Get Four
Free Issues

Register
Subscribe to BW
Customer Service


Full Table of Contents
Cover Story
International Cover Story
SmallBiz -- Fall 2004
Special Report
Up Front
The Great Innovators
Readers Report
Corrections & Clarifications
Technology & You
Books



Economic Viewpoint
Business Outlook
News: Analysis & Commentary
In Biz This Week
Washington Outlook
Asian Business
European Business
International Outlook
Information Technology
Economics
Science & Technology
Finance
Sports Biz
People
Marketing
Personal Business
Footnotes
The Barker Portfolio
Inside Wall Street
Figures Of The Week
Editorials


INTERNATIONAL EDITIONS
International -- Readers Report
International -- Finance
International -- Int'l Figures Of The Week
International -- Editorials




NOVEMBER 1, 2004
INTERNATIONAL OUTLOOK

Mexico: Will The PRI Be Top Dog Again?

Postal worker Patricia Herrera Lopez was one of millions of Mexicans who voted in 2000 to elect President Vicente Fox, whose National Action Party (PAN) promised dramatic political and economic change after seven decades of rule by the corruption-plagued Institutional Revolutionary Party (PRI). But she says she'll vote for the PRI next time. "Under the PRI we lived much better. I was able to buy a house and get a car loan," says the 56-year-old grandmother. Today several family members are jobless, and government services have deteriorated. "I would have kept voting for the PAN if I had seen positive change, but I just don't see it."


Four years ago the PRI was thrown into turmoil by its defeat. Its leaders struggled to function in the opposition but were crippled by a $92 million fine for campaign financing violations that forced them to lay off two-thirds of the party's staff workers. In Congress, the PRI adopted a spoiler strategy, joining with the left-leaning Party of the Democratic Revolution (PRD) to block legislation, including Fox's tax, energy, and labor reforms.

Voting with the PAN
Today the PRI is back in fighting form. Since July the party has won four gubernatorial elections and the key mayoral vote in Tijuana. Now, PRI President Roberto Madrazo and his congressional leaders are working to shed their obstructionist image. They're voting with the PAN for bills that would ease fiscal pressures on the party that wins the 2006 presidential elections. "Madrazo is interested in having the ship in good shape if the PRI wins the election," says political scientist Federico Estévez of the Autonomous Technological Institute of Mexico. Even former President Carlos Salinas, though deeply unpopular, is working behind the scenes to bring the PRI back.

A PRI return to power is no longer inconceivable. While charismatic Mexico City Mayor Andrés Manuel López Obrador of the PRD is the most popular presidential candidate, two of his top aides face corruption charges. And although Madrazo carries heavy baggage as a former governor who abused campaign-spending limits to win office, his party fared well in a recent survey by pollster Consulta Mitofsky. Some 31% of respondents said they plan to vote for the PRI in 2006, vs. 20% for the PAN and 15% for the PRD. A survey by Latinobarómetro found that just 17% of Mexicans are satisfied with the Fox administration.

Fox's failure to generate growth and push through reforms is a boon for the PRI. "The PRI has enormous possibilities of returning to power if we can advance on reforms that show the PRI's ability to get things done," says PRI congressman Francisco Suárez Dávila. He and his colleagues recently helped push through public sector pension reform, which will save the government big outlays in future years. By yearend the PRI is expected to vote for a bill that could slash the corporate tax from 33% to 28%.

The PRI is not out of the woods. Business leaders, who blame Madrazo for scuttling a major tax overhaul in 2001 and 2003, believe his embrace of partial reforms is mere electoral opportunism. And Madrazo, who has feuded with other PRI leaders, runs the risk of splitting the party. In the end it will come down to votes from people such as postal worker Herrera. If her disillusionment with Fox is any indication, the PRI has a chance to recover the presidential chair it held for so long.



By Geri Smith in Mexico City
Edited by Rose Brady
 BW MALL   SPONSORED LINKS
Buy a link now!

Get BusinessWeek directly on your desktop with our RSS feeds.XML

Add BusinessWeek news to your Web site with our headline feed.

Click to buy an e-print or reprint of a BusinessWeek or BusinessWeek Online story or video.

To subscribe online to BusinessWeek magazine, please click here.

Learn more, go to the BusinessWeekOnline home page

Back to Top



TODAY'S MOST POPULAR STORIES

  1. The 65 mpg Ford the U.S. Can't Have
  2. Stock Screen: Buy 'Em Like Buffett
  3. Why American Savers Have Drawn the Short Straw
  4. The Best Places to Launch a Career
  5. Where Homes Are Selling Fastest

Get Free RSS Feed >>
  MARKET INFO
DJIA 11220.96 +32.73
S&P 500 1242.31 +5.48
Nasdaq 2255.88 -3.16

Portfolio Service Update

Stock Lookup

Enter name or ticker



Media Kit | Special Sections | MarketPlace | Knowledge Centers
McGraw-Hill Cos.