IMF drools over Mexican pensions

12 de abril de 2007

<body><div id="article"><tr><td height="28" valign="middle" width="184"></td><td valign="middle" width="185"></td></tr><h1>IMF drools over Mexican pensions</h1><p>April 12 - EIRNS - In a Washington, D.C. press conference April 12, IMF Managing Director Rodrigo Rato "welcomed" Mexico's just-passed law which opens the door to the privatization of the public sector pension system, but Rato emphasized that tax reform and "structural reforms like the energy sector" must follow. The London Economist magazine likewise drooled that this was "the first important structural reform in a decade;" the next measures need "to be reforms of tax and of Pemex, the state oil monopoly. The two are linked, and are just as urgent as state pensions."</p><p>On March 31, Mexico's election-challenged President, Felipe Calderon, signed the law "reforming" the huge ISSSTE pension and health care system covering all federal public workers, except oil workers and the military. The politically-explosive law, which no government had been able to get the Mexican congress to approve for ten years, raises the retirement age and employee "contributions," and most importantly sets up individual accounts for pensions, similar to the de facto privatization of the social security system (IMSS) covering private sector workers from a decade ago.</p><p>Now the corrupt congressmen and others who rammed the legislation through, are lining up to be given "administrative" control over the newly privatized pension funds.</p></div></body>