Author: Stefano Gatto

  • The Mexican presidential elections: continuity or change?

    The Mexican presidential elections: continuity or change?

    There have been discordant interpretations of the outcome to the Mexican elections of 21 August. Some observers view it as a flop for the Pri (Partido revolucionario institucional), in power for sixty years. Despite winning the elections, the Pri saw the vote for its candidate Ernesto Zedillo Ponce de León drop under the fifty per cent mark: it was the first time this had ever happened, since in the past Pri presidential candidates were often almost single contenders.

    Other commentators point to the fact that the elections were the most near run in the whole of the Republic’s history: for the first time three candidates stood with a fair chance of success, and the eve-ofelection forecasts even hinted at a possible defeat for Zedillo. In this light, the election result could be seen as a success for the Pri. It not only managed to have its candidate elected but above all it did so to the background of acceptably fair elections, thus improving its credibility at home and abroad.

    But to make a balanced assessment we must analyze what was really at stake in the August 21 elections.

    Let us first look at some facts and figures. Three main candidates stood at the August 21 presidential elections: the Pri candidate Ernest Zedillo carried the day with 48.87 per cent of the votes; the candidate of the conservative Pan (Partido de acción nacional), Diego Fernandez de Cevallos obtained 26.09 per cent, while the left-wing candidate Cuauhtémoc Cárdenas, leader of the Prd (Partido de la revolución democrática) came third with 16.43 per cent of the votes.

    The presidential elections were also accompanied by the parliamentary elections which saw a landslide victory for the Pri: of the 298 seats in the Camara de Diputados (at the time of writing two are still vacant), the Pri obtained 268, the Pan 25 and the Prd 5. The opposition did a little better at the Senate since the electoral system has a twofold division of seats: initially the seats are assigned to the first-placed candidate in the constituency, but a certain number of seats are also given to the second-placed candidate. Of the 64 seats assigned using the first method, the Pri won 62 with the remaining 2 going to the Pan, of the second-placed candidates elected there were 22 from the Pan, 9 from the Prd and 1 from the Pri. Then by adding the senators whose term of office had not run out, the composition of the senate is as
    follows: Pri 94, Pan 25, and Prd 9.

    Significantly, there was a high public turnout, with over seventy per cent of those eligible casting their vote. This figure is much higher than the past average of fifty per cent and goes to show how seriously these elections was taken.

    In fact the elections were rather overhyped as the most important in Mexican history. This was not only because the Pri was in danger of losing them, but also because of the background of events of fundamental importance for the country.

    These events include Mexican membership of the North American free trade area (Nafta), together with the United States and Canada, introduced on 1 January 1994; the Chiapas peasant uprising which occurred on the same day and had an enormous impact on public opinion and on the Mexican political situation; and finally the shocking assassination of Luis Donaldo Colosio, the Pri presidential candidate, in Tijuana on 6 March.

    Along with these key events were a number of other factors attesting to highly volatile situation: the economic reforms introduced by the outgoing liberal-minded president Salinas de Gortari, which turned out to be quite successfully but as yet have not tackled the basic contradictions of a social system with the upper classes fabulously wealthy and the third-world conditions of the rest of the population; the growing importance of the Mexican narcotraffickers (1), whose role is not so much in production as smuggling to the United
    States; the climate of political violence, a permanent feature of Mexico which shows no signs of diminishing; the repercussion of a number of crimes never fully explained and clearly connected to the ongoing deep transformations in the country, such as the killing last year in Guadalajara of Cardinal Juan José Posadas and the kidnapping of the most important Mexican banker Harp Helu, a close friend of President Salinas and the key figure in the privatisation process initiated by the President.

    Taken together, these factors highlight an extremely complex situation. To understand it we must take a step backwards and see what has happened in Mexico over the past few years.
    Mexico has been an atypical case in the framework of Latin American political systems: following the stormy years from 1910 to 1930, the country was characterised by political stability.

    The party which inherited the revolutionary legacy was founded by Lázaro Cárdenas (Cuauhtémoc’s father) in the late 1920s. For Europeans the Pri’s very name is a contradiction in terms, but not for the Latin Americans: it associates the revolution with what is apparently the opposite – the institutions. The underlying message in this approach is the transformation of revolutionary demands into a permanent forward motion.

