This is the fourth and final post in a
series of four blog posts from my recent study trip to Mexico, with the
Stanford GSB. Here’re some facts and tid-bits on the trip which provide a bit
of an overall flavor:
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The people: 35 Stanford GSBers and their partners, hailing from 14 different
countries –backgrounds as diverse and unique as Air Force Officers, Social
Entrepreneurs, Finance Ministerial Analysts, Film Makers, Start-up Starters,
Seismologists, Sports Analysts, Chemistry Teachers, Family Businessmen … and of
course … bankers & consultants
§
The places: 3 different cities over 10 days, including Oaxaca, Monterrey and Mexico
City – each with a very different and unique character
§
The experiences: Discussing Mexico’s challenges in meetings with business and public
sector leaders; watching Mexican soap operas being filmed, including meeting
the most charismatic man in the world (not to be confused with the most
interesting man in the world, whom we also met); exploring ancient monuments;
eating good food and drinking giant margaritas; and of course, shouting and
cheering like mariachis.
Those of you who know me also know that I love to have a
good argument – I am a contrarian, and I will take any opportunity to pick a bit
of a fight. There’re complex personal drivers behind this – when I give my
“Talk” at the GSB, I will elaborate upon and connect them. Now don’t get me
wrong – I almost always keep these fights polite and civil. And while I do
often loose potential friends in these encounters, sometimes these debates can
be eye-opening, providing a window into a perspective which I previously under-considered.
One such fight took place between myself, and two of my fellow trip
participants. The argument was over Carlos Slim Helu, Mexico’s telecom
monopolist and the richest man in the world.
Now, at first, I found it downright shocking that my two
fellow participants viewed Carlos Slim as an inspiration. Of course everyone
has an opinion, but this one was just too far beyond my acceptable range for me
to stomach. But as a result of this discussion, I now see where they are coming
from, and why Carlos Slim has enjoyed political support in Mexico. Not only
does Carlos Slim run philanthropic organizations which make him a popular
father figure, helping support the masses in Mexico (somewhat like a
Rockefeller or a Carnegie in the United States), but he also gets a lot of
respect for what he has achieved. There’s some national pride to be had in
having the richest man in the world be your countryman. Also, it may not be
entirely inaccurate to attribute much of his success to his wits and talents –
even though I clearly disagree with the ethical merits of the ends to which
these wits and talents have been deployed. As one of our speakers put it – “he
(Carlos Slim) has used every trick in the book to hold onto his empire”. In
fact, each of our speakers, all of whom belong to a highly educated business
class of Mexicans, opposed Carlos Slim. Perhaps their education shaped their
ethical compass, or perhaps they are natural opponents of Slim’s interests,
since as business people, high telecom costs are not good for them.
When monopolies are discussed, everyone in the room holds these sad half expressions
But either way, it shouldn’t surprise anyone that Carlos
Slim’s telecom monopoly has survived for as long as it has in fact survived.
The average person either supports him, or cannot connect the dots, and thus
takes an ignorant, perhaps even an apathetic stand. Oh, the virtues of
democracy!
But this might all be changing due to two factors.
i) As I described in my previous blog post on the media:
“The recent
re-election of the PRI (The Institutional Revolutionary Party), the Left
leaning party which has governed Mexico for much of Mexico’s modern history,
has led to a series of tangible reforms which significantly change Mexico’s
fundamentals and prospects …
… the PRI has
legislated to make broadband-access “a universal right” within Mexico. While
this might sound symbolic, and even vacuous, it’s a very clear first step in
dismantling the telecommunications monopoly of Carlos Slim Helu. With
telecommunications being a key input factor in the information and service
economy, having pricey telecommunications services, because of a regulated
monopoly, is a huge burden on business and development. The new Government
clearly understands this, and the legislation actively begins to politicize the
problem, which is an important first step towards addressing it.”
ii) The other crocodiles are circling and want their share:
In a meeting with a media broadcasting monopolist, we learnt
the terrible things that Carlos Slim is doing to Mexico – perhaps the speaker
feels that they aren’t obvious, and needs to altruistically push the right
political agenda. Or perhaps the media broadcaster wants its own share. He
criticized Carlos Slim, but also repeatedly suggested that his firm should be
allowed to enter the market, and that things should be left “cushy”. This is
where Democratic governance can be very powerful, and the people and their
elected legislators can make the final judgments. And it’s an amazing form of
poetic justice, how one crocodile can neutralize the other.
This post ends my four
part series on the Mexico GSB trip.
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