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Mexico-France diplomatic row threatens cultural programs

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Thomas M Buckley

The diplomatic row between Mexico and France over the Florence Cassez case has led to the cancellation of hundreds of cultural events that were planned as part of the "Year of Mexico in France" celebration. French President Nicolas Sarkozy has strongly advocated for Cassez, a French citizen convicted of kidnapping in Mexico, to be transferred to France to serve her 60-year sentence, straining relations between the two countries. The cancellation of major exhibitions, festivals, conferences and other artistic and academic exchanges is a blow to cultural relations between Mexico and France.

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Welcome again! In this edition of Mexico Weekly, our cover story fo- cuses on the diplomatic spat between Mexico and France. Neither country could fully imagine the repercussions when a beautiful young French woman was arrest- ed six years ago, and charged along with her Mexican boyfriend with kidnapping. Unfortunately, Mexico is a world leader in kidnapping, though few suspects are ever prosecuted. And the number of victims continues to climb. I recently met a se- curity expert who told me that, not only are kidnapping incidents rising here, but more victims are killed or mutilated in order to pressure family into paying a hefty ransom. Victims of the “Cassez” kidnapping ring testified that Florence herself would ask if they wanted a finger or an ear cut off. Is Florence Cassez an innocent foreigner who was in the wrong place with the wrong people? Or is she part of a growing cadre of young people in Mexico who understand that kidnapping is a lucrative business with little chance of paying the consequences? According to the judges, she is the latter. President Sarkozy insists he is not saying Cassez is innocent; rather, he is demanding that she be returned to France to serve her 60-year sentence in a French prison. President Calderón said NO! This has produced a diplomatic standoff that caused Mexico to end its partic- ipation in the “Año de México en Francia,” costing millions and upsetting hundreds of academic and cultural programs. I spoke this week to Miguel Alemán Velasco who headed the commission that coordinated the cultural program. He voiced his support for President Calderón, since he believes Sarkozy put him in a very difficult situation. Polls published last week not only support Calderón’s decision to keep Cassez in jail here, but also indicate that more than 70 percent of those surveyed believe Cassez is guilty. Still, in a democracy polls do not define a person’s guilt. Guilty or not, the trial was clearly plagued by serious irregularities. If anything good came out of the Cassez case it is that it has produced a serious examination of how justice is imparted here as highlighted in the movie “Presunto Culpable” that is also reviewed in this edition. I want to recommend this week’s article on cartels and criminal gangs within Mexico City. A few years ago, the D.F. was considered one of the most dangerous capitals in the world. Now thousands of families who live in violence-ridden cities and can’t move to the U.S. are taking their families and business to Mexico City be- cause it seems safer than the rest of the country. In this week’s edition we examine what City Hall is doing as Mexico is witness to increasingly extreme drug violence. Don’t forget to check out our website for breaking news and analysis. Diplomatic row shines light on judicial system LETTERS © “MEXICO WEEKLY”, ES UNA PUBLICACIÓN SEMANAL PROPIEDAD DE YUMAC S.A. DE C.V. CON OFICINAS EN DIVISIÓN DEL NORTE #925 1ER PISO COL. NARVARTE DELEGACIÓN BENITO JUAREZ CP 03020 TEL 2455 5555 IMPRESA EN LOS TALLERES DE SERVICIOS PROFESIONALES DE IMPRESIÓN UBICADOS EN MIMOSAS NO. 31 COLONIA STA. MARÍA INSURGENTES CP 06430 DEL CUAUHTEMOC MÉXICO D.F. FECHA DE IMPRESIÓN: 17 DE DICIEMBRE DE 2010 © “MEXICO WEEKLY” INVESTIGA SOBRE LA SERIEDAD DE SUS ANUNCIANTES, PERO NO SE RESPONSABILIZA CON LAS OFERTAS RELACIONADAS POR LOS MISMOS. ATENCIÓN A CLIENTES: ZONA METROPOLITANA TEL. 3099-4987. LOS ARTÍCULOS Y EL CONTENIDO EDITORIAL SON RESPONSABILIDAD DE SUS AUTORES Y NO REFLEJAN NECESARIAMENTE EL PUNTO DE VISTA DE LA PUBLICACIÓN, NI DE LA EDITORIAL. TODOS LOS DERECHOS ESTÁN RESERVADOS. PROHIBIDA LA REPRODUCCIÓN TOTAL O PARCIAL DE LAS IMÁGENES Y/O TEXTOS SIN AUTORIZACIÓN PREVIA Y POR ESCRITO DEL EDITOR. Oscar McKelligan PRESIDENT Ana Maria Salazar VICE PRESIDENT & EXECUTIVE DIRECTOR Tom Buckley EDITOR IN CHIEF Carlos Martínez Cruz MANAGING EDITOR Fernando Ortiz LEGAL ADVISER Cecilia Garza V ADMINISTRATION Iker Amaya CORPORATE SALES David Alvarado ART DIRECTOR Kelly Arthur Garrett LIFE & LEISURE EDITOR Armando Palacios-Sommer COPY EDITOR Susana Pérez SENIOR DESIGNER Blake Lalonde WEB EDITOR R E P O R T E R S Rebecca Conan Bronson Pettitt Zach Lindsey Francisco Cándido IT & OPERATIONS MANAGER B O A R D O F D I R E C T O R S Oscar McKelligan Ana Maria Salazar Miguel Alemán Velasco Yurek McKelligan José Antonio Valdes Fernando Ortiz John Barson C O V E R P H O T O G R A P H NOTIMEX PHOTO / DAVID DEL RIO Ana Maria Salazar Executive Director anamaria.salazar@mexicotoday.com.mx WWW.MEXICOTODAY.COM.MX@MEXICOTODAY_MX 4 MEXICOWEEKLY : Friday February 25, 2011
NOTIMEXPHOTO/JAVIERLIRAOTERO Refusing totake thebaitMexico’s Foreign Relations Secretariat makes it clear that it perceives France’s reaction to the Cassez case as little more than a bête noire : 6 LuisDonaldoColosio,sonandnamesakeoftheslainPRIpresi- dentialcandidate,criticizedthepartyforexploitinghisfather’s name.ColosiocalledthePRI“hypocrites”and“fraudulent”in a message on his Twitter account. Incoming PRI president Humberto Moreira said he would try to arrange a meeting withColosiotohearwhyhemadetheaccusations. Colosio’ssonslamsPRI, callsthemhypocritical PARTIES ELECTIONS PARTIES OLVERA DECLARED VICTOR IN HIDALGO The Federal Electoral Tribunal threw out 17 formal complaints and declared Francisco Olvera governor-elect of Hidalgo. Olve- ra won the election in July, but challenger Xóchitl Gálvez con- tested the result. ENCINAS ANXIOUS TO PRESERVE PRD Alejandro Encinas has called on PRD leaders to create an internal movement to “rescue and unify the party” as it risks rupture over its electoral alliance policy. Mi- choacán Gov. Leonel Godoy of- fered to help mediate. www.mexicotoday.com.mx/information/politics Friday February 25, 2011 : MEXICOWEEKLY 5
QUELLE HORREUR!NICOLAS SARKOZY and his administration have adopted the roles of enfants terribles, turning a sensitive judicial matter into a full- blown diplomatic row that has already toppled a cultural event BY TOM BUCKLEY / MEXICO WEEKLY COVER STORY Ubifrance canceled a high-level colloqui- um due to be held the weekend beginning March 3. Ubifrance – a government agen- cy focusing on international business devel- opment – was co-sponsoring the event with the French Senate and Pro-Mexico and the secretaries of economy from each nation were expected to attend. An exposition of monumental sculptures by Rivelino along the Seine was canceled on Feb. 21 as was an exposition of jade Ma- yan masks in the Pinacoteca de Paris. A col- loquium and keynote speech by José Emilio Pacheco in the National Library on March 10 was called off. An exposition of works by cinematographer and photographer Gabri- el Figueroa set for early April in Paris is at risk of cancellation. Conaculta canceled its participation in the “El Año de México en Francia,” calling off its sponsorship of 350 concerts, expositions and related events. On Feb. 18, Conaculta – Mexico’s National Council for Culture and Arts – summoned home all personnel that were already in France. The Río Loco Festival in Toulouse – billed as the inaugural festival of “El Año de Méxi- co en Francia” – was canceled. An upcoming Latin American film series in the same city scheduled for late March has been tempo- rarily suspended. In Lyon, a grand exposition on pre-historic Gulf cultures was canceled. A film noir mov- ie festival and a colloquium on crime nov- els – both set for late March – are at risk of cancellation. In Lille, Mayor Martine Aubry – the leader of the Socialist Party – canceled an exposi- tion of engravings by José Guadalupe Posa- da and called for a national boycott of the entire event. : Events impacted alkaboutbadtiming. Just as a symbolic, yearlong celebra- tion of friendship was getting under way, Mexico and France have seen diplomat- ic relations suffer a dramatic blow over a controversial judicial case involving a Frenchwoman. FrenchPresidentNicolasSarkozywent ontheoffensive,asdidafewofhistopCab- inetofficials,woundingMexicanprideand givingrisetoreferencesabout19thcentury conflictsbetweenthetwonations. Mexico’sambassadortoFrancewalked outoftheFrenchSenateduringaspeechby France’sministerofforeignaffairs. Complicating matters considerably, France currently presides over the G-20 economic organization and is due to turn overchairmanshiptoMexicoinNovember. Columnists here have had a field day, thoughnotallhaveblindlybashedSarkozy and France. Several have carefully exam- ined the dual parts of the issue, lament- ing that a judicial procedure has scuttled amassiveculturalfestivalthat could only havebroughtpositiveattentiontoMexico. CASSEZ AND THE ZODIACS Florence Cassez, now 36, arrived in Mex- ico from France in 2003 to live and work with her brother (and his Mexican wife). While working for a hotel chain, Cassez began dating Israel Vallarta a little over a yearlater. TheNewYorkTimesreportedin2009 thatthepairbeganadifficultrelationship that alienated her friends, who sensed he wastrouble.CassezreturnedtoFrancein thesummerof2005butVallartacalledher and she returned to Mexico to live at his ranch. OnDec.9,2005,theAttorneyGeneral’s Officeannouncedithaddismantledano- toriouskidnapgang,“LosZodiaco.”Among themembersofthegangwasFlorence. T Thecaseagainstthesuspectsinvolved atleast10kidnappingsandthemurderof oneofthevictims. Accompanyingtheannouncementwas a live video of federal agents entering the Las Chinitas ranch outside Cuernavaca and freeing three hostages while captur- ingseveralgangmembers. Thisvideowouldbecomeaflashpoint intheeventualjudicialanddiplomaticcon- troversy.OnFeb.10,2006,thegovernment acknowledged that the videotaped arrest hadbeenstagedfortelevision. OnApril25,2008,Cassezwasconvict- ed on kidnapping and organized crime chargesandcondemnedto96yearsinpris- on.Thesentencewasshortlythereafterre- ducedto60years. In February 2010, Cassez published a book proclaiming her innocence and re- vealingthatshewouldfileanappealbased ontheevidenceshepresentedinthebook. The sentence was upheld on appeal on Feb. 10, 2011, setting off the diplomat- icfireworks. SARKOZY ANNOYS HIS HOSTS TheCassezcasedominatedtheagendaof PresidentSarkozyduringhisMarch2009 visit to Mexico despite the best efforts of theCalderónadministrationtopreventthe topicfromtakingonalifeofitsown. Sarkozy ignored diplomatic protocol andbarreledonahead. Duringtheofficialwelcomingceremo- nies – ironically held on the steps of the Chapel of the Empress, named after Em- press Carlota who built the chapel on the groundsoftheNationalPalaceduringthe so-calledSecondEmpireimposedbyNa- poleónIII–Sarkozygotrighttohispoint. “Ididn’tcomeheretochallengethede- cisionofMexico’sjusticesystem,”hesaid. “Iamnotajudge.” Thefollowingdayduringaspecialjoint sessionofCongressintheSenate,Sarkozy againbroachedthesubject. “Letmebeclear,Iwasaskednottocom- mentontheCassezcasefromthepodium soIwillproceedtodoso,”hesaid.“Iamnot a man who supports impunity but I have a duty to my fellow citizens, regardless of what they may have done. I ask that this balancingactberespected.” Althoughthepointofthestatevisitwas tostrengtheneconomicties,themostvis- ible outcome was an agreement to form a binational commission of legal experts to reviewthepossibilityofallowingCassezto serveouthersentenceinFrance. Calderón later sent a letter to Sarkozy promising he’d consider the transfer. The French president has attempted to trans- latethecontentsofthisletterintoaprom- isefromCalderóntohandoverCassez. DOMESTIC BACKLASH InFrance,Sarkozy’sinsistenceintheCas- sezcasehasnotbeenwellreceived. The principal newspapers have been quick to recount his diplomatic missteps over the years. A front-page headline in Liberation read “Sarkozy, the diplomatic crash” in reference to his blunders, argu- ing in the article that his imperiousness hasaggravatedratherthanhelpedCassez. Sarkozy has yet to formally announce he will stand for re-election. On Feb. 24, a CSA survey found that nearly 60 percent ofthosepolleddonotwanthimtorun.An- otheropinionpollpublishedearlierinFeb- ruaryshowedhehadonly24percentsup- portaheadofnextyear’selections. Forty retired and active French diplo- mats on Feb. 22 published an open letter criticizing Sarkozy’s foreign policy in Le Monde. “Our diplomacy is best described as improvisational and moves from im- pulse to impulse that more accurately re- flects internal political interests,” it read. The diplomats questioned if Sarkozy was more interested in winning media expo- surefortheCassezcasewhenitwouldbe betterdiscussed“withdiscretion.” FormerFrenchPrimeMinisterDomi- niquedeVillepindecriedthedeteriorating situationwithMexico,saying“thisshould havebeenayearduringwhichwecelebrat- ed our projects, our relations and our cul- ture.…weshouldbeemphasizingourfra- ternitywithMexico.” 6 MEXICOWEEKLY : Friday February 25, 2011 Friday February 25, 2011 : MEXICOWEEKLY 7 Ambassador Carlos de Icaza walked out of the French Senate during Alliot-Marie’s speech. France’s foreign secretary, Michelle Alliot-Marie, delivers remarks in the French Senate on Feb. 21. NOTIMEXPHOTOS/DAVIDDELRÍO
COVER STORY NOTIMEXPHOTO/DAVIDDELRIO PHOTOSCOURTESYOFFLICKR Florence Cassez’s parents, Charlotte and Bernard, speak to the media in Paris after the failed appeal.Florence Cassez under arrest in 2005 Presidents Sarkozy and Calderón during the French president’s visit to Mexico City in 2009. : The Chattering Classes : The Chattering Classes “Florence Cassez is clearly not the best representative France could have chosen for a year of activities dedicated to cultural exchange.” Héctor Aguilar Camín, Milenio columnist “Sarkozy’s prestige is damaged and opinion polls are very low so he is trying to puff himself up in front of the voting public, to act as the defender of national honor even at the cost of a very important cultural event.” Carlos Fuentes, Novelist and former Mexican ambassador to France “In most functioning democracies, [the staged arrest] would result in the suspect’s immediate release. This – justice converted into farcical theater – is what ought to most incense Mexicans.” Denise Dresser, Reforma columnist and academic “With the cancellation of ‘El Año de México en Francia’ both countries have lost a valuable opportunity for cultural and diplomatic rapprochement.” Miguel Alemán Velasco, Coordinator of the “El Año de México en Francia” event and former governor of Veracruz “Víctor Hugo separated the French from their government when he wrote to the people in the city of Puebla as it was under siege by Napoleon III’s army in 1862: ‘It is not France waging war against you, it is the Empire.’ My email account is full of similar messages from French friends and colleagues who distance themselves completely from the Sarkozy government.” Jean Meyer, Historian who earned his PhD at the Sorbonne “The battle over Florence Cassez is, of course, quite distinct from The Pastry War but actually quite similar to that 1838-39 conflict as it unveils the stupidity of human nature, especially when the people wrap themselves in the flag of patriotism. And here, both President Sarkozy and President Calderón are more concerned about political popularity than justice.” Sergio Sarmiento, Reforma columnist MembersofSarkozy’sUnionforaPop- ular Movement (UMP) have questioned his insistence, many pointing out that a judicial matter in another country should behandleddelicately.“Justbecausesheis French does not mean she is innocent,” saidChantalBrunel,aUMPlawmaker,la- mentingthefactthatdiplomaticrelations withMexicohavebeendamaged. INDIGNATION GROWS AlsoinhotwaterisSarkozy’sforeignrela- tionsminister,MichelleAlliot-Marie,who has only been in office for three months. The former minister of justice has been questioned for family vacations taken in Tunisiaduringtheunrestthereandherre- lationshipwiththerecentlydeposedpres- ident. She publicly suggested that France supportZineElAbidineBenAlibeforehe fled the African nation and Alliot-Marie even arranged to send supplies of teargas toTunisiawhilealsocallingontheNation- al Assembly to send French riot police to helprestoreorder. Aillot-Mariefurtherantagonizedrela- tionswhenshementionedtheCassezcase at a special session in the French Senate thatwasmeanttocommemorateFrance’s special historical relationship with Latin America and the Caribbean. Along with therestofthelocaldiplomaticcommuni- ty, Mexican Ambassador Carlos de Icaza was in attendance. Icaza promptly stood upinthebalconyofhonorandwalkedout oftheSenatebuildinginthemiddleofAil- lot-Marie’sspeech. Later,theMexicanEmbassyreleaseda statementsaying“AmbassadorIcazasadly foundhimselfobligedtoleave.” “Mexicocannottoleratethatjudicialaf- fairsberepeatedlydraggedintoother,sep- aratematters,”thestatementinsisted. The next day, Aillot-Marie’s office re- leased a statement lamenting Icaza’s walk-out. “It is a shame Mexico’s ambas- sadorwasunabletolistentothespeechof friendshiptowardLatinAmericadelivered bytheminister,”itsaid. Theincidentpromptedanewroundof condemnations of Sarkozy’s government inFrance. NobelPrizewinnerJeanMarie GustaveLeCléziocriticizedtheadminis- trationasarrogant.“Ifeelasenseofindig- nationatthearroganceandcontemptSar- kozyhasshowntowardtheMexicanjudi- cialsystem,”thenovelistsaid. FINAL APPEAL Asthespatsimmeredfurther,theappeals court took the unprecedented step of re- leasingdetailsofitsdecisiontoupholdthe convictiononFeb.20. The summary described each of the complaintspresentedbyCassezonappeal andofferedfullexplanationsastowhyeach complaintwasrejected. By this time, President Calde- rón had vowed that Mexico “would not kowtow to France” and a top Foreign AffairsSecretariat (SRE) official had de- claredthatthediplomaticrowwouldcon- tinue“asfarasSarkozycaredtopushit.” “We will not escalate this conflict … it is up to the French government,” said LourdesAranda,anSREundersecretary. Bilateraltiesweretestedonemoretime duringaG-20meetinginParisonFeb.19- 20.Duringthegatheringof20financemin- isters and central bank officials, Finance SecretaryErnestoCorderoignoredefforts byFrenchFinanceMinisterChristineLa- gardetodiscussthecase. During a press conference, Lagarde mentionedthatshehadattemptedtotalk to Cordero about Cassez, but “we did not manage to hold a bilateral meeting to ad- dressthesituation.” Duringhisownpressconference,Cor- dero was asked five separate times about Lagarde and Cassez, but he deflected the issue. “In none of the sessions did we dis- cuss the Cassez case. That is a closed ju- dicialmatterandweshouldnotallowitto contaminateour...economicrelationship,” hesaid.“WeonlyspoketoFranceaboutis- suespertainingtotheG-20.” Butthedamagewasdoneandsomean- alysts argued that this subtle attack was likelymoreinsidiousthanthecancellation ofthe“AñodeMéxicoenFrancia”events. “ThiswasSarkozy’sbiggerplay,”wrote political columnist Ricardo Raphael in El Universal.“TheFrenchpresidentknewfull wellthattheG-20forumwasnevergoing tobetheplacetodiscusstheFranco-Mexi- canjudicialdispute.Hisgoalwasquitedif- ferent:Hewasbettingondamagingthein- ternationalprestigeofMexicointhepres- enceofattendingdignitaries.” With Mexico determined to play the aggrieved party and sit quietly to the side, the pressure is growing on Sarkozy back hometorescindhisdecisionthatthe“Año de México en Francia” would be officially devoted to Florence Cassez. Calls to boy- cotteventshavealsobeenchastised. Let’s hope Sarkozy does an about face and the joie de vivre is restored before re- lationssufferpermanentdamage. Friday February 25, 2011 : MEXICOWEEKLY 98 MEXICOWEEKLY : Friday February 25, 2011
POLITICS EDUCATION The SITEM wins registration to challenge the powerful teachers union led by Elba Esther Gordillo It took seven years and several appear- ances before various tribunals but a new group has finally forced its way into the classroom. For the first time in 68 years, the gi- ant SNTE teachers union has a rival in the form of the Independent Syndicate of TeachersinMexico(SITEM). Though the new union may have re- ceived a great deal of fanfare in the press, can it really change the essential fabric of theeducationdebate? However historically significant SITEM’s registration may be, the union facesanuphillstruggleifitistomatchthe poweroftheSNTE.With59regionalhead- quartersandamembershipofover1.5mil- lion,SNTEisthelargesttradeunioninLat- inAmerica. ItsleaderElbaEstherGordillohaspre- sidedovertheunionsince1989andwields significantpoliticalpower.Gordilloroseto secretary general of the PRI in 2005, but after a falling out with presidential hope- fulRobertoMadrazoshewasoustedfrom thepartyleadership. A shrewd political mover, Gordillo switchedallegianceandsupportedFelipe Calderón during the presidential election in 2006. At the same time, she founded a newpoliticalparty(NuevaAlianza),which allowed her to maintain influence within Congress. The Economist says she is the second most powerful politician in the countryafterPresidentFelipeCalderón. GROWING TREND SNTEiswithoutadoubtapowerfulforce in Mexico but allegations of internal cor- ruptionarewelldocumented. Newkid inschool Elba Esther Gordillo is the SNTE’s figurehead. SNTE Section 22 has been a thorn in the side of Oaxaca governors for years. NOTIMEXPHOTO/JORGEGONZÁLEZ NOTIMEXPHOTO/MAXIMILIANONÚÑEZ Overthepastseveraldecades,therehave beenaccusationsrelatingtothemisappli- cation of funds, murky donations to the unionbytheEducationSecretariat(SEP) andthesaleandtransferofteachingposi- tions.Despitebeingateachersunion,some 30,000 members do not even teach at all, insteadactingasfull-timeunionofficials. Set against this background it is per- haps unsurprising that there is discon- tent within the SNTE. Oaxaca’s Section 22isoneprominentdissidentfactionthat hasbeeninthenewsoflate,butthefoun- dation and successful official registration of the SITEM reflects a growing trend in the creation of independent opposition movements. Although SITEM is the first national uniontogainregistration,23regionalunions havebeenregisteredoverthelastfiveyears. The unions are spread over a wide geo- graphical area including Baja California, Coahuila, Mexico City, the State of Mexi- co, Puebla, Quintana Roo, Tabasco, Vera- cruzandYucatán. READY TO RECRUIT OntheannouncementoftheSITEM’sof- ficial registration, Gaudencio Bravo, the new union’s leader said: “We have creat- ed a third way, independent of the union led by ‘La maestra’ [as Gordillo is known] becausewedonotwanttobecomplicitin thecorruptionandirregularitiesthatwere transforming our work into a question of partypolitics.” The SITEM’s creation has been a pro- tractedprocess,takingsevenyearstocome tofruition Following dismissal from the SNTE executive committee, a group led by Car- los Jongitud Carrillo decided to create a “thirdway”forMexico’steachers.Ironical- ly,Jongitudisthesonofthelong-timefor- mer SNTE leader that Gordillo displaced in 1989 with the help of President Carlos SalinasdeGortari.CarlosJongitudBarri- osledtheSNTEfromSeptember1972un- tilApril1989. TheSITEM’scurrentleadershipcom- mitteeconsistsofsixmembers,including former PRD Deputy Humberto Barrera and former SNTE executive committee memberJuanCarlosVillanueva.   The union’s application was reviewed for seven-and-a-half months by the Fed- eral Arbitration and Conciliation Board before it was granted official registration onJan.25. According to SITEM spokesman Homero Pólito Domínguez, the union is currently comprised of 7,500 teachers from across Puebla, Quintana Roo, Yu- catán, Veracruz, Guanajuato and Mexi- coCity. In addition a concerted recruitment driveisunderway. LOFTY GOALS So,whatdoesthe“thirdway”consistofin practicalterms? Atthepressconferencetoannouncethe union’s registration Villaneuva said: “Our principalobjectivesaretobeaccountable, to hold the rights of teachers at our core, toavoidcompulsoryaffiliationtoanygiv- enpoliticalpartyandtostrengthenexcel- lenceineducation.” More specifically, he said the union wishes to reform teacher education and tocollaborateonthereformofeducation- alpolicy. TheSITEMcertainlyhasloftygoalsbut it faces a major stumbling block. By law, each government secretariat only has to answertooneunion.CurrentlytheSNTE has sole power to negotiate the employ- ment terms of its teachers with the SEP and it is this right that gives it such clout onanationallevel. Without the right to negotiate terms, thenewunionmayalwaysberelegatedto the role of the SNTE’s poor cousin. If the SITEMmanagestogrowalargermember- shipthantheSNTE,itwouldbegiventhe righttonegotiateterms.GiventhatSITEM has7,500membersagainstSNTE’s1.5mil- lion,thismaytakeawhile. SNTE NOT WORRIED SITEM’screationdoesnotappeartowor- rytheSNTE. VeracruzSection32leaderWenceslao Vargas Márquez said the new teachers union “does not represent a challenge to theSNTE.Theyaretoosmallandhaveno new ideas. All I have heard them say is a repetitionofSNTE’sgoalsandpolicies.” EducationinMexicohasseenlittleim- provement under the SNTE’s watch de- spitea generousbudgetandhighsalaries. Bylawtheeducationbudgetmustbeat least 8 percent of gross domestic product andthe2011budgetprovidesmorethan208 billionpesos.Itwouldbereasonabletoas- sumethatachallengetotheSNTE’sbloat- edapparatuscouldstimulaterealchange. However, economic theories correlat- ing competition with growth do not nec- essarily translate to the field of public ed- ucation.AccordingtoVargasMárquez“the best thing for education and for teachers is one single, national union. Dividing the fightisastepbackwardanddeniesthepos- sibilityofradicaltransformation.” Without power to negotiate with the SEP and with such a small membership, theSITEMfacesanalmostSisypheantask. Theunionhassecureditsregistration,but theboulderkeepsonrolling. REBECCA CONAN / MEXICO WEEKLY 10 MEXICOWEEKLY : Friday February 25, 2011 Friday February 25, 2011 : MEXICOWEEKLY 11
