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UNCLAS SECTION 01 OF 03 MEXICO 002852 
 
SIPDIS 
QSIPDIS 
 
SECSTATE FOR A/S SHANNON 
SECSTATE FOR WHA/MEX, WHA/ESP, EB/IBF/OMA 
SECSTATE FOR EB/ESC MCMANUS AND IZZO 
USDOC FOR 4320/ITA/MAC/WH/ONAFTA/GWORD 
USDOC FOR ITS/TD/ENERGY DIVISION 
TREASURY FOR IA (ALICE FAIBISHENKO) 
DOE FOR INTERNATIONAL AFFAIRS KDEUTSCH AND ALOCKWOD 
SECSTATE PASS TO USTR (EISSENSTAT/MELLE) 
SECSTATE PASS TO FEDERAL RESERVE (CARLOS ARTETA) 
NSC FOR DAN FISK 
 
E.O. 12958: N/A 
TAGS: ECON BEXP SENV EAID PGOV EFIN EINV MX
SUBJECT:  PRESIDENT CALDERON UNVEILS MEXICO'S NATIONAL DEVELOPMENT 
PLAN 
 
REF: (A) Mexico 2784 
 
     (B) 06 Mexico 6265 
     (C) 06 Mexico 6243 
 
¶1. (U) Summary:  President Calderon has announced a National 
Development Plan for Mexico.  The plan calls for extensive political 
and economic reform covering a wide range of areas from security to 
competitiveness to foreign policy and the environment.  Although 
many of the proposals have been pending through numerous Mexican 
administrations, the Plan is another step in the Calderon 
government's vision for Mexico.  It will require hard policy 
decisions and sustained work across many fields to be implemented 
successfully over time.  Post will follow up on the individual 
portions on the Plan and report further via septels.  End Summary 
 
¶2. (U) On May 31, in a speech at the National Palace before Mexico's 
top political, business and academic leadership, President Calderon 
unveiled Mexico's National Development Plan for 2007-2012. Calderon 
said the overall goals of the Plan are to ensure sustainable human 
development so that all Mexicans have a dignified life; to reduce 
inequality between the north and south of Mexico and between 
Mexico's rural and urban areas; improve education in order to 
develop future generations of Mexicans; ensure public security and 
combat criminality; ensure a competitive economy that generates 
jobs; and make Mexico a leader not only in North America, but in 
Latin America, the Asia-Pacific, and Europe.  Calderon said the Plan 
calls for extensive political and economic reforms, and requires a 
dialog between the executive, legislative and judicial branches as 
well as between federal, state and municipal governments, and the 
society at large.  Many of these reforms have been pending through 
numerous administrations. 
 
¶3. (U) The Plan builds on Calderon's "Vision of Mexico in 2030 
Project" that he unveiled in 2006 in a series of public fora held 
shortly before his inauguration (refs B and C) in which he laid out 
a vision of where Mexico should be in 2030, including that the 
country should among the give largest economies in the world with a 
GDP of USD 30,000 per capita (Comment:  Mexico's GDP per capita in 
2006 was USD 8135). 
 
What's in the Plan 
---------------------- 
 
¶4. (U) The five "main directives" of the Plan are: 
 
(1) Rule of Law and Security 
(2) Competitive Economy and Employment Generation 
(3) Equality of Opportunities 
(4) Environmental Sustainability 
(5) Effective Democracy and a Responsible Foreign Policy 
 
¶5. (U) In his speech, Calderon said the Plan demands, among "many 
other things," that Mexico do the following: 
 
(1) Increase investment in infrastructure. 
(2) Increase investment in human capital. 
(3) Become more productive and competitive as a nation. 
(4) Strengthen nutrition and nourishment programs. 
(5) Provide universal health care. 
(6) Improve education. 
(7) Provide more financial options for family investments in 
housing. 
(8) Preserve natural surroundings and resources, including water 
conservation. 
(9) Invest in programs such as PROARBOL- that provides income for 
those willing to care for and preserve forests and jungles. 
(10) Increase use of renewable energy and clean technologies, 
improvements in the quality of fuels, waste water treatment, and 
solid waste management. 
(11) Reduce corruption. 
 
¶6. (U) The 194-page plan lists goals and strategies for all the 
 
MEXICO 00002852  002 OF 003 
 
 
above sectors, but many of these are general, rather than specific 
actions.  Post will be evaluating the separate parts of the Plan and 
will report further via septels. 
 
