AMLO promises to turn around the country’s current financial troubles

By September 17, 2018

Although Mexico is facing bankruptcy, low economic growth and a lack of job opportunities, officials in the country will look to grow a new People’s Welfare Bank, according to statements made by president-elect Andrés Manuel López Obrador. It will mark part of an ambitious economic plan by the Morena party which aims to considerably boost Mexico’s economy whilst also removing corruption from within the government.

The speech, according to Mexican news website Animal Politico, was made in a recent appearance by López Obrador which took place at La Loma Park in the state of Nayarit, marking one of the first meetings of his country tour.

In the statement, he promised that Mexican citizens would only benefit from his new economic plans. The president-elect highlighted that the country has been bankrupt for some thirty years as a result of the current neoliberal policies and promised substantial changes throughout his presidency. His statements came alongside further calls for unity and transformation across a country currently rife with corruption, a ‘‘mafia of power,’’ and increasing crime levels.

Promises of a new wave of People’s Welfare Bank institutions are just one element of AMLO’s financial plans for the second largest economy in Latin America. In a further bid to end poverty, he has also promised higher pensions for elderly people, increased apprenticeships for the younger generation and subsidised gas prices.

On top of this, his ‘‘government of austerity’’ will also look into investing a number of large-scale infrastructure projects such as the Mayan Train which hopes to connect a number of the country’s tourist hotspots and another transport link which will connect the Pacific and the Atlantic coasts. However despite seemingly large expenditures planned by the government, even before they take power, it is believed that the new investments will be funded through the reduction of wages for civil servants, and the reduction of a number of social programmes, as well as an increased war on backdoor and corrupt funding channels. It is anticipated that public officials and ex-government staff will also no longer be allocated with a public escort and cuts to wages might occur across the government.

Although there are critics of the incoming president’s economic promises, in recent months AMLO has also met with the current government and aims to ensure a smooth economic transfer between the two parties. He also pledged to allow Morena officials to help consolidate the new NAFTA deal, a process which the current government is still working on. AMLO however also in his statement suggests that he will not blame anyone for the economy and instead take responsibility for its growth.

It remains to be seen how effective López Obrador’s leftist ideals and ambitious economic plans will be in the revamping of Mexico. With increased interests in the strengthening of national bodies, rather than privatisation, as well as stamping out government corruptions, the incoming government hopes to conjure the country’s much-needed funding which will provide for the government’s focus on welfare.