comes just three days after its former chief was dismissed.

Basilio González Núñez headed up the minimum wage commission for 27 years but was removed by Alcalde, who appointed Andrés Peñaloza Méndez to the role.

The labor secretary wrote on Twitter Friday that Consami will experience “winds of change” under the leadership of Peñaloza, an economist.

Alcalde, a former federal deputy and professor of law who has published several articles advocating for higher wages in Mexico, said in August that the new government would be committed to increasing the minimum wage and doubling it in the nation’s north.

However, even with the increase set to take effect on New Year’s Day, Mexico will continue to have one of the lowest minimum wages in Latin America.

Source: Expansión (sp), El Financiero (sp) 

Six Nayarit judges accused of defrauding 40,000 in mortgage scam

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Infonavit housing: 40,000 owners were defrauded.
Infonavit housing: 40,000 owners affected.

Six judges from Nayarit allegedly participated in a corruption scheme that resulted in 40,000 people being wrongfully dispossessed of their homes in at least seven states between 2013 and 2018.

According to the Nayarit Attorney General’s office, four judges and two magistrates in three municipalities – Xalisco, Compostela and Bahía de Banderas – handed down fraudulent foreclosure rulings against homeowners who acquired mortgages through the National Workers’ Housing Fund (Infonavit).

Those believed to have been unjustly forced out of their homes lived in Nayarit, Chihuahua, Tamaulipas, Zacatecas, Sonora, Sinaloa and Jalisco.

A law firm, a notary and court officials are also accused of involvement in the scheme.

Nayarit Attorney General Petronilo Díaz Ponce said the judges’ allegedly illegal conduct occurred in two phases.

Between 2013 and 2015, judges in Xalisco and Compostela issued thousands of foreclosure orders based on fabricated evidence presented by an unnamed law firm, Díaz said, adding that the homeowners affected by the rulings were not notified nor were they summoned to appear in court.

He explained that personnel from the same law firm later filed the foreclosure papers at Nayarit’s Supreme Court with officials who were allegedly complicit with the scheme.

After homes were taken from the purported defaulters, they were resold at 75% of their market value and in every transaction the deeds were drawn up by the same notary, the attorney general said.

In the second stage of the scheme, the same law firm again presented fabricated evidence supporting foreclosure applications, only this time it was to two allegedly corrupt judges in Bucerías, a coastal town 10 kilometers north of Nuevo Vallarta.

The Nayarit Attorney General’s office has sought a declaration from the state Congress in order to proceed with the case, which will be analyzed this week by the legislature’s justice and human rights committee.

To prosecute the judges, Congress will have to approve a removal of impunity, a process known as desafuero.

Díaz is also seeking assistance from the federal Attorney General’s office (PGR) and has already furnished it with a copy of files relevant to the investigation.

The department he heads said that the crimes of which the judges and their alleged co-conspirators could be accused include fraud, influence peddling, criminal association, abuse of power, bribery and embezzlement.

Source: El Universal (sp) 

Diablero: mystical Mexican thriller launches worldwide Friday on Netflix

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García Rojas in Diablero.
García Rojas in Diablero.

This year has been an interesting and fruitful one for Mexican shows and movies on Netflix. Most notable is the release of Alfonso Cuarón’s latest masterpiece, Roma, that was produced for Netflix and released last Friday.

There have also been hit shows like Casa de las Flores and Narcos Mexico as well as the polemic reality drama, Made in Mexico, documenting the life of Mexico City’s elite.

Now comes the first global premiere of a Mexican series. Called Diablero, it is an interesting move for Netflix, moving away from the grittier series that speak of real life in Mexico or comedy shows that create comedic spoofs on traditional telenovelas.

Diablero is an adventurous science fiction series that calls on special effects to create a Mexico City which has been abandoned by the angels and in which demons exist. It is based on the book El Diablo Me Obliga (The Devil Made Me) by Mexican writer Francisco Gerardo Haghenbeck and was made into this series by Morena Films.

Mexico News Daily caught up with the protagonist, Horacio García Rojas, who plays Elvis Infante, el Diablero, or devil hunter, to find out more about the series. We met in a café in the south of Mexico City on a street lined with billboards of Garcia’s face advertising Friday’s launch.

The new series launches on Friday.
The new series launches on Friday.

