Minutes before President Andrés Manuel López Obrador (AMLO) give your Government report and its plan to reactivate the economy, Gustavo De Hoyos, President of the Employer Confederation of the Mexican Republic (Coparmex) issued a greeting, in addition to explaining the situation through which the Mexican companies at all levels facing COVID-19.
In his message, De Hoyos emphasized that the pandemic affects 4 out of 10 microenterprises in areas such as restaurants and bars, workshops, professional services and in shops. Equally to the companies dedicated to the construction, the transport and the entertainment; the same to factories of various products such as auto parts, and electronics that are considered by federal authorities as activities not essential.
While in the Coparmex Different proposals were designed and presented to face the crisis, as in the Business Coordinating Council (CCE) and the Mexican Business Council (CMN) and were presented last Thursday, April 2 at the National Palace before AMLO, on Sunday, April 5, it was framed by a series of phrases that highlight what is the president’s approach before the conjuncture of the coronavirus in Mexico.
We highlight the presidential approach in ten sentences and contrast it with the reactions of different opinion leaders in order to offer a broad panorama of the context that is drawn by the plan to reactivate the economy before COVID-19.
“The culture of our people (…) has allowed us to recover from earthquakes, hurricanes, floods, epidemics, tyrannies, bad governments and corruption, which has been the most tragic and fatal of the plagues and calamities of Mexico”.
In context, it has been mostly the same society that has faced the natural phenomena that the president mentions, such as the 1985 earthquake and the 2017 earthquake. Civil society came out to give what it was not receiving : help. This time through the representation of the mexican industrial chambers, in past weeks government support was requested in fiscal and financial matters, so that SMEs and micro-enterprises could survive the economic crisis caused by coronavirus.
“When the coronavirus arrived, we were already working to improve the public health system.” However, it is an institute that started without operating rules and that left budget uncertainty and legal loopholes that left children with cancer homeless.
“From the first moment, we made the decision to leave the management of the entire health strategy to specialist doctors and scientists who, incidentally, are eminences with a social vocation. I reiterate, politicians are not todologists, know-it-all. “
Despite the phrase, it was on March 23 that the same president pointed out to the population “I tell you when not,” a controversial invitation to continue activities despite the coronavirus and the indications of his team of scientists led by the Secretary of Health, Jorge Alcocer and Hugo López Gatell, Undersecretary of Prevention and Promotion of Health.
“I also inform you that we have already started with actions to quickly reactivate the economy. We decided not to increase fuel prices, as was done in periods of crisis. Now Pemex sells gasoline 30 percent less than before the pandemic. “
“Social programs and development promoted by the government this year will reach 22 million beneficiaries.”
“This year we will invest 25 billion additional pesos for the introduction of drinking water, drainage, pavement and the construction and improvement of 50 thousand homes in marginalized areas of 50 municipalities in the country, which will allow us to create 228 thousand direct jobs, in addition to the benefits to the inhabitants ”.
José Manuel López Campos, President of the Confederation of National Chambers of Commerce, Services and Tourism (CONCANACO), expressed in an interview for Milenio TV that there was concern, since there was no talk of support for productive sectors, such as SMEs and micro-enterprises which are those that generate employment, while public works only do so temporarily, in addition to requiring expenditure from the public purse.
He stressed that the public works will not compensate lost jobs, that only the government will continue spending; If there is no direct support with financing, there is no way that any company can be saved.
If not talking about a real plan, López Campos considers that the transitory crisis can become permanent and it could be very difficult to get up. He also indicated that there is concern about channeling resources, since credits who spoke AMLO van aimed at the informal sector, no for SMEswhat are the productive plant along with micro-SMEs. He also noted that the reactivation and conservation program was not seen in the report of the reactivation program, in any line, this when the productive sectors expressed liquidity problems that could be solved with capital injection or deferment of payments, taxes, rights, which did not imply a cancellation and yes deadlines after contingency, the same with service costs of at least liquidity to support employee payroll.
The CONCANACO president also commented that the dialogue table with the president for the April 15, in order to observe how the indicators behaved with their announcements, to see if proposals are incorporated.
“On April 30, the construction contract for the first section of the Maya Train will be signed and in May we will agree to build four more sections, we will only leave pending for 2022 485 kilometers that we will build with the participation of military engineers, once the work of the General Felipe Ángeles Airport in Santa Lucía. My special recognition to military engineers. “
“Specifically, I report that I have made a consultation and there is a consensus: the salaries of senior public officials will be lowered and the bonuses will be eliminated from the position of deputy directors, to that of the President of the Republic.”
“To finance this plan without increasing taxes or enacting gasoline payments, the savings from the Budget Income Stabilization Fund and the resources that were kept in trusts will be used. We will also rely on development banking, but above all, we will continue with the same policy of freeing up resources, because the Republican austerity plan will continue even more rigorously ”.
“I remember what President Franklin Delano Roosevelt said in a similar circumstance, during the Great Depression, which began in 1929. This titan of liberties, for me the best president the United States has had in its entire history, went on to say In those difficult moments that he had to face and that he was able to reestablish development and guarantee the happiness of his people with his policy, President Roosevelt said: ‘Self-interest, selfishness supposed bad morals, now we also know it was a bad economy ‘”.
“The image comes to mind of when Simón Bolívar, sick, lying in a hammock, almost defeated and in the midst of desolation someone asked him: ‘Now what are you going to do, general?’, And the liberator he replied, with mad passion: ‘Succeed, succeed’ ”.