Understanding the Problems and Obstacles of Corruption in Mexico

ISSUE BRIEF 09.13.18 Understanding the Problems and Obstacles of Corruption in Mexico

Jose I. Rodriguez-Sanchez, Ph.D., Postdoctoral Research Fellow in International Trade, Mexico Center

Corruption is an ancient and complex and public issue. Some focus on it in the phenomenon. It has been present in public sector; others examine it in the private various forms since the earliest ancient sector. Of the various approaches to defining Mesopotamian civilizations, when abuses corruption, the most controversial approach from public officials for personal gain were is that of the so-called moralists. From the recorded.1 Discussions on political corruption moralist perspective, an act of corruption also appeared in the writings of Greek should not be defined as wrong or illegal, philosophers, such as Plato and Aristotle.2 as it is contextual and depends upon the For centuries now, philosophers, sociologists, norms of the society in which it occurs. This political scientists, and historians have perspective, though important, has been analyzed the concept of corruption, usually largely avoided by modern social scientists in in the context of bribery. More recently, in favor of an institutional approach to defining the face of globalization and political and corruption, which is based on legal norms that financial integration, the study of corruption resolve conflicts between different sectors has broadened to include many different of a society that are affected by corruption. manifestations. Even so, there is not a single This institutional approach may better help in definition of corruption accepted by scholars measuring and combating corruption. and institutions working on this issue. The Leff, for example, avoids the moral concept is broad and difficult to define and definitions of corruption and instead defines it measure. Yet, corruption is everywhere, and as a set of norms and extra-legal institutions Corruption negatively it is the most corrosive social behavior of used by people to gain influence over the impacts major variables our time. To deter and abolish it, it must first actions of the bureaucracy.3 Institutional such as poverty, be understood and then addressed using approaches to corruption such as Leff’s, inequality, economic the right strategies. This issue brief deals however, have their own problems. One with the complexities involved in defining, is identifying the norms and extra-legal growth, social welfare, understanding, and measuring corruption— institutions and specifying how they operate skilled emigration, first steps in dealing with this pervasive to cause and incentivize corruption. Nye expenditure on problem—and uses the case of corruption in realizes this problem and argues that a education and health, Mexico, where corruption has increased in primary task in defining corruption is to recent years, to illustrate these complexities. specify the standards used to evaluate a and civil and corrupt act. Nye therefore defines corruption political rights. as “behavior which deviates from the formal DEFINING CORRUPTION duties of a public role because of private- regarding (personal, close family, private Defining corruption has been a challenge for clique) pecuniary or status gains; or violates academics and institutions around the world. rules against the exercise of certain types Some view it as an individual, moral, and of private-regarding influence.”4 In this cultural issue; others view it as a structural RICE UNIVERSITY’S BAKER INSTITUTE FOR PUBLIC POLICY // ISSUE BRIEF // 09.13.18

FIGURE 1 — THE AVERAGE CPI OF OECD MEMBERS COMPARED TO MEXICO

80 70.5 70.2 70.8 70.4 70.4 69.9 68.2 68.4 68.8 69.1 69.9 69.0 68.5 68.4 68.2 68.8 69.5 68.6 70 68.4 68.2 68.1 68.1 68.4

40 37.0 36.0 36.0 36.0 36.0 35.0 35.0 34.0 34.0 34.0 33.0 33.0 34.0 33.0 33.0 33.0 32.0 31.0 31.0 30.0 30.0 29.0 Average CPI Average 30 27.0

2011 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2012 2013 2014 2015 2016 2017