Horacio is a laid-back, handsome actor originally from Veracruz who now lives in Mexico City with his family. Readers may have seen him in Narcos Mexico or as a Mexica in the 2017 film La Carga. When talking about Diablero, he is animated and passionate, excited for the show to air and for something new and different to hit our screens.

Could you tell me a little bit about what Diablero is all about?

Diablero is a science fiction series that combines fantasy, horror and adventure with a touch of black comedy. It is a series set in a world where angels no longer exist, they left, they abandoned humanity. The demons are hidden and the Diableros are in charge of trying to create balance. They are charged with capturing the demons and sending them back to their place of origin.

Everything starts when a priest [played by Christopher von Uckermann] realizes that in the past he was a father, something he was unaware of, and that his daughter disappeared, and the kidnapper of the daughter appears to be something supernatural. So he calls upon Elvis Infante [Garcia’s character] who is a demon hunter, and this is where the adventure starts.

And your character works alongside a woman too, is that right?

There are two women. One is my sister. Elvis and Keta [played by Fátima Molina] are brother and sister, two people who have grown up together and alone. Elvis is volatile, ethereal and rarely serious, while she is more grounded. They complement each other.

Then there comes another woman who is Elvis’ student Nancy [played by Giselle Kuri]. She is the only person that they know up to that point who can call on demons and remove them at will . . . and the only person who understands her is Elvis.

What for you is the most interesting or intriguing thing about the series?

It is the first series that reflects this universe. The universe of the mystical and magical. The relationship with death, color . . . and mystical things that happen in Mexico and we think that the public is going to really appreciate it.

Foreigners like this part of Mexico, the relationship that Mexico has with the mystical that no other country has, I think. Mexico has the fortune to have so many indigenous cultures and each one has their magic, and Diablero works with that.

Diablero | Tráiler oficial | Netflix

So does the series talk about the indigenous cultures of Mexico?

It’s something intrinsic. For example, the calls that Elvis recites to draw out a demon are written in Latin and Náhuatl, understanding the two roots that form Mexican Spanish. So, in that way, it is present. Elvis’ sister is a Santería priest for example. She is an expert in Santería and herbology. She can make potions that help people remember or forget. Elvis and Keta don’t have a particular religion, but they are aware of all religions. 

Our conversation veers off to the mystical and magical in Mexico. García talks of growing up in the Huasteca area of Veracruz and all of the supernatural stories that circulated in his town about duendes (goblins) and chaneques (sprite-like beings from Mexica folklore) and seeing things that can’t easily be explained. He is sure that Diablero is going to make the Mexican audience think about their own stories of the supernatural and unexplained. Moving back to the bricks and mortar of the streets, we talk about the depiction of Mexico’s capital in the show.

Are we going to see the streets of Mexico City in the series?

Yes, it is a series with a backdrop that reflects the richness of Mexico City, from streets filled with graffiti to beautiful historical buildings.

This is clearly new ground for a Mexican series. How do you feel about that?

I am really excited. I think it is necessary for us to identify and appreciate the country that we have that is so rich and so vast and at the same time the audience is going to be able to understand themselves further as Mexicans and maybe recognize the cultural richness that exists in Mexico City and in the country.

I am the first protagonist in a series on Netflix [Mexico] who is a mestizo who is more indigenous than European looking, and this also makes me really proud. I hope it will open the door to telling more stories where the cast is more diverse. Mexico is a country with lots of diversity and for many years the television only paid attention to the more white, European actors . . . relegating actors with darker skin to roles as servants or narcotraffickers or villains. In Diablero, there is a mixed cast and I think that is important. At the end of the day, the television has to represent who we are. I think Diablero will leave us with a pride in what it means to be Mexican.

Elvis is a hero, well maybe more of an antihero. He is someone who is prepared to give his life for an ideal. This is cool too, to see Mexican heroes and for us to identify again with that. 

It is a peculiar series in the best meaning of the word. It’s really different and we are so excited about it.

Was there a good connection among the cast and crew?

Yes, there was a great chemistry. It was a shoot that really needed this positive chemistry because of the dark tone of the series and we were working really long hours and working a lot during the night, so it was so important to get on well, not just the cast but the crew too.

Diablero, which runs over eight episodes will take to Netflix screens worldwide beginning Friday, December 21. It promises to bring something new and exciting and important into the realm of Mexican series, celebrating the uniquely mystical nature of Mexico to captivate audiences worldwide.

