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Can Mexico’s President-elect Revive its Economy or Take Down the Mexican Drug Cartel?

<p>Mexico&&num;8217&semi;s president-elect Andr&eacute&semi;s Manuel L&oacute&semi;pez &lpar;AMLO&rpar; has lofty plans to improve the economy and to eradicate the country&&num;8217&semi;s corruption&period;&nbsp&semi;<&sol;p>&NewLine;<p>With his lunchbox austerity plan&comma; he is challenging legislators to bring their own packed lunches to cut down on government spending&period;&nbsp&semi;&nbsp&semi;<&sol;p>&NewLine;<p>&&num;8220&semi;No costly expense account meals for me&comma; proclaimed Mart&iacute&semi; Batres&comma; a senior ally of president-elect Andr&eacute&semi;s Manuel L&oacute&semi;pez Obrador&comma; as he took to social media to challenge legislators to embrace austerity by bringing their own packed lunches&comma;&&num;8221&semi; writes the <em>Financial Times&period;<&sol;em> &&num;8220&semi;In the lower house&comma; another senior figure in Mr L&oacute&semi;pez Obrador&rsquo&semi;s Morena party&comma; Mario Delgado&comma; urged colleagues to follow his lead and bring in a Thermos flask &mdash&semi; a bid to save the 4m pesos &lpar;&dollar;211&comma;000&rpar; the Chamber of Deputies spent on coffee&comma; tea&comma; biscuits and refreshments supplies for July to December&period;&&num;8221&semi;<&sol;p>&NewLine;<p>AMLO takes office on December 1 and plans to slash his own salary&comma; along with other government workers&period;&nbsp&semi;<&sol;p>&NewLine;<p>He also is giving up the presidential plane&comma; limiting bonuses&comma; and cutting jobs and agencies&period; Some of his plans aren&&num;8217&semi;t exactly being embraced by government officials though&period;<&sol;p>&NewLine;<p>Critics are concerned that this could be counterproductive&period;&nbsp&semi;<&sol;p>&NewLine;<p>&&num;8220&semi;We have to be careful not to lose talent&period; We are adjusting our ideal to reality&comma;&rdquo&semi; said Alfonso Romo&comma; AMLO&&num;8217&semi;s pick for cabinet chief&period;<&sol;p>&NewLine;<p>Could this lead to valuable government workers venturing off to the private sector&quest;&nbsp&semi;<&sol;p>&NewLine;<p>&ldquo&semi;There are a lot of technical staff who are very qualified and have been &lbrack;in the government&rsqb; for years but they&rsquo&semi;re saying&comma; &lsquo&semi;I studied and worked hard to get where I am&comma; I&rsquo&semi;ve got a mortgage and two children&comma; I can&rsquo&semi;t take a 40 per cent pay cut&rsquo&semi;&comma;&rdquo&semi; said Monica Graue&comma; a partner at headhunter Atabay who has already been contacted by government leaders&period;<&sol;p>&NewLine;<p>But government spending has gotten out of control under the current President Enrique Pe&ntilde&semi;a Nieto&comma; specifically&comma; the cost of Mexico&rsquo&semi;s bureaucracy has increased by 20 percent&period;&nbsp&semi;<&sol;p>&NewLine;<p>Although AMLO is cutting government spending in terms of labor costs&comma; he has plans to make major investments in oil refineries and infrastructure&period;&nbsp&semi;<&sol;p>&NewLine;<p>&&num;8220&semi;The President-elect also announced he would &&num;8220&semi;review&&num;8221&semi; the 107 contracts already rewarded over the last three years to international companies under the energy reforms enacted by current President Enrique Pena Nieto for &&num;8220&semi;corruption&period;&&num;8221&semi; AMLO appeared to indicate he would not cancel the contracts already awarded should they pass muster&comma; but he also offered no clear definition of what actions he would consider to fall under the definition of &&num;8220&semi;corruption&&num;8221&semi; for the purposes of these reviews&comma;&&num;8221&semi; writes <em>Forbes&period;&nbsp&semi;<&sol;em><&sol;p>&NewLine;<p>Besides impacting the energy market with his oil industry overhaul&comma; AMLO and his cabinet members including Alfonso Durazo have been on a peace tour vowing to end the Mexican cartel violence&period;&nbsp&semi;<&sol;p>&NewLine;<p>But this means taking down the corrupt politicians and officials in the financial industry that are keeping the illegal drug network alive&period;&nbsp&semi;<&sol;p>&NewLine;<p>&&num;8220&semi;Instead of fighting fire with more fire&comma; the L&oacute&semi;pez Obrador administration will try to combat the country&&num;8217&semi;s criminal organizations as if they are economic entities&comma; Durazo said&comma;&&num;8221&semi; writes the <em>Desert Sun&period;<&sol;em> &&num;8220&semi;This could mean following the cartels&&num;8217&semi; money&comma; investigating how it&&num;8217&semi;s laundered and who helps them launder it&comma; explained Adam Isacson&comma; an expert on defense&comma; security and peace-building at the Washington Office on Latin America&period; Drug policy experts believe this tactic would be effective but challenging&comma; since it would require the government to take on the financial industry and corrupt politicians&comma; he said&period;&&num;8221&semi;<&sol;p>&NewLine;<p>AMLO&&num;8217&semi;s administration is also willing to offer controversial deals offering amnesty to some of those involved in the drug trade in order to take down the Mexican drug cartel&period;<&sol;p>&NewLine;<p><strong>Author&&num;8217&semi;s note&colon;<&sol;strong> AMLO appears to be acting more as a capitalist than a socialist&comma; and this is a good thing&period; Can he conquer the corruption&quest; Probably not&period; But so far some of his plans could help improve the dire state of Mexico&&num;8217&semi;s economy&period; If he follows the other path and embraces socialist policies&comma; then Mexico will be the next Venezuela&period; On the other hand&comma; his notion of &&num;8220&semi;peace&&num;8221&semi; with the drug cartels&comma; sounds more like Chamberlain&&num;8217&semi;s &&num;8220&semi;appeasement&&num;8221&semi; with Hitler&period;&nbsp&semi;&nbsp&semi;<&sol;p>&NewLine;

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