Basic Services make your Citizens Happier
Mexico is trying to become self-sufficient
Mexico has one of the biggest oil and gas reserves in the world. And yet somehow manages to import over 50% of the energy needed for domestic consumption. It's not only Mexico. Many other countries around the world suffer this same fate.
Some would like for you to believe it is a self-inflicted crisis of their own making. I would have to say that it is due to the transformation of our free-market capitalism to market-manipulation by a few. It will affect your quality of life, especially in Mexico.
It is a known fact that the Mexico you experience will depend on how well you prepare for your new life here. Water shortages, extraordinarily high electric bills and anticipating when your gas will run out are common challenges you will face living in Mexico.
Hopefully these "inconveniences" in Mexico will soon be a thing of the past. Mexico is working fervently to become less reliant on other countries by increasing domestic production through the strengthening of national industries.
Mexico is showing the world how to defeat neoliberalism to make life better for everyone living here. It also looks good for the expats and foreigners moving to Mexico.
What we are living today
I struggle with neoliberalism. It gives markets too much power over our lives and opens the system to manipulation by a few. Look at what is happening in the US. People do not have electricity, food or money in their pockets but somehow the US Stock Market is riding high.
What more evidence do you need to see that our whole economy has become a pump and dump scam? Everybody is complicit in this new way of doing business. The media, the government and do not forget our great corporations.
Neoliberalism is big on privatization. But problems arise when a few control basic services. In Economics, we measure success by efficiency. It is not efficient to have multiple players in certain industries. For example, why not have more than one provider of electricity?
You want power lines running all through the country? It is a risk and to minimize the risk providers are limited. In my opinion they should never be private and basic services, like water and electricity, should solely be provided by the government. Otherwise only a few benefit and we get the following.
Power outages have occurred all over the United States and in Northern Mexico for two reasons. Lack of planning and greed. Corporations and the government created this power outage with their shortfalls in preparing. I mean they knew 10 years ago that the grid was not ready for cold weather and still did nothing about it.
Now they are definitely doing something about it. They are raising prices because they cannot meet demand. Typical of today, create a problem and make everyone else pay.
First order of business for Mexico is to become self-sufficient. Strengthening national industries to reinforce domestic production. It can get ugly though.
Mexico takes on Big Business
Mexico is investing in state owned companies, such as CFE and Pemex, to make them more productive. It is unbelievable that a country with an abundance of natural resources resorts to importing energy to meet domestic demand. In what world do we live in?
The so called Energy Reform of 2013 was approved to increase competition. Naturally, more competition means lower prices. Well unfortunately, like a lot that goes on in Mexico, that reform has proven to do the exact opposite here.
My electric bill has gone up from $200 pesos, about $10 dollars today, to over $500 pesos since the reform was implemented. Use gas you say. Our gas has increased from $100 pesos to $490 pesos. You cannot just go out and find another gas supplier, it is a fact that here in Mexico one company distributes gas per Alcaldia.
It's not just electricity and gas that are being affected. Recently, water started trading in the commodities future market and it has already started to affect water distribution in Mexico.
The people in leadership positions make all the difference. While Texas is going cold and natural gas prices continue to soar, Mexico has stepped up. Power was restored to all affected states as of 2 o`clock Wednesday with the help of the CFE and cheaper LNG imports from other sources.
Changes are being made to make Mexico self-sufficient
There is a lot to be done in Mexico. This post talks about the structural, judicial, energy and many other changes that are being implemented today by President Lopez Obrador.
All these changes will benefit everyone in Mexico, not just a few. That includes expats and foreigners living here or are thinking about moving here.
Basically, priority is given to national industries and not to foreign companies. Something that was lost in the past administration of Enrique Peña Nieto.
Righting the wrongs
After the passage of The Energy Reform, Mexico was forced to buy electricity and gas from auctions in the international market instead of generating energy. It also gave priority to buy clean, renewable energy. Of course all these actions benefit foreign companies.
Now, awarding of new E&P contracts are on hold and existing contracts will be for 5 years, not 20 years. Also, private companies will no longer receive government subsidies.
Investment will increase for functioning plants as well as for idled plants to get them up and running. One clever way of doing this is by lowering the tax burden on state industries.
Energy distribution will also be affected. Hydroelectric produced energy will be distributed first; second, energy generated by CFE plants; third, wind or solar energy of individuals and last, energy from private companies.
Government cannot do it all alone. It needs a support system and what better support system than a country's human capital. The National Fund for Tourism Promotion (Fonatur), the Mexican tourism body, aims to spark a state-backed solar onslaught with the promotion of solar power.
The plan is to begin work on four solar farms this year that is an extension of the use of solar power in the Mayan Trail Rail Project. It will be directed by the Comision Federal de Electricidad (CFE) and will be funded through state development banks.
They will still need to secure about 20% of private funding, but everything will be under government control. Also, profits will be invested in local communities.
Enter the Media to spin the facts
I remember when everyone disagreed and still got along. How did we lose our way? Today, disagreements can lead to death. It has become normal to manipulate with misinformation when you do not agree with an issue.
I don't know about you, but if my supply chain fails more than once, I will be looking for another supplier that can meet my demands. Same thing is happening in Mexico. Of course you would think otherwise if you read the news.
This article talks about how Mexico is no longer a climate leader. Imagine my surprise to know that we are living in the first green country in the world.
From this article one would get the assumption that people are dying in the street all over Mexico. Even though the entire world is trying to manage the same problems. At least Mexico is taking care of its own and not financing everyone else at the expense of their citizens.
More evidence that prosperity is only reserved for a few. Some individuals are literally telling the US President that they are in charge, not him. You can want change but we decide when divestment occurs and under what terms. Unbelievable.
In Conclusion
This panorama we are living today is not something new. It has been going on for years. The difference is the "in your face" approach and us not coming together to solve it.
Mexico has always been resilient to outside events. Maybe that is why we are shocked as we watch how things are unfolding north of Mexico. And in a sense, the world is finally experiencing the everyday occurrences we face living in Mexico.
Food shortages, water and energy problems are a fact of daily life in Mexico. It is not something you "bend the knee" to. You simply have to prepare for it. I have answers on how Mexico works, areas in Mexico City that experience most of the problems and much, much more.
Do not be alarmed and live history; participate and be part of the change that is happening in Mexico. Life looks good here.
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