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Welcome to 2001 and the new millennium! Though we all endured the hype and speculation associated with Y2K last year, and the non-event it turned out to be, it is now that we really begin the 21st century. In starting 2001, it is appropriate that we look back at the changes that took place last year in Mexico and the United States, and what we might expect in the coming year. The political changes that took
center stage in both countries will have far-reaching socio-economic
impact on the citizens of each. Without question, the election of
Vicente Fox of the "PAN" party in Mexico will have a
compelling effect on a nation that has been accustomed to one-party
dominance for seven decades. We, on the other hand, with the
"hanging" victory of George W. Bush, have once again made a
change to the opposite political party who will decide the fate of our
country for the next four years. In both scenarios, the impending
opportunities created by these new political directions can only serve
to strengthen a growing and prosperous relationship between each nation.
Interestingly and yet ironic, for the first time in the history of each
country, the President-elects are former governors of their respective
states who both like to wear cowboy boots and spend time at home on
their ranches. There may not be a more significant
political figure in the world at this moment than President Fox of
Mexico. The mere fact that he was elected signals volumes about a
nation's desire for a radical change in national politics. And there is
not a man who has come to the forefront with more political charisma,
verve and energy than President Fox. Not since the emergence of Nelson
Mandela has the world been witness to a more monumental political
figure. This is a man who truly wants to be president and is not going
to be like those before him, merely the "chosen ones" of the
former ruling party. Vincente Fox is the people's President, a man who
is not afraid to take risks, a man who is not concerned with political
appearance, a man who is willing to be a part of his people and walk
among them. This is the same individual who went to church on the day of
his inauguration in blue jeans and boots, sans coat and tie,
demonstrating his indifference to political image by his manner of dress
and devout religious belief. He then later sat on a street curb talking
with his constituents about the country's needs. As a former executive
of Coca-Cola, President Fox understands Western business ideals and as
such is not the "typical" politician but more a corporate
businessman. He has publicly endorsed President-elect Bush and
acknowledged the emerging synergy that the man from Texas brings to the
White House and Mexico. President Fox is acutely aware of the strategic
ties that must remain with the United States and moreover, must be
enhanced for greater productivity between his growing nation and that of
his largest neighbor to the north. We, as Americans, should realize and
embrace the political significance that Vicente Fox's election has
created for both countries. At a recent conference on Mexico,
sponsored by the Arizona District of the Urban Land Institute, Dr.
Richard Mahoney, professor at the Thunderbird Graduate School in
Phoenix, rated both the political climate and investment opportunity in
Mexico as "high positives." What Dr. Mahoney indicated was
that the situation in Mexico was very favorable to the United States and
that the overall picture was one of political and economic stability.
Dr. Mahoney was extremely excited about the election of Vicente Fox and
felt that his new cabinet included many highly qualified and politically
respected members. Mexico is forecast to have a 7 percent growth rate
for 2001 (double that of the U.S. economy), and the Mexican peso is
predicted to remain at its current level of approximately $N9.5 pesos to
$1U.S. It is not anticipated that Mexico will suffer the same financial
banking crisis that the country experienced after the election of
Ernesto Zedillo. It is also worth noting that President Zedillo is
leaving office with "high marks" for his social initiatives,
nationwide economic growth, reductions in unemployment and crime, and a
burgeoning trade surplus with North America. Couple all of this with continued
Foreign Investment Law reforms and Mexico's heightened awareness of
protecting foreign investment in the public and private sectors, and the
result is an abounding opportunity for new capital and infrastructure
development. One of President Fox's most important issues is housing and
the ability to finance new home construction. He has already taken the
lead in creating the equivalent agency in Mexico like the Federal Home
Loan Bank here in the U.S. The intent is to originate Mexican mortgages
that can ultimately be securitized and sold on Wall Street. And lastly, Stewart Title Guaranty
Co. (STGC) is a strong proponent of Mexico. So much so that we are
"putting our money where our mouth is." STGC has received
approval from Mexico's Direccion General de Seguros y Valores de la
Secretaria de Hacienda y Credito Publico for the incorporation of our
Mexican subsidiary, Stewart Title Guaranty de Mexico, S.A. de C.V. By
the end of the first quarter of 2001, STG Mexico will be the first ever
title insurance underwriter to receive approval from Hacienda to be
licensed in Mexico as a title insurance company. With corporate
headquarters in Mexico City, Stewart Mexico will be able to offer title
insurance policies governed under the laws of Mexico with issuance to
Mexican nationals, banks, companies and developers. It is inherent with
our corporate policy and our company's mission statement that we are
dedicated to the preservation and protection
of land ownership. To that end, we believe Mexico is ready for this same
high ideal we have persevered for 108 years. (Arizona Journal of Real Estate & Business, March 2001) |