Susannah Rigg is a freelance writer and Mexico specialist based in Mexico City. Her work has been published by BBC Travel, Condé Nast Traveler, CNN Travel and The Independent UK among others. Find out more about Susannah on her website.

Travel magazine readers name Riviera Maya Mexico’s top destination

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A beach in the popular Riviera Maya.
A beach in the popular Riviera Maya.

The Riviera Maya has been recognized as the best destination in Mexico by Travel Weekly‘s 16th annual Readers Choice Awards.

The Quintana Roo destination saw four other strong contenders in the best destination in Mexico category: Cancún, Cozumel, Los Cabos and Puerto Vallarta.

Travel Weekly described the winner as “home to sprawling all-inclusive resorts. Playa del Carmen serves as the starting point for tours, trips to the Mayan ruins at Chichén Itzá and Tulum and visits to Mexico’s [cenotes] underground rivers and springs.”

The director of the Quintana Roo Tourist Promotion Council, Darío Flota Ocampo, attended the black-tie gala dinner and award ceremony held in New York.

The win, said Flota, “belongs to all the entrepreneurs, workers and service providers who with their daily effort make the Riviera Maya the best destination in Mexico . . . ”

The destination’s success, he continued, is also the result of the collaboration between the members of the industry and the state government in promoting it in tourist forums, fairs and other events, as well as in containing the effects of negative travel warnings.

The council says the Mexican Caribbean as a whole received more than 1.6 million visitors — and over US $1.7 billion — during the last summer vacation period.

Source: 20 minutos (sp), Travel Weekly (en)

Mother Earth asked to get on board the Maya Train

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Yesterday's ceremony in Chiapas to seek permission to build train.
Yesterday's ceremony in Palenque, Chiapas.

The federal government and representatives of 12 Maya communities attended a ceremony in Palenque, Chiapas, yesterday to ask for Mother Earth’s permission to build the Maya Train.

President Andrés Manuel López Obrador and Chiapas Governor Rutilio Escandón Cadenas attended the event at the old Palenque airport, where the two were also given a special cleansing, or limpia, to rid them of “bad vibes.”

The ceremony also included the placing of offerings in a hole in the ground. Among there were a chicken, a bottle of pozol (a fermented corn dough and cacao drink) and 12 bottles of a local aguardiente, a distilled alcoholic beverage.

The ceremony was intended to ensure that the president’s first big infrastructure project is finished without incident.

“We have to ask for permission to the earth, because we eat from her and we walk on her,” said the state Secretary for the Sustainable Development of Indigenous Peoples.

In a speech after the ceremony, López Obrador recalled that former president Porfirio Díaz had been able to lay 20,000 kilometers of track during his decades-long dictatorship, suggesting he ought to be able to lay the 1,500 kilometers of track required for the Maya Train.

Source: El Universal (sp)

2019 budget reaction: fiscally prudent and ‘no crazy stuff’

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Saturday's budget has given the peso a boost.
Saturday's budget has given the peso a boost.

The federal government’s first budget has been described as fiscally prudent and realistic by many financial analysts although with reservations in some cases, while others have been less enthusiastic in their assessment.

Finance Secretary Carlos Urzúa presented the 5.8-trillion peso (US $288-billion) 2019 Economic Package on Saturday, pledging to deliver a surplus of 1% of GDP next year while increasing spending on welfare and infrastructure projects and not introducing any new taxes.

“There was a general feeling that it was very difficult to balance spending on social programs without a deficit increase but with this economic package proposal, [President] López Obrador fulfills his promise to be fiscally responsible,” Banorte chief economist Gabriel Casillas told the newspaper El Financiero.

He said that market reaction to the budget would be positive within a context of investor uncertainty following the government’s decision to cancel the US $13-billion Mexico City airport project.

Héctor Villareal, general director of economic think tank Ciep, said the budget was realistic and that the 2019 revenue forecast – 5.3 trillion pesos, mainly from taxes and oil income – was in line with that seen this year.

However, he added that that the government’s planned expenditure would result in a significant decrease in fiscal space.

“Between increases to debt service payments . . . an increase in pensions and the commitment of a primary surplus of 1% of GDP along with not raising taxes . . . the reduction to fiscal space was very radical,” Villareal said.

BBVA Bancomer chief economist Carlos Serrano described the budget as “a responsible package that should result in debt, as a percentage of GDP, staying stable in 2019,” adding “it should be well-received by markets.”