Mexico OECD members

SOURCE “Corruption Perceptions Index Overview,” Transparency International (TI), last modified February 21, 2018, https://www.transparency.org/research/cpi/ overview. definition of corruption, Nye includes bribery, comes in the form of money.”9 The variations nepotism, and misappropriation. Following in these definitions of corruption show a Nye, Huntington defines corruption as the common theme: scholars continue to struggle deviation from accepted norms to serve with defining this concept. private ends by public officials.5 This definition Given the many issues with defining considers the existence of two parties— corruption, researchers have crafted corruptor and corrupted—in any exchange of a “thicker,” more robust description of it. resources, but fails to consider the negative Corruption, they argue, does not depend externalities of their actions. For example, on individual behavior but on collective or corruption diverts resources intended for systemic behavior. This systemic definition public works and infrastructure into private eliminates the restrictive personal gain hands and therefore causes indirect negative component in previous definitions and impacts on a society, such as unsafe buildings broadens the discussion of corruption as a or environmental degradation. social issue. According to this definition, limits Rose-Ackerman emphasizes the corrupt to state power must be established that apply links between the state and the private sector. to individuals beyond public officials. Along She defines corruption as the misuse of public similar lines, Warren expounds on the idea office for economic or political gain.6 Similarly, that corruption reduces the effectiveness of for Klitgaard, corruption occurs when public public action because it affects institutions officials make special arrangements for and state power.10 Sandoval-Ballesteros private gain.7 In both of these definitions, further conceptualizes corruption as agents are disloyal to the public interest or a “specific form of social domination common good and pursue private interests. characterized by abuse, simulation, and Bhargava adds the private sector to the misappropriation of resources arising from a definition of corruption, arguing that corrupt pronounced differential in structural power.”11 acts can also occur in it.8 Finally, Johnston This systemic approach differentiates between adds that corruption is the “abuse of a trust, individual and institutional corruption, generally involving public power, for private depending on the benefits obtained and by benefit that often, but by no means always, whom in a corrupt act. 2 UNDERSTANDING THE PROBLEMS AND OBSTACLES OF CORRUPTION IN MEXICO

International agencies have also analyzed element of corruption, and he recognizes a and defined corruption. The United Nations country’s social and cultural history, along Convention against Corruption (UNCAC) does with its political and economic development, not have a specific definition of corruption as the roots of corruption. Given these factors, as such, but it categorizes different acts of Tanzi further classifies corruption into two corruption according to Chapter III of the categories: petty and grand.16 Similarly, TI convention.12 These acts include bribery also classifies corruption into grand, petty, and embezzlement, as well as money or political corruption depending on where it laundering, concealment, illicit enrichment, happens and the quantity of money lost. trading in influence, and obstruction of When defining corruption, Tanzi further justice. Furthermore, the United Nations separates the causes of corruption into direct Office on Drug and Crime (UNODC) developed and indirect factors. Direct factors are carried the International Classification of Crime for out by the state under monopoly conditions Statistical Purpose (ICCS) to classify all types and discretional power, and include activities of criminal offenses into categories with a such as regulation, authorization, taxation, common framework for all countries. The ICCS and the provision of goods and services at includes the following as corrupt acts: bribery below-market prices. Indirect factors include (passive or active), embezzlement, abuse the quality of bureaucracy, level of public of functions, trading in influence, and illicit sector wages, penalty systems, institutional enrichment, among others.13 The World Bank controls, and transparency of rules, laws, Developing countries (WB) includes nepotism, theft of state assets, and processes. Lambsdorf further identifies and the diversion of state revenues as corrupt similar causes of corruption: government size, do not have specific acts. The WB, along with the Organisation for institutional quality, absence of competition, strategies or legal Economic Co-operation and Development salaries, press freedom, democracy, gender, systems to deter (OECD) and Transparency International (TI) and cultural determinants.17 corruption and, define corruption in essentially the same Recently, researchers have proposed in some cases, way for policy purposes, as “the abuse of economic models to explain corruption using entrusted power for private gain.”14 This different causes, such as economic freedom, it has already been definition is widely used by decision-makers, economic growth, globalization, income established as despite its vagueness. Its strength, however, distribution, inflation, poverty, trade openness, normal behavior is that it accounts for the extent, impact, and political competition, political instability, that has significant various causes of corruption, as well as the property rights, education, ethics, and religion. fact that corrupt acts are recognized and Some of these factors are highly related to negative impacts on sanctioned differently across all societies. For corruption in that they might be not only the economic growth. example, nepotism in one country may not cause but also the consequence of corruption. be considered an act of corruption in another. Hence, the direction of causality for some of Hence, countries can exhibit different levels of these variables (economic growth, inequality corruption and be advised accordingly. of income, inflation, etc.) is controversial. If The literature on defining corruption these variables cause corruption and at the has also focused on rent-seeking behavior same time are the result of it, economies as a main cause. This behavior is present become trapped in a vicious circle. in different corrupt acts, such as bribery, Governments must then implement efficient embezzlement, extortion, and fraud. Klitgaard public policies to break this cycle and improve uses the rent-seeking idea and develops the welfare of their societies. corruption as a linear function of monopoly, discretion, and accountability.15 He argues that corruption emerges when a firm or MEASURING THE COSTS AND person has a monopoly of power over a CONSEQUENCES OF CORRUPTION good or service that generates rent, has Beyond defining corruption, its consequences the discretionary power to decide who will have also been analyzed by scholars in receive it and how much that person will various disciplines. They have found that benefit, and is not held accountable. Tanzi corruption negatively impacts major variables agrees that rent-seeking behavior is a key 3 RICE UNIVERSITY’S BAKER INSTITUTE FOR PUBLIC POLICY // ISSUE BRIEF // 09.13.18

