Clinton voices support for economic reforms in Mexico

10th OCT 12:19 hrs IST
Clinton voices support for economic reforms in Mexico

Mexico City: Former US President Bill Clinton has voiced support for the kind of economic reforms that the Mexican government is seeking to pass through an opposition-dominated Congress.

Speaking at the end of a two-day seminar on "Economic Growth and Globalization" organised by the Bank of Mexico and the Mexican Senate, Clinton said structural reforms are "hard to do," but would attract capital and encourage Mexicans to keep their capital in the country.

The international seminar dwelt on the three main areas in which the government of President Vicente Fox is seeking legal changes - energy, labour, and taxes. The Fox government stepped up the intensity of its lobbying efforts last month after the opposition Institutional Revolutionary Party, or PRI, increased its leading position in the lower house of Congress in midterm elections.

The ruling National Action Party, or PAN, lost about a third of its lower house seats, although no one party has a majority in either the lower house or the Senate. Clinton said reforms, however, have to be accompanied by greater distribution of the benefits.

"Pay attention to the social contract to make sure that in opening your economy to greater competition ... the growth is actually spread to enough of the population so that they can feel the benefits," Clinton said.

Both the Fox government and opposition legislators have begun addressing the need to develop the internal market to complement export-fueled growth, but are far from agreement about how to go about it.