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Building a Global Presence: Institutional Challenges in Strengthening Mexico’S Role in International Cooperation

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Building a Global Presence: Institutional Challenges in Strengthening Mexico’S Role in International Cooperation MarcH 2010 MEXICO INSTITUTE Building a Global Presence: Institutional Challenges in Strengthening Mexico’s Role in International Cooperation During the 1990s, Mexico took divergent paths in developing its role as an international presence. In the area of economic integration and market liberalization, Mexico became a pioneer of institutional development among emerging markets and an example to the developing world. At the same time, Mexico failed to institutionalize its international cooperation agenda. This paper advocates the passage of an international cooperation law that will provide Mexico with the legal, administrative and financial tools to act more strategically. It also offers operational recommendations for how Mexico can overcome existing obstacles to its cooperation agenda. Introduction During the 1990s, Mexico took divergent paths in developing its role as an Written by international presence. In the area of economic integration and market Luz María de la liberalization, Mexico became a pioneer of institutional development among Mora Sánchez* emerging markets and an example to the developing world. At the same Wilson Center- COMEXI time, Mexico failed to institutionalize its international cooperation agenda.1 Public Policy Scholar (2009). Mexico’s implementation of the North American Free Trade Agreement (NAFTA) and its accession into the Organization for Economic Cooperation and Development (OECD) in 1994 signaled a new role for Mexico not only in the global marketplace, but also in the international development agenda. NAFTA and OECD membership effectively transformed Mexico’s role in world affairs. In 1994, Mexico relinquished its G-77 membership in the UN consistent with its OECD credentials. *This paper was made possible thanks to the financial support from the Woodrow Wilson International Center for Scholars and the Consejo Mexicano de Asuntos Internacionales (COMEXI). The author wishes to acknowledge the support from the WWICS and the Mexico Institute. I would also like to thank Tim Kessler, Yemile Mizrahi and Máximo Romero for their valuable support in revising this paper. Building a Global Presence AS A FOREIGN policy Major economies expected that Mexico would evolve to play a more prominent role as an instrument, IC is one international cooperation donor.2 Reflecting its increasingly outward-oriented agenda, in 1993, OF THE few Mexico Mexico became a member of the Asia Pacific Economic Cooperation (APEC) mechanism and HAS to effectiVely in 1997, it established the Global Agreement with the European Union, its first including a leVerage, adVance and free trade agreement, political dialogue and an international cooperation agreement. DEFEND its national While these new relationships increased interests abroad. Mexico’s international prestige and economic opportunities, they also required institution- building in a number of areas, such as competi- tion, intellectual property, telecommunications, in 2000, IMEXCI was dismantled, leaving Mexico trade, and regulation. These institutions would with an institutional vacuum. form the foundations for Mexico’s economic modernization. In December 2007 Mexico’s Senate addressed this gap by approving the Law for International Just as Mexico transformed its economic Development Cooperation, sponsored by PRI institutions to respond to its deeper integra- Senator Rosario Green, who had been Secretary tion with the global marketplace, it attempted of Foreign Affairs under President Zedillo.4 In to build institutions for cooperation policy order for the law to be enacted, the lower cham- that reflected its larger presence in the inter- ber of Congress must approve it, and President national community. In 1998, during President Calderon must sign it. Zedillo’s Administration, Mexico created its The Calderon administration has an historic first cooperation agency, the Mexican Institute opportunity to re-position Mexico in interna- for International Cooperation (IMEXCI), within tional cooperation since the legislative initia- the Ministry of Foreign Affairs (SRE), which also tive includes an institution building process made a first attempt to draft an IC law. The goal that would improve Mexico’s position to further was to enable Mexico to carry out cooperation advance its national development and foreign in a coherent manner consistent with Mexico’s policy agendas. foreign and domestic policies.3 However, in con- The Calderon administration is already play- trast to the institution-building process in the ing a prominent role in areas of the international economic arena, Mexico’s efforts to establish cooperation agenda, such