POLITICS BROADCASTING ItwasearlyonFriday,Feb.4,lessthanfive weeks into a new year that seemed hope- fulonthepoliticalfrontasanewcongres- sionalsessionhadjustgottenunderway. President Calderón was savoring the defeatofthePRIinGuerreroandthePAN candidatewasleadingcomfortablyinpolls aheadoftheupcomingBajaCaliforniaSur election.Partyleaderswerepredictingthat Congresswoulddebatekeyreformsinthe weeksaheadandafewofthem–laborre- form, the anti-monopoly law, judicial re- form–werehighonthepresident’sagenda. But that Friday morning, popular ra- diohostCarmenAristeguitooktotheair- waves,madesomeimpertinentcomments andtheresultwasatwo-weekhangoverfor thepresident. By Monday, Feb. 7, Aristegui had been fired for “reportingrumors as news” after sheusedascandalousdisplayledbyLabor PartyDeputyGonzaloFernándezNoroña inCongresstodemandthatLosPinosde- clarewhetherornotCalderónwasadrunk. OnWednesday,Feb.9,Aristeguiblamed her firing on “a presidential temper tan- trum,”reiteratingtheimputationthathad been repeated ad nauseum in the interim thatthesacredidealoffreedomofexpres- sionhadbeendesecrated. Threeweekslater,Aristeguiisbackon the air, although the Vargas family (own- ers of the radio station) have yet to elabo- rateuponthereasonsforthefiringnorhave they fully explained the decision to rehire theaggrievedbroadcaster. In the immediate aftermath of Aris- tegui’s firing, social networks were ablaze Media warsA rancorous public debate over freedom of expression overshadowed a bitter rivalry that is focused on knocking Televisa off its perch withsupportforthebroadcasterandcrude condemnationsofPresidentCalderón. Columnists waxed about freedom of speech, while some rationalized the jour- nalisticvalidityoftherequestthatLosPi- nosaddressthealcoholismallegations. Aristeguiwassilentforfourdaysbefore herWednesdaypressconferenceinwhich shedecriedtheallegedcensorshipimposed by Los Pinos. “The Vargas family should notbowtopressuresfromthefederalgov- ernment nor a presidential tantrum,” she said, asserting that MVS was confronted with the decision to fire Aristegui or lose outonfuturelicensingopportunities. LosPinoscountered,issuingapressre- lease:“Thefederalgovernmentisandhas beenscrupulouslyrespectfuloffreedomof expression and values the wide variety of voicesandopinionsinthedebateoverpub- lic affairs.” President spokesman Roberto Gil Zuarth told reporters later that Aris- tegui’s original allegations were “offen- siverumors”anddetailedCalderón’snor- maldailyactivitiestodemonstratethatthe presidentis“ingoodhealthandcomplete- lyincommandofhisfaculties.” Lessthanaweeklater,MVSannounced Aristegui would return on Feb. 21 and an arbitrator – Javier Corral – would inves- tigate Aristegui’s alleged violation of the codeofethics. A deeper look at the melodramatic eventsoffersrevealinginsights.Beyondthe clamoraboutfreedomofexpressiondenied wereafewvoicesthatfocusedonjournalis- ticresponsibility.CarlosRamírezofElFi- nancieroandCiroGómezLeyvaofMilenio bothstronglyhintedthatAristeguiviolat- ed journalistic ethics by failing to investi- gatebeforepresentingallegationscrudely madebyalawmakerwellknownforbom- bastic displays. Aristegui’s argument that rumors of Calderón’s drinking problem werewidelydisseminatedonTwitterand Facebookhardlyrisestoethicaljournalis- ticstandards. Ramírez also reported that Federico Arreola had confessed to being the source of the rumor about Calderón’s drinking. Arreola – a former adviser to Andrés Manuel López Obrador and a friend of Aristegui – said he first made the accusation in a 2006 radio interview after Calderón had insulted him. “I was wrong,Iadmitit,”ArreolawroteinaFeb.10 newspapercolumn.“Thereisnoevidence IhaveseenthatCalderónisanalcoholicso I’dhavetosayheisn’t.” Forfouryears,Arreola’s“lie”hascircu- lated in columns in what Ramírez terms “classicGoebbelianstrategy”–“repeatalie oftenenoughanditbecomestruth.” Aristegui’sinsistencethatshedidn’tvi- olatetheradiostation’scodeofethicsisal- soquestionable,specificallywithreference tothesectiononrespectforprivacyofpub- licindividuals. There was no evidence or reporting to support the allegation about Calderón – a cursory search of the Internet and You- tube produces three videos, inonlyoneofwhichdoesthe presidentdemonstratebadly slurredspeech.Thequestion is, is this news and informa- tion,orisitideologicallydriv- eninsinuation? Did Aristegui – often ac- cused by critics of being a mouthpiece of López Obra- dor–simplyuseanactofpa- theticpoliticaltheatertoim- pugnthepresident? As the president took a beatinginthepressfor“cen- soring”Aristegui,wordbegan tofilteroutthatMVSwouldrevisititsde- cision.WhetherornotCalderónorsome- oneatLosPinos(withorwithoutthepres- ident’sblessing)hadforcedMVS’hand,it seemedlikealose-losesituation. TheVargasfamilyreceivedover10,000 “tweets” criticizing their decision to fire Aristegui,thoughafamilylawyerwrotein ElUniversalthatthe10,000messageswere sentfromatotalof292twitteraccounts. On Wednesday, Feb. 16, Aristegui and MVSissuedastatementannouncingthat thereporterwouldbebackbehindthemi- crophoneonFeb.21. That same night, on the Televisa pro- gram“TercerGrado,”CarlosLoretdeMola assertedthatthestorybehindthestorywas agrowingconflictbetweentheCarlosSlim empireandTelevisa,callingit“aclashofti- tans.”SlimiscompetingwithTelevisaand itscabledivision,Cablevisión,viatheDish satelliteTVcompanyandMVS. Slim and associates are angling to win aneventualbidtoacquirerightstoathird public television contract, while Televisa (and TV Azteca) have long been fighting thecreationofathirdnetwork. The“TercerGrado”moderatorchanged the subject and Loret de Mola was not able to offer additional analysis, but Car- los Ramírez attempted to shine a light on theissueinacolumntwodayslater. RamírezsuggestsAristegui’sreinstate- mentwasmoreafactorofMVSnotwish- ingtoupsetthealliancewithSlimandhis “war”withTelevisa. At the same time, Slim and Co. were announcingthattheywerepullingadver- tising from Televisa, calling it a cost-sav- ing measure. Dish satellite programming does not offer Televisa channels, because it refuses to pay the reasonable intercon- nection fee, says El Universal columnist AlbertoBarranco.Televisais at odds with TV Azteca (and Slim’s lucrative phone hold- ings) over a contested bid to win a new a national cell phonenetwork. ThrowinthefactthatJa- vier Corral is the previously mentioned arbitrator in the Aristegui-MVS case and the plot thickens even further. Corral was sued by Televi- sa – and was forced to sell a house – for failing to pay off a campaign advertising debt heaccruedwhilerunningfor governorofChihuahuain2004. The intrigue and dirty tricks did not end with Aristegui’s return to MVS. The real story will continue to play out in boardrooms and the proverbial smoke- filled rooms. The most appropriate thing to do is to borrow a favorite catch phrase ofAristegui’s:“Yaveremos.” TOM BUCKLEY / MEXICO WEEKLY “There is no evidence I have seen that Calderón is an alcoholic so I’d have to say he isn’t.” Federico Arreola political columnist NOTIMEXPHOTO/FRANCISCOGARCÍA NOTIMEXPHOTO/ALFREDOGUERRERO PHOTOCOURTESYOFFLICKR Carlos Slim has his eyes on a new TV network. Calderón inisists he did not pressure MVS.Carmen Aristegui was reinstated on Feb. 21. Friday February 25, 2011 : MEXICOWEEKLY 1312 MEXICOWEEKLY : Friday February 25, 2011
The new Senate building is set to open for business in March, four years after its anticipated debut TheSenatehasannouncedthatitwillbe- gin making the move to its new quarters on March 1 and expects to begin working therebyMarch21. ThebuildingnearthecornerofRefor- maandInsurgentesboastsstate-of-the-art features to the extent that National Geo- graphichasarrangedtofilmasegmentfor itsseries“Megastructures.” Buttheworld-classadd-onsledtocost overrunsandtheconstructiontooksolong that four inauguration dates came and went before the current target date was announcedonFeb.21. The federal auditor even conducted a reviewoftheprojectanditsFeb.16report offered mild criticism (some examples of poorconstructionandinsufficientquality control)withgeneralapprovalforadhering tobasicregulations. EARLY DELAYS The Senate acquired the property in July 2002(then-Sen.JesúsOrtegaofthePRD objected to the purchase calling it “an au- thoritariandecision”ledbythePAN)and announcedthattheconstructionwouldbe finished in 2005. The property cost $24.7 million,ElUniversalreported. “Thenewbuildingwillfeature‘intelligent engineering’atatotalcostofroughly1.4bil- lionpesos,”saidSen.RamónCorral(PAN) whentheconstructioncontractwasputup forbidding. By February 2004, termination of the project was pushed back to August 2006 andtheSenaterequisitionedanaddition- al800millionpesosincreditfromtheFi- nance Secretariat. The contract bid was pushed back from November 2002, final- lywinningapprovalinAugust2003. Bythistime,thePRDhadbeguntocom- plain about the progress of the construc- tion.“WerecognizethattheSenateneeds anewbuilding,butitshouldnotbebuiltin accordwithrelationshipsthatsomesena- torshavewithfriendsintheconstruction Premieringsoon… Construction on the site did not get under way in earnest until 2008. NOTIMEXPHOTO industry,”saidPRDSen.AntonioSotoSán- chez.SotorevealedthatthePRDhadbeen lockedoutofthejurythatvotedonthebids. The cornerstone was finally placed in June 2004, but the economic slowdown then subsoil problems caused the project togrindtoahalt.Thejust-completedaudit alsorevealedthattheSenatehadneglect- edtoconductafeasibilityreview,anover- sight that would delay the opening an ex- trafouryears. RISING COSTS Construction finally began in earnest in 2008, slowly so that the concrete founda- tion would settle adequately in the ques- tionablesubsoil. Progresscontinuedapace,butsodidthe overallcost.Fromtheoriginalestimateof 1.4billionpesos,thenewestimatedcostby 2009was2.2billionpesosandfinalexpen- dituresexceeded2.5billionpesos. The Senate targeted the Bicentenni- al celebrations as the new inauguration date. Ironically, as several of President Calderón’sBicentennialprojectsfellapart inmid-2010,Senatecriticismgraduallybe- camemutedasitbecameapparentthatits own building would not be completed on time. November2010–theCentennialofthe Revolution–wasthenextinaugurationtar- get.ThattoowasmissedthoughtheSenate heldaceremonial“partialinauguration.” Now, senators are weeks away from movingintotheirnewbuilding,repletewith smart technology – iris recognition sys- tems, electronic voting boards, audio and video systems on the main floor, retract- ablescreensateachdesk,andaheliport. One thing, though. PAN Sen. José GonzálezMorfínconfessedinJanuarythat thebuilding’sparkinglotdoesnotcontain sufficientparkingspacesforsenatorsand staffers. TheSenatehassincebeengoingabout lookingforparkinglotstorentintheneigh- borhood in hopes of mitigating the prob- lembythetimethebuildingopensforgood. TOM BUCKLEY / MEXICO WEEKLY POLITICS CONGRESS 14 MEXICOWEEKLY : Friday February 25, 2011
Friday February 25, 2011 : MEXICOWEEKLY 15 NOTIMEXPHOTO/JAVIERLIRAOTERO Serious about taxreformSen. Manlio Fabio Beltrones and PRI senators are pushing a bill that aims to boost public finances, but analysts say transparency is top priority : 20 Mexican crude has climbed above $95 per barrel due to un- rest in the Middle East and northern Africa. That represents a$10riseperbarrelsincethebeginningoftheyear.That’sthe highestpricefornationalcrudesinceMarch2008.TheCen- tralBankreportedthatthepricehikebrought$750millionin- totheTreasuryduringtheFeb.14-18reportingperiod. Unrestabroadpayingoff inhighercrude profits OIL ECONOMY COMMERCE HOLLAND TOPS LIST OF INVESTORS HERE Foreign direct investment in 2010 climbed 16.6 percent over 2009 figures, the Economy Sec- retariat reported. The total in- vestment – $17.725 billion – was led by Holland with the United States second. GOV’T LOOKS INTO TORTILLA PRICES Economy Secretary Bruno Fe- rrari accused traders of artificial- ly bumping up the price of corn and said his agency will levy fines against offenders found to be hoarding. Ferrari said an in- vestigation is under way. www.mexicotoday.com.mx/information/economy
Friday February 25, 2011 : MEXICOWEEKLY 1716 MEXICOWEEKLY : Friday February 25, 2011 INDUSTRY ECONOMY &FINANCE CEMEX STOCK PRICE SLUMP The announcement of one billion new shares led to a 7 percent tumble in Cemex’s share price. This is the largest drop in over a year. Source: IXE 9 12 15 12.79 pesos 12.49 Day/Month 11.59 11.48 24/01 27/01 28/01 10/02 Cemex has won approval for a new share issue as it scrambles to reduce its considerable debt Cemex’s Jan. 28 announcement of a pro- posed $1 billion ordinary share issue was met with consternation among its share- holdingranksandnervousnessintheMex- icanstockexchange. However, shareholders gave the green lightThursday,Feb.24,whentheyvotedin favoroftheproposalataCemexsharehold- ersmeetinginMonterrey. Theshareissuewillbelargerthanorig- inally announced ($2 billion in ordinary shares), but Cemex CEO Lorenzo Zam- branopledgedtosellconvertible bonds to avoidanimmediatestockdilution. Cemex, the world’s third-largest ce- mentmanufacturer,washithardbythere- cessionintheUnitedStatesandatthepeak of the crisis the company saw a 50-per- cent drop in share trading. The 2007 ac- quisitionof Australian building materials supplier Rinker, for $14.2 billion placed a heavy burden on the company’s already overstretchedbalancesheet. The global economic crisis severely hurt Rinker whose main market was in theUnitedStates,andthecompanyquick- ly tripled its debt becoming a liability for Cemex.The Monterrey-based company’s ownsalesintheU.S.fell55percentasare- sultoftheeconomicslump. HEFTY BILL DUE By the end of 2010, Cemex had amassed a hefty debt of $17.7 billion. Just this year, thecementcompanymustpay$2.3billion in debt if it wants to avoid a rise of $200 million in interest payments. In its finan- cialreportforthelastquarterof2010,Ce- mexreportednetlossesof$581million,al- thoughsalesincreasedby1percentonthe samequarterin2009. At an extraordinary general meeting heldonJan.28,Cemexannounceditspro- posaltoissue6billionordinaryshares(ap- proximately 20 percent of the company’s totalsharesincirculation)andconfirmed that shareholders would be asked to vote ontheproposalonFeb.28. Following the Jan. 28 announcement, Cemex’s shares closed down 7.21 percent thatsameday,droppingto11.59pesos,ayear longlow.Thepricehasyettobounceback topre-announcementlevelsbutaccording Cementing anoverdue recovery Cemex hopes it has weathered the worst of the global crisis and is now looking to expand. PHOTOCOURTESYOFFLICKR tofinancialanalyststheworsthaspassed. The sharp drop in share price demon- strated the markets’ reaction to the an- nouncementbutIXEanalystJoséItzam- naEspitiaHernándezsaidthe“conflictin Egyptcouldalsohavebeenafactor.” FACING PENALTIES TheshockexpressedbytheMexicanmar- ketandCemexshareholdersisanomalous giventheyhadadvancewarning.Aspartof a major refinancing deal in 2009, Cemex agreed to amend its capital covenants on Oct.25oflastyear. In order to comply with the new cove- nants Cemex must issue $1 billion worth ofsharesthisyearorfacedefaultpenalties. Thisinformationwasrelayedtosharehold- ers last year and so the announcement of theshareissuewasnotunexpected. The killer blow of the proposal ap- peared to be the larger-than-expected stockdilution. Estimates made in October provid- ed for 20 percent less stock dilution than wasoriginallyannounced.Inaddition,the highervalueissuehasledsomeCemexan- alyststobelievethecompanyisnotrecov- eringattheexpectedpace. However, in an effort to calm inves- tor fears and to lessen the effects of dilu- tion, Cemex agreed to issue mainly con- vertible bonds. Zambrano said “the issue won’thaveanimmediatedilutiveeffectas weplantoissuebondswithafour-tosev- en-yearmaturity.” “Withthis[shareissue]inthenextfive yearswe’llhaveahigherfreecashflowper share,sothe[stock]dilutionmythdoesnot apply, if anything that would be after five years,” said Zambrano at a press confer- enceheldbeforetheshareholdersmeeting. ‘GREATER FLUIDITY’ AccordingtoIXE,theshareissuewillhave an initially negative effect on minority shareholdersbecausetheyhavenorightof preferencetosubscribeforthenewshares. However,“inthelongtermthenegative effectofstockdilutionwillbecompensat- edbygreaterfluidity,thereductionofdebt andthereductionofinvestmentriskgiven thecompany’sreducedleverage,”IXEsaid inamarketreport. IXE analysts reported that the money generatedfromtheshareissuewillbeused to pay down approximately 11 percent of the company debt. If Cemex can begin to reduce its debt, analysts say the company haspositiveprospectsfortheyearahead. Indeed, in his letter to shareholders in the company’s 2010 annual report, Zam- brano said last year “was a transitional [year]forCemex,fromtheglobalcrisisof 2009totheslowrecoverythatisnowtak- ing place in many markets.” He also said the company needs to strengthen its bal- ance sheet and business model to reposi- tionitselfforfuturegrowth. And although the U.S. recovery will be keytorevivingthefortunesofoneofMex- ico’scorporategiants,thefactthatCemex recently managed to post growth for the firsttimeinyearsoffersnewfoundhope. To illustrate this, at the Feb.24, press conference held before the sharehold- ersmeetingthatsameday,Zambranoan- nounced Cemex would invest this year a further$475milliontocontinuewithitsin- ternationalexpansion.Theexpansionfea- turesspecialinterestonPeru,Brazil,Chi- naandIndia. Zambranorevealedthecompanyisal- readyintalkswithastrategicChinesepart- nertobeginproducingready-mixconcrete. Theshareissuealongwiththelatestin- vestmentplansmightjustsprinklealittle wateronthosebuddinggreenshoots. REBECCA CONAN / MEXICO WEEKLY INDUSTRY ECONOMY &FINANCE Telecomsspat spillsoverinto TVadvertising arrangements The battle of media tycoons heated up thisweekwhenCarlosSlim,theworld’s richestmanaccordingtoForbes,pulled allofhisholdingcompany’sadvertising fromthetwomaintelevisionnetworks –TelevisaandTVAzteca. While advertising was pulled from Televisa due to a 20-percent hike in pricing, Grupo Carso reported negoti- ations with TV Azteca broke down on the networks’ request for preferential interconnectiontariffs. Interconnectionfees–chargespaid by all phone operators to connect calls toothernetworks–areviewedbymany asthemainobstacletocreatingacom- petitivetelecomsmarketinMexico.Ac- cording to Axtel, fixed-line operators have paid almost $21 billion in inter- connectiontariffsoverthelast11years. The Telecommunications Law permits telephone operators to set in- terconnection fees as they wish but – in contrast to Europe and the United States where stiff competition among similarsizedoperatorskeepsthetariff low–TelmexandTelcelcaneffective- lychargewhattheywant. Slim’s pre-eminence in telecoms is undisputed. Telmex and Telcel domi- nate90percentofthefixed-linemarket and70percentofthecellphonemarket, respectively.Bothcompanieslevyinter- connectionchargesforconnectingcalls withotherphonenetworks. TVAztecaandthecableoperatoras- sociation Canitec turned on Slim fol- lowinghisrefusaltoreducetariffs.Ina pressstatementreleasedThursday,TV Aztecacalledfor“theimmediateopen- ing of a public debate to discuss inter- connectionfeeswhichaffectallofMex- ico’s88millioncellphoneusers.” TheFederalCompetitionCommis- sion has declined to intervene saying “this is an issue for the companies in- volved.Ithasnotbeenestablishedthat thismatteraffectsthepublic.” MEXICO WEEKLY
