Friday, April 4, 2008

Mexico-California cleavage? Absolut drinks to that!



Back to the Blog after a few days off! Use these entries as a way to think and review about Mexico's past and future. Remember, we test on the United States of Mexico on Tuesday. Do not confuse the geography with the political culture divide illustrated in the above vodka marketing campaign:

The latest advertising campaign in Mexico from Swedish vodka maker Absolut promises to push all the right buttons south of the U.S. border, but it could ruffle a few feathers in El Norte.The billboard and press campaign, created by advertising agency Teran\TBWA and now running in Mexico, is a colorful map depicting what the Americas might look like in an "Absolut" -- i.e., perfect -- world.

The U.S.-Mexico border lies where it was before the Mexican-American war of 1848 when California, as we now know it, was Mexican territory and known as Alta California.

Following the war, the Treaty of Guadalupe Hidalgo saw the Mexican territories of Alta California and Santa Fé de Nuevo México ceded to the United States to become modern-day California, Texas, New Mexico, Utah, Colorado and Arizona.

The campaign taps into the national pride of Mexicans, according to Favio Ucedo, creative director of leading Latino advertising agency Grupo Gallegos in the U.S.

Ucedo, who is from Argentina, said: “Mexicans talk about how the Americans stole their land, so this is their way of reclaiming it. It’s very relevant and the Mexicans will love the idea.”

But he said that were the campaign to run in the United States, it might fall flat.

“Many people aren’t going to understand it here. Americans in the East and the North or in the center of the county -- I don’t know if they know much about the history.

“Probably Americans in Texas and California understand perfectly and I don’t know how they’d take it.”

Meanwhile, the campaign has been circulating on the blogs and generating strong responses from people north of the border.

“I find this ad deeply offensive, and needlessly divisive. I will now make a point of drinking other brands. And 'vodka and tonic' is my drink,” said one visitor, called New Yorker, on MexicoReporter.com.

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Enviromental rules waived for Mexican border fence

The LA Times reports this week that the U.S. Department of Homeland Security plans to waive federal and state enviromental laws to finish more than 670 miles of barrier fencing along the U.S.-Mexican border.

The two waivers, which were approved by Congress, will allow Homeland Security to slash through a thicket of more than 30 environmental and cultural laws to speed construction.

Environmentalists and local officials have strenuously opposed some of the planned infrastructure projects, saying they will damage the land and disrupt wildlife.

http://www.chicagotribune.com/news/nationworld/la-na-fence2apr02,0,876305.story

Consider the legitimacy of "Rule of Law" here. Once again, is this a theoretical, relative and conceptual term in today today's practice of politics/governing.

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The power of national symbols

Petroleos Mexicanos (Pemex) is an important bit of national pride and a symbol of Mexico's revolution and independence. However, like many parastatals and huge corporations, it's not as "agile" as smaller businesses in adapting to changing economic, technological, and environmental conditions.

Presidents Fox and Calderón have urged constitutional changes to allow private and even foreign companies to enter the oil industry in Mexico. Reactions of most Mexican politicians have not been kind to those proposals. (Tinkering with national symbols isn't easy. In the USA, think about reactions to proposals that the Star Spangled Banner be replaced with something less militaristic.) Besides there are all those jobs to "hand out."

Business Week magazine puts a good face on the presidential proposals, but acknowledges that the issue is far from resolved.

Mexico may let foreign cos. extract oil

"Mexico's ruling party wants to allow the state oil monopoly to contract with private and foreign companies to extract reserves from the Gulf of Mexico...

"The proposal comes amid a fierce debate over how to reform the country's energy sector and boost Pemex's production."Mexico's constitution bans most private and foreign involvement in the sector, but in practice, the government has eased the restrictions slightly in the past 15 years..."

Pemex lacks the equipment and expertise to develop deep-water oil fields..."Pemex's production has been steadily falling, dropping 5.3 percent to an average 3.1 million barrels a day in 2007 -- primarily due to plunging output at its biggest-yielding field, Cantarell.

"But opponents say the government is manipulating figures to create a false sense of crisis."

Former presidential candidate Andres Manuel Lopez Obrador of the leftist Democratic Revolution Party has said that opening Pemex to private investment would threaten national sovereignty, and he has accused Calderón's administration of seeking to privatize the entire oil industry -- a charge the president denies..."

See also: Celebrations, protests, and questions

8 comments:

Anonymous said...

The Absolut ad is ridiculous. As an American, I find it offensive, and I have every right to dislike this ad as much as a Mexican has to like it. But, hey, vodka is bad for you anyway! What do you expect?

I still say Rule of Law is generally relevant today. The issue with the environmental waivers is an exception, not a rule. The vast majority of government actions at all levels still operate within the confines of law. The way I see it, we should make every effort to secure our borders, while making it easier to enter the U.S. legally. We're doing the first part, so let's see some action regarding all this confounded red tape on green cards.

