forbes.com
Peter High
Recently, I was thrilled to be invited to meet with former Mexican President Vicente Fox
at his presidential library, the first for a Mexican president. Among
the many opportunities he has pursued is to develop a Charlie Rose-style
interview program. I was a guest on his show, and he agreed to return the favor.
Fox’s story is an extraordinary one. He rose from delivery route supervisor to President of Coca-Cola
KO -1.12%
Mexico. He was elected as Governor of Guanajuato after first serving in
the federal Chamber of Deputies. As he explained in my interview, he
did not grow up dreaming of being President of Mexico. Rather, he got
involved because he had grown so frustrated with corruption. He won an
improbable victory on his 58th birthday, July 2, 2000. In this
interview, we spoke about his major accomplishments as president, the
importance of thinking strategically, the transformative power of
technology, as well as a variety of other topics.
(To hear an unabridged podcast version of this interview, please visit
this link.
This is the tenth interview in the IT Influencers series. To read past
interviews in the series with Sal Khan, David Pogue, Walt Mossberg, Jim
Goodnight, Sir James Dyson, and Sebastian Thrun (among others), please visit
this link. To read future interviews in the series, please click the “Follow” link above.)
Peter High: As we sit here in Centro Fox, the first
presidential library in Mexico and a center for education and
exploration, I thought we would begin with the objectives of Centro Fox.
Vicente Fox: Our vision is that leaders, persons
with a name and a face, are who change and build the world that we live
in much more than institutions. So if we believe in leadership and that
it can change the fate of Latin America, this can be changed.
We are a Latin American center that is geared around ideas,
leadership, and strategies. We do it through, number one, young kids.
The middle-upper class and the rest have access to the best
universities. But the broader constituency does not receive any messages
or aspirations of happiness in life at home. What they get, it seems,
is the message to be poor all of their lives or be migrants and move all
around the world. That is the core of what we do, academically, as a
think thank, and as a social institution committed to the poor. We
tackle the issues of education, poverty, health, and housing, which are
the main four ingredients that people need to have a better life.
We have a program, for instance, called President for the Day where
we bring up to 500 kids a day, 60,000 a year, to give them that message
to try and change their minds. We wish we could have a “next
experience,” but for the moment it is enough; they go back home saying,
“I can be President” or “I can be an architect”. We also do some think
tank in relation to public policies that we take to government. Thirdly,
we are also concentrated on gender equity, which in Mexico as well as
Latin America is a weakness. It is a passion, so every single one of
our programs has an emphasis on women and gender equity.
High: Walking the grounds here, and speaking with
you I have been impressed by the role that technology plays. Can you
talk a bit about your big vision to make Mexico a hub for technology?
Fox: We ran across a corporation that was in the process of expanding to Latin America and
Europe.
I had the fortune to speak with the CEO and convince him that he should
have a second headquarters – one is in India where they have 14,000 IT
people working for them – here, in Mexico in Centro Fox. The plan here
is 10,000 jobs, they are celebrating 900 that have been contracted in
the last 18 months. We have a very clear agreement here; we are not
partners of the corporation. We have an agreement that if I help them,
personally, to get into the market and partner with large Latin American
corporations, the company will donate a percentage of every dollar
income to Centro Fox.
Now that we have gotten into it we are starting to spread the
message, working with communities around here, and with the CEO in
trying to develop seminars and a master’s program that has a
relationship to the company. At the very end we want this place to be
the cluster of information technology for the country, including the
United States because this service can be provided at much lower cost.
Mexico has a very strong competitive advantage as opposed to India, in
that it can be speaking at the same time as customers of the United
States much faster. I think this project has a very bright future.
Former President of Mexico, Vicente Fox
High: You won a historically significant
presidential election and defeated, for the first time in 71 years, the
PRI (Institutional Revolutionary Party) against incredibly long odds.
Can you talk a bit about how you used your marketing experience, as a
former Coca-Cola executive, in your Presidential campaign?
