tv Mexicos Finance Minister Speaks at the Inter- American Dialogue CSPAN April 12, 2019 8:20pm-9:09pm EDT
elected last year this is 45 minutes. >> good morning we will get started if you can take your seats. good morning. thank you for joining us for this special event with mexican and secretary of finance, we are honored to have you here. we are also delighted to partner this event with the wilson center and i want to give a special thanks to my colleague to help organize this special session. secretary has an impressive and distinguished academic career as a professor to call on him to assume this critical
post managing economic policy. into previously work when he was there in the city of mexico and under his direction earned a great reputation for fiscal discipline. secretary has been a consultant to the united nations and the private sector with a phd in economics and the university of wisconsin. the secretary agreed to talk about the economic agenda and priorities of the administration to put forward a bold agenda to reduce poverty while reducing economic growth and attracting investment. it's not an easy challenge but it is critical to the success of this government trying to
pursue a different approach of other mexican administrations we look forward to his remarks to be followed by an exchange with all of you. thank you for coming and i will turn it over to the secretary. >> when i speak of mexico i used to think there were two mexico's now i think there are three because the other side with the northernmost with the regional growth rates.
and those rates for many years ago were very low from that north central region and the states surround that that they enjoyed very high growth rates. so in the case of the south from the last 15 years was up 23 percent in 15 years it has been twice as much nearly 6 percent and and then even twice as much the 68 or
and second and let's the less but there are many reasons for that and the reason is the lack of investment in mexico. with the most public and private of 23 percent. if you want to grow at least it has to be between 25 percent of gdp. and the private sector and through the private sector it would have been okay to be
more than 20 percent of gdp but the reason is simply because you know whenever you are in trouble the very first thing you do is investment and that is what has been done with very bad consequences for doing that so with that public investment so there was a study with the public affairs three or four years ago that had the multiplier effect and for many countries. and depending on which ones
with that multiplier effect and the reason is not the magnitude but to have too much but it is the efficiency that we will give you an example of low public investment because there are many people that there was supposed to be a train going from south of mexico to mexico city. it was supposed to be an iconic project because the president was born in that
area and to go coast-to-coast would be 29 million pesos they ended up spending up twice as much nearly 60 million and now we have to spend another 25 million to have it finished up. [laughter] so now i don't know who designed it or the which way it was going to go to mexico city but those consequences that i think were very stupid but now we have to spend more money.
's what we would do is increase public investment but we don't have a lot of money. we have to be very careful with that. but to have a well targeted approach with a lot of efficiency. and in particular having private investment in mexico that we can enjoy more productivity. interest that is very important.
to partner with logistics a good firm who knows trains and ports and can do the logistic part of that job. and then we will have that process and of course there could be some security reasons. so perhaps we would be in worse shape but politically we can do that in the case of countries if we have a free
trade agreement. but anyway to be closer to the heart of the president which creates more than 15000 and that goes through six different states and in that case it is a more ambitious project because we have the infrastructure we have some but not all. we are planning in seven parts to have public-private associations and again all the
stop here and then i can take questions. >> thank you mister secretary for those remarks. so i will just ask the first question there is a lot of uncertainty about usmca and what will happen with that. so can you comment on the uncertainty of the ratification of that treaty and how that affects obviously it would be disastrous for us
or to have a new version of that. and my worst nightmare is that president trump decides to say to congress and then says regardless in six months the us will do that and they can do that. some people say that is almost impossible that he could try to push by simply saying we will cut this. and one month later we would be in trouble. but i think it is a nightmare.
the success of the program is cemented on the fact to have higher economic growth but the first is almost half of what we expected for this upcoming year. so what do you expect to happen as a turnaround in growth and what is your perspective moving forward? what will make that turn around quick. >> and with that economic growth is slowing down especially with europeans. we are still thinking we change from one.one at two.2 percent because we wanted to
more money transfers than before. so we believe we can do it. especially with the announcement of the projects like the ones that i just talked about and many others and already there has been some success with some projects that if you hear them then you will think that would not work. it works very well. they are supposed to connect those communities in our states and the government is a
>> i am from the xm bank you mention the oil sector. my question is not just creditors but the administration has made an announcement to provide financial support which would provide an 18 month relief so my question is what other plans for the future of what could be expected? so in terms of a new refiner refinery, how will that be financed that there is already six refineries operating under 35 percent capacity before answering that question i will remind you i have copies of
with 300 billion pesos but what to do and that is what we are doing. and later on there are people that believe we should assume the government to make it sovereign. but people don't like that. but we are aware in the short term we will need some help. >> i wanted to ask you and your recently published budget
and then to be built they are going to build up. with those six months or 12 months. >> unfortunately our time has ended so if those who wanted to ask questions but thank you to the secretary to come by. and those of the imf and the world bank please join me to think mister secretary. [applause] [inaudible conversations]
>> that she took offense at it and reporters were at her door asking questions and that was not true. and said to nancy reagan and don't you ever call me again. and she hung up. >> she said you will never see my diaries. they are kept at the bush library but not available for public view until 35 years
after her death. i figured that was unlikely she would let me see them but she said and you can see my diaries. and that was an incredible gift. >> the people of colorado and littleton in the families involved at all america cares for them and is praying for them. twenty years ago columbine shooting was one of the deadliest in american history. on thursday we look back on the tragedy. >> at that time columbine had never happened nobody looked