Friday February 25, 2011 : MEXICOWEEKLY 1918 MEXICOWEEKLY : Friday February 25, 2011 COMMERCE ECONOMY &FINANCE TRADE ECONOMY &FINANCE Mexico’s customs operations are slowly evolving from what once implied a pain- fully bureaucratic experience to a more technological,streamlinedprocess. Business leaders spoke earlier this month on how foreign trade with Mex- ico has improved in recent years. They praised such measures as reductions in procedures, documents and costs relat- ed to importing and exporting as well as steps to train and evaluate customs offi- cials that have removed corrupt and un- qualifiedworkers. The implementation of an electron- ic single-window – a system that allows traders to submit their export or import information on the Internet that all rel- evant government offices can access for approval–isanothermeasurethathasfa- cilitated trade. Only 40 nations out of 149 polledbytheWorldBankuseasingle-win- dowsystem. “Compared to other Latin American countries, we are in a very good position,” said Mauricio Deutsch, a partner of Ac- centureMexico,aninternationalconsult- ingandoutsourcingfirm. EXCESSIVE BUREAUCRACY According to a 2011 World Bank ranking of how easy it is to do business in differ- ent countries, Mexico ranks No. 35 out of atotalof183. Figures from the multinational or- ganization also show that in order to ex- port products from Mexico, five different documents must be filed, though this is less than the 6.6 average in Latin Ameri- ca.Inordertoimportproducts,fourdocu- mentsarenecessary(comparedtothere- gionalaverageof7.1.) Nancy Domínguez, General Motors’ customs administrator in Mexico, under- scored the importance of technology in commerce.“What big corporations want now is trade without borders, where all customs procedures are done electronic- allyandforcustomsagenciestooperate24 hoursaday,sevendaysaweek,”shesaid. Mexico, however, falls behind in some areas. Only one company in Mexico is au- thorized by the Customs Agency to digit- alize documents, according to Jorge Mo- rales,CEOofMexico’sSandler,Travisand Rosenberg branch, a customs and trade consultingfirm. Infact,outofthe12daysittakes,onav- erage,toexportproductsfromMexico,10 are spent on paperwork, Morales said. In contrast,intheUnitedStates–whereMex- icosentabout80percentofits$298.36bil- lion in export products in 2010 – only six daysareneededtoexportgoods. EMBRACING TECHNOLOGY Customs modernization is essential for Mexico’s competitiveness, said Hans Kohlsdorf,vicepresidentofEmpresasGlo- bales. There are about 35,000 businesses thatexportfromMexico,and5,000ofthese arelargeandmediumcompanies;therest aresmallones,Kohlsdorfsaid. EvenifMexico’stradeindustryembrac- estechnology,theexpertsagreethatcoor- dinationandsharingofinformation,espe- ciallyamonggovernmentagencies,isvital. One solution is to turn to other coun- triesforexamples,Deutschsaid. Morales cited the case of Peru. In the mid-1990s, only 2 percent of customs of- ficials had professional training, but with mandatoryeducationintax,tariffandse- curitylaws,some70percentofPeru’scus- tomsofficialsweretrainedbytheendofthe decade.Staffevaluationswereimplement- ed to remove corrupt or unqualified cus- tomsofficials. Peru also identified and disseminat- ed the job duties of each government of- ficetoimprovecommunicationwithcus- toms,Moralessaid. ELIMINATING BAD EGGS Mexicohasfollowedsuitinsomeareas. Aspartofthefederalgovernment’ssix- year,$830.54millionCustomsModerniza- tionPlan,professionaltrainingforalllev- els of staff is required and periodic evalu- ationsarebecomingthenorm. In August 2009, the federal govern- ment removed about 700 fiscal inspec- torsand400cargoinspectorsfromdiffer- entcustomagenciesalongtheU.S.-Mexico border.CustomsadministratorJuanJosé Bravosaidatthetimetheofficialsdidnot fitthejobprofile. The clean-up is continuing. Armando Olivares Félix, a former customs admin- istratorinAcuña,Coahuila,wasincarcer- ated earlier this week after being charged by the Attorney General’s Office for help- ing a group of shipping companies evade tax payments worth 56.43 million pesos ($5.22million). BRONSON PETTITT / MEXICO WEEKLY Oldcustomsgiving waytonewpractices In addition to better technologies, greater efficiency and a concerted attack on corruption can streamline border trade. Maquiladora workers could soon be exposed to new educational opportunities. PHOTOCOURTESYOFFLICKR PHOTOCOURTESYOFFLICKR EducationisJob1for newmaquilaleader In the wake of global financial difficulty, border trade and business are boosting CiudadJúarez,butthenewpresidentof the Maquiladoras Association (AMAC) wants to establish educational compo- nentstokeepgrowthcoming. InJanuary,therewere1,800startups in the region. AMAC, a non-profit, was founded in 1974 and has 339 manufac- turing plants as members, 43 percent of Chihuahua’sdomesticproduction. José Luis Armendariz, president of AMACsinceFeb.10,saidCiudadJuárez, likemostotherMexicancities,wasgreat- lyaffectedbytheglobalcrisisandcooper- ationwasneededforthecitytoprosper. He wants to stress education to the owners and employees of maquiladoras and production plants located along the border. “We will create a type of college for maquiladoras with a direct focus on cultureandtechnologicaldevelopment,” Armendarizsaidinaphoneinterview. ROAD TO RECOVERY Fulfilling the commitment to education would help encourage competition and diversification,Armendarizsaid.Afocus onculturaleducation,ontheotherhand, couldalsohelpeasethecurrentclimateof fearandviolenceinJuárez,hesaid. With compromise between com- peting entities and a unified front, Ar- mendariz said, Ciudad Juárez can con- tinueonitswaytofinancialrecovery. Armendariz has spent the last 33 yearsstudyingtradeandelectricalengi- neeringinCiudadJuárez.Hehasowned the manufacturing firm Acrílicos Plas- titec since 2003, and hopes he can use hismanagerialskillsinhisnewposition aspresidentofAMAC. DIVERSIFICATION IS KEY At Armendariz’s inauguration, Econo- mySecretaryBrunoFerrarispokeofthe importanceofdiversifyingtrade,bothin terms of what products are traded and to whom they are traded, Azteca Noti- ciasreported. Ferrari also hopes to expand the IM- MEX that promotes production and trade through tax incentives and gov- ernment-sponsored rebates. Current- ly, 7,864 businesses across the country benefitfromtheprogram. “One of the most important benefits isthatcompaniesdonothavetopayval- ue-addedtaxonanyimports,”saidJaime Rodríguez, a spokesperson for the insti- tutethatmanagestheprogram. ZACH LINDSEY / MEXICO WEEKLY Mexico is taking steps to modernize procedures and reduce costs so as to end painful bureaucratic experiences that were all too common
Friday February 25, 2011 : MEXICOWEEKLY 2120 MEXICOWEEKLY : Friday February 25, 2011 TAX REFORM ECONOMY &FINANCE PRI senators have prompted a tax reform debate, although action on transparency and efficiency must likely come first B ack in 1999, President Ernesto Ze- dillo was nearing the end of his se- xenio. He sought to revive his and the nation’s fortunes by submitting a tax reformproposaltoCongress. Thatsameyear,PANlawmakers(with Felipe Calderón as their party president) decidedtorejecttheZedilloproposal. Sincethen,dozensmoretaxreformpro- posals have been submitted to Congress but none have mustered enough votes for approval. Throughouttheyearssince,newtaxes havebeenimplementedandsmallchang- es have been made to the country’s fiscal system. However, Mexico has not experi- encedcomprehensivetaxreformsinceDa- vid Ibarra Muñoz – the finance secretary underPresidentJoséLópez Portillo(1976- 82)–introducedthevalue-addedtax(IVA) backintheearly1980s. Sincethen,lawmakersfromallparties (Calderónincluded)haveeithersubmitted, lobbied for, examined, or voted on a flur- ry of tax reform proposals. Indeed, Mexi- co’s fiscal woes are well documented and thereformsneededarecleartoalmostev- erypolitician. AsSen.ManlioFabioBeltronesrecent- ly wrote in an Op/Ed piece: “We all have multiple options on how to redirect [the country’s]fiscalpolicy.” TOUGH SELL Thismonth,Sen.BeltronesandotherPRI senatorshaveworkedhardtodefendanew taxreformproposal,althoughhehasyetto submit the bill to Congress. Surprisingly, Beltrones has to convince his own party’s deputies to endorse the proposal before submittingit. The accounting firm Ernst & Young has said the proposal (if approved) could increasethecountry’snon-oiltaxrevenue by1.3or1.8percent–wellbelowthe3per- centrecommendedin2009bytheOrgani- zation of Economic Cooperation and De- velopment(OECD). TheBeltronesproposal–likemostoth- ers proposed in the past 11 years – focus- esalmostexclusivelyonboostingthefiscal base and increasingthe country’s languid tax revenue (which is well below oth- er Latin American countries and almost twotimesbelowthatofOECDcountries). However,manyanalystsquestionwhy politicianshavenotshownanyinterestin making more transparent and more effi- cientthewaythecountrycurrentlyspends whatlittleitcollectsintaxrevenue. “Before any tax reform proposal gets approved, we must first study very thor- oughlywhatthecurrenttaxrevenueisbe- ing used for,” said Rocío Moreno López, a researcherattheindependentMexicoCity think tank Fundar. “There’s no use in in- creasingtaxrevenueifit’sonlygoingtobe spentfoolishly.” IRRESPONSIBLE DECISIONS Thereisactuallyplentyofdatatosupport Moreno’sconcern. From2005to2010,forinstance,onthe heelsofrecord-breakingoilprices,thefed- eralbudgetincreasedbyalmost75percent, goingfrom1.8trillionto3.2trillionpesos. In contrast, the country’s Human De- velopmentIndex(anindexthatcombines data on life expectancy at birth, adult lit- eracy, educational enrollment, and aver- age income) only increased from 0.727 to 0.750. In other words, an extra 1.4 trillion pesosinpublicspendingdidalmostnoth- ingtoalleviatethecountry’seconomicand socialproblems. “Morerevenue–whetheritcomesfrom oil[salesandtaxes]ortaxes–doesnotau- tomatically translate into a decrease in povertylevels,”saidMorenoinatelephone interview. This is not surprising if we consider thatpublicspending,ortheexpenditurein- curredbythepublicsectorinthecourseof itsactivitiesinMexiconearlydoubledbe- tween2000and2006. Evenin2009,inthemidstoftheworst financialcrisisinglobalhistory–ascoun- tries all over the world were frantically trying to reduce their public-sector costs – Mexico’s federal government managed to hire almost 15,000 additional mid- and high-levelcivilservants. FOOLISH SPENDING WhilenationssuchasGreeceandtheUnit- ed Kingdom are desperately trying to cut public spending (despite huge public out- cry),publicspendinginMexicohassteadi- ly grown at an annual average rate of 6.9 percent,accordingtoFundarresearchers. Throughouttheyears,petroleumsales and oil-related taxes have been primar- ily used to finance Mexico’s burgeoning bureaucracy. A2009reportbytheChamberofDep- uties’technicalbodyinchargeofoversee- ingpublicspending(theASF)discovered that in 2004, during Vicente Fox’s fourth yearinoffice,one-quarterofthecountry’s “additional” oil revenue – that is, the dif- ference between the projected and actual priceofMexico’sheavycrude–wasspent on “balancing the federal budget.” This is afamiliareuphemismusedinMexicothat meansusingthemoneytopayforgovern- mentoverspendingthroughouttheyear. A report compiled by Fundar on oil-fi- nancedspendingfrom2000to2006found thatpetroleumrevenuepaid,amongother things, for a giant flagpole in Nuevo León andfortheremodelingofseveralchurch- esinYucatán. This simply “reflects the lack of plan- ningandprogramminginpublicspending,” wroteMoreno,thereport’sauthor. INSTITUTIONAL INEFFICIENCY Almosttheexactsamecriticismwasmade recentlybytheASFwhenitpresentedits 2009samplingauditofpublicaccountsto Congress. Indeed, its report is filled with cases wheregovernmentagenciesblatantlyfid- dledawaypublicmoney. The country’s revered state-owned oil company, for instance, serves as a clear example of the endemic inefficiency, cor- ruption and inefficiency that plagues our government. Figures compiled by Reforma show that Pemex – with its 145,000 employees – has 30,000 more workers than private- ly-ownedBritishPetroleum(115,000)and 39,000morethanExxonMobil(106,000). In fact, using Pemex’s own figures, the newspaper discovered that from 2008 to 2010,whileMexico’soilproductionfellby 7.7 percent, the state-owned company’s spending on workers’ benefits increased Newfix onpublic spending Congress could take up comprehensive tax reform this session. NOTIMEXPHOTO/JOSÉPAZOS
22 MEXICOWEEKLY : Friday February 25, 2011 TAX REFORM ECONOMY &FINANCE BUDGET AND HUMAN DEVELOPMENT INDEX Source: OECD (2010), Revenue statistics: Comparative tables, OECD Tax Statistics (database) Source: UNDP, Chamber of Deputies / Finance Secretariat 3.2 trillions of pesos 1.8 Comparison between public spending and HDI MEXICO'S TOTAL TAX REVENUE COMPARED WITH OTHER COUNTRIES As a percentage of gross domestic product 15 2002 20042003 2005 2006 2007 2008 2005 20072006 2008 2009 2010 2009 20 25 30 35 40 Canada United States Chile Mexico Spain OECD Total 34.2 33.7 35.4.2 33.3 30.7 17.5 0.727 26.0 34.7 36.6 31.1 24.0 18.2 27.9 23.2 18.6 19.7 16.5 0.750 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 HumanDevelopmentIndex 0.7 0.8 by15percent,goingfrom123billionto142 billionpesos. Not surprisingly, Pemex’s efficiency faresverypoorlywhencomparedwithpri- vatelyownedoilcompanies.WhileanExx- onemployeeproducesapproximately43.6 barrelsofoilperday,aPemexemployeeon- lyproduces17.2(nearly40percentless). TRIVIAL SPENDING Sadly,inefficiencyisnotaphenomenonex- clusivetoMexico’soilsector. According to the ASF’s 2009 audit re- port, lawmakers are not much more effi- cient than oil riggers. Figures show that, between2007and2009,thecongressional budgetincreasedfrom7.7billionto9.6bil- lionpesosandin2009itexperienceditsbig- gest-everincrease(10.3percent). On the other hand, the rate at which lawmakersproposedorapprovedurgently neededreforms–includingacomprehen- sivetaxreform–waslessthanimpressive. In 2009, for example, federal deputies as a whole proposed 1,079 different bills, of which 909 were sent to committees and only 170 were acted upon. The Sen- ate, meanwhile, did a little bit better by proposingatotalof974billsandvotingon 925ofthem. Butperhapsthemosttellingsignofhow little thought is given in Mexico to public spending is the expenditure laid out for thetwobigofficialcelebrationslastyear– theBicentennialofIndependenceandthe CentennialoftheRevolution. AccordingtotheASF,atleast260mil- lionpesoswerespentoncelebratoryproj- ects, including 31.2 million pesos (or ap- proximately 1,448 years’ worth of mini- mum wage salary) spent on publicizing andorganizingalaying-of-the-first-stone eventforthe yet-to-be-constructed “Arco delBicentenario.” Another 63.3 million pesos (approx- imately 2,800 years’ worth of minimum wage salary) were spent on the creation and endowment of a research institute specializinginthestudyofMexico’ssocial revolutions. This seems rather ironic giv- en that Mexico’s Revolution was sparked, among other things, by President Porfirio Díaz’ssimilarlyexcessivespendingonlav- ishpublicprojects,includingstructuresfor theCentennialofIndependence. SowhiletheBeltronestaxreformpro- posal promises to “promote growth and employment,”itisnotmuchdifferentfrom all the other proposals submitted to Con- gressinthepast11years.Itsimplydoesn’t addresshowtheresultingrevenuewillbe spent. Infact,Beltrones–likemostotherpol- iticians before him – avoids talking about makingpublicspendingmoreefficientand transparent because he figures it’s some- thingthatisjustunattainable. “Theyknowsuchareformwouldnev- erbepassedinCongress.That’swhythey never propose it,” said José María Marín, anotherresearcheratFundar. In that respect, many analysts believe politicianswouldbebetterservedtofocus moreonestablishingproperguidelinesand creatingindependentagenciesthatcanef- fectivelyoverseepublicspending. For Fundar, there should be a balance between increasing the country’s tax rev- enueandmakingpublicspendingmoreef- ficientandtransparent. CARLOS MARTÍNEZ CRUZ/MEXICO WEEKLY
Friday February 25, 2011 : MEXICOWEEKLY 23 “The last of the old- style movie theaters.” Film critic Luis Tovar on the D.F.’s doomed Cine Teresa. BOOKS TELEVISION MUSIC LETTERSLETTERS AQin theDFArtinReview: A tour through 20th-century Mexican society through Abel Quezada’s sharp pen: 24 Iturriaga José Ezequiel Iturriaga – writer, diplomat, historian, political scientist and a leading public intellectual of 20th century Mexico – has died at age 98. Triple Loss The Senate paused on Feb. 17 to ap- plaud three recent- ly deceased giants of Mexican music – Manuel Esperón, Eu- genio Toussaint and Salvador Ojeda. Catch 22 Novelist Jorge Vol- pi, head of Canal 22 since 2007, will hand over the reins of the government TV channel on March 1 to Irma Pía González Luna. Tongue Chief Poet Jaime Labasti- da, brother of 2000 PRI presidential can- didate Francisco La- bastida, is the new director of the Mex- ican Academy of Language. Show Time “200 años del Es- pectáculo,” a visual- ly rich history of D.F. entertainment, has been published by Conaculta, the D.F. government and the Auditorio Nacional. life& leisure www.mexicotoday.com.mx/information/lifeleisure PHOTOCOURTESYOFSECRETARIADECULTURA/DF
Friday February 25, 2011 : MEXICOWEEKLY 2524 MEXICOWEEKLY : Friday February 25, 2011 ART IN REVIEW life& leisure TheLikable DoodlerThe artist Abel Quezada satirized his contemporaries each and every day with pen and ink. And they loved him for it. A belQuezada’smostremem- beredpieceisn’ttypicalofhis art, his approach or his de- meanor. Then again, it was publishedonanatypicalday. Thelateartist,whofillsoneoftheloft- ierslotsinthepantheonofgreatMexican cartoonists, had multiple styles in multi- plemediums.Butnonewouldhaveinclud- edthesolidblackrectanglethatranunder hisnameandthetwowords“¿Porqué?”in hisusualspaceinthethen-dominantdaily ExcelsioronOct.3,1968. Quezada, 47 at the time, had huddled theeveningbeforewithaneditortoselect among several cartoon options, with the newsstillsinkinginthatsoldiershadshot downanundeterminednumberofstudents earlierthatdayintheTlatelolcoplaza,just northofMexicoCity’sHistoricCenter. As responses to atrocity go, that black box, as much dolorous as accusatory, was hardlyregime-threatening.Butitstoodout amongthepresscoveragethatday,which mostly praised the government for taking careofbusiness.That“Why”atthetopwas the kicker; it insubordinately suggested theremighthavebeenabetterwaytodeal withaninconvenientprotestthanslaugh- teringhundredsofyoungpeople. The “anti-cartoon,” as it’s since been christened, contributed to the view of Quezadaasapioneeroffreedominmodern politicalcartooning. He is certainly revered for that by his successors. “His work was courageous at a time when it was difficult to be critical aboutnationalpoliticallife,”sayspolitical cartoonist Rogelio Naranjo (Proceso, El Universal), one of the most prominent of thosesuccessors.“Hewasabletoopenup considerablespaceforusinthemedia.” But, as a generous and pleasing expo- sition of his work at the Museo de la Ciu- daddeMéxicomakesclear,AbelQuezada wasnopoliticalfirebrand.Hewasn’treally apoliticalcartoonistinanyfamiliarsense oftheterm.Infact,ifyoulistentoQuezada himself,hewasn’tevenacartoonist. “Myjobdoesn’thaveaname,”hesaidin Illustrated texts: “I’m not a cartoonist.” At the Museum of Mexico City: Abel Quezada’s twin murals honoring oil sovereignty are available for public viewing for the first time. 1985.“Ican’tsayI’ma‘cartonista’because that rather ugly word, which comes from the English ‘cartoon,’ doesn’t exactly de- scribewhatIdo.” What he did, in his words, was create “illustratedtexts.” Hecouldaseasilyhavesaid“annotated illustrations.”Muchofthetimetheywere in “historieta” form, consisting of sever- alpanels,eachofwhichcouldoftenstand alone, but in their aggregate always led to something. InthatsensehisworkwassimilartoPa- coCalderón’scurrentofferingsintheSun- dayReforma,butwithoutthesnarl. YoucanalsochoosetoseesomeQueza- dainRius,JulesFeifferandtheNewYork- er’s Roz Chast. Visitors to the current ex- hibitwillagreewithQuezadathat“cartoon- ist”isaninadequatetermforhiswork.For onething,thedrawingsthemselvesaren’t all in the same style, as those of a typical politicalcartoonistwouldbe.Hecancom- municate much with little ink; look at the crowd scenes in some of the larger draw- ingsandyou’llseethatmostoftheindivid- uals consist of not much more than half a dozen lines. Or he can add detail and tex- ture(andthereforepersonality)ashedoes withsomeoftherecurringcharacters,like the paunchy PRI deputy. And, of course, Quezadawasnotonlyadrawer.TheMex- icoCityMuseumshowdisplaysdozensof his oils and watercolors, and they tell us something about his side passions. One is aircraft; a room at the exhibit is hung almost exclusively with landscapes and cityscapes,mostfeaturingatleastonefly- ingmachine,usuallyablimp.Anotheristhe “longandjoyousparty”thatwasMexicoin the1940s,atimeof“Cadillacs,Ciro’s,cavi- ar,blondes,whiskyandchampagne.”Was hebeingnostalgicorcausticwhenhewrote in1975,“Everythingbadthatishappening nowisjustahangover”? We also learn from the paintings that Quezadawasnogringophobe. Many are scenes from the United States. He loved baseball. One oil depicts Babe Ruth standing, in full uniform, out- side a row of brownstones (probably in New York, where he played, but maybe in Baltimore, where he grew up). The oblig- atory blimp hovers above. He was also an admirer of Saul Steinberg, the great Ro- manian-born American illustrator who is most remembered for his “View of the Worldfrom9thAvenue,”whichusesforced perspective to declare there’s little west of Manhattan worth including on a map. Quezada, like Steinberg, contributed cov- erstotheNewYorker,theholygrailofcar- toonist/artists,thoughconsiderablyfewer thantheAmerican’s90. But what makes Quezada Quezada is the daily commentary he provided in the newspapers Excélsior (1956-1976) and Novedades (1977-1988). They were usually in cartoon or historieta format, buttheirreachwentbeyondthosecatego- ries.Hesatirewassocial,notovertlypolit- ical.“Throughoutmylongcareerindraw- ing,myprincipalcharacterwasneverany politician,”heoncesaid.“Mycharacterwas theMexican.” That’s a riskier route than it sounds. Lampoon a politician and the people will nodinagreement,saveforthelampooned politician.Exposethefoiblesofthepeople themselves, and you’re treading on sensi- tive ground. By doing just that, Queza- da compiled accolades from cultural crit- icssuchasGuillermoSheridan(whocalls him“acombativejournalistwithpaperand pencil”)andCarlosMonsiváis(“anovelist inthelandofcartoons”). What’s more, Quezada satirized his compatriotswithoutresortingtotheusu- aldisclaimerthatanycharacterflawhadto havebeenimposedfromaboveorabroad.“I never depicted the people the way the old cartoonists did, as the eternal and impo- tentvictimsofthepowerful,”hesaid.(For therecord,though,hedidtakehisshareof shots at rich foreign countries as well as richpeople.) How, then, could he have been so pop- ular for so long with the very people he so relentlesslychided?Onereasonisthathis satire was as gentle as it was effective. By allaccounts,Quezadawasaveryniceman. TheveteranjournalistBlanchePetrich,in praising his stance at the time of the Tla- telolco massacre, described him as a “lik- able doodler,” which she meant in a good way. Naranjo uses the word “simpático.” PHOTOSCOURTESYOFSECRETARIADECULTURA/DF
