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[Music]
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one thing that I experienced and that
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was key during my
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Administration is
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that what
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is always said in
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economy that to defeat
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poverty you have to
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grow the size of your
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economy the per capita income and the
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distribution of
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income and that's only partially
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true because during my
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Administration we grew on the average of
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Two and a half% a year which is not much
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compared to the Double G digit rates of
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growth of China or the eight or % growth
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of
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India or other nations that grow way
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above
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5% but even with having grown at two and
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a
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half% the economy we still were able to
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reduce
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poverty by
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35% 35 % of Mexican families during
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those six years had the opportunity to
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overcome by their own
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effort their condition of poverty and
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they became middle
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class modest middle
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class and how can this be
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done and I bring in a factor that I
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consider most important and that I
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learned from my finance
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minister Mr Paco
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Hill that stability is a key issue on
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the
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economy that first of all first
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responsibility with the economy is
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making sure that everybody keeps its
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assets its Revenue in actual terms and
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is not eroded by inflation
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in Latin America during the 20th
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century we most Every
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Nation
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average for the decade rates of growth
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of 2% 1% and we you take the long run 30
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or 40 years Latin American growth is
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totally
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disappointing and the increase of the
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rate of poor was growing every year
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and the problem was that we had every
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other this year this Mammoth
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devaluations this Mammoth economic
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crisis that will take you backwards all
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what you had Advanced before and of
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course your currency kept losing value
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in front the currencies of the rest of
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the world so there was no way for the
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poor to come along there was no way for
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business and investment to have
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sustainable growth on longterm
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periods and that's why stability of the
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economy is a key issue and really pays
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off and this takes me to in the
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analysis watch after the difference
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between between
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quantitative development and
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qualitative
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development because
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even the economy not growing at a fast
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rate if you bring in powerful social
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policies and you associate them to the
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economy then you get a much better
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answer when I'm speaking about powerful
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social policies I'm speaking about
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education human capital
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building
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Health housing and direct combat
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to
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Poverty where you exercise on the budget
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a very strong share of that budget on
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this powerful social
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policies then you attain the
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distribution of income even though the
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size of the pie might not might not be
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growing at the rate that you would
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expect inflation is a key
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ingredient to make sure that you attain
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the distribution of income and that the
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real income received by families is
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increasing every
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year so controlling inflation and that's
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part of having a stability is a key uh
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issue on
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this I have a question and it has to do
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with pemet you briefly touch on it if
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the government budget is so dependent on
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the pemix and we're going to be seeing a
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huge decline in production of oil uh
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I've also been told that o that the bad
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news of pemix is maybe 10 times worse
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than what is publicly
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acknowledged what is the government
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doing about fitting in the fiscal the
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money where is that going to come from
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if they've been so dependent on PMX for
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so long and they won't be able to in the
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near future yeah yeah uh it's a key
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issue in the case of
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Mexico uh and sometimes I think that uh
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that resource was not given to Mexico by
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God that it was given by the
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devil because it represents over 40% of
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the total budget of the
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nation including the three levels of
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government federal state and Municipal
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40% of the budget comes from the oil and
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that has made us lazy in
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Mexico because against that what we have
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our total fiscal income our total
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revenue tax revenue is 11% of gross
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product I don't know how where are you
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with those data but a case like United
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States is over 30% 32% of gross domestic
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product is the take of government to
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build the budget case of Brazil and
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Chile have already reached
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30% we are maybe except he or somebody
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else the
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lowest
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uh country in fiscal
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income what has happened is that we have
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used the oil to compensate for before
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the taxes we're not
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collecting if we add the oil which is
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about 9% of gross product the revenue of
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oil we go up to
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20% taxes plus oil income still is very
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low for
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today's uh challenges and
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needs Europe all nations are over
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40% of gross product is
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their fiscal income so we have a problem
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there problem number two with the oil is
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the
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Monopoly I mean we're using resources
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that we could be using for building
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human capital and we're investing in oil
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fields in oil exploration in building
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refineries I'm sorry but that's
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stupid I would gladly change each one
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varable oil that we have for one kid in
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University
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absolutely better to invest our money
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not in getting the oil but on building
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human capital unfortunately this
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Paradigm that comes ra from
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19306 or8 when the O was nationalized by
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president cardinas that became a paradig
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in and the first one that tried to
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change that was my Administration I
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submitted a bill to Congress to change
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changed that didn't pass through
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president Calderon submitted the same
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proposal didn't pass through except the
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small changes but not relevant to the
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problem to the size of the
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problem look at Brazil P brass it's been
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a miracle it's been a miracle in the
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last 12 years since president cardoso
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decided to go ahead and put in the open
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market
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30% of the stock of P brass so it became
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a blend or a mix of public and private
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investment and has moved impressively to
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today Petr brass is in Asia is in Norway
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is everywhere in Africa in the world
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working drilling getting oil exporting
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very very successful private
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Administration private principles to
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administrate not public
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the worst administrator ever and
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anywhere is
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government it's
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government so when you go looking for a
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job go to government to see if you can
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change it please I couldn't I couldn't
