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First Steps of the Cabinet of Enrique Peña Nieto SPECIAL REPORT

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First Steps of the Cabinet of Enrique Peña Nieto SPECIAL REPORT SPECIAL REPORT Mexico: First steps of the cabinet of Enrique Peña Nieto Mexico, January 2013 BARCELONA BOGOTÁ BUENOS AIRES LIMA LISBOA MADRID MÉXICO PANAMÁ QUITO RIO J SÃO PAULO SANTIAGO STO DOMINGO MEXICO: FIRST STEPS OF THE CABINET OF ENRIQUE PEÑA NIETO 1. INTRODUCTION 1. INTRODUCTION 2. POLITICS, ECONOMY AND On 1 December 2012 Enrique Peña Nieto was sworn in as Constitutional SOCIETY: CABINET’S CENTRAL President of the United Mexican States. FORMATION 3. THE PACT FOR MEXICO Furthermore, in 2012, the elections of 128 Senators and 500 Federal 4. EXPENDITURE BUDGET Deputies were held; at the local level were elected 6 Governors of 5. CONCLUSIONS the states of Chiapas, Guanajuato, Jalisco, Morelos, Tabasco and AUTHORS Yucatan; Head of Government of the Federal District; 579 local LLORENTE & CUENCA deputies in 15 states; 876 city councils; 20 municipal boards; and 16 Heads of Delegation of Mexico City. In total, 2127 positions at national level. In this report, we intend to describe in general the key points in the government’s formation headed by the Institutional Revolutionary Party (PRI in Spanish), the party which ruled in Mexico for 71 years, lost power to the National Action Party (PAN in Spanish) during two presidential terms and is back now. Peña Nieto has affirmed on different occasions that the PRI is no longer the same one which governed Mexico; in view of this statement, it is necessary to point out that Mexico is neither the same, that society and business people are aware of and up-to-date with what is happening, since formal and informal media and the social networks help to have a better understanding of the actions of our rulers and of national and international events. In general, we can state that the Cabinet of Enrique Peña Nieto has the following characteristics: • Predominance of politicians of the State of Mexico. • Participation of former Governors of some states. • Luis Videgaray Caso, the main player of Enrique Peña Nieto, is positioned as the leader of the economic cabinet and foreign policy. • Within the political cabinet, under the leadership of Miguel Ángel Osorio Chong, the total control of security, main critical issue of the last term, was gathered. 2 MEXICO: FIRST STEPS OF THE CABINET OF ENRIQUE PEÑA NIETO 2. POLITICS, ECONOMY Political and security cabinet AND SOCIETY: CABINET’S CENTRAL FORMATION • Secretariat of the Interior: Miguel Ángel Osorio Chong. For practical purposes, the cabinet has been divided into political, This politician from the State economic and social and as a result of Hidalgo was positioned the existing division of efforts can as one of the main political be further observed. It should players of Enrique Peña Nieto, be mentioned that most of the after having concluded his post positions have a link with the six- as Governor of his state, was year term of the President Carlos appointed as PRI delegate in “The economic Salinas de Gortari (1988-1994). the State of Mexico. Osorio was cabinet is led by Luis later positioned as Secretary Videgaray Caso and the In the positions in which an of Political Operation and agreement or pact was reached Delegations of the PRI political and security with other groups that supported National Executive Committee one by Miguel Angel the campaign, others than those with Humberto Moreira and Osorio Chong, leading of the State of Mexico, the second as Secretary of Organization operators cabinet” most important position was under the Presidency of Pedro assigned to a close collaborator of Joaquín Coldwell, from where Peña Nieto. he continued his support for the presidential candidature We will detail below the of Enrique Peña Nieto. appointments to the main positions of the cabinet, elaborating on the Within the transition team, actors who will have a greater he was assigned as the leadership from their positions leader of the area of Political thus becoming key pieces for the Dialogue and Agreement, exercise of power. therefore he reached several agreements with the internal political forces of the PRI and the opposition parties. From this term on, the Secretariat of the Interior has the total control of the Public Security institutions, including the Federal Police, the prison system and the crime prevention. Under this department, the National Commissioner of Public Security and the technical secretary of the National Security Council are created. All this seeks to reconsider the security strategy. 