Security 
--------- 
 
¶7. (U) In line with the Administration's initial actions to improve 
public security by launching surge operations in ten of the most 
conflictive states and significantly increasing the security budget, 
the Plan puts rule of law and public security at forefront of the 
agenda under its first directive.  In terms of judicial reform, the 
Plan calls for the gradual implementation of oral trials, the 
expedition of judicial proceedings, unifying a sole penal code, 
reforming the federal penitentiary system, and combating impunity. 
The Plan also justifies and anticipates the continued use of the 
military to combat organized crime and narcotrafficking.  In this 
endeavor, the NDP calls for improving the technology and 
intelligence-gathering capabilities of the armed services, 
coordinating systems of intelligence, and police reform. 
 
Effective Democracy and 
Responsible Foreign Policy 
------------------------------------ 
 
¶8. (U) Consistent with President Calderon's governing strategy to 
date, the democracy and foreign policy section of the National 
Development Plan envisions an effective democracy with strengthened 
government institutions, citizen-focused public policies, and 
enhanced dialogue between political forces.  The Plan calls for the 
construction of a national agenda concerning the nation's 
priorities, including political agreement around essential reforms. 
Citizen participation in the design and evaluation of public 
policies, and improved government transparency and performance 
across the federal structure are considered key to a more effective 
democracy.  The Plan outlines an active and responsible foreign 
policy designed to improve the quality of life of Mexicans inside 
and outside the country.  Migration remains a priority theme in 
relations with the United States; Mexico also seeks to promote 
international cooperation in counter-terrorism, counter-narcotics, 
and efforts to combat trafficking in persons.  The Plan also shows 
that Mexico intends be a leader in Latin America, and to expand its 
role in Europe, and Asia. 
 
Competitive Economy 
-------------------- 
 
¶9. (U) The Plan sets out proposals to achieve sustainable GDP growth 
of 5 percent per year and create 800,000 jobs by the end of his 
six-year presidential term. The Plan states that without 
Congressional support for proposals to boost productivity and 
improve investment conditions, the economy probably would grow at 
around 3.5 percent -- a rate the president described as insufficient 
to allow the country to meet its developmental goals.  Finance 
Minister Agustin Carstens has said that the government will present 
a fiscal reform before September, which will aim to raisQ tax 
collections by 3 percent of GDP. The Plan aims to make the case for 
a fiscal reform whose approval is not guaranteed because of the 
fragmented nature of the legislature. Calderon has a reasonable 
chance of securing passage of such legislation with the support of 
the opposition PRI, whose new leader, Beatriz Paredes, may be 
willing to negotiate. However, many observers expect that the 
Calderon Administration will need to make significant concessions to 
ensure passage. 
 
Environmental Sustainability 
---------------------------- 
 
¶10. (U) Central to achieving environmental sustainability is the 
"responsible" participation of the Mexican people to ensure that 
economic development and environmental preservation occur hand in 
hand, rather than one at the expense of the other.  The Plan calls 
 
MEXICO 00002852  003 OF 003 
 
 
for a holistic, cross-cutting approach, involving all political 
institutions in Mexico, to craft policies in the priority areas of 
water, forests, climate change, biodiversity, and hazardous wastes. 
Enjoying pride of place is climate change.  The Plan describes 
"climatic stability " as a public good that is the responsibility of 
Mexico and the international community to safeguard.  Policy 
recommendations in this area include preservation and replanting of 
forests, increased energy efficiency, clean technology, and 
implementation of Clean Development Mechanism projects.  Calderon's 
background as Energy Secretary under the Fox administration may give 
these efforts particular momentum.  (See also ref A). 
 
Comment 
-------- 
 
¶11. (U) The goals in Calderon's National Development Plan coincide 
with U.S. efforts in Mexico.  Indeed, the Embassy is actively 
working with the GOM in many of the areas.  Somewhat long on lofty 
rhetoric and short on specifics, the new National Development Plan 
is another major step in the Calderon government's vision for 
Mexico.  Like many visions, it will require hard policy decisions 
and sustained work across many fields to be implemented successfully 
over time.  Recent actions on pension reforms, and fiscal reform 
initiatives already under negotiation show that the Calderon 
Administration can successfully work with Congress and private 
actors on needed policy changes.  The Plan highlights again that 
senior GOM officials understand well the breadth and depth of 
challenges facing Mexico.  The trick now will be to put it all 
together in a real and coherent way. 
 
GARZA