Mexico’s Economic Dynamo Holds Keys to Reforms

The financial dynamo of next Mexican government got into economics after spending quality time standing in queues to purchase milk. The hyperinflation in 1980s were so out of control that the administration had to impose price hike on basic amenities, resulting in scarcity, which forced even mid-class people to stand in line at store counters.

The 44-year old Luis Videgaray, recalled those moments in a TV interview, and went on to say that during those days, people could purchase minimum quantity of milk, (about one to 2 liters) that too after standing in queue in long hours. It was very odd for us to understand what kind of environment it is and then he started studying and now he has become an economist. Mexican economy is far from a disaster, but its new political leaders are susceptible to comparisons with faster-growing countries, like China and Brazil.

The newly elected president Enrique Pena Nieto takes control on Dec 1 and has assured to overhaul taxes and improve healthy competition in key markets in search of 6% annual growth. Luis Videgaray is President’s right-hand man, who also leads his transition team, and is well recognized with traders and investors. Videgaray has enough potential to take a lead in overseeing government policy or finance ministry He’ll be the key to drive financial reforms through country’s divided Congress, discussing with policy makers both within his party and opposition party to show that the next government can bring on its promises at the faster pace. He said that it is very crucial to make a big reform at the beginning of the administration.

The opposition party PRI (Institutional Revolutionary Party) is getting back its power after 12years and has assured to leave behind a past covered by cronyism as well as corruption. He is seen by many as having the correct combination of private sector experience, academic qualifications, and political knowledge and how to solve problems through planned adjustments that have spurred overseas investors to transfer nearly $55billion into Mexico’s stocks and funds in the first 3 quarters of 2012, the highest until date and it is nearly 5 times more than what they invested in Brazil.

Videgaray, known as El Doctor for his successful academic activities, is also respected by opposition lawmakers. The former congressman of State of Mexico, Domitilo Posadas, said Luis Videgaray has always kept his word and is a quick learner. “Everything that Videgaray agreed upon, was delivered,” he added. He knows how and where to accommodate the suggestions without losing focus of the bigger picture.

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