such as poverty, inequality, economic individuals to avoid bureaucratic delays, and growth, social welfare, skilled emigration, it is thought to also help if bribes replace expenditure on education and health, and the low salaries of public officials so that civil and political rights.18 Hence, corruption the government does not have to pay them. can negatively affect institutional, social, Following this argument, the government political, and economic development. In can maintain a lower tax burden that favors addition, as corruption becomes more economic growth. Finally, the gamble pervasive in society, perceptions of injustice, argument establishes that corruption is waste of public resources, and political a risk factor for economic performance. instability increase. These negative impacts Indeed, corruption increases the variability are exacerbated under specific conditions, of economic productivity and hence, the including in developing countries with risk for the whole economy. Of these three Mexico is a prime higher levels of poverty and inequality and arguments, general economic evidence example of how less transparency in their institutions and is consistent with the sand on the wheels corruption has legal systems. Such negative consequences argument, in which corruption is considered of corruption are especially prevalent in to be detrimental to economic growth. expansive effects on societies under a monopoly, monopsony, The negative consequences of a society and how or large government with multiple welfare corruption on key areas of society such it is subsequently programs. All scholarship points to the fact as education, health, human rights, and normalized. that these nations must prevent corruption national security are pernicious and more from becoming systemic, as it reduces the costly than their benefits. Indeed, in cases ability of economies to grow. Worse, in such of corruption, only certain individuals countries, corruption works as a regressive obtain concentrated benefits, while the tax that affects the income of the poor people costs are distributed to the whole of society more than the income of other groups. as direct and indirect costs (i.e., negative Analyzing the impact of corruption externalities). Calculating these costs is vital on economic growth further illustrates to identifying the most corrupt areas of a the complexity inherent in this issue. country and finding the adequate public Corruption can occasionally be beneficial policies that will help to reduce corruption in to certain individuals, but the cost- both the short and long term. benefit calculation is complex and may In terms of how corrupt activity affects vary under different economic scenarios. economic growth, estimates show that Three arguments have been proposed corruption costs approximately 5% ($2.6 Scholars and institutions to explain the effects of corruption on trillion) of global gross domestic product must also identify new economic growth: the “sand on the (GDP) per year, with costs of more than methods to evaluate wheels,” the “grease on the wheels,” and $1 trillion in bribes annually.20 Breaking the “gamble” arguments.19 According to the down this cost is crucial, but we have to corruption and calculate sand on the wheels argument, corruption keep in mind that the methodology used its costs to help identify reduces economic growth by decreasing to determine it is not clear.21 Assuming new ways of facing this government efficiency, incentives to invest, that this figure is a valid approximation of global problem. and human capital formation, which act global corruption, it gives us an idea of the as barriers to competitive markets and magnitude of the problem. If governments cause talented people to engage in rent- can eliminate corruption in their countries, seeking behavior rather than productive they could reallocate this money to activities. Furthermore, this hypothesis infrastructure, education, health care, and argues that corruption diminishes public food security. and private sector productivity due to The problem of corruption is so costly inefficient resource allocation. The grease on and contagious that major international the wheels argument says that corruption institutions have decided to fight against it fosters economic growth if it removes throughout the world. Institutions such as government-imposed restrictions that the United Nations, WB, TI, and the World affect investment and productivity. In this Economic Forum have developed different hypothesis, corruption is thought to enable measures of corruption and have promoted 4 UNDERSTANDING THE PROBLEMS AND OBSTACLES OF CORRUPTION IN MEXICO

FIGURE 2 – THE AVERAGE CPI OF LATIN AMERICAN AND CARIBBEAN COUNTRIES COMPARED TO MEXICO

44 42.7 42.7 42.1 41.9 41.8 42

39.3 40 39.0 38.9 39.1

37.2 38 37.2 37.0 37.0 36.0 36.0 36.2 36.0 37.0 35.3 36 35.0 35.0 35.0 34.5 36.0 34.5 34.0 34.0 Average CPI Average 34 33.0 35.0 33.0 33.0

32 31.0 31.0

30.0 30.0 30 29.0

2011 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2012 2013 2014 2015 2016 2017