as drug trafficking an international cooperation agenda were not through the Merida Initiative and UN debates, sustained. After the Fox administration arrived global climate change through the proposed 2 Building a Global Presence “Green Fund” and its leading voice in the Major Mexico’s role in international cooperation Economies Forum on Climate Change,5 region- al development through the Mesoamerican International cooperation matters for technical Development Project (MDP) and international and political considerations as a foreign policy financial architecture through Mexico’s role in instrument and a tool to further promote the G-20. In the Heiligendamm Process, the domestic development. IC offers a way to high level dialogue between the industrialized reduce tensions and opens soft venues for countries gathered in the G8 and the G-5 (Brazil, dialogue among countries.7 IC is not only an China, India, Mexico and South Africa) interna- “aid-related practice;” it can lead to a win-win tional cooperation for development is one of partnership.8 As a foreign policy instrument, four priority areas, and Mexico could position IC is one of the few Mexico has to effectively itself to act as a bridge between the North and leverage, advance and defend its national the South. interests abroad. As an economic development instrument, IC has been directed towards As in most policy areas, IC in Mexico has achieving the Millennium Development Goals required a structural reform for some time (MDGs) and enhancing technical capabilities. already.6 While that reform requires resourc- es and thinking, above all it requires a politi- For decades already, Mexico has participated cal vision that recognizes the benefits of IC for in shaping an ongoing debate on international Mexico. The premise of this paper is that Mexico cooperation for development within the UN can influence the evolution of international system, the OECD’s Development Assistance cooperation and obtain greater political, eco- Committee (DAC), APEC’s Economic and nomic and development benefits from coopera- Technical Subcommittee9 and more recently in tion if it builds the appropriate institutions and the Heiligendamm Process (HP). In the OECD organizational mechanisms. Such an institution- DAC, Mexico holds an observer role but has building process will allow Mexico to develop committed to the 2005 Paris Declaration and the a long term strategy and improve its ability to 2008 Accra Agenda for Action. 10 respond promptly and proactively in interna- tional cooperation. In addition, advancing a Mexico has also been a long-term advocate substantive IC agenda would give the rest of and practitioner of South-South (SSC) and trian- the world an image of Mexico as a constructive gular cooperation (TC).11 The former involves at problem-solver. least two developing countries that engage in cooperation, while the latter typically combines This paper advocates the passage of an IC law resources and capacities of a developing and that provides Mexico with the legal, administra- developed country to offer assistance to a third tive and financial tools to act more strategically. country. SSC is only beginning to come in the It also offers operational recommendations for form of fresh resources from countries such as how Mexico can overcome existing obstacles to China or India.12 Both modalities have become its cooperation agenda. increasingly common to achieve the MDGs, but are no substitutes to cooperation from the 3 Building a Global Presence North. failed. This section explores these episodes and lessons they may hold for future efforts. In Heiligendamm, Mexico enjoys a unique position as it is the only developing country In 1985, Mexico created the Directorate practicing SSC and TC while also being an OECD in Chief for International Cooperation within member. This allows Mexico to both understand the Ministry of Foreign Affairs (SRE). In 1990 the needs of the South and the concerns of the Secretary Fernando Solana established the North in effectively implementing aid assistance Mexican Commission for Cooperation with for development.13 Heiligendamm acknowl- Central America that coordinated Mexico’s for- edges the potential that TC offers to promote eign policy agenda in the region and helped development and has adopted an Africa focus to the stabilization efforts in Central America. The define the collaboration discussion.14 However, Commission coordinated activities from 23 dif- there is interest in enlarging to other geographic ferent Mexican government agencies. In 1994 regions . Here Mexico could play a defining role Secretary José Angel Gurría expanded the given its history in Latin America to advocate Commission’s scope to include the Caribbean; it and promote including the region in the HP was later integrated into IMEXCI. cooperation agenda.15 In 1994, under President Zedillo the Notwithstanding Mexico’s
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