Friday, April 17, 2020

mexico in a nutshell


I thrive on small pleasures.

One of my favorites is the free "Pocket World in Figures" that I receive each year from The Economist. And yes, I am fully aware that the champion of the liberal order calling anything "free" is a bit ironic.

Because the booklet arrives by mail, we were well into enjoying the cornucopia of blessings that is 2020 when the 2019 edition showed up in my mailbox.

When I was in high school, I anticipated the issuance of each annual world almanac. I would thumb through and find facts that I found titilating. Who knew that Burma raised that much rice?

I now do the same thing with "Pocket World in Figures." Except my focus is now rather limited. I like to see what has changed in Mexico -- especially those facts that are counter-intuitive to what a lot of people think they know about Mexico.

So, come along with me on a quick trip through the Mexico that we may not know.
  • Despite what some people think, Mexico's population is not bursting at the seams. It has the world's ninth largest population at 127 million, but the fertility rate is only 2.1. Without immigration, Mexico could barely break even with births and deaths.
  • Mexico is not a third-world country. It is a member of the OECD, a club mainly for rich nations. And its economy justifies that membership.
  • Mexico has the world's 15th largest economy by GDP, and the 11th by purchasing power.
  • In a nod to its colonial past, Mexico is #9 in gold production, #1 in silver, #5 in lead, #8 in copper, #6 in zinc. Much of that has come from the investment of several controversial Canadian mine projects that have reignited Revolutionary era memories.
  • It is the world's 8th most popular destination for tourists -- constituting 20.6 billion US dollars.
  • The country is 11th in railroad miles and #19 in road miles.
  • It is a place where divorce does not normally take place --#10 on the lowest divorce rate table. That may be because it is 27th on the lowest marriage table.
  • Mexicans work hard. Only 8 countries work longer hours than they do.
  • The country has one of the highest number of women in parliament -- at 42.6%, being #8 in the world.
  • It is the 15th largest energy producer and the 14th largest energy consumer.
  • It is #7 in sugar production, #7 for meat (think pork), #6 for fruit, and #9 for vegetables -- making it the 14th largest producer of agricultural products.
  • But agriculture is only a small part of Mexico's economy. Mexico has the 14th largest industrial output, 11th largest manufacturing output, and 15th largest services output.

But not everything is rosy here. Every country has its blemishes.
  • Mexico ranks 5th among countries that abuse journalists.
  • It ranks 15th for obesity. Unlike the United States and Canada where there is little spread between the obesity of women and men. Far fewer Mexican men are obese than are women.
  • In endangered animals, Mexicio ranks #4 for mammals, #3 for fish, and #10 for plants.
  • Befitting the size of its economy, Mexico is #13 in carbon dioxide emissions. 

And that last factoid brings me to my piece of solar news.

When I installed my solar panels last year (put that cow on a boat to india), I told you how we had calculated the number of panels I would need to generate enough power to meet my historical maximum electricity load. That meant that if I did not increase my usage, I would be generating more power from my solar panels than I could use.

The idea was that my excess power would be sent back to CFE (the state-owned electric company) who would then sell my power to other customers. I would receive credit for that power, and, at the end of a year, CFE would calculate how much money it owed me, and would then send off a check to me. My own private stimulus fund.

Well, a year has now gone by and there is no check in the mail. Apparently, I missed something very important when Andrés Manuel López Obrador (AMLO) was inaugurated president of Mexico.

As a populist, AMLO found it untoward that CFE was giving away the people's money to middle-class consumers who could afford the luxury of investing in solar panels. He shut off the payments. Or, in my case, potential payments.

From an economic standpoint, I understand his primary point. It is the same reason the Left in Mexico did not uniformly oppose the termination of CFE's summer subsidies. In the past, depending on several factors, CFE reduced the bills of all Mexicans by a certain amount to ensure the poor would have adequate electricity for ventilation during the summer.

The economic problem with utility subsidies is that they inevitably disproportionately reward the middle class over the poor. So, the CFE summer subsidies were placed on the chopping block by the last administration -- to be replaced by payments directly to the poor through DIF (a government welfare agency).

The solar pay-back program did not suffer the same economic disability. But, on its face, it could not stand politically in a populist administration. So, it too went to the block.

The downside of that decision is that it will now undoubtedly deter the installation of solar arrays. Or, at the best, it wil limit the incentive to install more panels than are absolutely necessary.

As for me, I am going to keep using power as I always have. It appears that the credits are still accumulating on my bill. And I have the altruistic pleasure of knowing that I am both lowering carbon emissions while paying for someone else's electricity bill.

How could things be better than that?

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