Mexico legal system is now well seen, especially for its high levels of corruption, a survey exposed that Mexican felt that 73 out of 100 public officials were likely to be corrupt. In addition, 28 percent of Mexicans stated that they or a relative had been party to a corrupt act in the previous 12 months, all this affects the tourism sector, its estimatedthat each year Mexico lose 1 million tourists because of insecurity. In the Security Index, Mexico was qualified with 3.6 points in scale of 1 to 7, which places it in 126 of 133 economies included.
| ISO | 2006 | 2005 | 2004 |
Mexico | MEX | 3.3 | 3.5 | 3.6 |
The Corruption Perceptions Index (CPI) measures the degree to which corruption is perceived toexist among public officials and politicians. Ratings range in value from 10 (least corrupt) to 0 (most corrupt). The survey measures public sector corruption or the abuse of public office for private gain. It measures local and national governments, not domestic and foreign corporations doing business in these countries.
Mexico informal market is one of the biggest in the world. Asseen in the follow table, the informal sector represents almost half of the total economy and employs almost the 30% of the population. In the touristic sector, the rate of informal economy is low only 17% of the people who works in the sector have informal o mixed income.
Concepto | 1995 | 1996 | 1997 | 1998 | 1999 | 2000 | 2001 | 2002 | 2003 | 2004 |
Subsector Informal P1 | ND | ND | ND |28.2 | 28.1 | 29.7 | 29.7 | 29.2 | 29.1 | ND |
Economía total P1 | 44.8 | 44.7 | 44.4 | 44.2 | 43.9 | 43.8 | 42.7 | 41.8 | 41.9 | 42.3 |
Periodo | Total | Hombres | Mujeres |
I | 27.63 | 27.14 | 28.45 |
II | 27.22 | 26.73 | 28.05 |
III | 26.76 | 26.09 | 27.88 |
IV | 26.62 | 25.95 | 27.74 |
I | 26.87 | 26.55 | 27.42 |
II | 27.13 | 26.75 | 27.77 |
III | 26.87 |26.39 | 27.65 |
IV | 27.28 | 26.53 | 28.52 |
I | 27.44 | 27.12 | 27.97 |
II | 27.50 | 26.85 | 28.57 |
III | 27.13 | 26.71 | 27.83 |
IV | 26.99 | 26.39 | 27.99 |
I | 28.21 | 27.70 | 29.06 |
II | 28.12 | 27.49 | 29.18 |
FUENTE: | INEGI. Encuesta Nacional de Ocupación y Empleo (ENOE). Población de 14 años y más. |
Freedom to compete
Mexico economy has severalcuasi monopolies, in the recent years Mexican government has opened some markets such as telecommunications, but in other sectors like oil, the market is completely closed. In the touristic sector there are no restrictions to compete, just the countless paperwork and the sanity and security requirement.
Despite a legal framework for the enforcement of intellectual property rights, the enforcement and prosecution of infringement cases are ineffective in practice. Foreign real estate investors have found it difficult to secure enforcement of their property interests in state-level courts.
Average time to execute contracts
The proceedings in Mexico to start a business in any sector are toomany, Mexico is in the 57th place in time required to start a business, this is one of the most frequent problems that companies face, in the touristic sector there are 70 steps versus 10 required in the United States.
Time required to start a business*...............................57
Cost to start a business* .............................................98
Separation ofjudicial powers
In Mexico, the separation of powers between the executive, legislative and judicial branches is defined by law, and there has been progress in making the procedure for selecting high court judges more transparent. However, in practice, large sections of the judiciary suffer from politicization. Judges have been involved in corruption, organized crime and drug trafficking.