26 MEXICOWEEKLY : Friday February 25, 2011 ART IN REVIEW life& leisure Quezada’s amicable nature shows in the roundededgesofhissatire.Peopleappar- ently didn’t take his spot-on jabs person- ally;perhapstheyassumedhewastalking abouteverybodyelsebutthem. As if to acknowledge that possibili- ty, one single-panel cartoon prominent- ly displayed in the current show depicts twoidenticalcouplessecretlycallingeach other“naco,”aderogatorytermthatinthis caseimplies“insufficientlyeducatedwith poorvaluesandpoorertaste.” Quezada’stwinmuralshonoringthena- tionalizationoftheoilindustryareintheo- rythemaindrawoftheexhibit,whichisen- titled“CódiceAQ” andcontinuesthrough April3.Hetooktheassignmentin1988,the 50thanniversaryoftheexpropriation,and finishedtheworkshortlybeforehisdeathin 1991.ThemuralswereensconcedatPemex headquartersuntiltheywereshippedtothe MexicoCityMuseumlastDecember,sothis showprovidestheirfirstpublicviewing. IfitseemscontradictorythatQuezada wouldcelebrateaparastatalindustryoften associatedwithcorruptionandinefficien- cy, keep in mind that he was of the gener- ation that equated Pemex with indepen- denceandprogress. Both are symbolized in the train of Códice AQ, featuring drawings and paintings, continues through April 3. the first mural, which is accompanied by horsesbearingsixheroesoftheRevolution —Villa,CarranzaandZapataoutfront,with Obregón,CallesandCárdenasalongside. The animals might be moving faster than the machine, and though they’re not tethered to it, they seem to be pulling the trainalong. Incontrast,thenine(atthetime)post- Cárdenaspresidents,fromÁvilaCamacho toSalinas,standidlyonaflatcar,alongfor theride.TypicalofQuezada,noneofthem lookmuchlikethemselves,buttheyalllook justlikeaMexicanpresident. The second mural depicts Pemex officials(“ThePioneersandSomeOthers”) inasettingthatissimultaneouslyindustri- al,ruralandcoastal. Comparedtotheleadersandheroesof the first mural, this is a mundane bunch, whichmaybewhy15ofthemaredressed asbaseballplayersandstandasateamun- deraswarmofaircraft. The mural display offers a historic viewingopportunity,butit’sthehundreds of smaller works, most of them “illustrat- ed texts” on newsprint, that show us Abel Quezada. aVisitorspassthroughtheroomsview- ing(andreading)thepiecesunderglasson tables, with the paintings hanging on the walls. Also on the white walls are oversized reproductions of Quezada cartoons and characters, brightening up the interior of themuseum(aconvertedmansion,beau- tiful,butatadgloomy). Visitors smile more at the Quezada show than at other art exhibits. Most are tooyoungtoknowmuchabouthim.Allthe more reason to appreciate this good-na- tured tour through the pre-NAFTA Mex- icoofthe20thcentury. KELLY ARTHUR GARRETT / MEXICO WEEKLY kellyarthurgarrett@gmail.com Nothing personal: Quezada’s jabs were usually gentle, but always spot on. PHOTOSCOURTESYOFSECRETARIADECULTURA/DF
Friday February 25, 2011 : MEXICOWEEKLY 27 Single dad: His days are numbered, but there’s time for homework. FILM IN REVIEW life& leisure The film ‘Biutiful’ has been more awarded than distributed, and more admired than attended. That’s too bad. TheMexicanpressbeganplayingup“Biuti- ful” when the 2010 film started pulling in internationalprizenominations,including forBestForeignLanguageFilmattheup- coming83rdAcademyAwardsonFeb.27. But in Mexico City, capital of the land of its director Alejandro González Iñárritu, themovieitselfwasuntilFeb.25stillonly viewableviaafunkyprintinatinyroomat theCinemaníaartfilmcomplex. Its limited popular appeal is no sur- prise; as González Iñárritu himself put it, yousurvive“Biutiful“ratherthanenjoyit. “It’snotamovieforeverytaste,”hesaid.“I wasn’t thinking of a mass audience when Imadeit.” The film is a joint Mexico-Spain pro- duction,withothernationsalsoinvolvedin thefinancing.ItwassubmittedtotheAcad- emyinMexico’sname,but“Biutiful”takes place in Spain, in a rough section of Bar- celona the Catalan Tourist Board doesn’t wantyoutoknowabout.GonzálezIñárritu insists,credibly,thatthesettingcouldhave beenanyEuropeancity.Thetruelocation is the crossroads of globalization and the newworldorder,anyurbannoman’sland wherethedisplacedsurvivehoweverthey can,withoutthinkingtoomuchaboutthe moralcostofexploitingotherimmigrants. Thisisatypicalpieceofmoderngeog- raphy – squalid and dangerous, but also strangely unmoored, like a forgotten gar- bage barge drifting with the currents. We seeitthroughthecentralcharacter,Uxbal, whoactsoutHobbes’observationthathu- manlifeissolitary,poor,nasty,brutish,and short.Playedwithchinpressedtowardthe chestbytheSpanishactorJavierBardem in a universallypraisedperformance, Ux- balisbothoutsidethefray(he’snotanim- migrant)andanenablerofit(hescrapesby financiallyasago-betweenamongthepet- tyethnicmobs). SightUnseen Dying of cancer, he has a few months togethisaffairsinorder,whichinhiscase meanshustlingenoughmoneytohelphis two pre-teen children get by when he’s gone. Fortunately, there’s plenty of cash movingaroundintheneighborhood,allin envelopes.NovelistCarlosFuentescredit- edthemoviewithimplicitlyposingaques- tion: If a globalized world can generate so much business and circulate so much money,whycan’titcreatejobs? Looking for an upbeat respite that the movie won’t grant easily, it’s tempting to point to Uxbal’s devotion to his children asatranscendentcharacterreference.He doestaketheroleofsinglefatherseriously, helpingthemwhenitmattersmost,failing themoccasionallyinminormatters(such ashowtospelltheonlyEnglishwordinthe movie).It’scondescending,however,tode- scribesuchacommitmentasheroic. Wouldn’tanymantakethereinsifcir- cumstances demanded it? Uxbal’s use of hisdyingdaystosetuphischildren,then, is really just one of many decisions that have been made for him. This imposed passivity has bothered some critics, such as Daniel Krauze in Letras Libres, who sniffs, “Chance is not an interesting nar- rative thread.”(Somebody send that man thecollectedworksofThomasHardy.) Asthoughtocounter,GonzálezIñárri- tusaidinanAssociatedPressinterviewin January,“That’swhattragedyis,exposing a human being to destiny’s fury.” He also maintains–withahintoffrustration–that “thisisastoryofhope.”Thosewhocan’tsee thehopearethepessimists,onecanalmost hearhimsay,notthedirector.Soit’sworth pointingoutthattheonestrong,selflessde- cisionmadeinthecourseof“Biutiful”ful- fills Uxbal’s mission posthumously. It en- sures that the future will be taken care of –byimmigrants. KELLY ARTHUR GARRETT / MEXICO WEEKLY kellyarthurgarrett@gmail.com Director Alejandro González Iñárritu (right) and Javier Bardem discuss a scene. PHOTOSCOURTESYOFBIUTIFUL-THEMOVIE.COM
Friday February 25, 2011 : MEXICOWEEKLY 2928 MEXICOWEEKLY : Friday February 25, 2011 FILM IN REVIEW life& leisure Lawyers with CamerasThe defendant and his attorney: Overcoming the obstacle of being presumed guilty. José Antonio Zúñiga: More than two years in prison for a crime he never committed. Filmmakers Layda Negrete and Roberto Hernández: A call to action. ‘Presunto Culpable’ exposes a scandalously dysfunctional Mexican justice system. But that’s the easy part. Feb. 18-20 was an unusual weekend in Mexicancinema,andanencouragingone. In a nation where home-grown produc- tions are mostly ignored and documenta- riesshunned,moviegoersstartedliningup Fridaytosee“PresuntoCulpable,”aMexi- candocumentarythatseekstoexposewhat mostpeoplealreadyknow–thatthejustice systemisoutrageous. The movie’s not new. It’s been knock- ingaroundfilmfestivalsandothersecond- aryvenuesfortwoyearsnow,andwaseven shownwithEnglishsubtitlesonU.S.public televisionin2010.Butagedoesn’tmatterin thiscase.Onceanationaldistributiondeal wasstruck,thepre-releasebuzzwaslouder ontheop-edpagesthananywhereelse,re- flectingaconsensusthatthisisaveryim- portant movie indeed, and that every citi- zenowedittothecauseofjusticetoseeit. Alotofthemdid.Overthatfirstweek- end, 128,000 persons paid 6.4 million pe- sostosee“PresuntoCulpable.” That’snot exactly “Titanic” territory (and its gross lagged way behind “Yogi Bear” and three otherHollywoodimports),butit’salready PHOTOSCOURTESYOFPRESUNTOCULPABLE.ORG halfway to out-performing the most- watchedMexicandocumentaryofalltime, LuisMandoki’s“Fraude:2006.” Even the luxury VIP rooms in the cin- ema complexes are screening “Presunto Culpable.” Sosociallyconsciousfilmbuffs canenjoywaiterserviceandplushreclin- ing seats as they ponder the fate of an in- nocent man condemned to rot in a claus- trophobicprisonfor20years. Whythesuccess,welcomeasitis? The urgentreviewshelped,ofcourse,especial- ly since they came not so much from the entertainmenttastemakersasfromthein- tellectual elite – Juan Villoro, Guadalupe Loaeza,JorgeCastañeda,JesúsSilva-Her- zogMárquez. Peopledon’tgotomoviesfor civicreasons,buttheideathatthecriminal justicesystemisworthpayingmoreatten- tiontoisatimelyone. There’s a better reason that “Presunto Culpable” is drawing audiences, though. For all its effectiveness as an advocacy project,andallitshard-earnedcredibility, it also worksas a movie.There’sasatisfy- ingdramaticarctoit,asthoughcreatedby screenwriters. There are plot shifts and a hugefalseclimax;thismaybetheonlydoc- umentarywhereareviewerfeelsboundto holdontospoilerinformation. There’s even a love story. And danc- ing. And original rap lyrics. This is a documentary for people who don’t like documentaries. The characters are especially memo- rable, and reveal themselves cumulative- lyovertime.Whichisamazing,sincenone ofthemareacting. They’renotcharactersatall,ofcourse, butreal-lifeparticipantsin(andvictimsof) thefarcicaltheateroftheabsurdthatpass- es for a criminal trial in Mexico. They’re on screen only because two young law- yers, Roberto Hernández and Layda Ne- grete, somehow convinced authorities to letthemfilmthere-trialofayoungevery- mannamedJoséAntonioZúñiga,whohad beenfalselyaccusedandthenunjustlycon- victed of a murder he never knew about, letalonecommited.Fromtheauthorities’ pointofview,thishadtobethemostill-ad- visedlapseintotransparencysinceNixon turnedonthetaperecorder. The film couldn’t have been cast bet- terifitwereactuallycast.Theprosecutor chucklesdisinterestedlyonthoserareoc- casionsthatshedoesanything.Thejudge (shockingly, the same one who allowed Zúñigatobedefendedbyafraudulentnon- attorneyintheoriginaltrial)smilesinsin- cerely,likeahamvillain.Thejudicialpolice aretrulychillinghombreswhofeelnoneed to even pretend to tell the truth. Zúñiga’s gang-memberaccuserislikeamethodac- tor,holdinghisfearoftheconsequencesof hisperfidyjustbelowthesurface;whenhe breakshemaintainshismachostare. HernándezandNegretechoseZúñiga’s case because they thought it was strong. Theywereright.Theyalsodidwelltobring theAustralianfilmmakerGeoffreySmith on board after the filming; it’s likely his work that turned a compelling documen- taryintoamovingdramaticexperience. They caught a break when Zúñiga turnedouttobearticulate,thoughtfuland handsome – a leading man from central casting.ButtheyhitthejackpotwithRafa- elRamírezHeredia,thehyper-competent defenseattorneywhoexudestherightmix of sympathy and ruthlessness, and more or less takes over the movie as soon as he walksintoit.Hedoesn’tlikewhatgoeson attheseprocedures,butheisn’tintimidat- edbyit.LikeAtticusFinch,he’supagainst obstaclesthathavenothingtodowiththe meritsofthecase. Ultimately,though,asanadvocacydoc- umentary, “Presunto Culpable” has to be judged on the success of the arguments it set out to make. One of them, that Zúñiga was falsely accused and convicted in the face of overwhelmingly exculpatory evi- dence,isobvious.Evenallowingforselec- tiveeditingbyfilmmakersonamission,it’s clear from ballistics tests, eyewitness ac- counts and the accuser’s change of heart thatZúñigawas,asthemovie’stitlehasit, presumedguiltyfromthestart. But how well does the film expose the systemasawhole?Wasthiscaseanaber- ration?Arewepresumingthesystemguilty basedonasingleatypicalexample? Herethebarissetlower.“PresuntoCul- pable”revealsenoughtoseriouslycallinto questionthesystem’sfairnessatastructur- allevel,whichisallyoucanaskofamovie. Even if Zúñiga had not been found guilty, the extreme arbitrariness of the proceed- ings is disturbing, as are the absurd over- reliance on the written record, the ab- sence of accountability, and (again) that presumption of guilt that makes truth ir- relevant.Onlyinahopelesslyinept justice systemcouldsuchatravestytakeplace. Inonesense,theZúñigare-trialwasin- deedanaberration:Itwasfilmed.Butthat anomaly only strengthens the filmmak- ers’ case. The very notion that what we sawusuallytakesplaceinsecrecyisscary, tosaytheleast.Andwhodoubtsthatwith- out those lawyers’ cameras, José Antonio ZúñigawouldstillbeservingtimeinMex- icoCity’sReclusorioOriente? Finally,will“PresuntoCulpable”doany good?HernándezandNegreteseethefilm as a call to action, and they go out of their way to provide strategies for a grass roots movement.But,liketheirprotagonist,they faceforcesstrongerthantheircause. Oneisattentionspan.Leavingthethe- ater, the public can be fired up. Then it’s back to the daily grind, not to mention a thousandothercausestobefiredupabout. Al Gore made climate change the hottest cause of 2006 with his documentary “An InconvenientTruth.”Fouryearslater,the U.S.electorateloadedupitsCongresswith extremistswhodenytheproblem. Also, Mexicans are understandably more concerned about the booming pop- ulationofmurdererswhoarenotinprison thantheinnocentnon-murdererswhoare. Thefilmmakerstrytoaddressthatpriority bypointingoutthatforeveryinnocentper- son put in prison, a guilty person remains free. That’s not mathematically precise, butthepointiswelltaken:Adysfunction- alcriminaljusticesystemnurturesimpu- nityaswellasmiscarriagesofjustice. In the end, a documentary can only drawattentiontoaproblem,takingitoutof itsdarkhidingplaceandexposingittothe lightofpublicreview.Butitcan’tfixabro- kenjusticesystem.Thattaskrequirescou- rageous and competent reform-minded leadership,acommodityasrareasjustice. KELLY ARTHUR GARRETT / MEXICO WEEKLY kellyarthurgarrett@gmail.com
30 MEXICOWEEKLY : Friday February 25, 2011 : what : when : wherer&r SATURDAY 26FRIDAY 25 SUNDAY 27 Sanctum The new underwater action picture, billed as a James Camer- on movie (he of “Av- atar” and “Titanic” fame) but directed by the little-known Australian Alister Grierson, premiers in wide release, un- avoidably at a the- ater near you. And yes, it’s in 3D. Iphigénie If televised opera works for you, the Auditorio Nacional, with its huge high- def screen and good sound, is the place to see it. At 12 noon, the New York Metropolitan Op- era’s production of Gluck’s Ifigénie en Tauride will be tele- cast live. Tickets 40 to 300 pesos. Luis Miguel The many-Gram- mied and mega- grossing Mexican pop idol continues his three-week oc- cupation of the Au- ditorio Nacional that won’t stop until Mar. 6. Best seats: 2,707 pesos. Worst: 429 pesos. Bassooning American Benjamin Kamins (pictured) is the featured bas- soonist and Jesús Amigo the guest conductor as the National Symphony Orchestra performs Montsalvatge, Mo- zart and Beethoven. At 12:15 p.m. in the Palacio de Bellas Artes. Also Friday, Feb. 25 at 8 p.m. Dancing Fowl The National Dance Company’s presen- tation of fragments from “Swan Lake” debuts at 8 p.m. in Chapultepec Park, with 120 dancers, 300 extras, and an undisclosed number of live swans and horses. Continues Thursday through Sunday until Mar. 27. Third Root Last chance to see the exhibition “San- ta Negritud,” cele- brating the Afro- Mexican culture in southern Guerrero and northern Oaxa- ca. From 10 a.m. to 6 p.m. at the Museo Nacional de Culturas Populares (pictured) in Coyoacán. Also Friday, Feb. 25 and Saturday, Feb. 26. Hotel Garage Jaime López, a one- of-a-kind rockero, blusero, folkero, ran- chero and a smart and hip singer/song- writer for three de- cades, appears in his electric incarnation with Hotel Garage (his band for that purpose) at 10 p.m. at El Imperial (5525- 1115) in the Condesa. Orozco Ends The final day of “Pin- tura y Verdad,” the largest-ever exhibit of works by José Clemente Orozco. At the Antiguo Co- legio de San Ildefon- so, behind the Cate- dral in Mexico City’s Historic Center. A must-see. Also Fri- day, Feb. 25 and Saturday, Feb. 26. Show Trial The penultimate performance of El Juicio de Hidalgo, the popular stage enactment of the Independence he- ro’s troubles with the Spanish authori- ties. At 6 and 8 p.m. in Teatro Hidalgo, behind Bellas Artes. Also Sunday at 5 and 7 p.m. Anita Brenner Susannah Glusker presents the two volumes of diaries, in English, kept in Mex- ico in the 1920s by her mother Anita Brenner, the great promoter of Mexi- can art and culture. At 5 p.m. at the In- ternational Book Fair in the Palacio de Minería on Tacuba in the Centro Histórico. Iglesias Enrique Iglesias, the Spanish-born pop star, who’s still only 35, performs at Gua- dalajara’s Auditorio Telmex at 9 p.m. (and Saturday at the same time), before his three-day run at Mexico City’s Audi- torio Nacional Feb. 28 to Mar. 2. Fair: Day 4 The fourth day of the International Book Fair in the Palacio de Minería includes appearan- ces by historian En- rique Florescano, author Vicente Quirarte, former presidential candi- date Cuauhtémoc Cárdenas, and scores more visit- worthy writers.
Friday February 25, 2011 : MEXICOWEEKLY 31 PHOTOCOURTESYOFNOTIMEX Timeto standupMexico City officials insist that drug cartels have yet to take root in the capital, but experts say it is dangerous to delay firm action : 32 More than 11,000 migrants were abducted in Mexico over a six-month period in 2010, the National Human Rights Com- missionreportedonFeb.22.Nearlyhalfofthevictims(44per- cent)werefromHonduras,thereportstated.Thereportsaid druggangsoftendemandaransomfromfamiliesof$1,000to $5,000toensuretheirrelative’srelease. Rightsagencyreleases reportonmigrants’plight TRAFFICKERS DRUG GANGS BORDER VIOLENCE EX-PRI GOV. TALKS OF CARTEL DEALS Former Nuevo León Gov. Sócrates Rizzo admitted that PRI governments made deals with drug cartels, saying that by establishing where cartels could operate the widespread violence seen today was prevented. TEXAS AUTHORITY URGES SELF-HELP A Texas sheriff called on resi- dents of his county to arm them- selves against Mexican drug car- tels. Sheriff Arvin West of Hud- speth County said he remains suspicious of Mexicans who have fled the violence in Chihuahua. www.mexicotoday.com.mx/information/security
Friday February 25, 2011 : MEXICOWEEKLY 3332 MEXICOWEEKLY : Friday February 25, 2011 DRUG CARTELSSECURITY Whocontrols MexicoCity? Residents of Ciudad Nezahualcóyotl outside Mexico City have become accustomed to clashes between drug cartels in recent months. Mayor Ebrard prefers to insist that drug cartels operate, but have not settled, in the capital. Attorney General Miguel Ángel Mancera says small–time dealers are his biggest concern. PHOTOCOURTESYOFNOTIMEX NOTIMEXPHOTO/CARLOSBAEZ NOTIMEXPHOTO/PEDROSÁNCHEZ A t least four different organized crime groups are openly fighting forcontrolofterritoryoutsidethe city limits, turning municipalities in the State of Mexico such as Nezahualcóyotl into war zones. However, some security analysts think drug cartels already oper- atefromwithinthecity. ThereasonMexicoCityhasn’tyetexpe- rienced the level of violence seen in other areasisthatalmostallcriminalorganiza- tionshaveapresenceinsidetheD.F.,from localgroupsliketheTepitoarmssmugglers togroupswithtiestoKoreanmafias. Erubiel Tirado, an analyst at the Insti- tute of Criminal Sciences (Inacipe), says itwouldbenaïvetothinkonecarteldom- inates within the D.F. “The reality is a lit- tlemorecomplicated,”hesaid.“Allgroups haveacriminalpresenceinthecity.” Tirado insists, if anything, there are “levelsofpresence.” For instance, Jorge Guzmán Mey- er, a top official in the Mexico City police force, suggested that drug cartels operate in a triangular area that encompasses the east,northandcentralpartsofthecity,El Universalreported. Thenorth,GuzmánMeyersaid,iscon- trolledbytheSinaloacartel,butsomeareas are disputed by the Beltrán Leyva cartel. Thenthere’sthenortheast,closetoNeza- hualcóyotl,whereGuzmánsaystheZetas andLaFamiliaarebattlingforcontrol. According to El Universal, the areas with the strongest presence of narcotics trafficking and organized crime are the GustavoA.Madero,Iztapalapa,Venustia- noCarranzaandCuauhtémocboroughs. TURNING A BLIND EYE? MexicoCityAttorneyGeneralMiguelÁn- gelManceratoldElUniversalasrecentlyas Feb. 17 there were no cartels operating in thecity.Mancerainsistedthatsmall-time drug trafficking (“narcomenudeo”) is the onlydrug-relatedcrimetakingplace. Mexico City Mayor Marcelo Ebrard CasaubónconcurswithMancera. InJanuary,healsotoldElUniversalthat drugcartelswerenotestablishedinsidethe city,andthat“here[inMexicoCity]wedo nothavetheviolencethattheyhaveinoth- erpartsofthecountry.” That, Ebrard said, was partially due to effectivelocalanti-drugprogramsthatfo- cus on rehabilitation, good policing and the more than 5,000 surveillance camer- asscatteredacrossthecity. AcloserlookatEbrard’spaststatements, CUAUH- TÉMOC IZTAPALAPA VENUSTIANO CARRANZA GUSTAVO A. MADERO CUAUTITLÁN HUIXQUILUCAN ÁLVARO OBREGÓN ORGANIZED CRIME IN MEXICO CITY D.F. Organized crime is fluid. Small cartels are absorbed by larger cartels. Large cartels fracture. This map includes the most up-to-date informa- tion on organized crime in Mexico’s capital city. Cuautitlán corridor (State of Mexico to D.F.) SINALOA Huixquilucan corridor (State of Mexico to D.F.) SINALOA + BELTRÁN LEYVA 1 Sinaloa 2 Beltrán Leyva 3 Zetas 4 La Familia 5 Tepito cartel 6 Xochimilco cartel Juárez Borough (Del Valle and Nápoles neighborhoods) ZETAS Iztapalapa, Gustavo A. Madero, Venustiano Carranza and Cuauhtémoc boroughs ZETAS + LA FAMILIA Alvaro Obregón Borough (Jardines del Pedregal neighborhood) SINALOA Cuauhtémoc Borough (Tepito) TEPITO CARTEL International Airport SINALOA Xochimilco Borough XOCHIMILCO CARTEL Tlalpan Borough BELTRÁN LEYVA Source: Compiled by Mexico Weekly based on interviews and news reports 1 15 3 3 4 6 3 4 1 1+2 4 3 3 4 3 XOCHIMILCO 2 TLALPAN 3 BENITO JUÁREZ however,showsthatevenhehasconflict- ing views about the presence of drug car- telsinthecapitalcity. Backin2007,headmittedthatdrugcar- telswere“operating”insidethecitybuthe quicklyaddedthattheywerenot“settled” in the city. That same year, he told Diario HispanodeMéxico:“Wedohavedistribu- tionofdrugs[insidethecity],butwedonot havethosecartelshere.” ‘A TACIT AGREEMENT’ PatrickCorcoran,awriterforWorldPoli- ticsReviewandHarvardInternationalRe- view,seesnodifferencebetween“official” drugcartelmembersandothertypesofor- ganized crime delinquents. If it looks like a Zeta and acts like one, then, for security purposes,itisone,hesays. “Who cares if people went through someelaborateinductionintoLosZetasor not?”askedCorcoran.“Eveniftheyarenot partofthecartelsperse,iftheyarekilling andtrafficking...asthoughtheywerepart ofoneofthesebig[criminal]organizations, thenwhyeventrytomakethedistinction?” AccordingtoInacipeanalystTirado,the reasonwhyauthoritiesdenythepresence oforganizedcrimegroupsinMexicoCity stems from a “tacit agreement” between EbrardandPresidentFelipeCalderón. Acknowledgingthepresenceofcartels inthecapital,saidTirado,“wouldmeanac- ceptingacertainlackofgovernance[and] itcouldcauseanescalationofviolence.” But Tirado does agree with the fact that policing has helped keep the amount of drug-related violence inside the city to a minimum. However, he also claims it wouldbe“absurd”tothinkthereisnocrim- inalpresenceinsidethecity. Even if the armed forces are not pa- trolling Mexico City like they do in Ciu- dadJuárez,securityoperationshavebeen conducted inside the city limits. At dawn onJan.24,MarinescapturedJuanRamón Córdoba Peñaloza, a 47-year-old Mexico City native and suspected Zeta financial officer,intheDelValleneighborhood. STATE OF DENIAL Ebrardclaimshewasunawareofanymil- itary operations, and Tirado believes the mayorsinceMexicoCityofficialswere“not informedoftheNavyoperation.” “Fortwoyears,therehavebeendrug-re- lated violent acts around the city,” Tirado said. And while “the Army has taken ap- propriatestrategicactionsintroublesome areas[likeinNezawheretheZetasandLa Familiafightforcontrol],itwasonlyamat- teroftimebeforethosecriminalgroupsbe- ganhavingapresenceinsidethecity.” Information compiled by a human rightsNGOandpublishedinMexicoCity's officialnewsletter(NoticiasdeTuCiudad) describes how criminal organizations ex- tort payments, or narcorentas, from 282 propertyownersinthecity. Cityofficials–whodidnotreturncalls forthisarticle–insistondenyingdrugcar- telmembersoperatewithinthecity.Corco- ran worries about the possible repercus- sionsofdenyingthefacts. “It’ssomethingthatMexicoCity[poli- ticians]didforallofthe[1980sand1990s], saying: ‘it’s just a northern problem, not anythingweneedtoworryabout’,”Corco- ransaid.“Andweseehowthatturnedout.” ZACH LINDSEY / MEXICO WEEKLY Analysts believe several cartels have established ‘levels of presence’ in the Federal District and it is time to take them more seriously
