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Calderón Pushes for Competitiveness
 The News
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April 08, 2010
 |  | More competitiveness means more innovation, more investments, more economic growth and more jobs for Mexicans.
- President Felipe Calderón |  | | |
Mexico City – President Felipe Calderón yesterday submitted a proposal to Congress to increase the productivity and competitiveness of the Mexican economy, while promoting employment and improving social welfare for Mexicans.
Calderón said that this reform is relevant to the Mexican economy, as it would pave the way for the structural reforms proposed by the federal administration.
He added that a lack of competition is one of the major barriers in the fight against poverty and inequity as it limits economic growth and investments.
One of the main purposes of the proposed reform is to increase the power of the Federal Commission on Competition (Cofeco) in order to establish improved regulations in economic practices, and to make provision for a prison sentence in the case of a monopoly.
Calderón said that more than 30 percent of households’ costs go to markets with competitiveness problems.
Families spend 40 percent more on these markets than what goods and services would cost if more companies were operating in the national market and in a more competitive economy.
The country’s poorest households are most affected by this situation as more than 40 percent of their budgets are spent on goods and services that are more expensive than the average price, because of the limited number of stores and businesses poor families have access to.
In this respect, Calderón said that the huge lack of competition in Mexico has altered the efficiency of the national economy, while allowing for monopolies.
Although Mexico is ranked among the 15th most important economic powers worldwide, he added, the country held the 60th position in competitiveness in 2009, according to the Global Competitiveness Report of the World Economic Forum, in which 133 countries participated.
The President explained the reform according to three main objectives: to facilitate the enforcement of the law when it is passed; to improve the efficiency of Cofeco; and to ensure political transparency regarding Cofeco’s projects.
“Mexico needs a stronger anti-monopoly policy,” Calderón said. “More competitiveness means more innovation, more investments, more economic growth and more jobs for Mexicans.”
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