    The keystone of the Pri’s electoral success over the decades has been the agricultural reform: the distribution of land to the peasants was the main binding element and through it the party controlled the enormous Mexican rural areas. Land continued to be the property of the state but was entrusted to the campesinos. Around them the Pri built up a system controlling rural areas enabling the party to rule undisturbed without a political opposition until the 1980s. The electoral processes were strictly controlled through various methods: the trade union have always been political and more or less in the Pdi’s pocket, while the armed forces have never had a political role in Mexico and have played a low-profile role on the sidelines in civil society.

    Thus the Pri was identified with the state in what was almost a single-party system sheltered from any kind of outside attack.

    Naturally within the Pri a number of political families formed, and were often in conflict. But on the whole there was always some basic agreement enabling them to share out the political appointments and the key-posts in the economy. The Pri had absolute control over social life for decades: anyone with other aspirations in Mexico had to come terms and toe the line with this system. The fulcrum of the Mexican political system is the president, who exercises pseudo-royal powers during his six-year term of office. Very significantly, the outgoing president (who can only have one term of office) had the power to appoint the Pri’s candidate for the forthcoming presidentialelections (the so-called dedazo), which was tantamount to appointing his successor.

    As far as the economy is concerned, there has always beena widespread presence of the public sector whose many companies stuck to the basic ideological principles of the party. An emblematic example is the public control over the oil sector (Pemex): the sector represents one of the main resources of the country, but Mexico always pursued an independent policy outside of Opec.

    The two principal weak points in the Mexican economy were traditional the low influx of foreign capital, impeded by legal difficulties, since for a long time foreign citizens could not own Mexican assets (they were state-owned) and the aforementioned problem of the distribution of wealth between the social classes.

    In the 1980s Mexico was by crippled the problem of the external debt: to find a way out of the negative spiral, the government of President De la Madrid launched the first free-market reforms of the economy led by the future President Salinas who at the time held a key position in the Ministry (Secretariat) for Planning and the Budget.

    But it was only with the advent of President Salinas, a forty-year old technocrat with a Harvard Ph.d. and a completely different figure from the lumbering dinosaurs ofthe Pri apparatus, that the road to liberalization was definitively taken.

    Salinas came to the presidency in 1988 with the background of an excellent economist, a brilliant minister but little clout inside the old families of the Pri. This was no drawback for the new president since one of the two key points in his programme was to break the organic links between government and party as a decisive step towards full democracу; the other key point was of course the liberalization of the economy.

    The first great stumbling block for Salinas was his election. Serious doubts were cast on its legitimacy by notorious epіsode: Cárdenas, also a candidate at the time, was leading the count when a spurious electronic fault led to the need for a manual count, which in practice was controlled by the Pri.

    In the end Salinas was proclaimed the victor with a tiny majority over Cárdenas, who, however, triumphed in the enormous Distrito Federal (a significant victory given the importance of the Distrito Federal in the overall context of the country): the Pri candidate came out on top thanks to the rural areas, the party’s clientelism and because the massive presence of its militants at the polling booths compared to a much weaker Prd presence greatly undermined the legitimacy of the result.

    Thus yet another chapuza (mess) meant that the president’s programme for liberalization and accountability could not have got off to a worse start.

    During his presidency, Salinas achieved a number of positive results: from the economic point of view, the privatisation of the banks, the stimulus to investments, the revitalized stock exchange and the basically fairly sound performance of the currency must be set against a worsening balance of payments and a downward trend in the Gdp growth rate. From the foreign policy point ofview, his presidency saw the recent admission of Mexico to the Oecd (more about the Nafta below). The agreement with the Catholic church has been another important result, which has tempered the rather paradoxical excesses of an aggressively secular state in a deeply catholic country (for example, the clergy were not allowed to vote and could not wear their habit in public); and finally even as far as the Pri and its grand families are concerned, Salinas had a number of important successes. In this field his closest ally had been Luis Donaldo Colosio, president of the Pri for four years before being appointed presidential candidate.