Mexico Latin America and the Caribbean

SOURCE Transparency International (TI), https://www.transparency.org/research/cpi/overview. anti-corruption laws to prevent corrupt acts. The main objective of these institutions is to CORRUPTION ISSUES IN MEXICO inform people about the negative impacts A key example of corruption in developing of corruption on their economies and to countries is Mexico. Mexico has become implement public policies to eliminate corrupt, with several well-known cases corruption in every sector. of corruption in the public and private Corruption has increased around the sectors appearing in the last several world in recent years, and it has particularly years. For example, in 2012 Walmart paid affected developing countries. Many of these $24 million in bribes to local government countries do not have a clear definition and public officials to obtain permits and of corruption or a method to accurately zoning approvals to build new stores.22 In measure its costs. Indeed, it is very difficult addition, Petróleos Mexicanos (PEMEX), a to define and measure corruption as stated state-owned company, signed and paid above, and the poor economic conditions contracts to private companies that were and weak institutions in developing very problematic in exchange for $11.7 countries further complicate these billion dollars from 2003 to 2012.23 These processes, thereby creating a challenge for firms overcharged PEMEX for their work, local academics and institutions. Developing and in some cases, the work was of poor countries do not have specific strategies or quality or never completed. The list of firms legal systems to deter corruption and, in involved in corrupt acts is extensive. This list some cases, it has already been established includes Oceanografía S.A. de C.V., Hewlett- as normal behavior that has significant Packard, ABB, Paradigm, Zimmer Biomet, negative impacts on economic growth. If and Odebrecht. There have also been major policymakers could understand, define, cases of corruption within the Mexican and measure this problem in a developing government, wherein government officials country, they could help other developing have diverted public funds for their own countries to combat this problem. benefit for many years. Javier Duarte, the governor of Veracruz from 2010 to 2016, is a prime example of the country’s corrupt 5 RICE UNIVERSITY’S BAKER INSTITUTE FOR PUBLIC POLICY // ISSUE BRIEF // 09.13.18

demonstrate the magnitude of the problem FIGURE 3 — THE RELATIONSHIP BETWEEN CPI AND PER CAPITA GDP in this country. Such events have also IN MEXICO increased the perception of corruption in Mexican society. Indeed, Mexicans consider corruption as the second-most important 12,000 national concern, just below security.27 They also rank corruption as the largest problem for doing business in Mexico, even

10,000 above security concerns.28 Furthermore, according to the World Economic Forum in 2017, Mexico’s ranking in corruption

8,000 fell for acts such as the diversion of public funds (ranked 127 out of 137) and irregular payments and bribes (ranked 105 out of Mexico GDP per capita 29

6,000 137). In 2017, TI also ranked Mexico in 135th place out of 180 countries using its Corruption Perceptions Index (CPI).30 Mexico has dropped 40 places on this 4,000 25 30 35 40 index since 2015. Among the 35 member CPI of Mexico countries of the OECD, Mexico has the lowest CPI, far from the average level of SOURCE Transparency International, https://www.transparency.org/research/cpi/overview; World all other members over the last 20 years Bank, https://data.worldbank.org/indicator/NY.GDP.PCAP.CD?locations=MX. (Figure 1). This pattern also holds among G20 countries, of which Mexico and Russia were the lowest ranked in 2017. Comparing state leaders. He diverted approximately $35 Mexico’s CPI with the average CPI of Latin million to phantom companies and increased American and Caribbean countries, it is 24 the state’s debt by more than $5.18 billion. clear that the gap between these two The Mexican Institute for Competitiveness values has increased strongly since 2014 (IMCO) reports different costs of corruption due to Mexico’s plummeting rank (Figure that vary depending on which national or 2). All of these figures point to the fact that international agency calculated them. These Mexicans perceive corruption as a serious values range from 2 to 10 percent of Mexico’s problem and it is becoming normalized in 25 GDP per year. This range is very broad, and Mexican society. the methods used to create these figures are Moreover, using the CPI of Mexico and unclear, so a more comprehensive calculation its per capita GDP since 1995, a negative of the cost of corruption in Mexico is needed. relationship between the CPI and economic In the Mexican public and private growth emerges (Figure 3). This simple sectors, many officials have used their analysis demonstrates the impact of positions for personal benefits via different corruption on the Mexican economy and corrupt acts (bribery, nepotism, diversion how corruption deters economic growth.31 of public funds, etc.). A big problem In this case, Mexico follows the sand on the linked with these acts of corruption is wheels argument mentioned previously. impunity. According to the IMCO, almost all Given all of the above circumstances, corruption crimes go unpunished in Mexico. Mexico is a good case study of corruption Between 1998 and 2012, only 1.75% of in the world. A deeper analysis is needed individuals accused of corruption faced with new methods to determine the actual charges in Mexico. From 2000 to 2013, cost of corruption in Mexico. If we could 42 Mexican governors were accused of accurately measure this cost and the actual corrupt actions, but only five (11.9%) were impacts of corruption on the Mexican 26 ultimately convicted. economy, we could better understand