Gabriela Siller, chief economist at Banco Base, noted that the government had acted realistically by reducing its growth forecast to 2%, which is close to market outlooks.

“We expect growth of 1.8% . . . due to a slowing down of investment and probably consumption,” she said.

López Obrador had said previously that his government would target 4% growth.

Another chief economist, Mario Correa of Scotiabank, said the budget “looks reasonable with respect to its macroeconomic assumptions and it seems effectively oriented towards fiscal discipline and macro-stability.”

Raúl Feliz, an economist at CIDE, a Mexico City university, said that markets should be buoyed because “there’s no really crazy stuff” in the government’s spending plans.

Credit Suisse economist Alonso Cervera said that “Urzúa stuck to his 1% primary surplus target even though the context kept on changing with a worsening economic outlook, higher rates and a weaker peso.”

He added that “markets would have been very disappointed had he lowered it.”

However, Cervera said the money set aside for “priority projects” such as the Maya Train and the youth apprenticeship scheme appeared to be too low.

“The question is, in future years, how will they fund them? Will they have enough money without increasing or introducing new taxes?” he pondered.

He also said that he anticipated economic growth of 1.2% in 2019, compared to the budget’s forecast of 2%, and questioned whether investment in state oil company Pemex would be enough to increase oil production by 600,000 barrels a day as López Obrador has pledged to do by the end of his six-year term.

Benito Berber of investment bank Natixis said that after the public consultation on the airport, which resulted in its cancellation, Urzúa slightly increased the surplus estimate to 1% from a previously anticipated 0.8%.

“They wanted to do something about their lack of credibility in the market, the peso depreciation and [bond] yields going up . . . it was very important that they delivered on that,” he said.

However, Berber added that “the main thing to watch in the coming months is: are the numbers right? Were the calculations on the revenue side OK?”

A former senior government official said “it looks that there is a reasonable hand making the budget – very different from the guys pushing to cancel the airport.”

Among analysts who were less glowing in their appraisal was Marco Oviedo, chief economist for Barclays in Latin America. He said the projections in the budget were “realistic up to a certain point,” specifically questioning whether oil revenue would be as high as the government expected.

Luis Foncerrada, president of the forum True Economic Talks, said the 2019 exchange rate forecast of 20 pesos to the US dollar and the crude price of US $55 per barrel were too confident, while Gustavo de Hoyos, president of the Mexican Employers Federation (Coparmex), also said that some of the government’s projections were overly optimistic.

An economist who asked not to be identified shared the same sentiment, telling the Financial Times that he didn’t like the budget.

“It’s too optimistic on many fronts . . . they will have at least one full point of GDP fiscal hole,” he said.

The peso increased by 0.7% and Mexican bonds rallied this morning in response to the budget, news agency Bloomberg reported. However, the benchmark index on the Mexican Stock Exchange failed to follow suit, slipping by 0.8%.

“The budget was well received but the market will continue reacting to other types of not-so-positive news, such as the [canceled] airport project,” said Banco Base strategist Jesús López.

Source: El Financiero (sp), Financial Times (en), Bloomberg (en) 

Secretary calls 250 abandoned health care facilities ‘monuments to corruption’

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Health Secretary Alcocer speaks on Saturday in Mérida.
Health Secretary Alcocer speaks on Saturday in Mérida.

The federal health secretary says there are 250 abandoned health facilities around the country, and described them as “scandalous monuments to incompetence, corruption and influence peddling.”

Speaking in Mérida, Yucatán, Jorge Alcocer Varela said the clinics, health centers and hospitals were built to offer medical care to citizens who are not part of a social security program. Some are unfinished, others operate without the basic required equipment.

Alcocer charged that the investment of resources in the health sector has not been transparent nor has it led to an improvement in public health.

“Corruption is everywhere. This is a somber picture, that’s true, but it reveals a problem in health services that has become a national emergency. Investment in infrastructure has stopped and what has been built has been left without adequate maintenance.

The current state of the fragmented health sector leads to inequality, and the government of Mexico has failed to guarantee the public’s fundamental right to health, continued Alcocer.

He said the new unified health system announced last week by President López Obrador will guarantee that right by providing free health care and medications to the population that is outside of the scope of current social security programs, gradually leading to the implementation of a universal health care system.

This first stage of the program will pay special attention to the population living in marginalized regions.

“Free and universal health care will be a reality for all of us, propelled by primary health care that will look after the individual to heal society,” he said.