    But the real turning point for the Salinas administration was the historic agreement on free trade with the United States and Canada (Nafta). This treaty is a fundamental strategic choice for Mexico, which always had very complex relations with its powerful neighbour: or to quote the rather over-used phrase by president Porfirio Diaz, Mexico’s main problem is that it is tan lejos de Dios y tan cerca de los Estados Unidos («as far from God as it is as near to the United States), a vision is shared by many people in the country We could discuss at length the pros and cons of Nafta for Mexico and its two partners,(2) but even when the advantages were only psychołogical, Salinas’s decision is of capital importance: in a world on the road to the global liberalization of trade, principally through processes of regional integration, Mexico has decided to break completely with its dirigiste and protectionist past and take up the challenge of competition, forming with the United States and Cаnada the largest market in the world.

    Salinas and his group of United Statestrained technocrats made a choice in keeping with their intellectual background and attempted to followed the way indicated by the Bretton Woods institutions.

    But the equation liberalization equals development also needed to have a strong dose of democratization, and above all it needed a democratically elected president with not a shadow of doubt over the fairness of the electoral process.
    Colosio, another member of the fortyyears-old group, had the right credentials for the job. Much more a man of the people, he also enjoyed better public relations than the rather aloof Salinas. Colosio’s assassination at Tijuana will probably remain one of the great unsolved mysteries of Mexican history: among the various conjectures is the theory of an internal vendetta in the Pri (Colosio was the former party president), a narco-traffic connection, a combination of the two, or a thousand other possible explanations.

    The outcome was Salinas had to make a difficult choice of candidate at the height of the election campaign. In the end he opted for Zedillo, former Treasury Minister and organizer of Colosio’s electoral campaign. Moreover, he was one of the few possible candidates not in government office, and therefore his candidature was in keeping with the Mexican constitution.

    A rather uncharismatic forty-two-year old economist, Zadillo had the same kind of background as Salinas and Colosio and therefore suited the requirements of the outgoing president.

    But before analyzing the three options offered to the Mexican electorate in the presidential elections, we must consider the Chiapas uprising.

    We have already stressed how this revolt had an important impact on Mexican public opinion: the revolt broke out in the southernmost and least developed state in the country with a large Indian community. The reasons for the revolt must be sought for in various factors: the objective underdevelopment of the region, the end of the mirage of land for all (Salinas had in factput an end to this phenomenon), diffidence towards Nafta, seen as bringing few benefits for the southern states and the Mexican Indians’ difficult relations with central power.
    The Ezin (Ejército zapatista de liberación nacional) is inspired by the most radical figure in the Mexican revolution – Emiliano Zapata. What drew so much attention the Chiapas incidents was not only the surprisingly well-organized uprising for a country with no great tradition of guerrilla warfare, but above all the striking cry of alarm over the underdeveloped conditions of large sections of the Mexican population and the possible political repercussions in the election year.

    The government chose the way of dialogue. And although it did not obtain the rebels support, they did participate in the election, which was an important contribution to legitimating the electoral process.

    But let’s look at the three main candidates, whose programmes were not very radically different. All were in favour of Nafta, although Cárdenas pushed for a partial renegotiation. Cevallos insisted on more administrative decentralization to the individual states. Cárdenas promised greater public spending, while Zedillo was more prudent on this point, only hinting at more spending in education and health; Cevallos wanted a more important role for Congress in political life.

    The pre-election polls (a novelty in Mexico since previously there had been no point in having them) came very close to forecasting the actual result, but few took them seriously.

    But what were the consequences of the election result? Firstly, it must be said that the important test of the fair organization the elections was successfully passed: the national and international observers agreed that, despite a few anomalies the result was basically valid. Thus Zedillo started from a stronger position than Salinas since there could be no doubting that he was a legitimate president. In this sense Cárdenas’ protests seem rather wildly off the mark. He lagged so far behind Zedillo that his complaints are more like clichés than real convictions.

    What is surprising was the rise of the Pan to previously unscaled heights. The party always had considerable support in the northern states where the factor of the attractive United States neighbour exercised a fundamental influence. But I feel the new support for Pan came from those convinced of the need for liberalization policies but were less than enthusiastic about the Pri bureaucratic machinery and hoped for a change in the ruling class.