Regarding Pemex, I think the Mexican economy would benefit greatly if private companies such as ExxonMobil or Royal Dutch Shell were permitted to operate within the United Mexican States. As we saw in Britain and many other countries, a massive, state-owned corporation has its limitations. This is an opportunity for Mexico to tap into the global marketplace.

Anonymous said...

1. The ad is just an ad - it's trying to appeal to the people that it's going to be the most widely exposed to. Not a big deal. (Garrett, are you really making an indirect comparison between heavy drinking and Mexican national pride?)

2. Ends don't justify means when it comes to huge federal actions. Never break a law, let alone 30, just to get something done (especially considering that environmental action is expanding on to shaky, new ground so we shouldn't be stunting it for convenience's sake). If it's justifiable to do it in this case, then it will be easy to make the argument that it's justifiable to do it in another. I (surprisingly) do agree though that we should be making efforts to secure our borders while making it easier to enter the US legally.

3.Either Pemex needs to be heavily invested in so that it can develop the capabilities it is currently lacking, or another company needs to take its place (if the Mexican economy is to grow in this area). However, bringing in foreign companies would put the bulk of the profits in foreign hands.

Anonymous said...

Mr. Wolak, since these were technically 3 different posts with 3 different responses, does this count as 3 blog posts extra-credit wise?

Anonymous said...

Im torn on the ad. On the one side it is a innocent ad meant to get Mexicans to buy more vodka. On the other side it seems to be implying that Mexico should have California again...which would remove the Govenator from office. I honestly dont care so long as that Ad does not become fact.

Breaking Local laws is bad and should never be done without good reason. The Rule of Law seems to apply only to the Federal government sense the Federal government is superior to the Locals. So I guess since Congress makes the big laws...it is following the rule of law sorta. I dont like watching the government break laws to get things done...but we need the fence.

Opening Pemex to forigen competition when it is not ready would be signing a death wish for the company. Before they open it to forigen competition I think the Mexican government should invest heavily in making Pemex a force to be reckoned with on the oil market.

Also I agree with Kajsa in that I think this should could as three points.

Mr Wolak said...

Kajsa & Mike,

Sure Count the THREE! --Just keep blogging and don't stop at 10.

The Pemex debate has many different variables to consider, like the U.S. government giving companies the job of running our military hospitals (Walter Reed) or our civilian health care system.

What is good for the economy may/or may not be good for the citizenry overall.

Later this week keep checking the blog for various links and review questions and concepts for the AP test.

Anonymous said...

I am not bothered by the Absolut ad. It is made with a little bit of humor for a target Mexican audience. So some thin-skinned people get upset. Well… maybe more than some. http://youtube.com/watch?v=MN3tS-S5hU0 I watched this video and a guest speaker on Lou Dobbs Tonight printed out the blog on the subject from the LA Times website and there were 316 pages of angry comments on the ad. Pretty ridiculous if you ask me.

As for the Rule of Law question, once a government crosses a line that allows it to break the law to achieve a goal, where does it stop? It sets a dangerous precedence. The whole fence thing reminds me of one of Bill Richardson’s best lines in the Democratic debates. He said, “I believe if you build a 12-foot fence you'll get an awful lot of 13-foot ladders.”

Regarding Pemex, I agree with Mike that Pemex should be ready before foreign investment can start. It makes sense to spend some money on foreign companies now it if means vastly improving the Mexican economy later.

Anonymous said...

i think that the ad is ridiculous..for one thing, i dont think that it has a point, and second it just causes strife between the people living on the border. btw, garrett, vodka is not bad for you, just in excess. but as usual, alcohol companies will do anything to get people to buy their products.

Second, I agree that rule of law is relevant todaysince most governmental decisions still opertate according to law. As for the enviornomental waver, breaking the law, especially more than once, and intentionally. Although their hearts were in the right place, it is never justifiable to go against the rules set by our governmental, for if everyone did, our governnment would no longer hold legitimacy.

Thirdly, I agree that opening PEMEX to foreign investment could be a death wish if the company is not adequatly prepared, but in order for the mexican economy to
continue to expand and grow, it must begin to tap into the global marketplace

- Jenny

Alex Crook said...

I think that Pemex should be open to foreign investment. The PEMEX situation is not akin to the star spangled banner, but rather to a situation if GM and Ford were the only ones allowed to compete in car production. By opening the market, the price will be driven down by competition, costing the government less money. If the market isn't open completely, I think that PEMEX should look to foreign sources to help them buy or bring about technology to stimulate the Mexican energy sector.

As for the ad - its just that - an ad. Absolut is reaching out to a market, that is untapped, and using an ideal that has been used for ages to move ideas and goods along in the world: nationalism. It's nothing to take offense to - its not like the Mexicans are going to try to get thier land back. Plus, have you seen commercials on TV lately?! Because I have seen a few, like the newest trojan add that are rediculous, and offensive to Men everywhere (that was sarcastic).