Fox: First of all, it was not in my plans to move
from private sector to public sector, but I was up to my neck with
Mexico’s authoritarian government, lack of transparency and
accountability, and corruption controlling the economy. That’s the story
all throughout Latin America; the 20
th century was lost
because we were in the hands of dictators. We didn’t grow as citizens—we
stayed childish. I wish we could have spread, all throughout Latin
America, the profound philosophy of the United States: you go as far as
your own work and you build your own future, you just have to grab the
opportunities.
When I came there, being a private sector executive, I had a plan to
use all of those techniques that had brought great results in the
private sector. For instance, I hired my Cabinet through headhunters.
That is unique, that has never happened in the world. So every single
guy who joined my cabinet went through two headhunters. I was
criticized, but I think it was a great idea and worked quite well.
In the campaign for state government and the presidency I used a lot
of marketing. Doing Coca Cola, fifteen years, that is what you learn.
And it worked. Of course, it was in the surface of each Mexican to
decide for the change. I just had to scratch a little bit, and people
would join me and would be glad to contribute to the change. Through
marketing we got there. Also with government plans and strategies, I
thought it was very important that we shared and communicated plans with
our citizens, which had never happened in the past. I thought it was
important that everyone knew where we headed to and what we were doing
every day.
High: One of the things that striking to me in reading the
Revolution of Hope,
your book, was the importance of planning and setting goals. Can you
talk a bit about the importance of setting big goals and building that
path towards reaching them?
Fox: Two concepts here. One is the business concept
of planning, which is so crucial and important. That can be simplified
by saying, “this is where I am, and that is where I want to go,” so you
have to build a bridge to get to that place. That is a very basic
concept I relate to government. I know all governments have a five-year
or ten-year plan that they present, but it is nonsense.
This concept is associated in your question to one profound Jesuit
philosophy that I have. That is that we are all leaders, but most of the
time we don’t discover our leadership or potential. The best way to
solve that is to have heroic aspirations; the higher you can have your
objectives, the more you are going to grow. Many people don’t believe
that but it is absolutely true. I use the example of the 90 days in
silence that Loyola invites his followers to take. First you start by
resolving the questions “who am I, what am I in this life for”. Once you
have that, you know where you are going and have a purpose and all of
your energy, talent, and physical strength move in that direction.
The first time, when the postils that Loyola had there finished he
told them “you, Javier, go to India. Pedro, you go to China,” and none
of them asked questions. They just obeyed orders, followed their inner
power and force, and they conquered to become successful. So that is
something I deeply believe in and was my case when I joined Coca Cola
starting as a route supervisor. I started working with that high
aspiration. When I decided one night that I was going to move from the
private sector to the public sector, I said “I am going to be President”
and that is what happened. I had to work my way up, but it happened.
High: You are, in some ways, a citizen of the world
as much as you are a citizen of Mexico. I wonder, how much do you draw
upon all that you know from around the world?
Fox: Migrants are a very special caste, very special
people. The courage, guts, vision, purpose, and commitment they have
make them very special people. Like my grandfather, who was the
assistant to a butcher in Cincinnati, Ohio. He worked in the backyard
butchering birds. He didn’t like so much blood and noise of the birds
when being butchered, so he decided to move down south. With the spirit
of the American dream, he came down south to find that dream.
This very special caste of people, migrants, has so many abilities
and capacities. Look at the way it happened in Ireland when it became
problematic because of pests, wars, and unemployment, they said “let’s
move up” and went to Strasbourg. Why in Strasbourg? Because the migrant
has a very easy way to smell out where the action is. They knew
Strasbourg was a crossroads—a point of intense and dynamic development
in Europe. Eventually they had to leave and went to the United States.
That nation has been built all along by migrants, those who came from
Asia and Latin America. That is what has made that nation not only strong but diverse and capable.