    The in some ways unexpected decline of Cárdenas may be seen as a defeat for the traditional populist Latin American left, which in its various forms is basically out of touch with history. The swing away from Cárdenas’s was certainly drastic, although the fact Cárdenas was denied access to the main national television network (Televisa) should not be underestimated. This ban lasted until a new electoral law forced a change in the situation. But in any case the falling off in support for the Mexican left has taken on considerable proportions.

    But did the Pri win or lose its own particular battle? The idea of change in continuity sqso dear to the Pri policy-makers seems to have prevailed. Zedillo has already declared he wishes to form a government with people not compromised by the old style of the Pri. Не has also shown a willingness to coopеrate with the opposition parties: these are unheard-of phenomena in traditional Mexican politics and suggest that now the Pri has abandoned its almost single party status it may even lose power.
    But the Pri decline was inevitable. Its monopoly in historical terms was redundant. What is important is that the Pri seems to be capable of channeling society’s needs for change in an acceptable way.

    Paradoxically Cárdenas’s defeat should be seen in this light: evoking the revolutionary legacy turned out to be an anachronistic decision. In a country beleaguered by contradictions, but where the myth of modernity has made a breakthrough, the traditional ideological values lost ground to new ideas based on liberalism as the key to development.

    Although the process of formal democratization seems unremitting and should take place without the Pri necessarily passing to the opposition, the future of Mexico willhinge on the themes of social development and therefore on substantial democratization.

    Only if a way is found to redistributing more effectively the benefits of economic growth and to raising significantly the population’s living standards will the present political class survive.

    On the other hand, if Mexico remains the country of blatant inequality, the future will inevitably be overcast with doubts.

    Notes
    (1) On this point, see Le Mexique
    confronté à la puissance des narcotrafiquants,
    Le Monde Diplomatique, August 1994.
    (2) For a study of the advantages and
    disadvantages of Nafta see: W. A. Orme
    Jr., «Myths versus Facts», Foreign Affairs,
    November-December 1993; P. Krugman,
    «The Uncomfortable Truth about Nafta»,
    ibid; J.G. Castaneda, «Can Nafta change
    Mexico?», Foreign Affairs, September-October 1993

  • The political crisis in Spain

    The political crisis in Spain

    Now that the 1992 Europe euphoria has died down, Spain is going through a very tough political, social and economic crisis. The two most likely scenarios seem to be: coming out of the tunnel in the near future or an Italian-style implosion of the whole system.

    In June 1993 Felipe González won a surprise election victory and obtained his fourth consecutive mandate. Although they lost the outright majority they had enjoyed since 1982, the Socialists (Psoe) had a clear relative majority over José María Aznar’s Popular Party (Pp).Thanks to outside backing from the moderate Catalan and Basque nationalists, Felipe (as the socialist leader is generally called in Spain) was able to form a single party government, thus avoiding untenable alliances to the left with Izquierda Unida (lu), the United Left coalition led by the not very forward-looking Julio Anguita.

    The victory was won despite the continuing slump of the post-1992 economic crisis and dramatically high levels of unemployment – the great Achilles’ heel ofthe Spanish economy.

    During the electoral campaign Aznar’s nueva derecha (new right) gained in credibility and the Popular Party seemed poised to represent a plausible centreright for the first time in a country still with many skeletons in the cupboard from forty years of Franco.

    Moreover, the Psoe seemed to be worn out by its long spell in government eleven years as sole party in power. The unexpected victory is probably not so much due to the party’s efforts but the highly charismatic figure of Felipe González. Ultimately many sceptical voters gave him one last chance, pushing up the presence at the polls considerably. Many electors who would not normally vote for the disappointing Socialists and never for the Popular Party, gave up their normal tactic of abstention to avoid the danger of a return to power of the right.

    On his victory night González showed he understood the electors’ message and promised a change in the change»: an opening up of the Psoe to the rest of society and a commitment to tackling the economic crisis.

