Mexico prioritizes military pay over public oversight funding

In Mexico, significant changes initiated in late November 2023 have stirred controversy regarding the nation's trajectory concerning military involvement in governance and financial management. The Mexican Senate, under the ruling Morena party's control, voted to eliminate seven independent regulatory and oversight agencies. This decision was accompanied by a statement from President Claudia Sheinbaum, who declared that a significant portion of the funds generated from these eliminations would be allocated to increasing soldiers' pay. This ongoing trend of enhancing military influence was set in motion by former President Andrés Manuel López Obrador, who extended the military's role to include running essential infrastructure projects including railways, airports, and airlines, transforming the Mexican armed forces from limited involvement to a cornerstone of the country’s economic management. Moreover, during the same period, significant financial measures were taken that would divert funds from the tourism sector to the military. A new immigration charge of $42 per cruise ship passenger was approved by Congress, with two-thirds of the proceeds earmarked for military funding. Critics promptly flagged these actions, arguing that the military's encroachment into civil areas could foster favoritism and lack of transparency, significantly undermining the checks and balances necessary for a democratic system. This public discourse has been amplified by fears from the tourism industry, which cautions that such fees could be detrimental, particularly given the cruise sector's importance to Mexico's economy, earning approximately $500 million annually. The implications of these government decisions seem to cascade into various sectors, further complicating the economic landscape of Mexico. Reports indicate that many military-led projects are not performing as anticipated; for instance, the “Maya Train,” which began operations in December 2023, is currently attracting only 20% of the expected ridership. Consequently, these financial shortfalls highlight the potential need for additional revenue sources to maintain military funding, further entrenching the armed forces' position within various sectors of governance. Overall, the recent policies reflect a broader trend in Mexico where military power and oversight have become intertwined, raising concerns of diminishing accountability and the efficiency of governmental operations. The elimination of these regulatory frameworks, positioned as a cost-saving measure, is raising alarms not just domestically but also among foreign investors who see these moves as a risk to economic stability and transparency in governance. The decision to redirect funds from independent agencies to bolster military financing hints at a profound shift in Mexico's political landscape, potentially setting the stage for ongoing debates about the role of the armed forces in civil governance.