Monday, June 8, 2009

Lunch for the day MXN $38

Because I bought a camera during the weekend, I now have to save money. To do so, I will not pay more than USD $3 (or basically MXN $38 pesos) for lunch any day over the next two weeks. If this works well than I will continue the plan. But for now let's consider this a trial.

Here is what I ate today:
Sopa de Alubias (White bean soup w/sausage)Arroz Rojo con huevo soleado arriba (Red rice with fried egg sunny side up)
Enchillada de Rellenas con verdura y Gualillo (I thought there was going to be some meat and cheese in these enchilladas but instead they were filled with carrots and green peas - not too bad nonetheless. But next time I'm getting something else)
Pudin de Banano (Banana pudding)
Total cost: MXN $38 + $7 for tip = about USD $3.50 --> And the mango juice was free. And awesome.

Sunday, June 7, 2009

DEA investigates futbol teams for money laundering and more

According to this article by today's El Universal, the DEA is investigating whether several drug cartels have used futbol leagues and teams to launder money, or coerce players/owners/umpires through extortion and bribery.

Saturday, June 6, 2009

Quite appropriate


After I finished the FSOT today, I stepped out of the US embassy and onto Playa la Reforma to see that Mexico City was having an international culture event. I did some walking around, and there were kiosk's from probably 20 different countries. The largest kiosk award went to the Islamic Republic of Iran though, as it was about 4x bigger than any other. It actually took up about a half a city block. (Hola Khomeini =>)

All of this prompted me to buy a camera, which I did (and now I need to do some penny pinching). But, it was worth it because now I can take pictures and post them. So here's my first few.

FSOT in Mexico City

I took the Foreign Service Officer Test (FSOT) this morning. And I think it went generally well. Except for maybe the essay, and that is mainly because I ran out of time.

Anyways, I have two cautions for anyone out there who will ever take the FSOT in Mexico City:
1) The computers will inevitably lose their connection to the internet, whereas you will have to start over.
2) Montezuma's revenge strikes at the worst time.

Thursday, June 4, 2009

Obama's speech in Cairo

President Obama broke some new ground today in Cairo as he gave a speech, basically emphasizing what the US and Muslim world have in common, a shared desire for peace. Of course this speech played into the hands of many ultra-conservatives in the US because Obama talked about a dialogue with Hamas, said Israel shouldn't expand its settlements, that there should be a two-state solution, and that Iran does have the right to peaceful nuclear technology.

President Obama has a great power to unite people across cultural, religious and political identity. However, there are still some in the US who do not want to buy-in to his actions. While, it seems like most headlines and people around the world applauded the speech because of Obama's emphasis on peace and human rights (he spoke briefly about the rights of women), some still wanted to cherry pick some of his words and turn them around to make it look like he was conceding America's security. The pundits (er... reporters) at Fox News chose to pounce on Obama's references to Hamas as an overture to terrorists (if you follow the link, pay special attention to the comments page. There are some real gems hidden in there).

Yet, it is peculiar to me how misleading this Fox News piece is given that this is what Obama said in its entirety about Hamas (but I guess I shouldn't be surprised):
"Now is the time for Palestinians to focus on what they can build. The Palestinian Authority must develop its capacity to govern, with institutions that serve the needs of its people. Hamas does have support among some Palestinians, but they also have responsibilities. To play a role in fulfilling Palestinian aspirations, and to unify the Palestinian people, Hamas must put an end to violence, recognize past agreements, and recognize Israel's right to exist."

Wednesday, June 3, 2009

NY Times blogs on Mexico's monopoly woes

And a thank you to the New York Times for publishing this blog post about Mexico's trouble with monopolistic type firms in its oil and telecommunications industries. It is especially redeeming for the NYT that they published the post despite the fact that Carlos Slim (owner of basically all of Mexico's telecom industry) is now a major stockholder of the NYT Company.

In the blog, a World Bank Report called No Growth Without Equity (pdf) is cited which states much of the blame for Mexico's lackluster GDP growth (~3%) is on its particular form of nationalist-capitalism that places large industries in the hands of singular firms, in an effort to keep out foreign competition. While there may be economic benefits in keeping the petrol-economy located in the hands of one firm (PeMex) - *and that could be argued. There is definitely no benefit in keeping information technology, internet, and communication services concentrated in one firm. As is the case in Mexico with Telemex.

