By Jakarta Globe on 12:50 pm October 5, 2013.
Mexican President Enrique Pena Nieto. (Reuters Photo/Henry Romero)
Mexican President Enrique Pena Nieto is among the world leaders attending the APEC summit in Bali. Ahead of the meeting, he talked with the Jakarta Globe about similar financial frameworks between Indonesia and Mexico, cooperation and Mexico’s social progress.
Mexico is a fast-emerging economy, as is Indonesia. In what areas do you think the two economies can cooperate in a more focused way?
The remarkable transformation of the Indonesian economic and social landscape is comparable to what we have witnessed in Mexico. Indonesia’s leadership role in the Asia-Pacific region is also similar to Mexico’s in Latin America. These resemblances encourage our governments to work together to increase bilateral trade and investment in order to boost economic growth in both countries. We also believe our governments can cooperate in areas of common interest, such as sustainable development, climate change, tourism, and health.
In this regard, over the course of this year, my administration has held numerous high-level meetings with our Indonesian counterparts. Mexican secretaries of Foreign Affairs and Economy visited Indonesia to develop a comprehensive agenda to strengthen the ties between our nations. In May, we had the honor of hosting Minister Marty Natalegawa in Mexico City, to commemorate the 60th anniversary of the establishment of diplomatic relations between our countries.
During these meetings, Indonesia and Mexico have agreed to intensify their bilateral political dialogue, taking advantage of multilateral forums and mechanisms to promote our common interests and influence the international agenda. Furthermore, we have agreed to prioritize bilateral trade, and redouble our efforts to further attract foreign investment.
Emerging economies have been the main drivers of global growth over the past five years. Do you think the next five years will be the same? Or will developed economies recover and take back the lead?
Emerging markets will continue on the path of growth. Experts indicate they will further benefit from a recovery in advanced economies. Economists agree that although there has been a global slowdown, emerging markets will still grow faster than advanced economies in the decades to come.
However, emerging economies are not necessarily destined to grow and lead the world economic recovery. We must make that happen. Internal adjustments are needed to make them more vigorous, stable and competitive.
For instance, in order to achieve higher levels of productivity and competitiveness, Mexico is promoting a strong structural reform agenda, through what we call the Pact for Mexico: an extensive agreement between the country’s three main political parties. Among other reforms, we have already promoted changes to increase educational quality, to open the telecommunications sector, and increase economic competition. In the near future, we expect changes to our financial, energy, and tax systems. This will help Mexico to achieve higher growth rates and create more jobs.
As far as APEC is concerned, how can it play a greater role in determining global economic direction? Or is it just a forum to exchange ideas?
APEC has proved to be an influential forum that brings together 21 economies, with the purpose of exploring concrete economic and technical cooperation initiatives that enable a better business environment, and open trade and investment. By acting together, our economies can exert greater influence on the direction of the global economy.
For example, by avoiding protectionist measures amongst our economies, we can send a clear message regarding our commitment to free and open trade, as they are effective tools to achieve economic resilience and growth.
Countries like Indonesia and Mexico are helping to create a new international financial architecture, and the forum contributes to this goal. Indonesia’s Summit priorities are similar to the development objectives that my administration established when I assumed office: further trade liberalization by lowering trade barriers, support for the multilateral trading system, as well as the creation of the necessary conditions to facilitate investment and promote the efficient integration of regional supply chains.
Additionally, I support the APEC objectives of creating greater prosperity in the region and boost[ing] inclusive, equitable, sustainable and innovative economic growth.
How do you measure social progress? What has Mexico achieved that can be an example for other countries?
In my view, social progress is achieved when all sectors of society have access to basic social welfare. That is why my administration launched a National Crusade against Hunger, a strategy to promote social inclusion and well-being. Through this strategy, we aim to reduce acute infant malnutrition, increase food production and help small agricultural producers prevent food losses. Many of the Crusade’s actions are carried out through community participation.
Additionally, the tax reform that we are promoting includes a universal pension plan that will give all Mexicans a pension to cover their basic living expenses during retirement. Also, the reform creates an unemployment insurance program. With these social programs, all Mexicans will have greater opportunities. These policies are measures of social progress that we would like to extend to the population in the years to come.
