Wednesday, October 3, 2007

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Mexican Insurance for the unemployed, "A gift more?

The Federal District Government will provide insurance through a debit card to those who have lost their jobs since December 2006.

The basis for access to unemployment insurance are:

- has a duration of six months,
- is delivered via a debit card for the unemployed,
- Over 18 years,
- Live in the City Mexico and
- who have lost their source of work from December 5, 2006 for reasons beyond their control.

The cost of this program for next year range between 300 million pesos. In the first instance seems to be a measure of high impact and not necessarily expensive, which is somewhat questionable is the appellant paternalistic approach of government programs of the Federal District.

Enough and mitigation measures merely populist background, so follow this logic would end up with programs such as:

- a bicycle for all City residents to fix the transportation problem of the city,
- a weapon every citizen to reduce crime rates.

The possibilities are diverse as absurd at the same time, the government should begin to improve public finances, tightening conditions access to social programs, more efficient public services and promote private investment are a real engine for economic development of this great city.

Saturday, September 8, 2007

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How is federal government spending?

Starting his government Felipe Calderón expressed his commitment to manage and more efficient public spending. But nine months in office shows that more than eight out of ten dollars are current expenditures, while less than two dollars invested .

Much of the public resources will be routine and administrative expenses, but unfortunately this type of expenditure continue to rise. According to the First Report of Government, at the end the second quarter of current spending had risen 7.5 percent in real terms over the same cycle of 2006.

In the first six months of last year all the bureaucracy had spent 054 million 581 thousand pesos, at the end of last June's total current expenditure amounted to 649 thousand 659 million pesos.

budgetary programmable expenditures physical investment fell 8.6 percent in the same period. Thus, we have that while 85 percent of programmable spending goes to current spending, only 15 percent goes to physical investment.

Current expenditure not generate economic development, by definition, is seen as everyday expenditure made by the public sector and constitutes an act of consumption. Are resources for recruitment and the purchase of goods and services required for the development of administrative functions. Until

reduce spending strategy would government innovation involving a rapid reduction of current expenditure NO has no case to approve the fiscal reform, the solution is to have less government and more results.

Thursday, August 9, 2007

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10 years to pay the debt on a credit card lamentable inefficiency of the Treasury

If you like to pay the minimum on your credit card may find some surprises in how take up to 10 years and by that time liquidate its debt may have tripled, according to observations of the National Commission for the Protection and Defense of Financial Service Users (Condusef). Notes

the body by way of example if a person owes a debt of 10,000 pesos and your bank requires a minimum payment of 5%, paying only that amount would take 10 years and would eventually cover interest disbursed 26.761 pesos.

The minimum payment is the amount the bank customer agrees to settle to see if they are good payers or not, ranging between 4.5 and 10% of the loan. For example, with the same debt of 10.000 pesos if instead minimum payment will deposit 500 pesos a month, would take 3.5 years to pay off and interest should dispense 9.041 pesos, almost doubling its debt.

It is advisable to make fixed payment plans to settle their credit card debts as quickly as possible.

Saturday, June 9, 2007

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is reported that since 2002 the country failed to attract 474 billion pesos a year through inefficiency in tax collection , according to a report by the Chamber of Deputies .

The reasons mentioned in the report are the application of different rates, exemptions, subsidies, tax credits, special schemes and the expansion of the informal economy.

The study The loss in revenue from Mexican federal treasury tax expenditure budgets 2002-2007 period referred to in Mexico that "lost" 2 trillion 373 billion pesos. The figure is higher than the budget of expenditures for this year, valued at 2 billion pesos.

The term "tax expenditure" is used to refer to amounts that fails to collect the exchequer on account of different rates in different tax exemptions, subsidies and special arrangements in the various laws that apply to tax legislation federal level.

In this context it is unfortunate that they've waited so many years to realize this problem, now would be a good time to summon the former - Secretary Francisco Gil Diaz and explain his version. The study

Tuesday, May 15, 2007

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The constraints that hinder the growth of Mexico

Democratic Governance in Mexico : beyond state capture and social polarization, the World Bank detected 11 major constraints to competitiveness in the country, among them: taxes and tax adjustment, regulatory environment, education, corruption, labor market and energy.

