Introduction to the Sheinbaum Administration’s Digital Transformation
The administration of President Sheinbaum has taken a significant step towards modernizing the state apparatus with the presentation of its proposal for the National Law on Regulatory Improvement and Digital Governance. This law aims to eliminate unnecessary bureaucratic procedures, combat corruption, and transform the relationship between the state and citizens through technological tools. This initiative represents one of the most decisive movements in decades to simplify life for citizens and businesses, with the goal of creating better living and economic conditions in the country.
Legislative Reform and Centralized Digital Platform
The legislative proposal arises from the reform of Articles 25 and 73 of the Constitution, which grant Congress the power to legislate on regulatory improvement and digital governance. The new law design contemplates a uniform national model with a single catalog of procedures applicable to federal, state, and municipal levels of government. The objective is to eradicate duplicate requirements, excessive processing times, and varying criteria among subnational authorities.
A central pillar of this initiative is the implementation of a centralized digital platform to manage all administrative processes. This infrastructure will enable access to public services from any location in the country, ensuring consistent and efficient treatment. Additionally, the creation of the “Llave MX” digital identity mechanism will facilitate citizen authentication for online transactions, eliminating the need to physically visit government offices and allowing documents to travel between responsible validation and authorization instances instead of people, managers, or businesses having to move them between windows and departments.
Impact on Businesses and the Digital Transformation Challenge
In Mexico, bureaucratic burden poses a considerable obstacle to business operations and growth, particularly for micro and small enterprises. According to the 2023 Latin American Bureaucracy Index, Mexican small and medium-sized businesses dedicate an average of 506 hours per year—equivalent to 21 working days—to complying with regulations and obligations. Large companies also face significant impacts, averaging 374 hours annually, highlighting transversal inefficiencies in administrative processes across all levels of government.
Currently, Mexico has over 7,000 public procedures. The initiative aims to digitalize at least 80% of administrative processes, leading to a paradigm shift that will reduce queues, paperwork, idle times, and most importantly, opportunities for corruption.
Key advances in this new model include the “National Digital Investment Window,” which will reduce business opening procedures from 51 to 32 and cut requirements by half. These measures aim not only to simplify processes but also to send a much-anticipated signal: Mexico is willing to facilitate investment.
Strengthening Public Technology and Federalism Considerations
The reform also proposes the creation of the “National Center for Public Technology,” tasked with developing technological solutions “from within” using public service personnel to avoid external contractors for system maintenance and updates. This approach will reduce costs and strengthen the state’s capabilities, making it less reliant on the private sector. The lesson learned from past experiences is that outsourcing digital services created technological dependence, lack of control, and high costs. Now, the focus is on a self-sufficient government model based on an open and transparent public technological architecture for subnational governments, ensuring that generated code is available for their use.
Another crucial aspect of the new legal framework is the acceleration of procedures related to foreign investment by the Secretariat of Economy, aiming to reduce resolution times for investment projects from over 100 days to just 45 business days. Additionally, registration in the National Foreign Investment Registry will be automated, and duplicate requirements will be eliminated.
Potential Benefits and Implementation Challenges
If this new simplification model is successfully implemented, Mexico can improve its position in international competitiveness and business climate rankings. The successful implementation of the National Regulations Registry, which will order and classify the government’s institutional offer in a clear and accessible manner, is crucial for this improvement.
However, as with any paradigm shift, there will be pending challenges or missed opportunities, primarily regarding functional structure, trained personnel, clear governance schemes, and most importantly, budgetary resources. Such reforms require strong initial investment and continuous follow-up.
In the realm of federalism, it is essential to be mindful of nuanced matters, as harmonizing procedures might infringe on states’ and municipalities’ authorities or create confusion regarding the fiscal pact in local tax collection. National laws set mandatory norms for all levels of government but do not necessarily imply specific budgetary transfers. Allocating resources to states and municipalities usually requires coordination agreements or reallocation according to the Federal Budget and Fiscal Responsibility Law. Therefore, implementing a national law may depend on local authorities’ financial and administrative capacity unless specific funding mechanisms are established.
Digital Transformation and Telecommunications Convergence
Another interesting aspect is the convergence between telecommunications policy—which is also expected to be reformed through a new telecommunications law, with an initiative recently presented to Congress—to expand the country’s connectivity. This is not only for meeting people’s needs but also for institutions, as the lack of internet access in numerous Mexican municipalities hinders local government modernization and efficiency. Although efforts are being made to expand connectivity, such as the installation of over 91,000 free internet sites, more than 6,000 localities still lack coverage. In the State of Mexico, for example, 123 out of 125 municipalities face regulatory barriers that hinder internet service providers’ arrival. This gap limits the digitalization of essential public services.
International experience offers valuable lessons. In Peru and recently in El Salvador, regulatory barrier elimination laws have been adopted, driven by the obligations of the regulated subject without creating additional bureaucracy. In contrast, the European Union’s deregulation resulted in an overlayer that ultimately generated the opposite effect: more processes to deregulate. With this new model, Mexico could position itself in the middle, adopting best practices without falling into the trap of overregulation to facilitate deregulation. If this balance is achieved, it will mark a turning point for the new digital rule of law, facilitating market development and ensuring equitable access to rights and services.
Conclusion
Undoubtedly, this legislative initiative represents one of the most creative and comprehensive projects of the new federal government led by President Claudia Sheinbaum. It is the first time a digital transformation of this scale has been proposed, with proprietary tools, concrete goals, and a modern narrative. However, it is essential to remember that this is not the first attempt at simplifying public administration. Only time will tell if it functions as seamlessly as promised.
As a nation facing the urgent need to attract investment and regain institutional trust, we should celebrate and support these types of reforms enthusiastically.
