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Mexico:  Historical Elections Prompt Change
Economic Briefing July 2000  

Historic elections prompt change.  What was inconceivable just six years ago, has come true.  On 2 July, the Party of Institutional Revolution (PRI, Partido Revolucionario Institucional) was dethroned after 71 years of uncontested rule, which made it the longest ruling party in the world.  In the presidential elections, the former head of Coca Cola in Mexico and candidate for the Alliance for Change (Alianza por el Cambio), Vicente Fox, garnered 43.4% of the vote, more than sufficient to put PRI candidate Francisco Labastida in second place with 36.9% of the vote.  The candidate for the left-wing Alliance for Mexico (Alianza por México), Cuauhtémoc Cárdenas, garnered 17% of the vote.  The clear victory for Vicente Fox came as a surprise to most analysts, since pollsters had reported a narrow lead for the PRI candidate or a tie shortly before the elections and dispelled fears of political jitters prompted by the loser in the event of a close election result.

Pluralistic congress.  According to preliminary results, Fox's coalition also managed to emerge as the largest political faction in the Senate and the Chamber of Deputies, although it failed to secure majority.  The Alliance for Change, which is composed of the conservative National Action Party (PAN, Partido Acción Nacional) and the Green Party (PVEM, Partido Verde Ecologista de México), garnered 224 seats.  The PAN almost doubled its number of seats in the Lower House from 121 to 204 seats and is likely to control 53 seats in the 128-member Senate, up from the current 31 seats.  That leaves Fox's party shy of a majority by 12 votes in the Senate and 27 votes in the 500-member Lower House.  The PRI still managed to obtain a large share in the Lower House but lost almost 15% of its seats.  The Alliance for Mexico, led by leftist Democratic Revolution Party (PRD, Partido de la Revolución Democrática) emerged as the country's third political force.  The PRD was the big loser, however, in the elections, as it saw the number of representatives shrink to 48 from 125 in the last Congress.  Nevertheless, the PRD retained control of the Mexico City government.

Difficult but manageable governance ahead.  Lacking a majority in congress, Fox, who will assume the presidency on 1 December, will face a difficult task of delivering on his campaign promises.  Fox will be the first president in Mexican history whose party does not control either the lower house of Congress or the Senate.  Unable to pass laws at will, Fox will have to negotiate with the opposition on every piece of legislation.  Furthermore, two-thirds of the nation's governorships still belong to the PRI and after seven decades of rule, the PRI permeates the country's bureaucracies.  However, Fox should be able to avoid a situation of political gridlock in the coming legislature.  First, Zedillo has vowed to elaborate the 2001 budget in close collaboration with the incoming government, which should help pass the law when in power and may establish a pattern of collaboration with PRI.  Second, when Fox was governor of Guanajuato he proved his ability to govern without a majority in the state’s legislative body owing to strong negotiating skills.  Third, Fox can also count on his party's control of the Mexico City assembly to exercise some influence over the PRD, which won the city's mayoral race and thus depends on the PAN to pass legislation.

 

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