The high degree of concentration in economic sectors key and the existence of public and private monopolies limit the competitiveness and economic growth in Mexico, concludes the World Bank (WB).

was pointed out that our country needs to strengthen the regulatory capacity of regulatory transparency campaigns and officials, reduce poverty and advance the reelection of legislators. According to the study, "Mexico is a country and highly unequal from an international perspective."

work emphasizes that in 2005 the wealth of billionaires in Mexico rose to 6.5% of gross domestic product (GDP), similar to the U.S. and the UK and higher than France and Japan, whose average incomes are higher than those of Mexicans.

is argued that billionaires earned their wealth through political connections and privileged access to markets , not by innovation and competitive effort.

The document notes that the radical economic reforms carried out by Mexico in the past led to market concentration and failed to improve competitiveness channel. However, the paper argues that Mexico "is in position to start your second transition to democratic governance." Unfortunately there are groups

who resist reforms and slow when you try them and politicians are reluctant to "push an ambitious agenda of reforms", knowing the difficulties of overcoming the pressure of the interests of powerful people.

Wednesday, April 25, 2007

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The reality of the Mexican banks to Consider

A recent study by the Federal Competition Commission (CFC) found that in banking there are serious risks of monopoly , high consumer prices and profits "extraordinary" for their owners.

commission president Eduardo Perez said the report concluded that there is still a problem of competition in retail banking to be remedied. Raised the solution to these problems through Additional legislative and regulatory actions.

To avoid oligopolistic structures , the official said, is needed to reduce barriers to new banks and reduce the capital required to open an institution. These statements

adds the position of The Economic Commission for Latin America and the Caribbean (ECLAC) in previous months hinted that there might be collusion between banks in Mexico on charging high interest rates and commissions to their clients.

Analysts said the commissions represent about one third of the income of banks in the country, for now Mexico banking is dominated by nearly 80 percent by six major banks, five foreign subsidiaries of Citigroup, BBVA Santander, Scotiabank, HSBC and Banorte Mexico.

must not forget that as more competition and attract more people into the financial system will benefit the country's economic development.

Saturday, March 31, 2007

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decriminalize abortion

Decriminalizing abortion in Mexico City has raised controversy in recent days, in the Federal District are considered exceptions to criminal liability for abortion the following situations:

- in case of violation;
- in grave danger health of the pregnant woman;
- where genetic malformations incompatible with life outside the uterus;
- and when abortion is the result of culpable conduct by pregnant women.

now is considering an expansion of the grounds mentioned, allowing legal abortion during the first trimester in cases where pregnancy is incompatible with the project of life of the pregnant woman.

While access to safe and legal abortion say some sectors is a matter of human rights worth mentioning that there are responsibilities and lives are at stake. In the event of approval of this new ground would be playing with fire and that at least for now has no restrictions how to prevent profligate and irresponsible behaviors protect women's repeat that ground in the event the legalization of abortion should consider the following conditions:

1. Have a medical certificate issued by the Ministry of Health in which thorough medical examination prior describe the current status of women, the length of pregnancy and the woman must declare under oath the reasons that motivate them to suspend their pregnancy.

2. Surgery can only be performed in public hospitals by the government of the capital.

3. Women should establish a classroom course of birth control In addition to complying with a certain number of hours of social service programs in place as Secretary of Health of Mexico City.

4. For women recidivists will proceed to realize a socioeconomic study in depth, the Ministry of Health should implement a financial sanction issue in accordance with the economic capacity of the applicant, if a minor parent and / or guardians would face the financial penalty .

5. For women seeking an abortion third economic penalties would bend and they proceed to perform the tubal ligation to prevent further applications.

6. The money raised would be used to promote programs of the Secretariat Health on birth control.

Mothers have the right to choose but also have the responsibility to take birth control measures, with the understanding that one of the functions of the state is to ensure the interests of its citizens and not the whims meet.