Source: Reforma (sp)

AMLO government pledges ‘fiscal, financial discipline,’ targets budget surplus

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Urzúa, second from left, presents his budget on Saturday.
Urzúa, second from left, presents his budget on Saturday.

The new federal government presented its first budget Saturday, pledging “absolute commitment to fiscal and financial discipline” and a surplus of 1% of GDP in 2019 without introducing any new taxes.

Presentation of the 2019 Economic Package came just two weeks after leftist political veteran Andrés Manuel López Obrador was sworn in as president.

His party, the National Regeneration Movement, or Morena, leads a coalition that has a majority in both houses of federal Congress.

Finance Secretary Carlos Urzúa outlined details of the 5.8 trillion-peso (US $288 billion) budget to the lower house, including spending of 252 billion pesos (US $12.5 billion) on “priority projects.”

One hundred billion pesos will be allocated to doubling old-age pensions, 44 billion pesos will go to a youth apprenticeship program, 18 billion to upgrading airport infrastructure, 15 billion to a reforestation program and 6 billion to construction of the Maya Train project on the Yucatán peninsula.

The budget earmarked 15 billion pesos to convert the Santa Lucía Air Force Base in México state for commercial aviation use.

López Obrador confirmed in late October that the partially-built US $13-billion airport project at Texcoco would be scrapped, triggering concern about the economic impact of the move.

Urzúa said the budget didn’t include funds to repay investors who purchased US $6 billion in bonds to help fund the cancelled project. Bondholders have so far rejected a buyback offer even though the government sweetened the deal last week.

The overall expenditure projected for 2019 is 6.1% higher in real terms than that outlined in the 2018 budget but was expected to be 0.2% lower than actual spending this year.

“Prudence, responsibility and objectivity are the premises under which the budget was constructed,” the Secretariat of Finance (SHCP) said in a statement.

The Secretariat of Labor and Social Welfare, which will implement the apprenticeship scheme, gets a whopping 932% increase to its 2018 budget, while spending on energy will go up by an even higher 961%.

State oil company Pemex will be among the beneficiaries of the latter increase.

The army will get just under 93.7 billion pesos, an 11.3% increase on this year, while public education spending will increase 2.9% to just over 300 billion pesos.

Almost 2 billion pesos will be allocated to state governments and 8 billion will go to communities affected by last year’s earthquakes.

The secretariats of the Interior, Foreign Relations, Finance, Agriculture, Communications and Transportation, Economy, Health, the Navy, Culture and the Environment were among 15 secretariats that saw their funding reduced as the government seeks to cut government costs in line with its austerity program.

The budget predicted GDP growth of 2% next year, which is slightly above market forecasts of 1.8% to 1.9%. Urzúa said the government expected growth to actually be above 2% in 2019 but that he wanted to be “conservative.”

The budget forecast revenue of almost 5.3 trillion pesos next year, of which taxes and oil income are estimated to contribute 62.3% and 19.8% respectively.

Implementation of a free zone in the northern border area, which will see both value-added tax and income tax levels reduced, will cost the government around 40 billion pesos next year, Urzúa said, a figure that is less than half of some market estimates.

The government forecasts inflation of 3.4% in 2019, which is around 0.5% below the market outlook, and expects the exchange rate to remain near its current level of 20 pesos to the US dollar.

The budget forecasts that Mexican crude prices will drop to an average of US $55 per barrel next year, down from US $62.70 currently, and that oil production will be just over 1.8 million barrels a day, which is close to current levels.

López Obrador has pledged to increase oil production during his administration in order to reduce dependency on imports. The tendering process to build a US $8-billion refinery at Dos Bocas, Tabasco, is expected to start early next year.

Urzúa told reporters after his budget presentation that Mexico would continue with an oil hedging program in 2019 in order to protect government revenues but declined to give details apart from saying “it’s very reasonable, very well done and gives us lots of security.”

He said the conflict with the Supreme Court over the government’s plan to slash the wages of high-ranking public officials including judges was “irrelevant” in the calculation of the budget.

The finance secretary contended that the budget was reflective of the new government’s stringent austerity plan.

In his inauguration speech on December 1, López Obrador pledged to put an end to corruption and impunity and to begin a “profound and radical transformation” of Mexico.

The new president has adopted a range of personal austerity measures, including traveling on commercial flights and largely eschewing security.

Source: Financial Times (en), Milenio (sp), El Economista (sp)