These examples of corruption in Mexico the causes, effects, and circumstances are a small sample of many cases, yet they that promote corrupt behavior, with 6 UNDERSTANDING THE PROBLEMS AND OBSTACLES OF CORRUPTION IN MEXICO

the ultimate goal of “curing” this deadly behavior of agents so that they can realize socioeconomic disease in Mexico and then that it is not “normal” to have corrupt acts replicating this process in other countries. in a society. The aim should be to prevent corruption from becoming systematized. To avoid this, countries have to increase CONCLUSION the probability of being caught, as well as increase the penalties. Countries must also Defining corruption is difficult and measuring enhance transparency in their economies it is even more so. Corruption provides and reduce or regulate market power, in benefits to certain agents but is detrimental to addition to implementing other policies the common good. It also has many negative depending on how they define corruption. impacts because it permits certain agents Finally, scholars and institutions must to maintain or increase their power and understand and analyze corruption and decide who is allowed to reap socioeconomic inform societies about its actual cost and benefits. More importantly, corruption has economic consequences. They must also profoundly negative effects on economic identify new methods to evaluate corruption growth. Corruption wastes resources that and calculate its costs to help identify new could be reallocated in other key economic ways of facing this global problem. areas. These negative impacts are greater in developing countries where poverty, inequality, and a lack of transparency in ENDNOTES institutions and legal systems exist. Given the negative impact of corruption 1. Robert Rotberg, The Corruption Cure: on economies, the United Nations decided How Citizens and Leaders Can Combat to face corruption through the United Graft (Princeton, NJ: Princeton University Nations Convention against Corruption. This Press, 2017). convention is the most comprehensive 2. Manuhuia Barchman, Barry Hindess, anti-corruption instrument to date. Many and Peter Larmour, Corruption: Expanding other institutions have also fought against the Focus (Canberra: ANU E Press, 2012).\ corruption such as the World Bank, 3. Nathaniel H. Leff, “Economic Transparency International, and the World Development Through Bureaucratic Economic Forum. Corruption,” American Behavioral Scientist 8, Mexico is a prime example of how no. 3 (1964): 8-14, https://bit.ly/2wIZKff. corruption has expansive effects on 4. J. S. Nye, “Corruption and Political a society and how it is subsequently Development: A Cost-Benefit Analysis,” The normalized by society. Cases of corruption American Political Science Review 61, no. 2 in Mexico have increased in recent years (1967): 417-27, https://bit.ly/2Nlv5yX. in both the public and private sectors. 5. Samuel Huntington, Political Order However, analyzing corruption in Mexico is in Changing Societies (New Haven, CT: Yale still a new research focus, and researchers University Press, 1968). need to further investigate this topic and 6. Susan Rose-Ackerman, Corruption how to avoid further normalizing corrupt and Government: Causes, consequences, and acts. The common Mexican phrase “El que reform (Cambridge: Cambridge University no tranza no avanza,” or “The one that Press, 1999). does not cheat, does not succeed,” must be 7. Robert Klitgaard, Controlling Corruption extinguished from Mexican society. (Berkeley: University of California Press, 1988). Combating corruption is a titanic 8. Vinay Bhargava, “The Cancer of task. It begins with defining corruption Corruption,” World Bank Global Issues and identifying corrupt acts and their Seminar Series, September 26, 2005, https:// costs. It ends with the establishment and bit.ly/2M1hfgn. implementation of corresponding public 9. Michael Johnston, Syndromes of policies to prevent and combat corruption. Corruption: Wealth, Power, and Democracy The main objective should be to modify the (Cambridge: Cambridge University Press, 2005). 7 RICE UNIVERSITY’S BAKER INSTITUTE FOR PUBLIC POLICY // ISSUE BRIEF // 09.13.18