Sunday, March 11, 2007

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The payment of taxes in Mexico

knew that the maximum rate taxpayers pay Mexico the annual filing for 2006 will be 29%, but this is it high or low?, All this depends on the angle to be analyzed.

For example in the U.S. and major Western European countries this figure varies between 30 and 40 percent, whereas China a real competitor for our country the rate for income tax is 15% for foreign companies. In countries like Ireland , Estonia and Russia have even lower rates of around 13% and very simple payment systems that encourage taxpayers to comply with its obligations on time, promoting greater economic growth.

For many services in this area offered by the Mexican government are weak and complex, an ordinary person who wishes to submit a statement it may be difficult without the help of an accountant which encouraged many to opt for the informal economy.

The government of Mexico only collects tax by way of a poor 11% of gross domestic product (GDP). If all pay taxes under the current system that could reach 25% of GDP and if we add to all those who evade their obligations, this percentage would skyrocket.

Therefore fiscal reform is urgently needed fair and consistent with the current reality of the country, plus a tax system so simple that there is no excuse for not complying, thus eliminating all preferential treatment.

Monday, February 12, 2007

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Competitiveness in Mexico Promises employment

Between 2005 and 2006, Mexico advanced 19 positions in the international classification of the facilities offered to do business: the place passed 62 to 43, according to the study Doing Business in Mexico 2007 in the World Bank (WB).

According to this analysis, the states where it is easier to do business are Aguascalientes, Guanajuato , Nuevo León, Sonora, Campeche and Zacatecas. The openness are impeding states of Mexico, Guerrero, Morelos and Quintana Roo. The Federal District is tenth, but improved its pointer to halve the time to open a business.

For indicators, Aguascalientes and Guanajuato improved the classification by number of days to start a business. Today companies take 12 days to open a business in those states, which places them above even nations such as Italy, the United Kingdom, Japan and Germany. Moreover, Aguascalientes Campeche and are better placed than countries such as Japan, Chile and Brazil in terms of cost to start a business.

The report finds that some states compare well with the world's best, while others need much reform to become globally competitive.

The top four cities are:

property Getting
City Place regulations
Aguascalientes, Aguascalientes 1 (Easier) Starting a business or company
Guanajuato, Celaya 2 Register
Nuevo León, Monterrey 3 credits
Sonora, Hermosillo 4 Enforcing contracts

reforms at state and municipal are gaining importance in a globalized world and are the key factor for attracting investment blasting job. At the moment much work to be done in this area but it is certainly good news for the country's economic expectations.

Thursday, January 18, 2007

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recently announced the proposal of President Calderón in employment, this program will be granted a subsidy to employers who provide employment to those leaving school and those who have had jobs informally. But does this initiative represents an effective solution?

First of all the jobs can not be created only by the will of politicians, inevitably requires that the economic to develop and grow to produce, but it seems that the political class not understand that do to facilitate the growth of the economy. Just think

measures to eliminate unemployment Luis Echeverría and José López Portillo to make the government spends more money than bringing entered a temporary unemployment as a result but the resulting economic crisis destroyed all jobs created and some of those already.

About Fox million jobs and
Former President Fox promised to create one million jobs a year formal. Some believe that exceeded the goal because after all generated 1,268,837 jobs, but in all its administration. And on top of only 381.188 were permanent, the rest were temporary 867.649.
The experience is clear, the best way to create jobs in a healthy and sustainable is through productive investment and recurrent private sector. You only have to analyze the country's export industry to demonstrate this, becoming an important pillar of jobs in recent decades.

But this employment program proposed by Calderon has a structural weakness (taking for granted that it is a "palliative program" as other proposed in the past) which is the corruption this to arise, and that later we will soon see a significant traffic to verify documents for new jobs and illegitimate returns.

is no doubt that the fundamental solution to unemployment goes through the simplification of the tax system, reducing paperwork and encourage investment particularly functional and creates well-paying permanent jobs.