Reform draws fire in Mexico

  • Associated Press
  • Tuesday, August 31, 2004 9:00pm
  • Business

MEXICO CITY – Mexican President Vicente Fox, a strong advocate for a free market, faces growing demands to return to old state-run economic polices as he prepares for his fourth state-of-the-nation address amid protests against two decades of economic reforms.

About 50,000 union members, farmers and supporters of leftist Mexico City Mayor Andres Manuel Lopez Obrador marched through downtown Mexico City on Tuesday to protest Fox’s pension reform, practically the only economic change he’s gotten through an opposition Congress. The reforms would make workers pay a larger percentage of their retirement.

But the anger went beyond the pension issue or Fox’s stalled privatization plans.

“We Mexicans have suffered from the great majority of the economic ‘reforms’ of the last 20 years,” read leaflets passed out by marchers. Throngs of farmers demanding more subsidies tossed pigs heads, manure and other animal parts at government offices.

Organizers said the largest demonstrations – possibly the most concerted nationwide protests in years – will come Wednesday, when demonstrators plan to block roads and border crossings, walk off their jobs and march on Congress, where Fox is scheduled to give his speech.

It’s a change from the early 1990s, when privatization, trade and reform bills were implemented quickly though legislatures dominated by the president’s party and state-of-the-nation speeches were simply compilations of glowing macroeconomic figures.

“This (protest) is not something that’s modern and convinces financial markets … but it appeals to a lot of people who have been left behind since the 1970s by the technocrats and their economic reforms,” said historian Lorenzo Meyer. “After 20 years, what results do the technocrats and free-marketers have to show people?”

While unions originally threatened to cut electricity and telephone service during Fox’s speech – and the government pledged to use troops to protect key facilities – the threats have now been reduced to mass protests.

“We’ve just decided collectively we’re not going to work that day,” said Jose Antonio Almazan, spokesman for the Mexican Electrical Workers’ Union.

Health care workers at the Social Security Institute planned a one-day walkout at non-emergency facilities Wednesday, and Almazan said the electrical workers would support them in any longer strike.

The powerful social security and government employees’ unions are fighting reforms that make them pay more of their pension costs. The electricians are fighting proposals to open the sector to greater private investment.

Meanwhile, farmers in the El Barzon movement pledged to block highways and border crossings in the northern state of Chihuahua on Wednesday to demand more support payments.

Associated Press

Demonstrators hang chickens and pig’s heads on the gates of the economy secretary Tuesday in Mexico City to protest the North American Free Trade Agreement and government agricultural policies.

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