Mexico-France diplomatic row threatens cultural programs
Mexico-France diplomatic row threatens cultural programs
Mexico-France diplomatic row threatens cultural programs

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Mexico-France diplomatic row threatens cultural programs

  • 1. www.mexicotoday.com.mx 0018920360242 MEX$25 EUR€2 USD 3.50 FRIDAY 25 Qu’est-ce que c’est, Sarkozy? : 6 : POLITICS 12 : ECONOMY & FINANCE 20 : SECURITY 32: LIFE & LEISURE 24
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  • 4. Welcome again! In this edition of Mexico Weekly, our cover story fo- cuses on the diplomatic spat between Mexico and France. Neither country could fully imagine the repercussions when a beautiful young French woman was arrest- ed six years ago, and charged along with her Mexican boyfriend with kidnapping. Unfortunately, Mexico is a world leader in kidnapping, though few suspects are ever prosecuted. And the number of victims continues to climb. I recently met a se- curity expert who told me that, not only are kidnapping incidents rising here, but more victims are killed or mutilated in order to pressure family into paying a hefty ransom. Victims of the “Cassez” kidnapping ring testified that Florence herself would ask if they wanted a finger or an ear cut off. Is Florence Cassez an innocent foreigner who was in the wrong place with the wrong people? Or is she part of a growing cadre of young people in Mexico who understand that kidnapping is a lucrative business with little chance of paying the consequences? According to the judges, she is the latter. President Sarkozy insists he is not saying Cassez is innocent; rather, he is demanding that she be returned to France to serve her 60-year sentence in a French prison. President Calderón said NO! This has produced a diplomatic standoff that caused Mexico to end its partic- ipation in the “Año de México en Francia,” costing millions and upsetting hundreds of academic and cultural programs. I spoke this week to Miguel Alemán Velasco who headed the commission that coordinated the cultural program. He voiced his support for President Calderón, since he believes Sarkozy put him in a very difficult situation. Polls published last week not only support Calderón’s decision to keep Cassez in jail here, but also indicate that more than 70 percent of those surveyed believe Cassez is guilty. Still, in a democracy polls do not define a person’s guilt. Guilty or not, the trial was clearly plagued by serious irregularities. If anything good came out of the Cassez case it is that it has produced a serious examination of how justice is imparted here as highlighted in the movie “Presunto Culpable” that is also reviewed in this edition. I want to recommend this week’s article on cartels and criminal gangs within Mexico City. A few years ago, the D.F. was considered one of the most dangerous capitals in the world. Now thousands of families who live in violence-ridden cities and can’t move to the U.S. are taking their families and business to Mexico City be- cause it seems safer than the rest of the country. In this week’s edition we examine what City Hall is doing as Mexico is witness to increasingly extreme drug violence. Don’t forget to check out our website for breaking news and analysis. Diplomatic row shines light on judicial system LETTERS © “MEXICO WEEKLY”, ES UNA PUBLICACIÓN SEMANAL PROPIEDAD DE YUMAC S.A. DE C.V. CON OFICINAS EN DIVISIÓN DEL NORTE #925 1ER PISO COL. NARVARTE DELEGACIÓN BENITO JUAREZ CP 03020 TEL 2455 5555 IMPRESA EN LOS TALLERES DE SERVICIOS PROFESIONALES DE IMPRESIÓN UBICADOS EN MIMOSAS NO. 31 COLONIA STA. MARÍA INSURGENTES CP 06430 DEL CUAUHTEMOC MÉXICO D.F. FECHA DE IMPRESIÓN: 17 DE DICIEMBRE DE 2010 © “MEXICO WEEKLY” INVESTIGA SOBRE LA SERIEDAD DE SUS ANUNCIANTES, PERO NO SE RESPONSABILIZA CON LAS OFERTAS RELACIONADAS POR LOS MISMOS. ATENCIÓN A CLIENTES: ZONA METROPOLITANA TEL. 3099-4987. LOS ARTÍCULOS Y EL CONTENIDO EDITORIAL SON RESPONSABILIDAD DE SUS AUTORES Y NO REFLEJAN NECESARIAMENTE EL PUNTO DE VISTA DE LA PUBLICACIÓN, NI DE LA EDITORIAL. TODOS LOS DERECHOS ESTÁN RESERVADOS. PROHIBIDA LA REPRODUCCIÓN TOTAL O PARCIAL DE LAS IMÁGENES Y/O TEXTOS SIN AUTORIZACIÓN PREVIA Y POR ESCRITO DEL EDITOR. Oscar McKelligan PRESIDENT Ana Maria Salazar VICE PRESIDENT & EXECUTIVE DIRECTOR Tom Buckley EDITOR IN CHIEF Carlos Martínez Cruz MANAGING EDITOR Fernando Ortiz LEGAL ADVISER Cecilia Garza V ADMINISTRATION Iker Amaya CORPORATE SALES David Alvarado ART DIRECTOR Kelly Arthur Garrett LIFE & LEISURE EDITOR Armando Palacios-Sommer COPY EDITOR Susana Pérez SENIOR DESIGNER Blake Lalonde WEB EDITOR R E P O R T E R S Rebecca Conan Bronson Pettitt Zach Lindsey Francisco Cándido IT & OPERATIONS MANAGER B O A R D O F D I R E C T O R S Oscar McKelligan Ana Maria Salazar Miguel Alemán Velasco Yurek McKelligan José Antonio Valdes Fernando Ortiz John Barson C O V E R P H O T O G R A P H NOTIMEX PHOTO / DAVID DEL RIO Ana Maria Salazar Executive Director anamaria.salazar@mexicotoday.com.mx WWW.MEXICOTODAY.COM.MX@MEXICOTODAY_MX 4 MEXICOWEEKLY : Friday February 25, 2011
  • 5. NOTIMEXPHOTO/JAVIERLIRAOTERO Refusing totake thebaitMexico’s Foreign Relations Secretariat makes it clear that it perceives France’s reaction to the Cassez case as little more than a bête noire : 6 LuisDonaldoColosio,sonandnamesakeoftheslainPRIpresi- dentialcandidate,criticizedthepartyforexploitinghisfather’s name.ColosiocalledthePRI“hypocrites”and“fraudulent”in a message on his Twitter account. Incoming PRI president Humberto Moreira said he would try to arrange a meeting withColosiotohearwhyhemadetheaccusations. Colosio’ssonslamsPRI, callsthemhypocritical PARTIES ELECTIONS PARTIES OLVERA DECLARED VICTOR IN HIDALGO The Federal Electoral Tribunal threw out 17 formal complaints and declared Francisco Olvera governor-elect of Hidalgo. Olve- ra won the election in July, but challenger Xóchitl Gálvez con- tested the result. ENCINAS ANXIOUS TO PRESERVE PRD Alejandro Encinas has called on PRD leaders to create an internal movement to “rescue and unify the party” as it risks rupture over its electoral alliance policy. Mi- choacán Gov. Leonel Godoy of- fered to help mediate. www.mexicotoday.com.mx/information/politics Friday February 25, 2011 : MEXICOWEEKLY 5
  • 6. QUELLE HORREUR!NICOLAS SARKOZY and his administration have adopted the roles of enfants terribles, turning a sensitive judicial matter into a full- blown diplomatic row that has already toppled a cultural event BY TOM BUCKLEY / MEXICO WEEKLY COVER STORY Ubifrance canceled a high-level colloqui- um due to be held the weekend beginning March 3. Ubifrance – a government agen- cy focusing on international business devel- opment – was co-sponsoring the event with the French Senate and Pro-Mexico and the secretaries of economy from each nation were expected to attend. An exposition of monumental sculptures by Rivelino along the Seine was canceled on Feb. 21 as was an exposition of jade Ma- yan masks in the Pinacoteca de Paris. A col- loquium and keynote speech by José Emilio Pacheco in the National Library on March 10 was called off. An exposition of works by cinematographer and photographer Gabri- el Figueroa set for early April in Paris is at risk of cancellation. Conaculta canceled its participation in the “El Año de México en Francia,” calling off its sponsorship of 350 concerts, expositions and related events. On Feb. 18, Conaculta – Mexico’s National Council for Culture and Arts – summoned home all personnel that were already in France. The Río Loco Festival in Toulouse – billed as the inaugural festival of “El Año de Méxi- co en Francia” – was canceled. An upcoming Latin American film series in the same city scheduled for late March has been tempo- rarily suspended. In Lyon, a grand exposition on pre-historic Gulf cultures was canceled. A film noir mov- ie festival and a colloquium on crime nov- els – both set for late March – are at risk of cancellation. In Lille, Mayor Martine Aubry – the leader of the Socialist Party – canceled an exposi- tion of engravings by José Guadalupe Posa- da and called for a national boycott of the entire event. : Events impacted alkaboutbadtiming. Just as a symbolic, yearlong celebra- tion of friendship was getting under way, Mexico and France have seen diplomat- ic relations suffer a dramatic blow over a controversial judicial case involving a Frenchwoman. FrenchPresidentNicolasSarkozywent ontheoffensive,asdidafewofhistopCab- inetofficials,woundingMexicanprideand givingrisetoreferencesabout19thcentury conflictsbetweenthetwonations. Mexico’sambassadortoFrancewalked outoftheFrenchSenateduringaspeechby France’sministerofforeignaffairs. Complicating matters considerably, France currently presides over the G-20 economic organization and is due to turn overchairmanshiptoMexicoinNovember. Columnists here have had a field day, thoughnotallhaveblindlybashedSarkozy and France. Several have carefully exam- ined the dual parts of the issue, lament- ing that a judicial procedure has scuttled amassiveculturalfestivalthat could only havebroughtpositiveattentiontoMexico. CASSEZ AND THE ZODIACS Florence Cassez, now 36, arrived in Mex- ico from France in 2003 to live and work with her brother (and his Mexican wife). While working for a hotel chain, Cassez began dating Israel Vallarta a little over a yearlater. TheNewYorkTimesreportedin2009 thatthepairbeganadifficultrelationship that alienated her friends, who sensed he wastrouble.CassezreturnedtoFrancein thesummerof2005butVallartacalledher and she returned to Mexico to live at his ranch. OnDec.9,2005,theAttorneyGeneral’s Officeannouncedithaddismantledano- toriouskidnapgang,“LosZodiaco.”Among themembersofthegangwasFlorence. T Thecaseagainstthesuspectsinvolved atleast10kidnappingsandthemurderof oneofthevictims. Accompanyingtheannouncementwas a live video of federal agents entering the Las Chinitas ranch outside Cuernavaca and freeing three hostages while captur- ingseveralgangmembers. Thisvideowouldbecomeaflashpoint intheeventualjudicialanddiplomaticcon- troversy.OnFeb.10,2006,thegovernment acknowledged that the videotaped arrest hadbeenstagedfortelevision. OnApril25,2008,Cassezwasconvict- ed on kidnapping and organized crime chargesandcondemnedto96yearsinpris- on.Thesentencewasshortlythereafterre- ducedto60years. In February 2010, Cassez published a book proclaiming her innocence and re- vealingthatshewouldfileanappealbased ontheevidenceshepresentedinthebook. The sentence was upheld on appeal on Feb. 10, 2011, setting off the diplomat- icfireworks. SARKOZY ANNOYS HIS HOSTS TheCassezcasedominatedtheagendaof PresidentSarkozyduringhisMarch2009 visit to Mexico despite the best efforts of theCalderónadministrationtopreventthe topicfromtakingonalifeofitsown. Sarkozy ignored diplomatic protocol andbarreledonahead. Duringtheofficialwelcomingceremo- nies – ironically held on the steps of the Chapel of the Empress, named after Em- press Carlota who built the chapel on the groundsoftheNationalPalaceduringthe so-calledSecondEmpireimposedbyNa- poleónIII–Sarkozygotrighttohispoint. “Ididn’tcomeheretochallengethede- cisionofMexico’sjusticesystem,”hesaid. “Iamnotajudge.” Thefollowingdayduringaspecialjoint sessionofCongressintheSenate,Sarkozy againbroachedthesubject. “Letmebeclear,Iwasaskednottocom- mentontheCassezcasefromthepodium soIwillproceedtodoso,”hesaid.“Iamnot a man who supports impunity but I have a duty to my fellow citizens, regardless of what they may have done. I ask that this balancingactberespected.” Althoughthepointofthestatevisitwas tostrengtheneconomicties,themostvis- ible outcome was an agreement to form a binational commission of legal experts to reviewthepossibilityofallowingCassezto serveouthersentenceinFrance. Calderón later sent a letter to Sarkozy promising he’d consider the transfer. The French president has attempted to trans- latethecontentsofthisletterintoaprom- isefromCalderóntohandoverCassez. DOMESTIC BACKLASH InFrance,Sarkozy’sinsistenceintheCas- sezcasehasnotbeenwellreceived. The principal newspapers have been quick to recount his diplomatic missteps over the years. A front-page headline in Liberation read “Sarkozy, the diplomatic crash” in reference to his blunders, argu- ing in the article that his imperiousness hasaggravatedratherthanhelpedCassez. Sarkozy has yet to formally announce he will stand for re-election. On Feb. 24, a CSA survey found that nearly 60 percent ofthosepolleddonotwanthimtorun.An- otheropinionpollpublishedearlierinFeb- ruaryshowedhehadonly24percentsup- portaheadofnextyear’selections. Forty retired and active French diplo- mats on Feb. 22 published an open letter criticizing Sarkozy’s foreign policy in Le Monde. “Our diplomacy is best described as improvisational and moves from im- pulse to impulse that more accurately re- flects internal political interests,” it read. The diplomats questioned if Sarkozy was more interested in winning media expo- surefortheCassezcasewhenitwouldbe betterdiscussed“withdiscretion.” FormerFrenchPrimeMinisterDomi- niquedeVillepindecriedthedeteriorating situationwithMexico,saying“thisshould havebeenayearduringwhichwecelebrat- ed our projects, our relations and our cul- ture.…weshouldbeemphasizingourfra- ternitywithMexico.” 6 MEXICOWEEKLY : Friday February 25, 2011 Friday February 25, 2011 : MEXICOWEEKLY 7 Ambassador Carlos de Icaza walked out of the French Senate during Alliot-Marie’s speech. France’s foreign secretary, Michelle Alliot-Marie, delivers remarks in the French Senate on Feb. 21. NOTIMEXPHOTOS/DAVIDDELRÍO
  • 7. COVER STORY NOTIMEXPHOTO/DAVIDDELRIO PHOTOSCOURTESYOFFLICKR Florence Cassez’s parents, Charlotte and Bernard, speak to the media in Paris after the failed appeal.Florence Cassez under arrest in 2005 Presidents Sarkozy and Calderón during the French president’s visit to Mexico City in 2009. : The Chattering Classes : The Chattering Classes “Florence Cassez is clearly not the best representative France could have chosen for a year of activities dedicated to cultural exchange.” Héctor Aguilar Camín, Milenio columnist “Sarkozy’s prestige is damaged and opinion polls are very low so he is trying to puff himself up in front of the voting public, to act as the defender of national honor even at the cost of a very important cultural event.” Carlos Fuentes, Novelist and former Mexican ambassador to France “In most functioning democracies, [the staged arrest] would result in the suspect’s immediate release. This – justice converted into farcical theater – is what ought to most incense Mexicans.” Denise Dresser, Reforma columnist and academic “With the cancellation of ‘El Año de México en Francia’ both countries have lost a valuable opportunity for cultural and diplomatic rapprochement.” Miguel Alemán Velasco, Coordinator of the “El Año de México en Francia” event and former governor of Veracruz “Víctor Hugo separated the French from their government when he wrote to the people in the city of Puebla as it was under siege by Napoleon III’s army in 1862: ‘It is not France waging war against you, it is the Empire.’ My email account is full of similar messages from French friends and colleagues who distance themselves completely from the Sarkozy government.” Jean Meyer, Historian who earned his PhD at the Sorbonne “The battle over Florence Cassez is, of course, quite distinct from The Pastry War but actually quite similar to that 1838-39 conflict as it unveils the stupidity of human nature, especially when the people wrap themselves in the flag of patriotism. And here, both President Sarkozy and President Calderón are more concerned about political popularity than justice.” Sergio Sarmiento, Reforma columnist MembersofSarkozy’sUnionforaPop- ular Movement (UMP) have questioned his insistence, many pointing out that a judicial matter in another country should behandleddelicately.“Justbecausesheis French does not mean she is innocent,” saidChantalBrunel,aUMPlawmaker,la- mentingthefactthatdiplomaticrelations withMexicohavebeendamaged. INDIGNATION GROWS AlsoinhotwaterisSarkozy’sforeignrela- tionsminister,MichelleAlliot-Marie,who has only been in office for three months. The former minister of justice has been questioned for family vacations taken in Tunisiaduringtheunrestthereandherre- lationshipwiththerecentlydeposedpres- ident. She publicly suggested that France supportZineElAbidineBenAlibeforehe fled the African nation and Alliot-Marie even arranged to send supplies of teargas toTunisiawhilealsocallingontheNation- al Assembly to send French riot police to helprestoreorder. Aillot-Mariefurtherantagonizedrela- tionswhenshementionedtheCassezcase at a special session in the French Senate thatwasmeanttocommemorateFrance’s special historical relationship with Latin America and the Caribbean. Along with therestofthelocaldiplomaticcommuni- ty, Mexican Ambassador Carlos de Icaza was in attendance. Icaza promptly stood upinthebalconyofhonorandwalkedout oftheSenatebuildinginthemiddleofAil- lot-Marie’sspeech. Later,theMexicanEmbassyreleaseda statementsaying“AmbassadorIcazasadly foundhimselfobligedtoleave.” “Mexicocannottoleratethatjudicialaf- fairsberepeatedlydraggedintoother,sep- aratematters,”thestatementinsisted. The next day, Aillot-Marie’s office re- leased a statement lamenting Icaza’s walk-out. “It is a shame Mexico’s ambas- sadorwasunabletolistentothespeechof friendshiptowardLatinAmericadelivered bytheminister,”itsaid. Theincidentpromptedanewroundof condemnations of Sarkozy’s government inFrance. NobelPrizewinnerJeanMarie GustaveLeCléziocriticizedtheadminis- trationasarrogant.“Ifeelasenseofindig- nationatthearroganceandcontemptSar- kozyhasshowntowardtheMexicanjudi- cialsystem,”thenovelistsaid. FINAL APPEAL Asthespatsimmeredfurther,theappeals court took the unprecedented step of re- leasingdetailsofitsdecisiontoupholdthe convictiononFeb.20. The summary described each of the complaintspresentedbyCassezonappeal andofferedfullexplanationsastowhyeach complaintwasrejected. By this time, President Calde- rón had vowed that Mexico “would not kowtow to France” and a top Foreign AffairsSecretariat (SRE) official had de- claredthatthediplomaticrowwouldcon- tinue“asfarasSarkozycaredtopushit.” “We will not escalate this conflict … it is up to the French government,” said LourdesAranda,anSREundersecretary. Bilateraltiesweretestedonemoretime duringaG-20meetinginParisonFeb.19- 20.Duringthegatheringof20financemin- isters and central bank officials, Finance SecretaryErnestoCorderoignoredefforts byFrenchFinanceMinisterChristineLa- gardetodiscussthecase. During a press conference, Lagarde mentionedthatshehadattemptedtotalk to Cordero about Cassez, but “we did not manage to hold a bilateral meeting to ad- dressthesituation.” Duringhisownpressconference,Cor- dero was asked five separate times about Lagarde and Cassez, but he deflected the issue. “In none of the sessions did we dis- cuss the Cassez case. That is a closed ju- dicialmatterandweshouldnotallowitto contaminateour...economicrelationship,” hesaid.“WeonlyspoketoFranceaboutis- suespertainingtotheG-20.” Butthedamagewasdoneandsomean- alysts argued that this subtle attack was likelymoreinsidiousthanthecancellation ofthe“AñodeMéxicoenFrancia”events. “ThiswasSarkozy’sbiggerplay,”wrote political columnist Ricardo Raphael in El Universal.“TheFrenchpresidentknewfull wellthattheG-20forumwasnevergoing tobetheplacetodiscusstheFranco-Mexi- canjudicialdispute.Hisgoalwasquitedif- ferent:Hewasbettingondamagingthein- ternationalprestigeofMexicointhepres- enceofattendingdignitaries.” With Mexico determined to play the aggrieved party and sit quietly to the side, the pressure is growing on Sarkozy back hometorescindhisdecisionthatthe“Año de México en Francia” would be officially devoted to Florence Cassez. Calls to boy- cotteventshavealsobeenchastised. Let’s hope Sarkozy does an about face and the joie de vivre is restored before re- lationssufferpermanentdamage. Friday February 25, 2011 : MEXICOWEEKLY 98 MEXICOWEEKLY : Friday February 25, 2011
  • 8. POLITICS EDUCATION The SITEM wins registration to challenge the powerful teachers union led by Elba Esther Gordillo It took seven years and several appear- ances before various tribunals but a new group has finally forced its way into the classroom. For the first time in 68 years, the gi- ant SNTE teachers union has a rival in the form of the Independent Syndicate of TeachersinMexico(SITEM). Though the new union may have re- ceived a great deal of fanfare in the press, can it really change the essential fabric of theeducationdebate? However historically significant SITEM’s registration may be, the union facesanuphillstruggleifitistomatchthe poweroftheSNTE.With59regionalhead- quartersandamembershipofover1.5mil- lion,SNTEisthelargesttradeunioninLat- inAmerica. ItsleaderElbaEstherGordillohaspre- sidedovertheunionsince1989andwields significantpoliticalpower.Gordilloroseto secretary general of the PRI in 2005, but after a falling out with presidential hope- fulRobertoMadrazoshewasoustedfrom thepartyleadership. A shrewd political mover, Gordillo switchedallegianceandsupportedFelipe Calderón during the presidential election in 2006. At the same time, she founded a newpoliticalparty(NuevaAlianza),which allowed her to maintain influence within Congress. The Economist says she is the second most powerful politician in the countryafterPresidentFelipeCalderón. GROWING TREND SNTEiswithoutadoubtapowerfulforce in Mexico but allegations of internal cor- ruptionarewelldocumented. Newkid inschool Elba Esther Gordillo is the SNTE’s figurehead. SNTE Section 22 has been a thorn in the side of Oaxaca governors for years. NOTIMEXPHOTO/JORGEGONZÁLEZ NOTIMEXPHOTO/MAXIMILIANONÚÑEZ Overthepastseveraldecades,therehave beenaccusationsrelatingtothemisappli- cation of funds, murky donations to the unionbytheEducationSecretariat(SEP) andthesaleandtransferofteachingposi- tions.Despitebeingateachersunion,some 30,000 members do not even teach at all, insteadactingasfull-timeunionofficials. Set against this background it is per- haps unsurprising that there is discon- tent within the SNTE. Oaxaca’s Section 22isoneprominentdissidentfactionthat hasbeeninthenewsoflate,butthefoun- dation and successful official registration of the SITEM reflects a growing trend in the creation of independent opposition movements. Although SITEM is the first national uniontogainregistration,23regionalunions havebeenregisteredoverthelastfiveyears. The unions are spread over a wide geo- graphical area including Baja California, Coahuila, Mexico City, the State of Mexi- co, Puebla, Quintana Roo, Tabasco, Vera- cruzandYucatán. READY TO RECRUIT OntheannouncementoftheSITEM’sof- ficial registration, Gaudencio Bravo, the new union’s leader said: “We have creat- ed a third way, independent of the union led by ‘La maestra’ [as Gordillo is known] becausewedonotwanttobecomplicitin thecorruptionandirregularitiesthatwere transforming our work into a question of partypolitics.” The SITEM’s creation has been a pro- tractedprocess,takingsevenyearstocome tofruition Following dismissal from the SNTE executive committee, a group led by Car- los Jongitud Carrillo decided to create a “thirdway”forMexico’steachers.Ironical- ly,Jongitudisthesonofthelong-timefor- mer SNTE leader that Gordillo displaced in 1989 with the help of President Carlos SalinasdeGortari.CarlosJongitudBarri- osledtheSNTEfromSeptember1972un- tilApril1989. TheSITEM’scurrentleadershipcom- mitteeconsistsofsixmembers,including former PRD Deputy Humberto Barrera and former SNTE executive committee memberJuanCarlosVillanueva.   The union’s application was reviewed for seven-and-a-half months by the Fed- eral Arbitration and Conciliation Board before it was granted official registration onJan.25. According to SITEM spokesman Homero Pólito Domínguez, the union is currently comprised of 7,500 teachers from across Puebla, Quintana Roo, Yu- catán, Veracruz, Guanajuato and Mexi- coCity. In addition a concerted recruitment driveisunderway. LOFTY GOALS So,whatdoesthe“thirdway”consistofin practicalterms? Atthepressconferencetoannouncethe union’s registration Villaneuva said: “Our principalobjectivesaretobeaccountable, to hold the rights of teachers at our core, toavoidcompulsoryaffiliationtoanygiv- enpoliticalpartyandtostrengthenexcel- lenceineducation.” More specifically, he said the union wishes to reform teacher education and tocollaborateonthereformofeducation- alpolicy. TheSITEMcertainlyhasloftygoalsbut it faces a major stumbling block. By law, each government secretariat only has to answertooneunion.CurrentlytheSNTE has sole power to negotiate the employ- ment terms of its teachers with the SEP and it is this right that gives it such clout onanationallevel. Without the right to negotiate terms, thenewunionmayalwaysberelegatedto the role of the SNTE’s poor cousin. If the SITEMmanagestogrowalargermember- shipthantheSNTE,itwouldbegiventhe righttonegotiateterms.GiventhatSITEM has7,500membersagainstSNTE’s1.5mil- lion,thismaytakeawhile. SNTE NOT WORRIED SITEM’screationdoesnotappeartowor- rytheSNTE. VeracruzSection32leaderWenceslao Vargas Márquez said the new teachers union “does not represent a challenge to theSNTE.Theyaretoosmallandhaveno new ideas. All I have heard them say is a repetitionofSNTE’sgoalsandpolicies.” EducationinMexicohasseenlittleim- provement under the SNTE’s watch de- spitea generousbudgetandhighsalaries. Bylawtheeducationbudgetmustbeat least 8 percent of gross domestic product andthe2011budgetprovidesmorethan208 billionpesos.Itwouldbereasonabletoas- sumethatachallengetotheSNTE’sbloat- edapparatuscouldstimulaterealchange. However, economic theories correlat- ing competition with growth do not nec- essarily translate to the field of public ed- ucation.AccordingtoVargasMárquez“the best thing for education and for teachers is one single, national union. Dividing the fightisastepbackwardanddeniesthepos- sibilityofradicaltransformation.” Without power to negotiate with the SEP and with such a small membership, theSITEMfacesanalmostSisypheantask. Theunionhassecureditsregistration,but theboulderkeepsonrolling. REBECCA CONAN / MEXICO WEEKLY 10 MEXICOWEEKLY : Friday February 25, 2011 Friday February 25, 2011 : MEXICOWEEKLY 11