3 MEXICO: FIRST STEPS OF THE CABINET OF ENRIQUE PEÑA NIETO In view of Enrique Peña politics unlike his predecessor, Nieto’s mention that the who lacked the political security strategy will become capacity. a State Policy, Osorio Chong elaborated on the sense that Mondragón is a Rear Admiral prominent members of civil Naval Doctor of the Mexican society will be included as Navy. In his career, following well as the implementation positions stand out: National of federalism with regard to Coordinator of Social human rights, monitoring of Participation of the Office of the assignment of police forces the General Attorney, Assistant as well as their qualification Attorney for victims’ assistance and the action protocols and social participation at and the strengthening of the Justice Attorney Office of Plataforma México through Mexico City, Assistant Secretary greater participation of of Civic Participation and Crime governors. This strategy will Prevention of the Secretariat of “President Enrique have a regional approach Public Security of the Federal Peña Nieto called (5 regions) without being District, Secretary of Health for the creation of a restrictive and specific actions of the Federal District and will be carried out in the Secretary of Public Security of single police command towns with the highest levels the Federal District. called the National of conflict. Gendarmerie” Julián Alfonso Olivas Ugalde The strategy will also be based was appointed Assistant on the creation of the National Secretary of Administrative Gendarmerie, which will be Responsibilities and Public responsible for gathering all Procurement, position which federal and state forces, as a replaced the one at the single police command, under Secretariat of the Civil Service. the control of the Secretariat of the Interior. Olivas Ugalde has been Vice- President for Legal Affairs In order to strengthen the at the National Commission Secretary’s activities along of Insurance and Finance, these lines, Manuel Mondragón General Manager of Insurance y Kalb was appointed Assistant and Securities at the Secretary of Institutional Secretariat of Finance and Planning and Protection, who Public Credit; from 2000 to was the former Secretary of 2009 he was Director-General Public Security in Mexico City of Performance Audit of the from 2008 to 2012. Mondragón functions of Governmental is an expert also in reaching Management and Finances, agreements and, despite his and Head of Legal Affairs at the professional development Federal Superior Audit Office; as a doctor, he managed to in 2009 he was appointed understand the operation of Head of the Internal Control police commands and work in Body at the National Banking 4 MEXICO: FIRST STEPS OF THE CABINET OF ENRIQUE PEÑA NIETO and Securities Commission, • Secretariat of Foreign Executive Secretary of Relations: José Antonio Meade Services at the Supreme Court of Justice of the Nation from The responsible for the foreign 2009 to 2011 and until 2012 policy of the cabinet of Peña Director-General of Human Nieto has served as Director- Resources at the Secretariat General of Financial Planning of Finance and Public Credit. at the National Commission of the Retirement Savings • Office of the Attorney General: System, Assistant Secretary Jesús Murillo Karam of Bank Savings Protection at the Bank Savings Protection Governor of Hidalgo from Institute, Director-General of 1993 to 1998, among other the Banco Nacional de Crédito positions, he has been Assistant Ru¬ral, Director-General Secretary of Public Security at of Banking and Savings at the Secretariat of the Interior; the Secretariat of Finance Secretary-General of the PRI and Public Credit, Director- National Executive Committee General of Financiera Rural, in 2007; Delegate-General of Head of the Coordination the PRI in the Federal District Office of the Secretary of in 2011. Finance and Public Credit, Assistant Secretary for He was a Senator of the Revenue at the Secretariat Republic, serving as President of Finance and Public Credit, of the Commission on Secretary of Energy and Governance, member of the Secretary of Finance and commissions on the Federal Public Credit during the two District, Jurisdictional and presidential terms of the Justice. In 2012, as a Federal National Action Party. Deputy and President of the Lower House, he handed in the He was a fellow student of presidential sash to Peña Nieto Luis Videgaray Caso, current in total control and order of the Secretary of Finance, at the Congress of the Union despite degrees of Law and Economy, the external protests; he was and with whom he held the later appointed Coordinator of discussion when Videgaray led Legal Affairs of the transition the Budget Commission of the team of the President Enrique Chamber of Deputies. Peña Nieto. • Secretariat of the National Given the toughness of this Defense: Major General politician, his appointment is Salvador Cienfuegos Zepeda. interpreted as a reinforcement to the security strategy He has been a unit Commander headed by the Secretariat of at all levels of command, the Interior. carrying out missions in the 5 MEXICO: FIRST STEPS OF THE CABINET OF ENRIQUE PEÑA NIETO areas of Foreign Defense and Naval Force, Commander of Internal Security, of support for the Naval Sector of Matamoros, the Public Security function, Tamaulipas, Assistant to the of assistance to the civilian Chief of Naval Operations, population in cases of disasters, Director of the School of of security to strategic Destroyers, Technical Director facilities and surveillance of of the Directorate General of the southern border.
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