CIPE is paving the way for a stronger democracy in Mexico through innovative programming and private sector-oriented solutions.
Mexico has been an important area for CIPE programming, both as the second-largest economy in Latin America, and a critical southern partner to the U.S. and Canada. CIPE began working in Mexico in the 1980s and currently focuses on five active in-country projects targeting a diverse scope of work. These include:
- combatting corruption through the improvement of transparency and corporate governance in State-owned enterprises (SOEs),
- addressing security challenges and business victimization in Baja California,
- strengthening youth entrepreneurship and civic participation in Baja California,
- leading think tanks to develop ideas that support post-COVID-19 recovery in a digitalized world,
- promoting a culture of integrity in the private sector.
SOE Corporate Governance
As part of a Latin America regional project alongside partners from Argentina and Brazil, CIPE works with leading think tank Mexico Evalúa (ME) on an initiative aimed at improving transparency and corporate governance in Mexico’s energy State-owned enterprises (SOEs) to mitigate the risks of corrupt practices in these companies. In 2019, CIPE and ME developed a Transparency Index for SOEs, which uses OECD guidelines and the practices of leading companies to make recommendations to improve transparency. In 2020, Mexico Evalúa released a Surveillance Map that maps out energy SOEs, Mexican regulatory frameworks, and institutions.
In June 2021, ME published a case study and a new podcast outlining the negative impacts of poor Environmental, Social, and Governance criteria (ESG), at a Petróleos Mexicanos (PEMEX) refinery in the Hidalgo state. This study focused on the effectiveness of PEMEX’s current corporate responsibility policy with respect to comparable companies and explained how new ESG guidelines bring to light this program’s lack of sustainability. ME is finishing a second case study involving the Comisión Federal de Electricidad (CFE), Federal Electricity Commission in English, that will be released in the first quarter of 2022. Most recently, CIPE and Mexico Evalua have centered efforts on the need for better environmental and social practices to connect with local civil society and increase support for improved governance in energy SOEs.
Security in Baja California
The economy in Mexico’s Baja California state is one of the strongest in the country. However, Baja California has the third-highest crime rate among states bordering the United States. Out of every 10,000 businesses in the state, 2,983 were victims of crime in 2019, although a 2020 report Encuesta Nacional de Victimización de Empresas found that 99% of cases are not investigated or reported.
For several years, CIPE has partnered with México Evalúa on an initiative aimed at addressing insecurity challenges and business victimization, specifically extortion, in Baja California. CIPE and México Evalúa are working to gain more understanding of extortion and build consensus around public policies to address this problem. In 2021, CIPE and its partner published a roadmap based on a survey carried out in 2020 of local business leaders’ experiences with extortion. In 2022 CIPE and Mexico Evalúa will continue mapping responses to insecurity challenges and will write a policy report on business extortion in Baja California.
Creative Industries Youth Entrepreneurship in Baja California
CIPE recently launched an initiative to strengthen youth entrepreneurship in Baja California’s “orange economy” (arts, design, culture, media, etc.). In this project, CIPE is partnering with the local civil society organization, Tijuana Innovadora, to identify barriers to development for youth entrepreneurs in the creative industries or the orange economy. Through this project, CIPE and its partner will work alongside youth entrepreneurs and other key stakeholders to create roadmaps for young businesspeople to not only build the capacity to grow their businesses but also become more active members of their communities and better promoters of civic engagement. This project will build off the success of a longstanding CIPE youth entrepreneurship program in Quetzaltenango, Guatemala, Xelajú Naranja. Baja California has a growing culture of entrepreneurship and Tijuana’s geographic location and local support for the creative industries create unique opportunities for success.
Future of Work in the Legal Profession
CIPE’s Future of Work initiative brings together leading think tanks in Latin America to develop ideas to stimulate the region’s post-COVID-19 economic recovery and transition to a digitalized world. Under this regional project, CIPE is working with México Evalúa, as part of a consortium of Latin American think tanks, to engage in dialogue with stakeholders and policymakers to research trends and best practices in the use of digital technology to improve citizen services in the judicial system.
In early 2021, CIPE hosted a webinar and podcast where Mexico Evalúa’s Laurence Pantin discussed how technology can bring about transparency and accountability in the Mexican judicial system, and the implications these transitions can have for other public institutions. Pantin contributed a blog, How Digital Technology Can Serve a More Humane Justice, on CIPE’s website in April 2021, based on her report which explores the ways in which Mexico adapted to the COVID-19 pandemic and how new technologies can be used to administer justice in the country. Moving forward, CIPE will continue to work with Mexico Evalúa to engage civil society on this topic through workshops and events with thematic experts, relevant stakeholders, and the public in early 2022.
Mexico ProIntegridad
In September 2021, CIPE’s Anti-Corruption and Governance Center (ACGC), in collaboration with the Latin America and the Caribbean (LAC) Department, kicked off a new initiative in Mexico. Over the next five years, this USAID-funded México ProIntegridad project aims to promote a culture of integrity in the private sector, focused on transparency and fair practice within the combined efforts of the government, private sector, and civil society. CIPE’s team in Mexico City will focus on private sector integrity practices in small and medium enterprises and how these can be strengthened and expanded. This country-wide initiative will broaden CIPE’s work with the business community in new states and regions and play an important role in informing future programming.
Looking Ahead
Mexico’s vibrant business community and active civil society provide many opportunities for successful projects in the country. CIPE’s longstanding relationships with local organizations such as Mexico Evalúa and COPARMEX, one of Mexico’s leading business associations, have laid the groundwork to continue developing and implementing new initiatives. In 2021, CIPE began the process of officially registering in Mexico to begin working towards increased local presence and eventually opening a CIPE field office in Mexico City. This office symbolizes the strengthening of CIPE’s current ties and will lead to new partnerships that will support CIPE’s continued work focused on developing private sector solutions to democratic challenges.
Published Date: February 08, 2022