I think it is a very shortsighted position of migration that building
walls, putting minutemen in Arizona, and crossing the border is
absolutely wrong. But hopefully, Congress will soon approve that reform
that has been sitting there for ten years so that the United States can
keep being the leader in the world by solving cultural barriers.
High: In many ways, this is one of the many
tragedies of 9/11. Returning to your six years of presidency, I wonder
if you can reflect about your time in office and some of your proudest
accomplishments.
Fox: There were objectives in mind. One of them was
to end up with this map of crises that we were going through in Mexico
and Latin America. Mammoth devaluations, huge interest rates, up to 180
percent a year, inflation rates over a 100 percent— all of that had to
be stopped. So I looked for the best Finance Minister and he did a great
job. We became a very disciplined economy, the goal was to reduce the
deficit from 5 percent down to 0; we accomplished that. We also wanted
to align the economic fundamentals between the Mexican and U.S.
economies; so today we have the same interest and inflation rates. Our
convergence on the fundamentals created very strong support for the
Mexican economy.
Number two, I wanted extend the programs on education, health, and
housing to be real opportunity for all Mexicans. We grew housing from
250,000, when I came in, homes built to 750,000. The stock exchange
moved 350 percent up. Also, we had big problems in a lot of the things
we wanted to accomplish. One I am not proud of is bringing more
opportunities to the poor. To me, my Jesuit education showed me that the
shortcut to happiness is being for others and doing things for others.
So I know there are a lot of things that we couldn’t accomplish.
Also, the airport. Unfortunately, at that time, we couldn’t build
that airport. Finally the big airport will be built, but we lost
eighteen years. If opposition had not opposed that airport we would have
had it ten years ago. The same with the energy report I proposed. This
is a big problem with being a minority government.
We tried hard. I think the future is bright for Mexico today. As you
know, I changed my support from my own party to the PRI. Many people
tell me that I am not consistent, but I think that ideologies and
partisan positions are like little boxes that reduce individual freedom.
I learned in Asia that ideologies and political parties are not anymore
the controllers of political life. Today, a good government is that
which creates jobs and makes the economy grow—a very pragmatic
government. I see the United States with only two political parties, one
side trying to destroy the other, and never reaching agreement, except
when you are at war. I don’t know why the United States has to go to
war everyday and everywhere.
There is the same thing going on in Mexico where democracy is not
delivering because of conflict in political parties that has delayed
strategic decisions for eighteen years. My agreement with Pena was that
if he proceeded with reform of education, energy, and telecom, then I
would back him up. With that agreement I have worked with him and
supported the team.
High: You’ve spoken eloquently about the need for
reform of economies in Latin America. What is your analysis of where
things stand there, are you optimistic?
Fox: We conquered the lack of democracy and freedom,
which happened in all of Latin America for the last two decades of last
century. So it was not just Mexico, it was all of Latin America getting
rid of the pigs. That brought us into a new era with real possibilities
of growth and development. It is so true that in the last ten years
poverty has been deflated by 18 percent in a region that has over 500
million inhabitants. That is a lot, a great accomplishment. Now we are
on our own and have to have our own efforts, not expect anything from
other governments.
This result is not only from conquering democracy and freedom, but is
also from China. China is drawing so much food, grain, cattle,
minerals, and oil from Latin America that has really caused Latin
American economies to grow. If you look at that growth, you notice that
Mexico did not do as well. Mexico is more of a manufacturing economy,
and so deeply linked with the United States that we did not perform
well. But the future is Mexico, and the problem is for Latin America
because China is not growing more slowly. If that bonanza of those years
working with China had been instead invested in education,
infrastructure, or manufacturing facilities, then the future would be
theirs too. But they didn’t do that.
That has been very fortunate in Mexico, what has given us the
possibility to be the strongest manufacturing hub in all of Latin
America but also the most competitive worldwide. Today you manufacture
at a much better price and quality in Mexico than you can get in China.
Many companies left Mexico ten or twelve years ago to produce in China,
but most of them are coming back.