In 2012, Mexico’s three primary political parties formed a contract called the Pacto Por Mexico, an agreement that was proposed as a method in which to tackle the country’s most pressing political issues. Formed immediately after President Enrique Peña Nieto’s inauguration, the political pact consists of 95 initiatives agreed upon by the Institutional Revolutionary Party, the National Action Party, and the Party of the Democratic Revolution. Despite the ambitious nature of the unprecedented political agreement, the Pacto Por Mexico is proving remarkably successful in 2014.
In a recent article co-authored by David Petraeus, chair of KKR’s Global Institute, and Neil Brown, former senior adviser for the U.S. Senate Foreign Relations Committee, Mexico’s current governmental reform is referred to as a “political miracle.” Petraeus and Brown write, “Imagine a U.S. congressional term during which Democrats and Republicans locked arms to reform taxes, immigration, entitlement spending, Social Security and the next dozen most significant issues preventing the realization of America’s full economic potential,” likening the progress being made in Mexico to what could be America’s hypothetical political best case scenario.
“The [Pacto Por Mexico] was far from seamless, but the results were historic,” explain Petraeus and Brown, of the unlikely cooperation and political progress that has been made in Mexico since Peña Nieto’s election and the formation of the pact. So far, sixteen constitutional amendments have been approved, covering areas such as labor, energy, education, fiscal arenas, and other social issues in need of reform.
Perhaps what is most remarkable about the initial success of the Pacto Por Mexico is the way it has created an astounding level of cooperation between the three political parties that cosigned it. It’s difficult enough for American politicians of two primary parties to work cooperatively, let alone three. In the report compiled by Petraeus and Brown, it is noted that although Mexico has experienced great political progress, economic reform is still waiting for its “miracle.”
“While Mexico clearly witness a miracle of political productivity, the question now is whether the will to reform will carry through to produce an economic miracle,” notes Petraeus and Brown. Only time will tell if the Pacto Por Mexico has the power to radically improve all facets of Mexican policy and economy.