    But what has happened since then? González has led an attempt to renew the party. The main victims were supposed to have been the followers of his former second-in-command, Alfonso Guerra, a key figure in the party. Although the renewers came to the 23rd Federal Congress in March with a clear majority, González failed to win back the whole party.The composition of the new ruling executive is the outcome of a compromise with the Guerra element in the party – the expression of an old-world socialism, unpopular with public opinion but with a strong electoral power base in the autonomous communities, the traditional Psoe heartlands (Andalusia and Extremadura).

    Public opinion thus viewed the outcome ofthe Congress basically as a betrayal of Felipe’s electoral promises.

    On the front of the economic crisis, over the last year the government has totally failed to respond in any effective way. The unpopular Finance Minister, Carlos Solchaga, was sacrificed on the altar of better public relations with society, but his replacement Pedro Solbes did not
    bring an injection of much-needed new confidence into the ailing Spanish economy.

    In fact the problems besetting the Spаnish economy are systemic and not simply due to the recession. They are mainly connected to the inflexible nature of the economic system itself.

    But just how far can a party in power for twelve years blame conditions which it helped to generate? High unemployment payments and the considerable redundancy burdens for firms prior to the recent reform of the labour market were clear signs of a left-wing bias in the legislation for labour rights. This tendency was fully justifiable for a socialist party in the early 1980s and played an important role in eliminating the paternalism of the Franco period, but it is at odds with the economic realities of the 1990s.

    The problem is that González fails to convince as a prophet of neoliberal economic recipes. Increasingly the Spanish are reasoning along the following lines: would it not be more logical if the moderate right and not the centre-left played the role of right-wing government? The Psoe was the leading player in the modernization of Spain and its full membership of the European Community. But can the same old political establishment usher in a new political phase?

    In addition to the dramatic problem of unemployment (24 per cent!), there are a number of other key controversial issues: for example, the insistence on keeping the peseta in the European Monetary System means the country can’t enjoy export benefits, which prove so vital to the Italians, and has led to huge monetary reserves being consumed.

    But what has alarmed people most has been the government’s ineffectiveness and lack of initiative. And to these must be added the wave of recent scandals that has seriously threatened the González government.

    On this subject it must be pointed out that corruption is not endemic in Spain.
    It is not a «system». The relatively efficient public administration has never been involved in large scandals in the recent years of democracy. This is why the latest wave of revelations concerning the illegal activities of the governor of the Banco de España, Mariano Rubio, and the director general of the Guardia Civil, Luis Roldán has aroused such an unprecedented popular outcry in the country.

    In addition to scandals in public institutions came the clamorous collapse of one of the myths of the private sector: the president of the Banco Español de Crédito, Mario Conde. Parading behind the mask of leading media person, he simply turned out to be a disastrous banker.

    Other traditionally more solid institutions in the country (Banco de España, Guardia Civil, Banesto, etc.) were used by unscrupulous speculators to get rich quick, abetted by complicity at the highest level and the climate of frenetic speculation in the late 1980s.

    González is seen as bearing the main political responsibility for this situation and, although he has a mandate until 1997, it is unlikely he will last the full term of office.

    But what are the alternatives?

    The only other party capable of taking power is Aznar’s Popular Party: the youthful leader has reorganized the party, modernizing it and adapting it to the needs of a country which for years has been in search of an unambiguous democratic representative for the centre-right.

    Significantly, the Popular Party has rid itself of the rather awkward presence of its founder, Manuel Fraga Iribarne, who has been sidelined to his native Galicia, where he rules over the regional government in the style of a head of state.

    Aznar’s youthful assistants are welleducated and not tainted by links with the Francoist past. But will this be enough to send the Psoe to the opposition? The answer is probably yes, but the lessons from the last general elections must not be ignored.

    As long as the Popular Party fails to overcome its weak standing in three key communities – Andalusia (where the Psoe can still count on enormous electoral support), Catalonia and the Basque Country (where the moderate electors have been won over to the nationalists Convercia i Unio and the Partido Nacionalista Vasco) it will be extremely difficult to obtain a majority in the Cortes.

    Aznar has placed his trust in the newcomer Javier Arenas in Andalusia, by appointing him head ofthe local party. It will be interesting to see how he fares in the local elections in Andalusia and whether the Popular Party can make significant inroads into the Psoe majority.

