Business Community Strives to create a fairer, competitive Mexico

Q: What role does CCE play in Mexico’s economic and social development?

A: We have a variety of organizations that represent businesses in different areas of the economy, either generally or in more specific industries. CCE was created to address the need to share a transversal agenda between all business organizations. Although each organization looks for solutions to specific problems that impact their sector, CCE voices concerns related to structural problems. CCE is the umbrella organization for most of the country’s business entities. 
Our transversal agenda includes issues related to economic and financial public policy, which entails decisions that directly impact the economy. As representatives of the country’s business organizations, we have direct interaction with both the legislative and executive branches of government, promoting and analyzing initiatives that we believe can help solve the country’s most pressing issues. 
We are interested in the creation of public policies that help to better organize the market, that allow for free competition and that at the same time facilitate the generation of new businesses. 

Q: How does CCE comply with its mandate to help develop public policies intended for economic growth and competitiveness?

A: Two years ago, we created a document for the candidates participating in the electoral process, whether running for president, the legislative branch or governorships. This document, México Mejor Futuro (Mexico, a Better Future), identified five pillars in which both the government and the private sector need to work. The first pillar is rule of law and security and the private sector's participation is crucial for this. We need to work against corruption, promote integrity and business ethics within companies and initiate codes of conduct regarding corporate governance that can also permeate SMEs, thus creating a culture of greater compliance in the country.

At the same time, we have to help and even generate pressure on the authorities to solve security issues. 
Another pillar for development is the creation of public policies that generate competitiveness. Topics such as deregulation and the combination of efforts between development and commercial banks are key to improving the country’s standing. We also need a public policy that facilitates communication between SMEs and the scientific community so they can work together and generate products that have greater added value. 
Efficiency and transparency of governments are also fundamental issues. We want all governments, not only at the federal level but locally as well, to commit to the digitalization of their processes, which would allow for governmental accountability and comparisons between states. Any efficient government must ensure all economic variables are managed with responsibility to allow for economic growth. 
Businesses and society need to always be vigilant and hold whoever governs the country accountable to avoid mistakes in economic policy that could generate inflation and increase debt. A breakdown of the country’s macroeconomic indicators would eliminate the stability businesses need to develop. That is why we insist so much on Banxico’s independence, on responsible debt management from the Ministry of Public Credit and on the constant improvement in the management of PEMEX’s debt indicators, which in the end are related to management of the national debt. Actions such as the cancellation of NAIM, which are politically motivated and not justified by technical reasons, generate distress that not only impacts macroeconomic indicators, such as interest rates, but also generate a loss in competitiveness.  
Sustainability is a priority as well. We cannot achieve definite development without it being sustainable. However, sustainability is not only about protecting the environment but also about creating companies that are profitable and successful over time, generating the best possible compliance practices. Businesses and their collaborators must also be involved in solving the needs of their communities.

Q: How does the Mexican business community work alongside the government to foster the creation of an environment less prone to violence?

A: We need to demand more information from the authorities and coordinate our efforts to monitor specific intervention plans in different regions of the country. We also need to generate best practices in terms of prevention with our workers. One of the best antidotes to violence is to generate well-paid jobs. By generating better products, with more added value, workers will become more specialized, have more training and we will be able to pay better salaries. With better and innovative products, we can compete in the world and generate greater economic development.
Training and prevention are fundamental contributions we can make from our field to generate a better environment to fight violence. We also need to be firm when participating in the efforts made by the federal government and insist that the models that work the best are those of coordination and cooperation.

Q: What policies are necessary for the sustainable development of Mexico’s business community?

A: It is important to solve the problem of security and rule of law. The National Anti-corruption System needs to start working and we need to have an Anti-corruption Prosecutor. This would also allow us to reduce the country’s costs. 
Corruption costs us at least 1 percent of GDP, although some studies put the cost of corruption between 1 and 10 percent of GDP. As this was a key topic for President López Obrador, we would like to see the rapid functioning of the National Anti-corruption System and specific measures from the federal government to address this situation. 
Second, the only way to generate opportunities for those who have no opportunities is through employment. Around 70 percent of employment in Mexico is generated by SMEs. This means that the country needs an industrial policy focused on supporting the creation of SMEs and fostering an environment that facilitates their growth while committing to employment generation. In this regard, the country has a challenge in terms of deregulation for businesses. We estimate that excessive regulation costs us around 2 percent of GDP.

We also need to acquire, develop, import and implement new technologies to generate products with greater added value. Mexico has already taken a step in this regard by not competing on the world stage with commodities, meaning not competing with agricultural products. When you compete with commodities, you have to reduce costs because end prices do not depend on you but on international markets. But if we start competing with added value products and new technologies, with Mexican design and talent involved, we will generate more and faster growth. 
Mexico needs to use the tools at its disposal, including its free trade agreements with 42 countries. However, to use the world more, we require public policy that enables Mexican products to go into the world. This means better infrastructure and logistics systems so inputs can enter and products can exit the country more easily, which would make Mexico more attractive and more economical than other countries. 
Mexico's mission, through the government, is to create an environment that fosters this exchange so there is more investment and employment. But the business community needs to do the rest. Today, we could sell agricultural products at a price four or five times higher in the Middle East than in the US. However, we cannot access those markets that easily because we do not have the production and logistics viability to get our products there economically. 
The business community, including SMEs and big companies, need to be united in terms of communication with government institutions in charge of making public policies. Sometimes, communication between the two sectors is difficult but if we do not work together, development will be halted. The only way to generate employment and economic growth for people and their families is by working together.