Monthly Archives: August 2014

After the Reforms

Luis Rubio To steal the Hesperides’s golden apples, Hercules proposed to Atlas, the Titan holding up the heavens, that he would take up the heavy burden if Atlas obtained the apples protected by a monster with many heads. When Atlas returned, Hercules had to trick him in order for him to be relieved as Titan. […]

The De Facto Strategy

Luis Rubio It never fails to impress me to hear that the cost of labor in China rose and that this would benefit Mexico. The logic implied is that the rise of labor costs in China will translate into more investment in Mexico because that cost here is less. That is, the country’s development strategy […]

The “unwritten rules”

FORBES – August 21, 2014 Today Mexicans no longer speak of the “unwritten rules” but these remain as valid as ever. The rules are not written because they refer to the preferences of the individual occupying the presidency. It’s his word that counts and, for obvious reasons, cannot be codified in the law or, when […]

The Wages of Ambrosio

Luis Rubio It’s no news to anyone that the minimum wage (MW) is extremely low. Those who champion an increase decreed by the authority follow a logic that seems impeccable: there’s a wage hike, people consume more, which causes a growth in production that in turn translates into a greater demand for jobs.  That is, […]

The Reforms and the Future

INFOLATAM - Luis Rubio With the formal announcement of the energy reform, President Enrique Peña-Nieto concluded the first step of his project of government. The series of reforms that were carried out, each with its characteristics and some more transcendent than others, creates a legal platform that is radically distinct from that which existed prior to […]

What Should Follow

Luis Rubio To govern, an authoritarian system requires no more than skill, some institutions and minimal rules because everything revolves around the capacity of the governor to impose his will. Open political systems –consolidated democracies as well as nations in transition- require rules known by all, which are complied with and made to be complied […]

Corruption and Growth

Luis Rubio There is rarely a discussion on the cause of the low growth of the economy in which corruption does not arise as an explanatory factor and more so if the discussion take place outside of Mexico. The implicit assumption is that corruption inhibits market functioning and that comprises a disincentive for investment, limiting […]

The “unwritten rules”

FORBES – Agosto 2014 Today Mexicans no longer speak of the “unwritten rules” but these remain as valid as ever. The rules are not written because they refer to the preferences of the individual occupying the presidency. It’s his word that counts and, for obvious reasons, cannot be codified in the law or, when that […]