Turning Right or Running in Place?

Mexico's historic, disappointing election

David Agren | July 7, 2006

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Despite President Vicente Fox's inability to enact necessary tax, energy or labor reforms, Mexico's economy improved on several fronts. Inflation dropped below three percent, interest rates also fell Mexicans can now get fixed-rate loans—the stock market soared and the peso remained stable. Calderon polled well among the middle classes, who tired of recurring economic crises.

Fox, a lousy politician, fell short of his goals thanks in part to intransigent legislators, who refused to go along with his reforms. Calderon, assuming he takes office, will have to deal with a divided Congress and Senate, where no party holds a majority.

Recognizing his slim victory and lack of a strong mandate (he only captured 35.9 percent of the vote, the lowest winning number in modern Mexican history) Calderon promised to form a coalition government. With any luck it might pull Mexico out of legislative gridlock and end its seemingly endless mediocrity.