- Community Blog
Mexico: Crony Capitalism and Illegal Immigration
A news item last week in the Tijuana newspaper, Frontera, highlighted a fundamental problem in Mexican politics. It seems the city of Playas de Rosarito ordered construction stopped on a new funeral parlor that was only 15-days from its grand opening. City inspectors showed up at the almost completed funeral home and posted seals on the doors stopping all construction activities. The inspectors stated the reason for the closure is that the construction activity had “broken a sidewalk.”
The owner of the funeral home, Gerardo Arguilez, pointed out that the sidewalk was broken before he ever acquired the property. Furthermore, although the law required the City to give him a 3-day notice to correct the problem, they City inspectors ignored the law and stopped construction without notice.
Mr. Arquilez stated that he had started the process to acquire all the permits for the construction and operation of the funeral home last April. But only last week the City notified him that a use permit would not be granted. So what happened?
Mr Arquilez points out that the City routinely approves use permits for adult massage parlors and table dance bars…but not a funeral parlor? Well, it seems the City of Playas de Rosarito is currently in the process of granting a concession for a new town cemetery to be operated by another private operator who will have his own funeral parlor at the new cemetery. It appears that at a time when Rosarito desperately needs more jobs and economic activity, Mr. Arquilez’ funeral home is being stopped to help the competition.
Denise Eugenia Dresser Guerra is a Mexican political analyst, writer, and university professor. She is currently a faculty member of the Department of Political Science at the Instituto Tecnológico Autónomo de México. Ms. Dresser is outspoken about Crony Capitalism in Mexico.
Professor Dresser says Mexico is now a crony capitalism economy which fails to grow due to the manner in which it exercises and shares power. This is due to the discretionary and politicized regulations that rule the mafia republic, the economy of “buddies.” Mexico is trapped in an intricate web of privilege and veto powers that inhibit healthy competition. A network that operates on favors, concessions and regulatory protection provided by the government and demanded by the business elite as a condition for investment.
Ms. Dresser goes on to stress that Mexico’s economy fails to reach its full potential, that Mexico’s political system functions well for the benefit of the political parties, but very poorly for its citizens. The professor believes that Mexicans are victims of a dysfunctional economic system which forces its population to cross the border into the United States in search of the upward mobility that is not found in Mexico.
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- No new Mission Beach lifeguard station — Dec. 26, 2015
- Rosarito Tourism Commission says US alert on Mexico travel is all a ploy — Aug. 22, 2012
- Mythbusters: Are there 14,000 expatriates living in Rosarito? — Jan. 23, 2012
- Impunity in Mexico — Dec. 8, 2011
- Rosarito's Connection to the Iran-Contra Affair — July 9, 2011