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Overcoming daily crisis, Baja
Over the years, by virtue of both personal and business associations with numerous Baja Californians, and through observing how they face and overcome one crisis after another, I have come to dub them the "in-spite-of" people. It makes no difference what crisis or calamity is thrown at them, they bounce right back. Every morning as they awaken, leaders of government, industrial, business and commercial concerns of Baja California rush to read the daily news and listen to radio and television broadcasts, all to find out what new calamity has occurred in the interior of Mexico. What new tax is being imposed on the business community? How high are interest rates today? How far did the peso fall and what is the decline in its buying power? What new heinous crime did drug traffickers commit? What is today’s political scandal? Bringing sighs of relief, and cause for celebration, are the days when there has been no such news. Along with the news they so eagerly read and listen to, the border cities of Mexicali, Tecate and, primarily, Tijuana, are themselves continually making news as way stations for the majority of migrants seeking to cross illegally into California in search of work. While home to these visitors, the Baja cities must provide health, education and other public services. They do so at a time when low-cost housing, water, sewer and power services already are strained beyond the state's and municipalities' ability to provide. The Mexican federal government does not acknowledge the migrants as local residents, or include them in the local census, so no federal budget allocations are made for this "floating" population. (Sounds familiar to Californians.) Further, illegal drug demand in California and surrounding states runs high, so drug cartels have set up smuggling points in Baja, bringing with them an unprecedented reign of terror. In spite of so many seemingly insurmountable crises and problems, Baja California is the shining star of Mexico, both politically and economically. It was Baja that led Mexico's political revolution and elected the first opposition party governor while sweeping the major municipalities as well. So used to having peaceful political transitions between parties, Americans may not realize the behind-the-scenes battles fought for honest elections. Those election victories opened the door for the current political reforms in the entire country. On the economic front, while the rest of Mexico was buried in an avalanche of unemployment averaging 6.2 percent and under-employment estimated at more than 20 percent, Baja California's 1996 unemployment figure was around 1.6 percent and under-employment around 8 percent. Tijuana is in the enviable position of having too many jobs and not enough workers. In calendar year 1995, 94 new maquiladoras were granted permits in the state. Through October 1996, 91 new maquiladora permits were granted in Baja (74 in Tijuana), and 201 existing maquiladoras expanded their operations. In 1995, maquiladora exports topped $1.4 billion, a figure that 1996's results are expected to equal or slightly better. In 1995, new maquiladora start-ups created 5,703 jobs. Through October 1996, start-ups generated 5,781 new employments. Baja California once again led the nation in new maquiladoras in 1996 and is expected to do the same in 1997. The state is home to more than 40 percent of Mexico's maquiladoras. But the most important resource Baja California possesses is the "in-spite-of" attitude of its government and business leaders. This is evident starting with PAN Gov. Hector Teran Teran and his selection of young, dynamic, well-educated secretaries of the various state ministries. It also holds true for those elected to the presidencies of the various professional associations. A prime example is Juan Tintos Funcke, the state secretary of tourism. He so distinguished himself in the same post under former Gov. Ernesto Ruffo Appel that Teran reappointed him for another term, a very unusual circumstance. A very important function of the Tourism Secretariat is the investment promotion of visitor-related mega-development projects throughout Baja California. Tintos Funcke appointed Jaime Jimenez Salazar to head the effort. Some projects have been realized, such as the Fox Studios locating along the Pacific Coast. A very notable project underway is the San Felipe-Puertecitos Urban Tourist and Environmental Development. Included in this project is the San Felipe airport. Other projects under way are the federal government's privatization of the Port of Ensenada and a potential new railroad, the continuation of concessions for natural gas transportation and distribution into Tijuana and Rosarito — San Diego’s Enova Corp. in 1966 won the concession to transport (export from the U.S.) and distribute natural gas in Mexicali — and the privatization of the Baja California airports: Tijuana, Mexicali, Ensenada (including construction) and San Felipe. The projects, in addition to having a positive economic impact on San Diego, also represent opportunities to local companies. Future articles will highlight in greater detail the "can do" successes of Baja California's "in-spite-of" people. Patrick Osio is principal of Cohen, Osio & Associates, a bi-national trade consultancy with offices in the World Trade Center on Sixth Ave. |