  • 9. POLITICS BROADCASTING ItwasearlyonFriday,Feb.4,lessthanfive weeks into a new year that seemed hope- fulonthepoliticalfrontasanewcongres- sionalsessionhadjustgottenunderway. President Calderón was savoring the defeatofthePRIinGuerreroandthePAN candidatewasleadingcomfortablyinpolls aheadoftheupcomingBajaCaliforniaSur election.Partyleaderswerepredictingthat Congresswoulddebatekeyreformsinthe weeksaheadandafewofthem–laborre- form, the anti-monopoly law, judicial re- form–werehighonthepresident’sagenda. But that Friday morning, popular ra- diohostCarmenAristeguitooktotheair- waves,madesomeimpertinentcomments andtheresultwasatwo-weekhangoverfor thepresident. By Monday, Feb. 7, Aristegui had been fired for “reportingrumors as news” after sheusedascandalousdisplayledbyLabor PartyDeputyGonzaloFernándezNoroña inCongresstodemandthatLosPinosde- clarewhetherornotCalderónwasadrunk. OnWednesday,Feb.9,Aristeguiblamed her firing on “a presidential temper tan- trum,”reiteratingtheimputationthathad been repeated ad nauseum in the interim thatthesacredidealoffreedomofexpres- sionhadbeendesecrated. Threeweekslater,Aristeguiisbackon the air, although the Vargas family (own- ers of the radio station) have yet to elabo- rateuponthereasonsforthefiringnorhave they fully explained the decision to rehire theaggrievedbroadcaster. In the immediate aftermath of Aris- tegui’s firing, social networks were ablaze Media warsA rancorous public debate over freedom of expression overshadowed a bitter rivalry that is focused on knocking Televisa off its perch withsupportforthebroadcasterandcrude condemnationsofPresidentCalderón. Columnists waxed about freedom of speech, while some rationalized the jour- nalisticvalidityoftherequestthatLosPi- nosaddressthealcoholismallegations. Aristeguiwassilentforfourdaysbefore herWednesdaypressconferenceinwhich shedecriedtheallegedcensorshipimposed by Los Pinos. “The Vargas family should notbowtopressuresfromthefederalgov- ernment nor a presidential tantrum,” she said, asserting that MVS was confronted with the decision to fire Aristegui or lose outonfuturelicensingopportunities. LosPinoscountered,issuingapressre- lease:“Thefederalgovernmentisandhas beenscrupulouslyrespectfuloffreedomof expression and values the wide variety of voicesandopinionsinthedebateoverpub- lic affairs.” President spokesman Roberto Gil Zuarth told reporters later that Aris- tegui’s original allegations were “offen- siverumors”anddetailedCalderón’snor- maldailyactivitiestodemonstratethatthe presidentis“ingoodhealthandcomplete- lyincommandofhisfaculties.” Lessthanaweeklater,MVSannounced Aristegui would return on Feb. 21 and an arbitrator – Javier Corral – would inves- tigate Aristegui’s alleged violation of the codeofethics. A deeper look at the melodramatic eventsoffersrevealinginsights.Beyondthe clamoraboutfreedomofexpressiondenied wereafewvoicesthatfocusedonjournalis- ticresponsibility.CarlosRamírezofElFi- nancieroandCiroGómezLeyvaofMilenio bothstronglyhintedthatAristeguiviolat- ed journalistic ethics by failing to investi- gatebeforepresentingallegationscrudely madebyalawmakerwellknownforbom- bastic displays. Aristegui’s argument that rumors of Calderón’s drinking problem werewidelydisseminatedonTwitterand Facebookhardlyrisestoethicaljournalis- ticstandards. Ramírez also reported that Federico Arreola had confessed to being the source of the rumor about Calderón’s drinking. Arreola – a former adviser to Andrés Manuel López Obrador and a friend of Aristegui – said he first made the accusation in a 2006 radio interview after Calderón had insulted him. “I was wrong,Iadmitit,”ArreolawroteinaFeb.10 newspapercolumn.“Thereisnoevidence IhaveseenthatCalderónisanalcoholicso I’dhavetosayheisn’t.” Forfouryears,Arreola’s“lie”hascircu- lated in columns in what Ramírez terms “classicGoebbelianstrategy”–“repeatalie oftenenoughanditbecomestruth.” Aristegui’sinsistencethatshedidn’tvi- olatetheradiostation’scodeofethicsisal- soquestionable,specificallywithreference tothesectiononrespectforprivacyofpub- licindividuals. There was no evidence or reporting to support the allegation about Calderón – a cursory search of the Internet and You- tube produces three videos, inonlyoneofwhichdoesthe presidentdemonstratebadly slurredspeech.Thequestion is, is this news and informa- tion,orisitideologicallydriv- eninsinuation? Did Aristegui – often ac- cused by critics of being a mouthpiece of López Obra- dor–simplyuseanactofpa- theticpoliticaltheatertoim- pugnthepresident? As the president took a beatinginthepressfor“cen- soring”Aristegui,wordbegan tofilteroutthatMVSwouldrevisititsde- cision.WhetherornotCalderónorsome- oneatLosPinos(withorwithoutthepres- ident’sblessing)hadforcedMVS’hand,it seemedlikealose-losesituation. TheVargasfamilyreceivedover10,000 “tweets” criticizing their decision to fire Aristegui,thoughafamilylawyerwrotein ElUniversalthatthe10,000messageswere sentfromatotalof292twitteraccounts. On Wednesday, Feb. 16, Aristegui and MVSissuedastatementannouncingthat thereporterwouldbebackbehindthemi- crophoneonFeb.21. That same night, on the Televisa pro- gram“TercerGrado,”CarlosLoretdeMola assertedthatthestorybehindthestorywas agrowingconflictbetweentheCarlosSlim empireandTelevisa,callingit“aclashofti- tans.”SlimiscompetingwithTelevisaand itscabledivision,Cablevisión,viatheDish satelliteTVcompanyandMVS. Slim and associates are angling to win aneventualbidtoacquirerightstoathird public television contract, while Televisa (and TV Azteca) have long been fighting thecreationofathirdnetwork. The“TercerGrado”moderatorchanged the subject and Loret de Mola was not able to offer additional analysis, but Car- los Ramírez attempted to shine a light on theissueinacolumntwodayslater. RamírezsuggestsAristegui’sreinstate- mentwasmoreafactorofMVSnotwish- ingtoupsetthealliancewithSlimandhis “war”withTelevisa. At the same time, Slim and Co. were announcingthattheywerepullingadver- tising from Televisa, calling it a cost-sav- ing measure. Dish satellite programming does not offer Televisa channels, because it refuses to pay the reasonable intercon- nection fee, says El Universal columnist AlbertoBarranco.Televisais at odds with TV Azteca (and Slim’s lucrative phone hold- ings) over a contested bid to win a new a national cell phonenetwork. ThrowinthefactthatJa- vier Corral is the previously mentioned arbitrator in the Aristegui-MVS case and the plot thickens even further. Corral was sued by Televi- sa – and was forced to sell a house – for failing to pay off a campaign advertising debt heaccruedwhilerunningfor governorofChihuahuain2004. The intrigue and dirty tricks did not end with Aristegui’s return to MVS. The real story will continue to play out in boardrooms and the proverbial smoke- filled rooms. The most appropriate thing to do is to borrow a favorite catch phrase ofAristegui’s:“Yaveremos.” TOM BUCKLEY / MEXICO WEEKLY “There is no evidence I have seen that Calderón is an alcoholic so I’d have to say he isn’t.” Federico Arreola political columnist NOTIMEXPHOTO/FRANCISCOGARCÍA NOTIMEXPHOTO/ALFREDOGUERRERO PHOTOCOURTESYOFFLICKR Carlos Slim has his eyes on a new TV network. Calderón inisists he did not pressure MVS.Carmen Aristegui was reinstated on Feb. 21. Friday February 25, 2011 : MEXICOWEEKLY 1312 MEXICOWEEKLY : Friday February 25, 2011
  • 10. The new Senate building is set to open for business in March, four years after its anticipated debut TheSenatehasannouncedthatitwillbe- gin making the move to its new quarters on March 1 and expects to begin working therebyMarch21. ThebuildingnearthecornerofRefor- maandInsurgentesboastsstate-of-the-art features to the extent that National Geo- graphichasarrangedtofilmasegmentfor itsseries“Megastructures.” Buttheworld-classadd-onsledtocost overrunsandtheconstructiontooksolong that four inauguration dates came and went before the current target date was announcedonFeb.21. The federal auditor even conducted a reviewoftheprojectanditsFeb.16report offered mild criticism (some examples of poorconstructionandinsufficientquality control)withgeneralapprovalforadhering tobasicregulations. EARLY DELAYS The Senate acquired the property in July 2002(then-Sen.JesúsOrtegaofthePRD objected to the purchase calling it “an au- thoritariandecision”ledbythePAN)and announcedthattheconstructionwouldbe finished in 2005. The property cost $24.7 million,ElUniversalreported. “Thenewbuildingwillfeature‘intelligent engineering’atatotalcostofroughly1.4bil- lionpesos,”saidSen.RamónCorral(PAN) whentheconstructioncontractwasputup forbidding. By February 2004, termination of the project was pushed back to August 2006 andtheSenaterequisitionedanaddition- al800millionpesosincreditfromtheFi- nance Secretariat. The contract bid was pushed back from November 2002, final- lywinningapprovalinAugust2003. Bythistime,thePRDhadbeguntocom- plain about the progress of the construc- tion.“WerecognizethattheSenateneeds anewbuilding,butitshouldnotbebuiltin accordwithrelationshipsthatsomesena- torshavewithfriendsintheconstruction Premieringsoon… Construction on the site did not get under way in earnest until 2008. NOTIMEXPHOTO industry,”saidPRDSen.AntonioSotoSán- chez.SotorevealedthatthePRDhadbeen lockedoutofthejurythatvotedonthebids. The cornerstone was finally placed in June 2004, but the economic slowdown then subsoil problems caused the project togrindtoahalt.Thejust-completedaudit alsorevealedthattheSenatehadneglect- edtoconductafeasibilityreview,anover- sight that would delay the opening an ex- trafouryears. RISING COSTS Construction finally began in earnest in 2008, slowly so that the concrete founda- tion would settle adequately in the ques- tionablesubsoil. Progresscontinuedapace,butsodidthe overallcost.Fromtheoriginalestimateof 1.4billionpesos,thenewestimatedcostby 2009was2.2billionpesosandfinalexpen- dituresexceeded2.5billionpesos. The Senate targeted the Bicentenni- al celebrations as the new inauguration date. Ironically, as several of President Calderón’sBicentennialprojectsfellapart inmid-2010,Senatecriticismgraduallybe- camemutedasitbecameapparentthatits own building would not be completed on time. November2010–theCentennialofthe Revolution–wasthenextinaugurationtar- get.ThattoowasmissedthoughtheSenate heldaceremonial“partialinauguration.” Now, senators are weeks away from movingintotheirnewbuilding,repletewith smart technology – iris recognition sys- tems, electronic voting boards, audio and video systems on the main floor, retract- ablescreensateachdesk,andaheliport. One thing, though. PAN Sen. José GonzálezMorfínconfessedinJanuarythat thebuilding’sparkinglotdoesnotcontain sufficientparkingspacesforsenatorsand staffers. TheSenatehassincebeengoingabout lookingforparkinglotstorentintheneigh- borhood in hopes of mitigating the prob- lembythetimethebuildingopensforgood. TOM BUCKLEY / MEXICO WEEKLY POLITICS CONGRESS 14 MEXICOWEEKLY : Friday February 25, 2011
  • 11. Friday February 25, 2011 : MEXICOWEEKLY 15 NOTIMEXPHOTO/JAVIERLIRAOTERO Serious about taxreformSen. Manlio Fabio Beltrones and PRI senators are pushing a bill that aims to boost public finances, but analysts say transparency is top priority : 20 Mexican crude has climbed above $95 per barrel due to un- rest in the Middle East and northern Africa. That represents a$10riseperbarrelsincethebeginningoftheyear.That’sthe highestpricefornationalcrudesinceMarch2008.TheCen- tralBankreportedthatthepricehikebrought$750millionin- totheTreasuryduringtheFeb.14-18reportingperiod. Unrestabroadpayingoff inhighercrude profits OIL ECONOMY COMMERCE HOLLAND TOPS LIST OF INVESTORS HERE Foreign direct investment in 2010 climbed 16.6 percent over 2009 figures, the Economy Sec- retariat reported. The total in- vestment – $17.725 billion – was led by Holland with the United States second. GOV’T LOOKS INTO TORTILLA PRICES Economy Secretary Bruno Fe- rrari accused traders of artificial- ly bumping up the price of corn and said his agency will levy fines against offenders found to be hoarding. Ferrari said an in- vestigation is under way. www.mexicotoday.com.mx/information/economy
  • 12. Friday February 25, 2011 : MEXICOWEEKLY 1716 MEXICOWEEKLY : Friday February 25, 2011 INDUSTRY ECONOMY &FINANCE CEMEX STOCK PRICE SLUMP The announcement of one billion new shares led to a 7 percent tumble in Cemex’s share price. This is the largest drop in over a year. Source: IXE 9 12 15 12.79 pesos 12.49 Day/Month 11.59 11.48 24/01 27/01 28/01 10/02 Cemex has won approval for a new share issue as it scrambles to reduce its considerable debt Cemex’s Jan. 28 announcement of a pro- posed $1 billion ordinary share issue was met with consternation among its share- holdingranksandnervousnessintheMex- icanstockexchange. However, shareholders gave the green lightThursday,Feb.24,whentheyvotedin favoroftheproposalataCemexsharehold- ersmeetinginMonterrey. Theshareissuewillbelargerthanorig- inally announced ($2 billion in ordinary shares), but Cemex CEO Lorenzo Zam- branopledgedtosellconvertible bonds to avoidanimmediatestockdilution. Cemex, the world’s third-largest ce- mentmanufacturer,washithardbythere- cessionintheUnitedStatesandatthepeak of the crisis the company saw a 50-per- cent drop in share trading. The 2007 ac- quisitionof Australian building materials supplier Rinker, for $14.2 billion placed a heavy burden on the company’s already overstretchedbalancesheet. The global economic crisis severely hurt Rinker whose main market was in theUnitedStates,andthecompanyquick- ly tripled its debt becoming a liability for Cemex.The Monterrey-based company’s ownsalesintheU.S.fell55percentasare- sultoftheeconomicslump. HEFTY BILL DUE By the end of 2010, Cemex had amassed a hefty debt of $17.7 billion. Just this year, thecementcompanymustpay$2.3billion in debt if it wants to avoid a rise of $200 million in interest payments. In its finan- cialreportforthelastquarterof2010,Ce- mexreportednetlossesof$581million,al- thoughsalesincreasedby1percentonthe samequarterin2009. At an extraordinary general meeting heldonJan.28,Cemexannounceditspro- posaltoissue6billionordinaryshares(ap- proximately 20 percent of the company’s totalsharesincirculation)andconfirmed that shareholders would be asked to vote ontheproposalonFeb.28. Following the Jan. 28 announcement, Cemex’s shares closed down 7.21 percent thatsameday,droppingto11.59pesos,ayear longlow.Thepricehasyettobounceback topre-announcementlevelsbutaccording Cementing anoverdue recovery Cemex hopes it has weathered the worst of the global crisis and is now looking to expand. PHOTOCOURTESYOFFLICKR tofinancialanalyststheworsthaspassed. The sharp drop in share price demon- strated the markets’ reaction to the an- nouncementbutIXEanalystJoséItzam- naEspitiaHernándezsaidthe“conflictin Egyptcouldalsohavebeenafactor.” FACING PENALTIES TheshockexpressedbytheMexicanmar- ketandCemexshareholdersisanomalous giventheyhadadvancewarning.Aspartof a major refinancing deal in 2009, Cemex agreed to amend its capital covenants on Oct.25oflastyear. In order to comply with the new cove- nants Cemex must issue $1 billion worth ofsharesthisyearorfacedefaultpenalties. Thisinformationwasrelayedtosharehold- ers last year and so the announcement of theshareissuewasnotunexpected. The killer blow of the proposal ap- peared to be the larger-than-expected stockdilution. Estimates made in October provid- ed for 20 percent less stock dilution than wasoriginallyannounced.Inaddition,the highervalueissuehasledsomeCemexan- alyststobelievethecompanyisnotrecov- eringattheexpectedpace. However, in an effort to calm inves- tor fears and to lessen the effects of dilu- tion, Cemex agreed to issue mainly con- vertible bonds. Zambrano said “the issue won’thaveanimmediatedilutiveeffectas weplantoissuebondswithafour-tosev- en-yearmaturity.” “Withthis[shareissue]inthenextfive yearswe’llhaveahigherfreecashflowper share,sothe[stock]dilutionmythdoesnot apply, if anything that would be after five years,” said Zambrano at a press confer- enceheldbeforetheshareholdersmeeting. ‘GREATER FLUIDITY’ AccordingtoIXE,theshareissuewillhave an initially negative effect on minority shareholdersbecausetheyhavenorightof preferencetosubscribeforthenewshares. However,“inthelongtermthenegative effectofstockdilutionwillbecompensat- edbygreaterfluidity,thereductionofdebt andthereductionofinvestmentriskgiven thecompany’sreducedleverage,”IXEsaid inamarketreport. IXE analysts reported that the money generatedfromtheshareissuewillbeused to pay down approximately 11 percent of the company debt. If Cemex can begin to reduce its debt, analysts say the company haspositiveprospectsfortheyearahead. Indeed, in his letter to shareholders in the company’s 2010 annual report, Zam- brano said last year “was a transitional [year]forCemex,fromtheglobalcrisisof 2009totheslowrecoverythatisnowtak- ing place in many markets.” He also said the company needs to strengthen its bal- ance sheet and business model to reposi- tionitselfforfuturegrowth. And although the U.S. recovery will be keytorevivingthefortunesofoneofMex- ico’scorporategiants,thefactthatCemex recently managed to post growth for the firsttimeinyearsoffersnewfoundhope. To illustrate this, at the Feb.24, press conference held before the sharehold- ersmeetingthatsameday,Zambranoan- nounced Cemex would invest this year a further$475milliontocontinuewithitsin- ternationalexpansion.Theexpansionfea- turesspecialinterestonPeru,Brazil,Chi- naandIndia. Zambranorevealedthecompanyisal- readyintalkswithastrategicChinesepart- nertobeginproducingready-mixconcrete. Theshareissuealongwiththelatestin- vestmentplansmightjustsprinklealittle wateronthosebuddinggreenshoots. REBECCA CONAN / MEXICO WEEKLY INDUSTRY ECONOMY &FINANCE Telecomsspat spillsoverinto TVadvertising arrangements The battle of media tycoons heated up thisweekwhenCarlosSlim,theworld’s richestmanaccordingtoForbes,pulled allofhisholdingcompany’sadvertising fromthetwomaintelevisionnetworks –TelevisaandTVAzteca. While advertising was pulled from Televisa due to a 20-percent hike in pricing, Grupo Carso reported negoti- ations with TV Azteca broke down on the networks’ request for preferential interconnectiontariffs. Interconnectionfees–chargespaid by all phone operators to connect calls toothernetworks–areviewedbymany asthemainobstacletocreatingacom- petitivetelecomsmarketinMexico.Ac- cording to Axtel, fixed-line operators have paid almost $21 billion in inter- connectiontariffsoverthelast11years. The Telecommunications Law permits telephone operators to set in- terconnection fees as they wish but – in contrast to Europe and the United States where stiff competition among similarsizedoperatorskeepsthetariff low–TelmexandTelcelcaneffective- lychargewhattheywant. Slim’s pre-eminence in telecoms is undisputed. Telmex and Telcel domi- nate90percentofthefixed-linemarket and70percentofthecellphonemarket, respectively.Bothcompanieslevyinter- connectionchargesforconnectingcalls withotherphonenetworks. TVAztecaandthecableoperatoras- sociation Canitec turned on Slim fol- lowinghisrefusaltoreducetariffs.Ina pressstatementreleasedThursday,TV Aztecacalledfor“theimmediateopen- ing of a public debate to discuss inter- connectionfeeswhichaffectallofMex- ico’s88millioncellphoneusers.” TheFederalCompetitionCommis- sion has declined to intervene saying “this is an issue for the companies in- volved.Ithasnotbeenestablishedthat thismatteraffectsthepublic.” MEXICO WEEKLY
