The 4th transformation did not mean a change in the economic model

The 4th transformation did not mean a change in the economic model

Eric Toussaint interviewed by Dora Villanueva (“La Jornada” – Mexico).

Éric Toussaint 17 maio 2022, 14:54

Mexico City – The so-called fourth transformation in Mexico, led by President Andrés Manuel López Obrador, did not mean a change in the economic model as such, only some political adjustments were made that remained within the limits of welfare, although there is a historic window for the country to exercise its sovereignty, according to Éric Toussaint, spokesperson for the international network of the Committee for the Abolition of Illegitimate Debts (CADTM). Let us stress that President Andrés Manuel López Obrador, who began his term in 2018 and will end in 2024, has promised to carry out the fourth transformation of Mexico. The first transformation corresponds to the first decades of independence, which was won in 1821; the second corresponds to the liberal and republican reforms in the third quarter of the 19th century, under the presidency of Benito Juarez; the third occurred during the Mexican revolution that began in 1910 and especially throughout 1934-1940, during the mandate of Lazaro Cardenas. The fourth transformation was intended to put an end to the neoliberal policies that have dominated since the 1980s and to resume and deepen the paths embarked upon by the first three transformations. [1]

“This is not a real transformation, it is less inhumanity on the part of the state,” says the historian in an interview with La Jornada about some of the policies implemented by the current administration. However, from a financial point of view, “it remains within the same model, there are small adaptations, but the logic has not changed and I think it is very worrying.

The country missed the opportunity to take advantage of a “historic window to act in a sovereign way,” because with the high price of oil and the inter-imperialist contradiction – the latter between Chinese, Russian and US capitalism – Mexico could take steps to nationalize and socialize public services like electricity, its financial and production system, Toussaint believes.

He points out that despite the threats made by the power companies, Mexico is in the best conditions to change its economic model and nationalize its resources “if it really wants to transform, otherwise it’s more of the same. This change goes from putting an end to the development of the country as a function of the American economy, to the socialization of banking.

“Mexico has been dependent on its northern neighbor for two centuries. If there is no deeper transformation to achieve a more independent, more sovereign, more endogenous growth, then there is no transformation,” points out the CADTM spokesman.

He adds that, in general, the world’s economies are at a juncture that shows the shortcomings of the “neoliberal model implemented by the International Monetary Fund (IMF),” since, in addition to some twenty countries that are in partial default [en: default] on their debt payments, several others are on the verge of this situation.

For example, Ukraine, “which has a debt to the IMF of more than $15 billion, and since it is not in a position to pay, given the war, has reached an agreement with the World Bank to receive a credit of $8 billion to maintain payments,” the historian explains.

“All the elements of a major crisis are in place, but a new debt payment crisis has not yet exploded,” he warns. It depends on how the central banks of the United States and the European Union move, but there will still be an outflow of capital and several pandemic indebted economies could destabilize, he believes.

In this regard, it is necessary for countries to rely less on foreign and domestic debt through a fair tax policy that taxes the richest companies and large transnational corporations, as well as ensuring that banking is maintained as a public service and not a business. “It is very important to allow farmers to have access to credit at very low interest rates,” Toussaint explains.

The same with energy, “to do something better than when it was nationalized,” not only to give control to the state, but “so that users and society control the companies to avoid bureaucratization and projects not really adapted to the population.” Even in production, promote small units closer to where people consume energy to avoid waste.


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