10. Mark E. Warren,“What Does 23. Reuters, “Mexico looks the other Corruption Mean in a Democracy?”American way as contractors fleece oil giant Pemex,” Journal of Political Science 48, no. 2 (April January 23, 2015, https://reut.rs/2wP7w82. 2004): 328-343, https://bit.ly/2PDFjrO. 24. Elisabeth Malkin, “Corruption at a 11. Irma E. Sandoval-Ballesteros, “From Level of Audacity ‘Never seen in Mexico’,” ‘Institutional’ to ‘Structural’ Corruption: The New York Times, April 19, 2017, https:// Rethinking Accountability in a World of nyti.ms/2oPtRx0; Reuters, “Incoming Public-Private Partnerships” (Edmund J. Safra governor of Mexican state Veracruz says Working Papers No. 33, Harvard University, bailout needed,” October 13, 2016, https:// Cambridge, MA, 2013), https://bit.ly/2Q5isqh. reut.rs/2oJxCF2. 12. United Nations Office on Drugs and 25. María Amparo Casar, México: Crime, United Nations Convention Against Anatomía de la Corrupción (Mexico City: Corruption (New York, 2004), https://bit. Instituto Mexicano para la Competitividad ly/1NwzMLS. A.C., 2016), https://bit.ly/2M6LiU8. 13. United Nations Office on Drugs and 26. Rotberg, The Corruption Cure. Crime, International Classification of Crime 27. Casar, México. for Statistical Purposes (ICCS) (Vienna, 2015), 28. World Economic Forum, The Global https://bit.ly/2Co2Z1M. Competitiveness Report 2017-2018 (Geneva: 14. Transparency International, “What is World Economic Forum, 2017), https://bit. Corruption?” 2018, https://bit.ly/2HLSxmc. ly/2jZK8Rg. 15. Robert Klitgaard, “International 29. World Economic Forum 2017. Cooperation against Corruption,” Finance 30. The CPI ranks 180 countries by their and Development 35, no. 1 (March 1998): perceived levels of public sector corruption. It 3-6, https://bit.ly/2MSIsqY. uses a scale of 0 (highly corrupt) to 100 (not 16. Vito Tanzi, “Corruption around the corrupt). TI changed its methodology in 2012 World: Causes, Consequences, Scope, and and comparisons before and after that year Cures,” IMF Staff Papers 45, no.4 (1998): should be taken with caution. See more issue briefs at: 559-594, https://bit.ly/2vnr6Gd. 31. Perceived corruption does not www.bakerinstitute.org/issue-briefs 17. Johann Graf Lambsdorff, necessarily measure the actual corruption This publication was written by a “Consequences and Causes of Corruption: in a location. In this graph, we are assuming researcher (or researchers) who What do we know from a cross-section that they are very similar or they are highly participated in a Baker Institute project. of countries?” (working paper, Passauer correlated. Wherever feasible, this research is Diskussionpapiere: Volkswirtschaftliche reviewed by outside experts before it is Reihe No. V-34-05, Leibniz Information released. However, the views expressed AUTHOR herein are those of the individual Center for Economics, 2005). author(s), and do not necessarily 18. Eugen Dinant, “The Nature of Jose I. Rodriguez-Sanchez, Ph.D., is a represent the views of Rice University’s Corruption: An Interdisciplinary Perspective,” postdoctoral research fellow in international Baker Institute for Public Policy. Economics, no. 2013-59 (November 7, 2013): trade for the Baker Institute Mexico Center, 1-64, https://bit.ly/2wGoPr8. © 2018 Rice University’s Baker Institute and he researches international trade, 19. Aurora A. C. Teixeira, Carlos for Public Policy migration, environmental economics, and Pimenta, António Maia, and José Antonio economic growth. He received a bachelor’s This material may be quoted or Moreira, Corruption, Economic Growth and degree in actuarial science and a master’s reproduced without prior permission, Globalization (London: Routledge, 2016). degree in economics from the Universidad provided appropriate credit is given to 20. International Chamber of Commerce, de las Américas Puebla, and master’s and the author and Rice University’s Baker “The Business Case against Corruption,” 2008, Institute for Public Policy. doctoral degrees in economics from the https://bit.ly/2Q5NFcR. University of Colorado at Boulder. Cite as: 21. There is no methodology for these Rodriguez-Sanchez, Jose I. 2018. estimates at all, see https://bit.ly/2NfnXnN. Understanding the Problems and 22. Milenio, “El Caso por el que Walmart Obstacles of Corruption in Mexico. podría pagar 300 mdd,” May 10, 2017, Issue brief no. 09.13.18. https://bit.ly/2Q2OeEe. Rice University’s Baker Institute for Public Policy, Houston, Texas.