The report makes many points about Mexico's telecom industry. Here are only some of the indictments against Telemex:
  • Authorized by the Ministry of Communications and Transport, Telemex is allowed to bill the costs of a local call to all international calls. In essence, doubling the billing costs. (In addition, this charge was implemented in an opaque manner which hindered many users from even knowing that the charge existed)
  • Telemex is allowed to charge per minute, and round up on all minutes used per phone call.
  • Telemex's links with government have helped block competition from other firms that could provide Wi-fi, digital subscriber line (DSL), and VoIP communications.
  • When Telemex was privatized in 1990, it was given a significant reduction in its tax rate and protected from competition for six years.
Being in Mexico and actually working with a IT-based organization, I am beginning to see how the telecom industry in Mexico is severly hampered by lack of competition. There is a lack of broadband infrastructure throughout the city. Estimates are that 66% of the city doesn't know how to use the internet. To make a local pay phone-call costs me more than $1 for 5 minutes. Broadband access costs over USD $18 per Mbps, which is over 6x more than the US pays (which if you take into account income differences, it's really more than 6x). And the lists goes on and on...

Monday, June 1, 2009

North Korea: What's the US to do?

Since, I'm a student at one of the flagship international relations schools, I feel like I should do some real IR blogging on this site (similar to the kind that happens here). So, today when news passed that North Korea has named Kim Jong-un as their next leader, I felt like it was a good idea to start with my IR blogging on the DPRK. After all, there is so much to say about this country.

To recap, within the last two-weeks, the DPRK has detonated a nuclear weapon, ended a 56-year long truce with South Korea, began preparations to test an inter-continental ballistic missile (that would put Alaska and Hawaii within range), and announced their new leader will be the son of Kim Jong-il, a 26 year old spawn who was chosen because of his many "similarities" to his predecessor and father.

What, if anything, should we be worried about this? First, I think the possibility of nuclear attack from Pyongyang against the US is minimal for several reasons. First, The DPRK can't fit a warhead on any of their missiles to send them across the Pacific. Second, the likelihood that a ballistic missile shot from the northeastern part of the Korean peninsula reaching the northwestern part of the US before it was intercepted by an anti-ballistic missile system is doubtful. This is simply because our ABM systems can intercept a ballistic missile at three stages during its trajectory from this distance (the initial ascent phase; the free-flight/mid-course phase or apogee; and the re-entry phase), giving us ample time and opportunity to strike down an offensive. The last reason why I don't think the DPRK would try to attack the US is because it wouldn't serve any strategic purpose, if only to draw the US into a war that wouldn't make much sense from anyone's standpoint.

But, a strike against the US is not the most worrisome scenario posed by a nuclear DPRK. North Korea has deep hostilities with regional neighbors such as Japan and South Korea. Recently, after Seoul joined the Proliferation Security Initiative (PSI) in an effort to curb the flow of nuclear materials and missile systems being proliferated by and to Pyongyang, a DPRK military official revealed through threat that the move could provoke war. Yet, Seoul only agreed to join the PSI after Pyongyang conducted its second nuclear test.

The PSI represents an opportunity to reign in the DPRK; if it includes China's support. Up until now China has declined to support the initiative because it questions whether the treaty interferes with sovereignty and violates international law. But, China's wavering on the PSI is less of an indication on how it feels about the DPRK. Even Bejing recently lashed out against Pyongyang for its actions. And considering that North Korea is the closest to China of any other country in the world, this must have got their attention.

Gaining China's acceptance of the PSI wouldn't stop Pyongyang's actions, because the DPRK already has the nuclear capabilities it needs, but it would be a clear signal to Pyongyang's leadership that the region is wholeheartedly against its recent actions. China's support for the PSI, backing of international sanctions, and restrictions on leadership in North Korea could offer the greatest potential for a diplomatic breakthrough. In fact, what might be the best strategy to obtaining a compliant DPRK is to focus on where it hurts them the most, their leadership.

Continuing with my point, the US shouldn't back away from its support for South Korea, the six-party talks, and the PSI. But, what may prove more fruitful is if the US can concede some control to China, while maintaining its core objectives in regional negotiations. Hedging that China wants to maintain a stable region and is less susceptible to supporting communist governments (just because they're communists), the US could reasonably predict that China would at some point increase its pressure on Pyongyang. While this might not work completely, it would at least be a change from our strategies over the past few years, which have basically rewarded Pyongyang for bad behavior. Kind of like providing carrots to the donkey who is immune to the stick. With this new approach, we wouldn't supply any carrots nor furnish any sticks.

The DPRK has typically gained two benefits from its actions: 1) diplomatic favors/plea bargains and 2) regional legitimacy. Not to mention the economic benefits it receives from selling nuclear materials to places like Syria and Iran. The US cannot prevent the DPRK from receiving these benefits on its own. In actuality, the US is very limited for several reasons (partly because of a poor economic situation at home and an over burdened military abroad). Thus, by conceding more responsibility to regional players, the US could benefit by decreasing its obligations while supporting a more legitimate regionally-focused bargain. The only stipulation must be that deals brokered by China, Russia, and other nations less concerned with the DPRK threat, would have to be more along the lines of punishment or coercement, and not continued rewards and inducements that seek to spoil the DPRK into behaving better.