Losing one's job should be seen as a challenge; the unemployed should try their hand at setting up their own business. That was the message from economy minister Fernando Canales at a time when the increase in unemployment to its highest level since 1999 has become a major political issue. The minister's exhortation, undoubtedly well intentioned, was not phrased all that felicitously. `Don't be upset,' he said; `it happens in the best families: after 20 years of work our boss tells us that our position is no longer necessary and we must resign.'
The ruling Partido Acción Nacional (PAN) rushed to dissociate itself from Canales's remarks, which were described as `absolutely unfortunate' by the PAN's bloc in the senate. Then labour minister Carlos Abascal joined in, trying to find comfort in international comparisons: `We can't be satisfied, because there is still much to do, but we can compare favourably the Mexican unemployment rate with that of any country similar to ours.' This is only relatively so: if others were to count their unemployed a sparingly as Mexico, their rates would be much lower too. Abascal called on the one hand for more `flexible' labour legislation (a euphemism for making it easier to dismiss people) and on the other for a `strengthening' of the domestic market. `The country's design,' he said, `was thought up with exports in mind, without granting any importance to the domestic market.'
The President's version
Next to make his contribution was President Vicente Fox, who came up with a more sensitive version of what Canales had said. He said the changarros (small informal vending stands) were a good response to the loss of formal jobs. `Some people,' he said, `despise these small businesses, saying that they are informal, illegal, and trying to make them disappear. We think, on the contrary, that they are a manner of dignifying people, of dignifying the women who proudly and passionately set up these small businesses to bring better earnings to their families.'
Fox went on to say that his ultimate aim was to `move towards the total legalisation of these small enterprises, so they become part of the nation's productive apparatus, run by first-class Mexicans.' The bit about legalisation (which entails turning the currently informal businesses into taxpayers) was ignored by the private-sector think-tank Ceesp, which added to its weekly report on the state of the economy a broadside against the government's pronouncements on employment.
`The government,' said Ceesp, `seems quite satisfied with the increase in jobs outside the formal sector, to the point of stating that nobody should feel upset upon becoming unemployed.' This attitude, says the think-tank plays with high-risk elements: the growth of informal employment aggravates the crisis in the social security system and threatens the stability of public finances, potential economic growth and competitiveness.
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