    In Catalonia and the Basque Country, the majority parties’ decision to continue supporting the Socialist government has embarrassed the Popular Party, since it can hardly claim to be very responsive to the nationalist issues which are so important in these two autonomous communities.

    The backing from Convercia and the Basque Nationalist Party for central government is yielding important dividends for the autonomous communities in general (for example, the Administration has granted them five per cent of income tax) and for Catalonia and the Basque Country in particular: the Popиlar Party thus lacks a specific role in the se communities since it is unlikely that the centre-right electorate will abandon the moderate nationalist parties, and the centre-left voters are unlikely to be won over by the Popular Party, because of ideological but also regionalist prejudices.

    This complex situation is thwarting the rise of the Popular Party, which has been very impressive in the rest of the country. There are no other likely scenarios: the United Left has an upper limit of votes, while other centre options have evaporated (for example, Suarez’s Centro democratico y social).

    The Spanish political system has thus effectively become bipolar. But even given this bipolarity it is still unclear whether there can be a true alternating of power.

    The Psoe has played a fundamental role in the history of Spain: the exemplary transition process could not have been completed without their presence in the government. But the problem for the party today is its lack of energy and the fact it has been exhausted: the social climate in Spain in the 1980s was full of enthusiasm and the innovative optimism whipped up by a generation of fortyyear-olds who had taken the reins of the country in hand, revealing its great potential and leaving behind the decades of near total isolation.

    Today we can’t help but smile on seeing the corduroy jackets and checked shirts worn by the Psoe leaders in the early 1980s. Now it is strictly grey suits. Nonetheless, the Socialist did leave a fundamental indelible mark on Spain: they were the best option possible for the country over the last ten years.

    But is this enough to keep them in power for much longer? Felipe González is fond of saying that he needs twenty-five years to completely transform the country. Which means we are only at the half-way stage.

    Apart from their loss in credibility over the last year, the Socialists main problem in recent times has been the total absence of an alternative to González for the leadership: all the opinion polls suggest there would be a drastic drop in Psoe votes if the current prime minister stepped down. If González were to go it would be a sure step towards electoral defeat.

    Despite his progress in terms of image, Aznar is fully aware he can’t compete with González’s charisma. This explains why the Popular Party’s latest tactic is to demand González’s resignation without demanding early elections. Another socialist would then be forced to form a government until the next elections. Aznar hopes he would beat a less popular Socialist leader, and at the same time is waiting for a little light in the recession
    tunnel (which is still far off in Spain).

    Honoré Daumier: «The devil!… (Le Charivari., 5th December, 1868)

    In fact it would not be in the Popular Party’s interest to win possible early elections at present. Aware of this, the party strategists cry scandal but are taking their time before reaping the logical consequences of such moves.

    The situation in Spain is basically stalemate: the Psoe may lose the elections, but González still has an important personal capital to fall back on. Yet to exploit it, he is condemned to be the eternal party leader.

    The litmus test for judging González’s policies in the rest ofhis term of office will be his efforts against corruption and his ability to free his party from the clouds of scandal. The Popular Party seems destined to grow, but only within the limits imposed by the regional factors mentioned above, which cuts it off from a vital number of votes.

    This stalemate would not seem to presage an Italian-style collapse, since the foundations of the system are still intact. It is only a difficult stage in the transition process to democracy, which will only be truly complete when an alternating two-party system is really established.

    It comes as a surprise to hear Aznar, the leader of the Spanish right, claiming he is the heir to Manuel Azaña, the greatly venerated president of the Second Spanish Republic defeated in the civil war. Aznar needs to convince the public opinion he is a reliable leader capable of
    being inspired by the teachings of great progressive figures (although not from the left) of the past, so as to sway those three million voters who would tip the balance.

    Paradoxically, González used the same tactic in 1982. He evoked the figure of Azaña to persuade the centre to give the left a chance.

    Thus after almost sixty years President Azaña is unexpectedly once more centre stage in Spanish politics. Which just goes to show that at times History grants revenge to those defeated in their own lifetime.