The elimination of autonomous bodies proposed by the President could negatively impact the mexican economy
Mexican Economy at Risk from Proposed Elimination of Autonomous Bodies
On February 5, 2024, President Andrés Manuel López Obrador (AMLO) proposed a package of 20 reforms, prominently featuring the elimination of autonomous bodies, which he described as “burdensome and elitist.” He previously stated that these bodies were “dedicated to protecting private interests rather than those of the people of Mexico.”
The President also claimed that eliminating these bodies would result in savings for the country’s public finances. But what are these autonomous bodies that the federal administration aims to dismantle, and what impact could this have? According to the Center for Economic Studies of the Private Sector (CEESP), their removal would “only limit their function to the wishes of the government.”
Autonomous bodies, according to the National Institute for Transparency, Access to Information, and Personal Data Protection (INAI), are institutions tasked with enforcing human rights through adherence to the rule of law. They are capable of auditing, transparency, and democratizing political life.
Due to their independence from state powers, these bodies contribute to democracy and social welfare. The current administration’s list of bodies targeted for elimination includes seven:
- INAI (National Institute for Transparency, Access to Information, and Personal Data Protection)
- IFT (Federal Telecommunications Institute)
- Cofece (Federal Economic Competition Commission)
- CRE (Energy Regulatory Commission)
- CNH (National Hydrocarbons Commission)
- Mejoredu (National Commission for the Continuous Improvement of Education)
- Conaval (National Council for the Evaluation of Social Development Policy)
Economic Risks of Eliminating Autonomous Bodies
In an analysis dated August 5, 2024, the Center for Economic Studies of the Private Sector (CEESP) highlighted that the lack of an efficient and modern infrastructure to reduce transportation costs and address energy policy issues in Mexico has led to cautious investment in the country. Consequently, they pointed out that autonomous bodies are needed to ensure clear and fair rules that promote investment.
The CEESP detailed that these bodies not only benefit investment but also contribute to “a formal and better-paid job environment, increased public safety, an efficient healthcare and education system, as well as reduced corruption and greater transparency.”
For these reasons, it was warned that the “insistence on eliminating autonomous and independent bodies to redirect their responsibilities to government ministries will only limit their functions to the desires of the government,” which generates “uncertainty” and weakens growth expectations, as well as the business environment.
For example, if the functions of the National Institute for Transparency, Access to Information, and Personal Data Protection (INAI) were eliminated, they would be transferred to the Ministry of Public Function, the control and discipline body of the Judiciary, and the oversight offices of the Federal Congress, while those of the Federal Telecommunications Institute (IFT) would fall under the Ministry of Infrastructure, Communications, and Transport (SICT).
Regarding the activities of the Federal Economic Competition Commission (Cofece), these would be transferred to the Ministry of Economy (SE). The National Council for the Evaluation of Social Development Policy (Coneval) would cede its functions to the National Institute of Statistics and Geography (INEGI), while the National Hydrocarbons Commission (CNH) and the Energy Regulatory Commission (CRE) would be integrated into the Ministry of Energy (SENER), and the National Commission for the Continuous Improvement of Education (Mejoredu) would move to the Ministry of Public Education (SEP).
Finally, the CEESP stated that the weakening of economic activity due to the uncertainty generated by the elimination of autonomous bodies could inhibit any intention to invest. However, it emphasized that the government has an obligation to address this issue and recommended maintaining independent bodies to ensure transparency in operations.
Comentários