In the last six years, Mexico has experienced alarming growth in indiscipline that has translated into a recession in the last quarter of 2024. The economic crisis is set to extend throughout much of the upcoming year due to mismanagement of public resources. Vote buying disguised as social policy and investment in white elephants have depleted savings accumulated over 25 years, leaving ministries without budget for the past four years.
The current government faces a lack of resources to fulfill its basic functions. Despite having received a stable economy at the beginning of its term, issues of insecurity and violence have worsened. The lack of clear alternatives and aggressive assumption of responsibilities are further complicating the situation. For the past six years, instead of solving existing problems, new ones have been created, leaving a trail of destruction in their wake.
The energy sector has faced difficulties since 2009, but adjustments made in 2013 improved the situation of state-owned companies and advanced towards cleaner energy. However, since 2018, oil production has declined, Pemex is facing serious financial problems, and the Federal Electricity Commission has recorded losses and lack of investment in infrastructure, resulting in a current energy shortage.
The lack of competition and the ineptitude of those forming the hegemonic force in Mexico have aggravated the situation. Incompetence encompasses not only administrative issues but also a lack of internal order and divided loyalties that are causing dysfunctions in the exercise of power. The outlook is complicated by accumulated debts, lack of adequate investments, and the need to resort to excessive loans to keep the economy afloat.
The deterioration in key sectors such as health, education, infrastructure, and public services, combined with issues of discipline and leadership, make the current hegemony unsustainable. Erratic decisions and the absence of a clear plan to address internal challenges are leading the country to a state of imminent chaos. Unlike previous generations, the current hegemonic force seems to be rapidly squandering what took decades to build.
