Introduction: A Historical Parallel
James Freeman Clarke’s famous quote, “While the politicians think of the next election, statesmen think of the next generation,” emerged in 19th-century U.S. politics marked by structural changes, intense debates on civil rights expansion, deep-rooted political corruption, and significant shifts in the country’s economic and commercial strategies. The parallels with our current reality are striking.
Mexico’s Institutional Transformation
In Mexico, this institutional transformation involves the elimination of most state autonomous bodies, including Cofece, IFT, Coneval, CRE, CNH, INAI, and Mejoredu. The extinction of these organizations is a heterogeneous process, often conditional on the enactment of secondary legislation enabling new entities to assume their functions. As recently announced by the president, this legislation is expected to be approved in the current period.
Some autonomous bodies have managed to survive, albeit with severe limitations on their autonomy, operational capacity, and budget. The cases of Cofece and IFT, whose budgets have been slashed by 70%, exemplify this weakening. Given the decrease in operational expenses and additional fund usage, they could theoretically operate until May unless a budget expansion is approved soon.
The Reform of 2013: A Look Back
The 2013 constitutional reform in competition economics aimed to create two autonomous bodies, independent of political and economic powers. The goal was to establish a system of checks and balances ensuring institutional solidity and technical rigor in their analyses and resolutions. Moreover, decisions were intended to be based on cutting-edge studies and opinions, considering global discussion states to ensure an innovative approach aligned with international best practices.
Over nearly 11 years, Cofece has handled over 5,200 proceedings, highlighting more than 1,700 mergers, 75 investigations for monopolistic practices, among others. Beyond ideological and political debates, these proceedings reflect diligent work aiming to fulfill competition principles and generate consumer welfare while promoting efficiency for businesses and markets.
Current Challenges: Pressures and Risks
In the current political and economic context, decision-makers in autonomous bodies face pressures attempting to influence their resolutions. This scenario presents a two-pronged future: one resembling Ulysses from Homer’s Odyssey, who succumbed to Calypso’s promise of immortality and eternal youth in exchange for unwavering loyalty, and the other like Ulysses S. Grant, who resisted a third presidential term offer in the U.S., upholding constitutional principles that initially elected him.
Temptations may manifest in various forms, such as relentless pursuit of international recognition, adopting arguments from jurisdictions with distinctly different economic realities to Mexico’s, voting for trade barriers restricting competition in national markets, or succumbing to political and economic pressures benefiting specific interest groups at the expense of consumer welfare and societal well-being.
Building a Lasting Legacy
Though legacies are constructed over time, final decisions significantly and lastingly impact the reputation and prestige of individuals and institutions. This moment, therefore, presents a crucial opportunity to build a legacy rooted in competition principles, rigorous analysis, critical thinking, and strict adherence to legality, especially as constitutional autonomy wanes.
Key Questions and Answers
- What is the current situation with Mexico’s autonomous bodies? Many are being eliminated or weakened, with budget cuts and limited autonomy. Some survive but face severe constraints.
- What was the purpose of the 2013 constitutional reform in competition economics? To create two autonomous bodies independent of political and economic powers, ensuring institutional solidity and technical rigor in their analyses and resolutions.
- What challenges do decision-makers in autonomous bodies face today? They encounter pressures attempting to influence their resolutions, risking compromising competition principles and consumer welfare.
- Why is this moment crucial for building a lasting legacy? Final decisions significantly impact reputation and prestige, offering an opportunity to construct a legacy based on competition principles, rigorous analysis, critical thinking, and strict adherence to legality.
