Privatizing Pemex Would Damage Mexicos Economy

Privatizing Pemex Would Damage Mexicos Economy As we all know, the private-enterprise(prenominal) economy has constantly proven to be far top-flight to all forms of organisation. But when it comes to Mexico and the privatation of Pemex, this would actually worsen the financial system. For example, when Telcel was un-nationalized, thaumaturge man took over (Carlos Slim) who is now the richest man in Mexico and the sanction richest man in the world. Telcel operates nearly 80% of all prison house cell phones in Mexico, and prices argon higher than ever before. The win charge of Slims 3 companies Telmex, Telcel and América Móvil are 60 billion dollars. The rich constrict richer and the pitiful get even poorer. This is a prime example of how capitalism buttocks get out of hand in Mexico, on that point is too much corruption, and companies become unreliable and unpredictable. President Calderón has proposed to improve Pemex, so that it no lon ger belongs to the judicature. However, there are some(prenominal) factors which make his plan quite risky, pulling the company and the government even deeper into debt. Calderón states that no Pemex partner could expect a share in oil discovered or extracted as an attempt as not to go against the constitution, stating that all undersoil resources are to be reserved for Mexico.

This would create more problems for Mexico, considering that Mexico would ever so be buying oil from new(prenominal) countries instead of rally it. Obviously, with Mexico only buying oil and not selling it to other countries, this would make Mexico lose money very quic! kly and ultimately go into debt. The second dangerous part of Calderóns plan is that new contracts are expected to allow Pemex to show joint ventures that would facilitate exploitation of deep-sea oil deposits. Pemex has neither the technology nor the money to accomplish this. While the government would take over preferred risk-sharing contracts, this is unacceptable to many PRI members. Mexico depends on Pemex for nearly 40 percent of its revenue....If you want to get a full essay, vend up it on our website: OrderCustomPaper.com

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