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The consequence of choices

Mexico is an interesting place, America's new sweatshop is a strange country.  Until the 2000 election, it was a one-party state with a notionally communist government, although it was more of a kleptocracy than anything else. 

For the past eight years the country has been run by a facsimile of Donald Trump without the institutional checks and balances.  AMLO as he is known universally will be leaving the political scene in a few months, as the election for his replacement is about to take place.  His anointed successor stands a good chance of winning the elections(she is polling around 63% of the popular vote). 

This is not about that!

AMLO took several decisions when he came to power, effectively renationalized the power grid, reconfirmed PEMEX's position as the sole energy company in the country, and decided to undertake three mega projects:  Build a new airport for Mexico City, a new oil refinery and a new train in the South East of the country.  These three projects were budgeted to cost, a total of less than $15,000 million.  

The previous administration had contracted for the building of a new airport in Mexico City, that was almost ready, $10,000 million had already been spent.  That project was abandoned, and then destroyed, in favour of another site.  So far, the cost of this new airport is nearly $15,000 million. It is operational but is poorly linked to the city.

The administration sought bids to build the new refinery and got a few bids that averaged $10,000 to 15,000 million dollars.  AMLO decided that the country would do it for less than $3,000.  The refinery is not yet operational (it has been open for two years, but no pipeline supply yet) at a cost of nearly $22,000 million.  

The last, the 1,500 km train line was launched in December 2023, although as of March 1, 2024, there is still no train schedule. On the company website, it is impossible to purchase a ticket, and the displayed schedule is a placeholder.   Because the train was built by the military, the total budget is secret, but government allocations show that the total cost is around $20,000 million.

The Mexican government spent nearly $60,000 million on these three projects.  When he was elected AMLO, who had previously been the mayor of Mexico City, the number one investment project for the country was building a new aqueduct for Mexico City.  The water problem has been ongoing for decades and has gotten worse every single year.  

That is the consequence of choices; governments have to make choices, good or bad, and there is a finite limit to the resources of the government.  Mexico City's population lost that one!

Note:  I wrote about Mexico because I was fed up with writing about Europe or the UK, but the similarities are striking, and no I know nothing of Mexico, we have never been.  Now instead of Mexico replace it with the United Kingdom or Germany...

Note2:  Yes I know that the Mexican government has announced that the Maya train and the oil refinery are operating at 100% -- except they've announced the imminent opening of the refinery for nearly two years, and you cannot buy a train ticket!  I mean what more do you need to know.  


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