Will Mexican Politics Undermine Mexican Growth?

Mexico is set to become a global economic powerhouse in the coming years and has earned a place in Goldman Sachs’ “MIST” moniker, referring to four of the largest emerging markets. [1] However, a number of questions remain about the emerging country’s controversial political system, specifically in respect to the strengths and weaknesses of the newly elected president Enrique Peña Nieto. His December 1 inauguration marked the presidential reemergence of the controversial Partido Revolucionario Institucional (PRI), which ruled the country for most of the 20th century. Before losing to Vicente Fox’s Partido Acción Nacional (PAN) in 2000, the PRI occupied Mexico’s executive office for 71 years, a time in which the quasi-authoritarian regime appeared to be synonymous with corruption. Therefore, when protesters chanted “Mexico without PRI!” during Peña Nieto’s December 1 inauguration, it became clear that the party’s mixed legacy was not entirely forgotten.