  • 13. Friday February 25, 2011 : MEXICOWEEKLY 1918 MEXICOWEEKLY : Friday February 25, 2011 COMMERCE ECONOMY &FINANCE TRADE ECONOMY &FINANCE Mexico’s customs operations are slowly evolving from what once implied a pain- fully bureaucratic experience to a more technological,streamlinedprocess. Business leaders spoke earlier this month on how foreign trade with Mex- ico has improved in recent years. They praised such measures as reductions in procedures, documents and costs relat- ed to importing and exporting as well as steps to train and evaluate customs offi- cials that have removed corrupt and un- qualifiedworkers. The implementation of an electron- ic single-window – a system that allows traders to submit their export or import information on the Internet that all rel- evant government offices can access for approval–isanothermeasurethathasfa- cilitated trade. Only 40 nations out of 149 polledbytheWorldBankuseasingle-win- dowsystem. “Compared to other Latin American countries, we are in a very good position,” said Mauricio Deutsch, a partner of Ac- centureMexico,aninternationalconsult- ingandoutsourcingfirm. EXCESSIVE BUREAUCRACY According to a 2011 World Bank ranking of how easy it is to do business in differ- ent countries, Mexico ranks No. 35 out of atotalof183. Figures from the multinational or- ganization also show that in order to ex- port products from Mexico, five different documents must be filed, though this is less than the 6.6 average in Latin Ameri- ca.Inordertoimportproducts,fourdocu- mentsarenecessary(comparedtothere- gionalaverageof7.1.) Nancy Domínguez, General Motors’ customs administrator in Mexico, under- scored the importance of technology in commerce.“What big corporations want now is trade without borders, where all customs procedures are done electronic- allyandforcustomsagenciestooperate24 hoursaday,sevendaysaweek,”shesaid. Mexico, however, falls behind in some areas. Only one company in Mexico is au- thorized by the Customs Agency to digit- alize documents, according to Jorge Mo- rales,CEOofMexico’sSandler,Travisand Rosenberg branch, a customs and trade consultingfirm. Infact,outofthe12daysittakes,onav- erage,toexportproductsfromMexico,10 are spent on paperwork, Morales said. In contrast,intheUnitedStates–whereMex- icosentabout80percentofits$298.36bil- lion in export products in 2010 – only six daysareneededtoexportgoods. EMBRACING TECHNOLOGY Customs modernization is essential for Mexico’s competitiveness, said Hans Kohlsdorf,vicepresidentofEmpresasGlo- bales. There are about 35,000 businesses thatexportfromMexico,and5,000ofthese arelargeandmediumcompanies;therest aresmallones,Kohlsdorfsaid. EvenifMexico’stradeindustryembrac- estechnology,theexpertsagreethatcoor- dinationandsharingofinformation,espe- ciallyamonggovernmentagencies,isvital. One solution is to turn to other coun- triesforexamples,Deutschsaid. Morales cited the case of Peru. In the mid-1990s, only 2 percent of customs of- ficials had professional training, but with mandatoryeducationintax,tariffandse- curitylaws,some70percentofPeru’scus- tomsofficialsweretrainedbytheendofthe decade.Staffevaluationswereimplement- ed to remove corrupt or unqualified cus- tomsofficials. Peru also identified and disseminat- ed the job duties of each government of- ficetoimprovecommunicationwithcus- toms,Moralessaid. ELIMINATING BAD EGGS Mexicohasfollowedsuitinsomeareas. Aspartofthefederalgovernment’ssix- year,$830.54millionCustomsModerniza- tionPlan,professionaltrainingforalllev- els of staff is required and periodic evalu- ationsarebecomingthenorm. In August 2009, the federal govern- ment removed about 700 fiscal inspec- torsand400cargoinspectorsfromdiffer- entcustomagenciesalongtheU.S.-Mexico border.CustomsadministratorJuanJosé Bravosaidatthetimetheofficialsdidnot fitthejobprofile. The clean-up is continuing. Armando Olivares Félix, a former customs admin- istratorinAcuña,Coahuila,wasincarcer- ated earlier this week after being charged by the Attorney General’s Office for help- ing a group of shipping companies evade tax payments worth 56.43 million pesos ($5.22million). BRONSON PETTITT / MEXICO WEEKLY Oldcustomsgiving waytonewpractices In addition to better technologies, greater efficiency and a concerted attack on corruption can streamline border trade. Maquiladora workers could soon be exposed to new educational opportunities. PHOTOCOURTESYOFFLICKR PHOTOCOURTESYOFFLICKR EducationisJob1for newmaquilaleader In the wake of global financial difficulty, border trade and business are boosting CiudadJúarez,butthenewpresidentof the Maquiladoras Association (AMAC) wants to establish educational compo- nentstokeepgrowthcoming. InJanuary,therewere1,800startups in the region. AMAC, a non-profit, was founded in 1974 and has 339 manufac- turing plants as members, 43 percent of Chihuahua’sdomesticproduction. José Luis Armendariz, president of AMACsinceFeb.10,saidCiudadJuárez, likemostotherMexicancities,wasgreat- lyaffectedbytheglobalcrisisandcooper- ationwasneededforthecitytoprosper. He wants to stress education to the owners and employees of maquiladoras and production plants located along the border. “We will create a type of college for maquiladoras with a direct focus on cultureandtechnologicaldevelopment,” Armendarizsaidinaphoneinterview. ROAD TO RECOVERY Fulfilling the commitment to education would help encourage competition and diversification,Armendarizsaid.Afocus onculturaleducation,ontheotherhand, couldalsohelpeasethecurrentclimateof fearandviolenceinJuárez,hesaid. With compromise between com- peting entities and a unified front, Ar- mendariz said, Ciudad Juárez can con- tinueonitswaytofinancialrecovery. Armendariz has spent the last 33 yearsstudyingtradeandelectricalengi- neeringinCiudadJuárez.Hehasowned the manufacturing firm Acrílicos Plas- titec since 2003, and hopes he can use hismanagerialskillsinhisnewposition aspresidentofAMAC. DIVERSIFICATION IS KEY At Armendariz’s inauguration, Econo- mySecretaryBrunoFerrarispokeofthe importanceofdiversifyingtrade,bothin terms of what products are traded and to whom they are traded, Azteca Noti- ciasreported. Ferrari also hopes to expand the IM- MEX that promotes production and trade through tax incentives and gov- ernment-sponsored rebates. Current- ly, 7,864 businesses across the country benefitfromtheprogram. “One of the most important benefits isthatcompaniesdonothavetopayval- ue-addedtaxonanyimports,”saidJaime Rodríguez, a spokesperson for the insti- tutethatmanagestheprogram. ZACH LINDSEY / MEXICO WEEKLY Mexico is taking steps to modernize procedures and reduce costs so as to end painful bureaucratic experiences that were all too common
  • 14. Friday February 25, 2011 : MEXICOWEEKLY 2120 MEXICOWEEKLY : Friday February 25, 2011 TAX REFORM ECONOMY &FINANCE PRI senators have prompted a tax reform debate, although action on transparency and efficiency must likely come first B ack in 1999, President Ernesto Ze- dillo was nearing the end of his se- xenio. He sought to revive his and the nation’s fortunes by submitting a tax reformproposaltoCongress. Thatsameyear,PANlawmakers(with Felipe Calderón as their party president) decidedtorejecttheZedilloproposal. Sincethen,dozensmoretaxreformpro- posals have been submitted to Congress but none have mustered enough votes for approval. Throughouttheyearssince,newtaxes havebeenimplementedandsmallchang- es have been made to the country’s fiscal system. However, Mexico has not experi- encedcomprehensivetaxreformsinceDa- vid Ibarra Muñoz – the finance secretary underPresidentJoséLópez Portillo(1976- 82)–introducedthevalue-addedtax(IVA) backintheearly1980s. Sincethen,lawmakersfromallparties (Calderónincluded)haveeithersubmitted, lobbied for, examined, or voted on a flur- ry of tax reform proposals. Indeed, Mexi- co’s fiscal woes are well documented and thereformsneededarecleartoalmostev- erypolitician. AsSen.ManlioFabioBeltronesrecent- ly wrote in an Op/Ed piece: “We all have multiple options on how to redirect [the country’s]fiscalpolicy.” TOUGH SELL Thismonth,Sen.BeltronesandotherPRI senatorshaveworkedhardtodefendanew taxreformproposal,althoughhehasyetto submit the bill to Congress. Surprisingly, Beltrones has to convince his own party’s deputies to endorse the proposal before submittingit. The accounting firm Ernst & Young has said the proposal (if approved) could increasethecountry’snon-oiltaxrevenue by1.3or1.8percent–wellbelowthe3per- centrecommendedin2009bytheOrgani- zation of Economic Cooperation and De- velopment(OECD). TheBeltronesproposal–likemostoth- ers proposed in the past 11 years – focus- esalmostexclusivelyonboostingthefiscal base and increasingthe country’s languid tax revenue (which is well below oth- er Latin American countries and almost twotimesbelowthatofOECDcountries). However,manyanalystsquestionwhy politicianshavenotshownanyinterestin making more transparent and more effi- cientthewaythecountrycurrentlyspends whatlittleitcollectsintaxrevenue. “Before any tax reform proposal gets approved, we must first study very thor- oughlywhatthecurrenttaxrevenueisbe- ing used for,” said Rocío Moreno López, a researcherattheindependentMexicoCity think tank Fundar. “There’s no use in in- creasingtaxrevenueifit’sonlygoingtobe spentfoolishly.” IRRESPONSIBLE DECISIONS Thereisactuallyplentyofdatatosupport Moreno’sconcern. From2005to2010,forinstance,onthe heelsofrecord-breakingoilprices,thefed- eralbudgetincreasedbyalmost75percent, goingfrom1.8trillionto3.2trillionpesos. In contrast, the country’s Human De- velopmentIndex(anindexthatcombines data on life expectancy at birth, adult lit- eracy, educational enrollment, and aver- age income) only increased from 0.727 to 0.750. In other words, an extra 1.4 trillion pesosinpublicspendingdidalmostnoth- ingtoalleviatethecountry’seconomicand socialproblems. “Morerevenue–whetheritcomesfrom oil[salesandtaxes]ortaxes–doesnotau- tomatically translate into a decrease in povertylevels,”saidMorenoinatelephone interview. This is not surprising if we consider thatpublicspending,ortheexpenditurein- curredbythepublicsectorinthecourseof itsactivitiesinMexiconearlydoubledbe- tween2000and2006. Evenin2009,inthemidstoftheworst financialcrisisinglobalhistory–ascoun- tries all over the world were frantically trying to reduce their public-sector costs – Mexico’s federal government managed to hire almost 15,000 additional mid- and high-levelcivilservants. FOOLISH SPENDING WhilenationssuchasGreeceandtheUnit- ed Kingdom are desperately trying to cut public spending (despite huge public out- cry),publicspendinginMexicohassteadi- ly grown at an annual average rate of 6.9 percent,accordingtoFundarresearchers. Throughouttheyears,petroleumsales and oil-related taxes have been primar- ily used to finance Mexico’s burgeoning bureaucracy. A2009reportbytheChamberofDep- uties’technicalbodyinchargeofoversee- ingpublicspending(theASF)discovered that in 2004, during Vicente Fox’s fourth yearinoffice,one-quarterofthecountry’s “additional” oil revenue – that is, the dif- ference between the projected and actual priceofMexico’sheavycrude–wasspent on “balancing the federal budget.” This is afamiliareuphemismusedinMexicothat meansusingthemoneytopayforgovern- mentoverspendingthroughouttheyear. A report compiled by Fundar on oil-fi- nancedspendingfrom2000to2006found thatpetroleumrevenuepaid,amongother things, for a giant flagpole in Nuevo León andfortheremodelingofseveralchurch- esinYucatán. This simply “reflects the lack of plan- ningandprogramminginpublicspending,” wroteMoreno,thereport’sauthor. INSTITUTIONAL INEFFICIENCY Almosttheexactsamecriticismwasmade recentlybytheASFwhenitpresentedits 2009samplingauditofpublicaccountsto Congress. Indeed, its report is filled with cases wheregovernmentagenciesblatantlyfid- dledawaypublicmoney. The country’s revered state-owned oil company, for instance, serves as a clear example of the endemic inefficiency, cor- ruption and inefficiency that plagues our government. Figures compiled by Reforma show that Pemex – with its 145,000 employees – has 30,000 more workers than private- ly-ownedBritishPetroleum(115,000)and 39,000morethanExxonMobil(106,000). In fact, using Pemex’s own figures, the newspaper discovered that from 2008 to 2010,whileMexico’soilproductionfellby 7.7 percent, the state-owned company’s spending on workers’ benefits increased Newfix onpublic spending Congress could take up comprehensive tax reform this session. NOTIMEXPHOTO/JOSÉPAZOS
  • 15. 22 MEXICOWEEKLY : Friday February 25, 2011 TAX REFORM ECONOMY &FINANCE BUDGET AND HUMAN DEVELOPMENT INDEX Source: OECD (2010), Revenue statistics: Comparative tables, OECD Tax Statistics (database) Source: UNDP, Chamber of Deputies / Finance Secretariat 3.2 trillions of pesos 1.8 Comparison between public spending and HDI MEXICO'S TOTAL TAX REVENUE COMPARED WITH OTHER COUNTRIES As a percentage of gross domestic product 15 2002 20042003 2005 2006 2007 2008 2005 20072006 2008 2009 2010 2009 20 25 30 35 40 Canada United States Chile Mexico Spain OECD Total 34.2 33.7 35.4.2 33.3 30.7 17.5 0.727 26.0 34.7 36.6 31.1 24.0 18.2 27.9 23.2 18.6 19.7 16.5 0.750 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 HumanDevelopmentIndex 0.7 0.8 by15percent,goingfrom123billionto142 billionpesos. Not surprisingly, Pemex’s efficiency faresverypoorlywhencomparedwithpri- vatelyownedoilcompanies.WhileanExx- onemployeeproducesapproximately43.6 barrelsofoilperday,aPemexemployeeon- lyproduces17.2(nearly40percentless). TRIVIAL SPENDING Sadly,inefficiencyisnotaphenomenonex- clusivetoMexico’soilsector. According to the ASF’s 2009 audit re- port, lawmakers are not much more effi- cient than oil riggers. Figures show that, between2007and2009,thecongressional budgetincreasedfrom7.7billionto9.6bil- lionpesosandin2009itexperienceditsbig- gest-everincrease(10.3percent). On the other hand, the rate at which lawmakersproposedorapprovedurgently neededreforms–includingacomprehen- sivetaxreform–waslessthanimpressive. In 2009, for example, federal deputies as a whole proposed 1,079 different bills, of which 909 were sent to committees and only 170 were acted upon. The Sen- ate, meanwhile, did a little bit better by proposingatotalof974billsandvotingon 925ofthem. Butperhapsthemosttellingsignofhow little thought is given in Mexico to public spending is the expenditure laid out for thetwobigofficialcelebrationslastyear– theBicentennialofIndependenceandthe CentennialoftheRevolution. AccordingtotheASF,atleast260mil- lionpesoswerespentoncelebratoryproj- ects, including 31.2 million pesos (or ap- proximately 1,448 years’ worth of mini- mum wage salary) spent on publicizing andorganizingalaying-of-the-first-stone eventforthe yet-to-be-constructed “Arco delBicentenario.” Another 63.3 million pesos (approx- imately 2,800 years’ worth of minimum wage salary) were spent on the creation and endowment of a research institute specializinginthestudyofMexico’ssocial revolutions. This seems rather ironic giv- en that Mexico’s Revolution was sparked, among other things, by President Porfirio Díaz’ssimilarlyexcessivespendingonlav- ishpublicprojects,includingstructuresfor theCentennialofIndependence. SowhiletheBeltronestaxreformpro- posal promises to “promote growth and employment,”itisnotmuchdifferentfrom all the other proposals submitted to Con- gressinthepast11years.Itsimplydoesn’t addresshowtheresultingrevenuewillbe spent. Infact,Beltrones–likemostotherpol- iticians before him – avoids talking about makingpublicspendingmoreefficientand transparent because he figures it’s some- thingthatisjustunattainable. “Theyknowsuchareformwouldnev- erbepassedinCongress.That’swhythey never propose it,” said José María Marín, anotherresearcheratFundar. In that respect, many analysts believe politicianswouldbebetterservedtofocus moreonestablishingproperguidelinesand creatingindependentagenciesthatcanef- fectivelyoverseepublicspending. For Fundar, there should be a balance between increasing the country’s tax rev- enueandmakingpublicspendingmoreef- ficientandtransparent. CARLOS MARTÍNEZ CRUZ/MEXICO WEEKLY
  • 16. Friday February 25, 2011 : MEXICOWEEKLY 23 “The last of the old- style movie theaters.” Film critic Luis Tovar on the D.F.’s doomed Cine Teresa. BOOKS TELEVISION MUSIC LETTERSLETTERS AQin theDFArtinReview: A tour through 20th-century Mexican society through Abel Quezada’s sharp pen: 24 Iturriaga José Ezequiel Iturriaga – writer, diplomat, historian, political scientist and a leading public intellectual of 20th century Mexico – has died at age 98. Triple Loss The Senate paused on Feb. 17 to ap- plaud three recent- ly deceased giants of Mexican music – Manuel Esperón, Eu- genio Toussaint and Salvador Ojeda. Catch 22 Novelist Jorge Vol- pi, head of Canal 22 since 2007, will hand over the reins of the government TV channel on March 1 to Irma Pía González Luna. Tongue Chief Poet Jaime Labasti- da, brother of 2000 PRI presidential can- didate Francisco La- bastida, is the new director of the Mex- ican Academy of Language. Show Time “200 años del Es- pectáculo,” a visual- ly rich history of D.F. entertainment, has been published by Conaculta, the D.F. government and the Auditorio Nacional. life& leisure www.mexicotoday.com.mx/information/lifeleisure PHOTOCOURTESYOFSECRETARIADECULTURA/DF
  • 17. Friday February 25, 2011 : MEXICOWEEKLY 2524 MEXICOWEEKLY : Friday February 25, 2011 ART IN REVIEW life& leisure TheLikable DoodlerThe artist Abel Quezada satirized his contemporaries each and every day with pen and ink. And they loved him for it. A belQuezada’smostremem- beredpieceisn’ttypicalofhis art, his approach or his de- meanor. Then again, it was publishedonanatypicalday. Thelateartist,whofillsoneoftheloft- ierslotsinthepantheonofgreatMexican cartoonists, had multiple styles in multi- plemediums.Butnonewouldhaveinclud- edthesolidblackrectanglethatranunder hisnameandthetwowords“¿Porqué?”in hisusualspaceinthethen-dominantdaily ExcelsioronOct.3,1968. Quezada, 47 at the time, had huddled theeveningbeforewithaneditortoselect among several cartoon options, with the newsstillsinkinginthatsoldiershadshot downanundeterminednumberofstudents earlierthatdayintheTlatelolcoplaza,just northofMexicoCity’sHistoricCenter. As responses to atrocity go, that black box, as much dolorous as accusatory, was hardlyregime-threatening.Butitstoodout amongthepresscoveragethatday,which mostly praised the government for taking careofbusiness.That“Why”atthetopwas the kicker; it insubordinately suggested theremighthavebeenabetterwaytodeal withaninconvenientprotestthanslaugh- teringhundredsofyoungpeople. The “anti-cartoon,” as it’s since been christened, contributed to the view of Quezadaasapioneeroffreedominmodern politicalcartooning. He is certainly revered for that by his successors. “His work was courageous at a time when it was difficult to be critical aboutnationalpoliticallife,”sayspolitical cartoonist Rogelio Naranjo (Proceso, El Universal), one of the most prominent of thosesuccessors.“Hewasabletoopenup considerablespaceforusinthemedia.” But, as a generous and pleasing expo- sition of his work at the Museo de la Ciu- daddeMéxicomakesclear,AbelQuezada wasnopoliticalfirebrand.Hewasn’treally apoliticalcartoonistinanyfamiliarsense oftheterm.Infact,ifyoulistentoQuezada himself,hewasn’tevenacartoonist. “Myjobdoesn’thaveaname,”hesaidin Illustrated texts: “I’m not a cartoonist.” At the Museum of Mexico City: Abel Quezada’s twin murals honoring oil sovereignty are available for public viewing for the first time. 1985.“Ican’tsayI’ma‘cartonista’because that rather ugly word, which comes from the English ‘cartoon,’ doesn’t exactly de- scribewhatIdo.” What he did, in his words, was create “illustratedtexts.” Hecouldaseasilyhavesaid“annotated illustrations.”Muchofthetimetheywere in “historieta” form, consisting of sever- alpanels,eachofwhichcouldoftenstand alone, but in their aggregate always led to something. InthatsensehisworkwassimilartoPa- coCalderón’scurrentofferingsintheSun- dayReforma,butwithoutthesnarl. YoucanalsochoosetoseesomeQueza- dainRius,JulesFeifferandtheNewYork- er’s Roz Chast. Visitors to the current ex- hibitwillagreewithQuezadathat“cartoon- ist”isaninadequatetermforhiswork.For onething,thedrawingsthemselvesaren’t all in the same style, as those of a typical politicalcartoonistwouldbe.Hecancom- municate much with little ink; look at the crowd scenes in some of the larger draw- ingsandyou’llseethatmostoftheindivid- uals consist of not much more than half a dozen lines. Or he can add detail and tex- ture(andthereforepersonality)ashedoes withsomeoftherecurringcharacters,like the paunchy PRI deputy. And, of course, Quezadawasnotonlyadrawer.TheMex- icoCityMuseumshowdisplaysdozensof his oils and watercolors, and they tell us something about his side passions. One is aircraft; a room at the exhibit is hung almost exclusively with landscapes and cityscapes,mostfeaturingatleastonefly- ingmachine,usuallyablimp.Anotheristhe “longandjoyousparty”thatwasMexicoin the1940s,atimeof“Cadillacs,Ciro’s,cavi- ar,blondes,whiskyandchampagne.”Was hebeingnostalgicorcausticwhenhewrote in1975,“Everythingbadthatishappening nowisjustahangover”? We also learn from the paintings that Quezadawasnogringophobe. Many are scenes from the United States. He loved baseball. One oil depicts Babe Ruth standing, in full uniform, out- side a row of brownstones (probably in New York, where he played, but maybe in Baltimore, where he grew up). The oblig- atory blimp hovers above. He was also an admirer of Saul Steinberg, the great Ro- manian-born American illustrator who is most remembered for his “View of the Worldfrom9thAvenue,”whichusesforced perspective to declare there’s little west of Manhattan worth including on a map. Quezada, like Steinberg, contributed cov- erstotheNewYorker,theholygrailofcar- toonist/artists,thoughconsiderablyfewer thantheAmerican’s90. But what makes Quezada Quezada is the daily commentary he provided in the newspapers Excélsior (1956-1976) and Novedades (1977-1988). They were usually in cartoon or historieta format, buttheirreachwentbeyondthosecatego- ries.Hesatirewassocial,notovertlypolit- ical.“Throughoutmylongcareerindraw- ing,myprincipalcharacterwasneverany politician,”heoncesaid.“Mycharacterwas theMexican.” That’s a riskier route than it sounds. Lampoon a politician and the people will nodinagreement,saveforthelampooned politician.Exposethefoiblesofthepeople themselves, and you’re treading on sensi- tive ground. By doing just that, Queza- da compiled accolades from cultural crit- icssuchasGuillermoSheridan(whocalls him“acombativejournalistwithpaperand pencil”)andCarlosMonsiváis(“anovelist inthelandofcartoons”). What’s more, Quezada satirized his compatriotswithoutresortingtotheusu- aldisclaimerthatanycharacterflawhadto havebeenimposedfromaboveorabroad.“I never depicted the people the way the old cartoonists did, as the eternal and impo- tentvictimsofthepowerful,”hesaid.(For therecord,though,hedidtakehisshareof shots at rich foreign countries as well as richpeople.) How, then, could he have been so pop- ular for so long with the very people he so relentlesslychided?Onereasonisthathis satire was as gentle as it was effective. By allaccounts,Quezadawasaveryniceman. TheveteranjournalistBlanchePetrich,in praising his stance at the time of the Tla- telolco massacre, described him as a “lik- able doodler,” which she meant in a good way. Naranjo uses the word “simpático.” PHOTOSCOURTESYOFSECRETARIADECULTURA/DF
  • 18. 26 MEXICOWEEKLY : Friday February 25, 2011 ART IN REVIEW life& leisure Quezada’s amicable nature shows in the roundededgesofhissatire.Peopleappar- ently didn’t take his spot-on jabs person- ally;perhapstheyassumedhewastalking abouteverybodyelsebutthem. As if to acknowledge that possibili- ty, one single-panel cartoon prominent- ly displayed in the current show depicts twoidenticalcouplessecretlycallingeach other“naco,”aderogatorytermthatinthis caseimplies“insufficientlyeducatedwith poorvaluesandpoorertaste.” Quezada’stwinmuralshonoringthena- tionalizationoftheoilindustryareintheo- rythemaindrawoftheexhibit,whichisen- titled“CódiceAQ” andcontinuesthrough April3.Hetooktheassignmentin1988,the 50thanniversaryoftheexpropriation,and finishedtheworkshortlybeforehisdeathin 1991.ThemuralswereensconcedatPemex headquartersuntiltheywereshippedtothe MexicoCityMuseumlastDecember,sothis showprovidestheirfirstpublicviewing. IfitseemscontradictorythatQuezada wouldcelebrateaparastatalindustryoften associatedwithcorruptionandinefficien- cy, keep in mind that he was of the gener- ation that equated Pemex with indepen- denceandprogress. Both are symbolized in the train of Códice AQ, featuring drawings and paintings, continues through April 3. the first mural, which is accompanied by horsesbearingsixheroesoftheRevolution —Villa,CarranzaandZapataoutfront,with Obregón,CallesandCárdenasalongside. The animals might be moving faster than the machine, and though they’re not tethered to it, they seem to be pulling the trainalong. Incontrast,thenine(atthetime)post- Cárdenaspresidents,fromÁvilaCamacho toSalinas,standidlyonaflatcar,alongfor theride.TypicalofQuezada,noneofthem lookmuchlikethemselves,buttheyalllook justlikeaMexicanpresident. The second mural depicts Pemex officials(“ThePioneersandSomeOthers”) inasettingthatissimultaneouslyindustri- al,ruralandcoastal. Comparedtotheleadersandheroesof the first mural, this is a mundane bunch, whichmaybewhy15ofthemaredressed asbaseballplayersandstandasateamun- deraswarmofaircraft. The mural display offers a historic viewingopportunity,butit’sthehundreds of smaller works, most of them “illustrat- ed texts” on newsprint, that show us Abel Quezada. aVisitorspassthroughtheroomsview- ing(andreading)thepiecesunderglasson tables, with the paintings hanging on the walls. Also on the white walls are oversized reproductions of Quezada cartoons and characters, brightening up the interior of themuseum(aconvertedmansion,beau- tiful,butatadgloomy). Visitors smile more at the Quezada show than at other art exhibits. Most are tooyoungtoknowmuchabouthim.Allthe more reason to appreciate this good-na- tured tour through the pre-NAFTA Mex- icoofthe20thcentury. KELLY ARTHUR GARRETT / MEXICO WEEKLY kellyarthurgarrett@gmail.com Nothing personal: Quezada’s jabs were usually gentle, but always spot on. PHOTOSCOURTESYOFSECRETARIADECULTURA/DF
