In 202 years of independence (1821-2023), Mexico has had five Constitutions in force: 1824, 1836, 1843, 1857 and the 1917 Constitution, which has lasted the longest, but has undergone the most modifications: 256 decrees, with a total of 764 changes in the articles, until the beginning of 2024.
Most of these reforms increase the power of the government, whose spending already represented 30.8 percent of the Gross Domestic Product in 2022, while at the beginning of the Morena government it was 25.6 percent.
Public spending per inhabitant was 2,503 in 2018, 3,373 in 2022, 34.7 percent higher.
The increase in public spending in relation to GDP and inhabitants shows us that the government spends more and less every day, and the citizens spend less.
The constant change of constitutional articles reduces legal security and the attractiveness of investing in companies in Mexico, among Mexicans and foreigners.
Most foreigners who invest in pesos in Mexico do so because of the high interest rates, higher than those in the United States, mainly due to a higher country risk. Financial or indirect investment is the most requested by foreign speculative investors, since the interest rate is more than double in Mexico, 11.00 percent, than in the US, where it is 5.25 percent (4/2024).
Those who invest in Mexican pesos for their high interest rates, portfolio or indirect investment, are short-term, and can take their financial investments out of Mexico in minutes: the time it takes to sell through a computer, digitally, the funds they have in Mexican pesos.
The foreign investment that best suits a country is direct, which involves the opening of factories that create jobs and are planned to remain in a country for a longer time. These investors analyze in greater depth the types of government, legal stability and long-term social peace. In the US Constitution, two articles were modified in 247 years; in Mexico, 62 articles were modified in five years of Morena.
In 2024, the Executive submitted to Congress the approval of 20 more reforms to the Constitution. Some seek the disappearance of the National Electoral Institute (INE) and the INAI, an autonomous body that obliges the government and any agency that receives money from the government to provide information to the individual or legal entity that requests it.
Source: elfinanciero