  • 19. Friday February 25, 2011 : MEXICOWEEKLY 27 Single dad: His days are numbered, but there’s time for homework. FILM IN REVIEW life& leisure The film ‘Biutiful’ has been more awarded than distributed, and more admired than attended. That’s too bad. TheMexicanpressbeganplayingup“Biuti- ful” when the 2010 film started pulling in internationalprizenominations,including forBestForeignLanguageFilmattheup- coming83rdAcademyAwardsonFeb.27. But in Mexico City, capital of the land of its director Alejandro González Iñárritu, themovieitselfwasuntilFeb.25stillonly viewableviaafunkyprintinatinyroomat theCinemaníaartfilmcomplex. Its limited popular appeal is no sur- prise; as González Iñárritu himself put it, yousurvive“Biutiful“ratherthanenjoyit. “It’snotamovieforeverytaste,”hesaid.“I wasn’t thinking of a mass audience when Imadeit.” The film is a joint Mexico-Spain pro- duction,withothernationsalsoinvolvedin thefinancing.ItwassubmittedtotheAcad- emyinMexico’sname,but“Biutiful”takes place in Spain, in a rough section of Bar- celona the Catalan Tourist Board doesn’t wantyoutoknowabout.GonzálezIñárritu insists,credibly,thatthesettingcouldhave beenanyEuropeancity.Thetruelocation is the crossroads of globalization and the newworldorder,anyurbannoman’sland wherethedisplacedsurvivehoweverthey can,withoutthinkingtoomuchaboutthe moralcostofexploitingotherimmigrants. Thisisatypicalpieceofmoderngeog- raphy – squalid and dangerous, but also strangely unmoored, like a forgotten gar- bage barge drifting with the currents. We seeitthroughthecentralcharacter,Uxbal, whoactsoutHobbes’observationthathu- manlifeissolitary,poor,nasty,brutish,and short.Playedwithchinpressedtowardthe chestbytheSpanishactorJavierBardem in a universallypraisedperformance, Ux- balisbothoutsidethefray(he’snotanim- migrant)andanenablerofit(hescrapesby financiallyasago-betweenamongthepet- tyethnicmobs). SightUnseen Dying of cancer, he has a few months togethisaffairsinorder,whichinhiscase meanshustlingenoughmoneytohelphis two pre-teen children get by when he’s gone. Fortunately, there’s plenty of cash movingaroundintheneighborhood,allin envelopes.NovelistCarlosFuentescredit- edthemoviewithimplicitlyposingaques- tion: If a globalized world can generate so much business and circulate so much money,whycan’titcreatejobs? Looking for an upbeat respite that the movie won’t grant easily, it’s tempting to point to Uxbal’s devotion to his children asatranscendentcharacterreference.He doestaketheroleofsinglefatherseriously, helpingthemwhenitmattersmost,failing themoccasionallyinminormatters(such ashowtospelltheonlyEnglishwordinthe movie).It’scondescending,however,tode- scribesuchacommitmentasheroic. Wouldn’tanymantakethereinsifcir- cumstances demanded it? Uxbal’s use of hisdyingdaystosetuphischildren,then, is really just one of many decisions that have been made for him. This imposed passivity has bothered some critics, such as Daniel Krauze in Letras Libres, who sniffs, “Chance is not an interesting nar- rative thread.”(Somebody send that man thecollectedworksofThomasHardy.) Asthoughtocounter,GonzálezIñárri- tusaidinanAssociatedPressinterviewin January,“That’swhattragedyis,exposing a human being to destiny’s fury.” He also maintains–withahintoffrustration–that “thisisastoryofhope.”Thosewhocan’tsee thehopearethepessimists,onecanalmost hearhimsay,notthedirector.Soit’sworth pointingoutthattheonestrong,selflessde- cisionmadeinthecourseof“Biutiful”ful- fills Uxbal’s mission posthumously. It en- sures that the future will be taken care of –byimmigrants. KELLY ARTHUR GARRETT / MEXICO WEEKLY kellyarthurgarrett@gmail.com Director Alejandro González Iñárritu (right) and Javier Bardem discuss a scene. PHOTOSCOURTESYOFBIUTIFUL-THEMOVIE.COM
  • 20. Friday February 25, 2011 : MEXICOWEEKLY 2928 MEXICOWEEKLY : Friday February 25, 2011 FILM IN REVIEW life& leisure Lawyers with CamerasThe defendant and his attorney: Overcoming the obstacle of being presumed guilty. José Antonio Zúñiga: More than two years in prison for a crime he never committed. Filmmakers Layda Negrete and Roberto Hernández: A call to action. ‘Presunto Culpable’ exposes a scandalously dysfunctional Mexican justice system. But that’s the easy part. Feb. 18-20 was an unusual weekend in Mexicancinema,andanencouragingone. In a nation where home-grown produc- tions are mostly ignored and documenta- riesshunned,moviegoersstartedliningup Fridaytosee“PresuntoCulpable,”aMexi- candocumentarythatseekstoexposewhat mostpeoplealreadyknow–thatthejustice systemisoutrageous. The movie’s not new. It’s been knock- ingaroundfilmfestivalsandothersecond- aryvenuesfortwoyearsnow,andwaseven shownwithEnglishsubtitlesonU.S.public televisionin2010.Butagedoesn’tmatterin thiscase.Onceanationaldistributiondeal wasstruck,thepre-releasebuzzwaslouder ontheop-edpagesthananywhereelse,re- flectingaconsensusthatthisisaveryim- portant movie indeed, and that every citi- zenowedittothecauseofjusticetoseeit. Alotofthemdid.Overthatfirstweek- end, 128,000 persons paid 6.4 million pe- sostosee“PresuntoCulpable.” That’snot exactly “Titanic” territory (and its gross lagged way behind “Yogi Bear” and three otherHollywoodimports),butit’salready PHOTOSCOURTESYOFPRESUNTOCULPABLE.ORG halfway to out-performing the most- watchedMexicandocumentaryofalltime, LuisMandoki’s“Fraude:2006.” Even the luxury VIP rooms in the cin- ema complexes are screening “Presunto Culpable.” Sosociallyconsciousfilmbuffs canenjoywaiterserviceandplushreclin- ing seats as they ponder the fate of an in- nocent man condemned to rot in a claus- trophobicprisonfor20years. Whythesuccess,welcomeasitis? The urgentreviewshelped,ofcourse,especial- ly since they came not so much from the entertainmenttastemakersasfromthein- tellectual elite – Juan Villoro, Guadalupe Loaeza,JorgeCastañeda,JesúsSilva-Her- zogMárquez. Peopledon’tgotomoviesfor civicreasons,buttheideathatthecriminal justicesystemisworthpayingmoreatten- tiontoisatimelyone. There’s a better reason that “Presunto Culpable” is drawing audiences, though. For all its effectiveness as an advocacy project,andallitshard-earnedcredibility, it also worksas a movie.There’sasatisfy- ingdramaticarctoit,asthoughcreatedby screenwriters. There are plot shifts and a hugefalseclimax;thismaybetheonlydoc- umentarywhereareviewerfeelsboundto holdontospoilerinformation. There’s even a love story. And danc- ing. And original rap lyrics. This is a documentary for people who don’t like documentaries. The characters are especially memo- rable, and reveal themselves cumulative- lyovertime.Whichisamazing,sincenone ofthemareacting. They’renotcharactersatall,ofcourse, butreal-lifeparticipantsin(andvictimsof) thefarcicaltheateroftheabsurdthatpass- es for a criminal trial in Mexico. They’re on screen only because two young law- yers, Roberto Hernández and Layda Ne- grete, somehow convinced authorities to letthemfilmthere-trialofayoungevery- mannamedJoséAntonioZúñiga,whohad beenfalselyaccusedandthenunjustlycon- victed of a murder he never knew about, letalonecommited.Fromtheauthorities’ pointofview,thishadtobethemostill-ad- visedlapseintotransparencysinceNixon turnedonthetaperecorder. The film couldn’t have been cast bet- terifitwereactuallycast.Theprosecutor chucklesdisinterestedlyonthoserareoc- casionsthatshedoesanything.Thejudge (shockingly, the same one who allowed Zúñigatobedefendedbyafraudulentnon- attorneyintheoriginaltrial)smilesinsin- cerely,likeahamvillain.Thejudicialpolice aretrulychillinghombreswhofeelnoneed to even pretend to tell the truth. Zúñiga’s gang-memberaccuserislikeamethodac- tor,holdinghisfearoftheconsequencesof hisperfidyjustbelowthesurface;whenhe breakshemaintainshismachostare. HernándezandNegretechoseZúñiga’s case because they thought it was strong. Theywereright.Theyalsodidwelltobring theAustralianfilmmakerGeoffreySmith on board after the filming; it’s likely his work that turned a compelling documen- taryintoamovingdramaticexperience. They caught a break when Zúñiga turnedouttobearticulate,thoughtfuland handsome – a leading man from central casting.ButtheyhitthejackpotwithRafa- elRamírezHeredia,thehyper-competent defenseattorneywhoexudestherightmix of sympathy and ruthlessness, and more or less takes over the movie as soon as he walksintoit.Hedoesn’tlikewhatgoeson attheseprocedures,butheisn’tintimidat- edbyit.LikeAtticusFinch,he’supagainst obstaclesthathavenothingtodowiththe meritsofthecase. Ultimately,though,asanadvocacydoc- umentary, “Presunto Culpable” has to be judged on the success of the arguments it set out to make. One of them, that Zúñiga was falsely accused and convicted in the face of overwhelmingly exculpatory evi- dence,isobvious.Evenallowingforselec- tiveeditingbyfilmmakersonamission,it’s clear from ballistics tests, eyewitness ac- counts and the accuser’s change of heart thatZúñigawas,asthemovie’stitlehasit, presumedguiltyfromthestart. But how well does the film expose the systemasawhole?Wasthiscaseanaber- ration?Arewepresumingthesystemguilty basedonasingleatypicalexample? Herethebarissetlower.“PresuntoCul- pable”revealsenoughtoseriouslycallinto questionthesystem’sfairnessatastructur- allevel,whichisallyoucanaskofamovie. Even if Zúñiga had not been found guilty, the extreme arbitrariness of the proceed- ings is disturbing, as are the absurd over- reliance on the written record, the ab- sence of accountability, and (again) that presumption of guilt that makes truth ir- relevant.Onlyinahopelesslyinept justice systemcouldsuchatravestytakeplace. Inonesense,theZúñigare-trialwasin- deedanaberration:Itwasfilmed.Butthat anomaly only strengthens the filmmak- ers’ case. The very notion that what we sawusuallytakesplaceinsecrecyisscary, tosaytheleast.Andwhodoubtsthatwith- out those lawyers’ cameras, José Antonio ZúñigawouldstillbeservingtimeinMex- icoCity’sReclusorioOriente? Finally,will“PresuntoCulpable”doany good?HernándezandNegreteseethefilm as a call to action, and they go out of their way to provide strategies for a grass roots movement.But,liketheirprotagonist,they faceforcesstrongerthantheircause. Oneisattentionspan.Leavingthethe- ater, the public can be fired up. Then it’s back to the daily grind, not to mention a thousandothercausestobefiredupabout. Al Gore made climate change the hottest cause of 2006 with his documentary “An InconvenientTruth.”Fouryearslater,the U.S.electorateloadedupitsCongresswith extremistswhodenytheproblem. Also, Mexicans are understandably more concerned about the booming pop- ulationofmurdererswhoarenotinprison thantheinnocentnon-murdererswhoare. Thefilmmakerstrytoaddressthatpriority bypointingoutthatforeveryinnocentper- son put in prison, a guilty person remains free. That’s not mathematically precise, butthepointiswelltaken:Adysfunction- alcriminaljusticesystemnurturesimpu- nityaswellasmiscarriagesofjustice. In the end, a documentary can only drawattentiontoaproblem,takingitoutof itsdarkhidingplaceandexposingittothe lightofpublicreview.Butitcan’tfixabro- kenjusticesystem.Thattaskrequirescou- rageous and competent reform-minded leadership,acommodityasrareasjustice. KELLY ARTHUR GARRETT / MEXICO WEEKLY kellyarthurgarrett@gmail.com
  • 21. 30 MEXICOWEEKLY : Friday February 25, 2011 : what : when : wherer&r SATURDAY 26FRIDAY 25 SUNDAY 27 Sanctum The new underwater action picture, billed as a James Camer- on movie (he of “Av- atar” and “Titanic” fame) but directed by the little-known Australian Alister Grierson, premiers in wide release, un- avoidably at a the- ater near you. And yes, it’s in 3D. Iphigénie If televised opera works for you, the Auditorio Nacional, with its huge high- def screen and good sound, is the place to see it. At 12 noon, the New York Metropolitan Op- era’s production of Gluck’s Ifigénie en Tauride will be tele- cast live. Tickets 40 to 300 pesos. Luis Miguel The many-Gram- mied and mega- grossing Mexican pop idol continues his three-week oc- cupation of the Au- ditorio Nacional that won’t stop until Mar. 6. Best seats: 2,707 pesos. Worst: 429 pesos. Bassooning American Benjamin Kamins (pictured) is the featured bas- soonist and Jesús Amigo the guest conductor as the National Symphony Orchestra performs Montsalvatge, Mo- zart and Beethoven. At 12:15 p.m. in the Palacio de Bellas Artes. Also Friday, Feb. 25 at 8 p.m. Dancing Fowl The National Dance Company’s presen- tation of fragments from “Swan Lake” debuts at 8 p.m. in Chapultepec Park, with 120 dancers, 300 extras, and an undisclosed number of live swans and horses. Continues Thursday through Sunday until Mar. 27. Third Root Last chance to see the exhibition “San- ta Negritud,” cele- brating the Afro- Mexican culture in southern Guerrero and northern Oaxa- ca. From 10 a.m. to 6 p.m. at the Museo Nacional de Culturas Populares (pictured) in Coyoacán. Also Friday, Feb. 25 and Saturday, Feb. 26. Hotel Garage Jaime López, a one- of-a-kind rockero, blusero, folkero, ran- chero and a smart and hip singer/song- writer for three de- cades, appears in his electric incarnation with Hotel Garage (his band for that purpose) at 10 p.m. at El Imperial (5525- 1115) in the Condesa. Orozco Ends The final day of “Pin- tura y Verdad,” the largest-ever exhibit of works by José Clemente Orozco. At the Antiguo Co- legio de San Ildefon- so, behind the Cate- dral in Mexico City’s Historic Center. A must-see. Also Fri- day, Feb. 25 and Saturday, Feb. 26. Show Trial The penultimate performance of El Juicio de Hidalgo, the popular stage enactment of the Independence he- ro’s troubles with the Spanish authori- ties. At 6 and 8 p.m. in Teatro Hidalgo, behind Bellas Artes. Also Sunday at 5 and 7 p.m. Anita Brenner Susannah Glusker presents the two volumes of diaries, in English, kept in Mex- ico in the 1920s by her mother Anita Brenner, the great promoter of Mexi- can art and culture. At 5 p.m. at the In- ternational Book Fair in the Palacio de Minería on Tacuba in the Centro Histórico. Iglesias Enrique Iglesias, the Spanish-born pop star, who’s still only 35, performs at Gua- dalajara’s Auditorio Telmex at 9 p.m. (and Saturday at the same time), before his three-day run at Mexico City’s Audi- torio Nacional Feb. 28 to Mar. 2. Fair: Day 4 The fourth day of the International Book Fair in the Palacio de Minería includes appearan- ces by historian En- rique Florescano, author Vicente Quirarte, former presidential candi- date Cuauhtémoc Cárdenas, and scores more visit- worthy writers.
  • 22. Friday February 25, 2011 : MEXICOWEEKLY 31 PHOTOCOURTESYOFNOTIMEX Timeto standupMexico City officials insist that drug cartels have yet to take root in the capital, but experts say it is dangerous to delay firm action : 32 More than 11,000 migrants were abducted in Mexico over a six-month period in 2010, the National Human Rights Com- missionreportedonFeb.22.Nearlyhalfofthevictims(44per- cent)werefromHonduras,thereportstated.Thereportsaid druggangsoftendemandaransomfromfamiliesof$1,000to $5,000toensuretheirrelative’srelease. Rightsagencyreleases reportonmigrants’plight TRAFFICKERS DRUG GANGS BORDER VIOLENCE EX-PRI GOV. TALKS OF CARTEL DEALS Former Nuevo León Gov. Sócrates Rizzo admitted that PRI governments made deals with drug cartels, saying that by establishing where cartels could operate the widespread violence seen today was prevented. TEXAS AUTHORITY URGES SELF-HELP A Texas sheriff called on resi- dents of his county to arm them- selves against Mexican drug car- tels. Sheriff Arvin West of Hud- speth County said he remains suspicious of Mexicans who have fled the violence in Chihuahua. www.mexicotoday.com.mx/information/security
  • 23. Friday February 25, 2011 : MEXICOWEEKLY 3332 MEXICOWEEKLY : Friday February 25, 2011 DRUG CARTELSSECURITY Whocontrols MexicoCity? Residents of Ciudad Nezahualcóyotl outside Mexico City have become accustomed to clashes between drug cartels in recent months. Mayor Ebrard prefers to insist that drug cartels operate, but have not settled, in the capital. Attorney General Miguel Ángel Mancera says small–time dealers are his biggest concern. PHOTOCOURTESYOFNOTIMEX NOTIMEXPHOTO/CARLOSBAEZ NOTIMEXPHOTO/PEDROSÁNCHEZ A t least four different organized crime groups are openly fighting forcontrolofterritoryoutsidethe city limits, turning municipalities in the State of Mexico such as Nezahualcóyotl into war zones. However, some security analysts think drug cartels already oper- atefromwithinthecity. ThereasonMexicoCityhasn’tyetexpe- rienced the level of violence seen in other areasisthatalmostallcriminalorganiza- tionshaveapresenceinsidetheD.F.,from localgroupsliketheTepitoarmssmugglers togroupswithtiestoKoreanmafias. Erubiel Tirado, an analyst at the Insti- tute of Criminal Sciences (Inacipe), says itwouldbenaïvetothinkonecarteldom- inates within the D.F. “The reality is a lit- tlemorecomplicated,”hesaid.“Allgroups haveacriminalpresenceinthecity.” Tirado insists, if anything, there are “levelsofpresence.” For instance, Jorge Guzmán Mey- er, a top official in the Mexico City police force, suggested that drug cartels operate in a triangular area that encompasses the east,northandcentralpartsofthecity,El Universalreported. Thenorth,GuzmánMeyersaid,iscon- trolledbytheSinaloacartel,butsomeareas are disputed by the Beltrán Leyva cartel. Thenthere’sthenortheast,closetoNeza- hualcóyotl,whereGuzmánsaystheZetas andLaFamiliaarebattlingforcontrol. According to El Universal, the areas with the strongest presence of narcotics trafficking and organized crime are the GustavoA.Madero,Iztapalapa,Venustia- noCarranzaandCuauhtémocboroughs. TURNING A BLIND EYE? MexicoCityAttorneyGeneralMiguelÁn- gelManceratoldElUniversalasrecentlyas Feb. 17 there were no cartels operating in thecity.Mancerainsistedthatsmall-time drug trafficking (“narcomenudeo”) is the onlydrug-relatedcrimetakingplace. Mexico City Mayor Marcelo Ebrard CasaubónconcurswithMancera. InJanuary,healsotoldElUniversalthat drugcartelswerenotestablishedinsidethe city,andthat“here[inMexicoCity]wedo nothavetheviolencethattheyhaveinoth- erpartsofthecountry.” That, Ebrard said, was partially due to effectivelocalanti-drugprogramsthatfo- cus on rehabilitation, good policing and the more than 5,000 surveillance camer- asscatteredacrossthecity. AcloserlookatEbrard’spaststatements, CUAUH- TÉMOC IZTAPALAPA VENUSTIANO CARRANZA GUSTAVO A. MADERO CUAUTITLÁN HUIXQUILUCAN ÁLVARO OBREGÓN ORGANIZED CRIME IN MEXICO CITY D.F. Organized crime is fluid. Small cartels are absorbed by larger cartels. Large cartels fracture. This map includes the most up-to-date informa- tion on organized crime in Mexico’s capital city. Cuautitlán corridor (State of Mexico to D.F.) SINALOA Huixquilucan corridor (State of Mexico to D.F.) SINALOA + BELTRÁN LEYVA 1 Sinaloa 2 Beltrán Leyva 3 Zetas 4 La Familia 5 Tepito cartel 6 Xochimilco cartel Juárez Borough (Del Valle and Nápoles neighborhoods) ZETAS Iztapalapa, Gustavo A. Madero, Venustiano Carranza and Cuauhtémoc boroughs ZETAS + LA FAMILIA Alvaro Obregón Borough (Jardines del Pedregal neighborhood) SINALOA Cuauhtémoc Borough (Tepito) TEPITO CARTEL International Airport SINALOA Xochimilco Borough XOCHIMILCO CARTEL Tlalpan Borough BELTRÁN LEYVA Source: Compiled by Mexico Weekly based on interviews and news reports 1 15 3 3 4 6 3 4 1 1+2 4 3 3 4 3 XOCHIMILCO 2 TLALPAN 3 BENITO JUÁREZ however,showsthatevenhehasconflict- ing views about the presence of drug car- telsinthecapitalcity. Backin2007,headmittedthatdrugcar- telswere“operating”insidethecitybuthe quicklyaddedthattheywerenot“settled” in the city. That same year, he told Diario HispanodeMéxico:“Wedohavedistribu- tionofdrugs[insidethecity],butwedonot havethosecartelshere.” ‘A TACIT AGREEMENT’ PatrickCorcoran,awriterforWorldPoli- ticsReviewandHarvardInternationalRe- view,seesnodifferencebetween“official” drugcartelmembersandothertypesofor- ganized crime delinquents. If it looks like a Zeta and acts like one, then, for security purposes,itisone,hesays. “Who cares if people went through someelaborateinductionintoLosZetasor not?”askedCorcoran.“Eveniftheyarenot partofthecartelsperse,iftheyarekilling andtrafficking...asthoughtheywerepart ofoneofthesebig[criminal]organizations, thenwhyeventrytomakethedistinction?” AccordingtoInacipeanalystTirado,the reasonwhyauthoritiesdenythepresence oforganizedcrimegroupsinMexicoCity stems from a “tacit agreement” between EbrardandPresidentFelipeCalderón. Acknowledgingthepresenceofcartels inthecapital,saidTirado,“wouldmeanac- ceptingacertainlackofgovernance[and] itcouldcauseanescalationofviolence.” But Tirado does agree with the fact that policing has helped keep the amount of drug-related violence inside the city to a minimum. However, he also claims it wouldbe“absurd”tothinkthereisnocrim- inalpresenceinsidethecity. Even if the armed forces are not pa- trolling Mexico City like they do in Ciu- dadJuárez,securityoperationshavebeen conducted inside the city limits. At dawn onJan.24,MarinescapturedJuanRamón Córdoba Peñaloza, a 47-year-old Mexico City native and suspected Zeta financial officer,intheDelValleneighborhood. STATE OF DENIAL Ebrardclaimshewasunawareofanymil- itary operations, and Tirado believes the mayorsinceMexicoCityofficialswere“not informedoftheNavyoperation.” “Fortwoyears,therehavebeendrug-re- lated violent acts around the city,” Tirado said. And while “the Army has taken ap- propriatestrategicactionsintroublesome areas[likeinNezawheretheZetasandLa Familiafightforcontrol],itwasonlyamat- teroftimebeforethosecriminalgroupsbe- ganhavingapresenceinsidethecity.” Information compiled by a human rightsNGOandpublishedinMexicoCity's officialnewsletter(NoticiasdeTuCiudad) describes how criminal organizations ex- tort payments, or narcorentas, from 282 propertyownersinthecity. Cityofficials–whodidnotreturncalls forthisarticle–insistondenyingdrugcar- telmembersoperatewithinthecity.Corco- ran worries about the possible repercus- sionsofdenyingthefacts. “It’ssomethingthatMexicoCity[poli- ticians]didforallofthe[1980sand1990s], saying: ‘it’s just a northern problem, not anythingweneedtoworryabout’,”Corco- ransaid.“Andweseehowthatturnedout.” ZACH LINDSEY / MEXICO WEEKLY Analysts believe several cartels have established ‘levels of presence’ in the Federal District and it is time to take them more seriously