Mexico Elects Leftist ‘AMLO’ as President
In his third attempt to win the Mexican presidency, Andres Manuel Lopez Obrador did so in convincing fashion in the July 1 national election, claiming nearly 54% of the popular vote, more than 30 percentage points ahead of his closest rival.
Known as Amlo, Lopez Obrador, who is often described as a leftist or populist, campaigned on promises to disrupt the political status quo, reduce crime and eradicate the corruption which had plagued the administration of outgoing president Enrique Peña Nieto.
Amlo's victory is the first ever for the Morena party and represents a historic change in the political establishment of Mexico, which has been ruled solely by the Institutional Revolutionary Party, PRI, and the National Action Party, PAN, for much of the past century. The Amlo administration will take over later this year.
“I will not fail you and I will not disappoint you,” Lopez Obrador said in his late-night victory speech in Mexico City’s central plaza.
“The transformation that we will carry out will consist basically of banishing the corruption in our country. Corruption isn’t a cultural phenomenon, it is the result of a political regime in decadence,” he said, adding that corruption was the principal cause of inequality and violence in the country.
Amlo, a 64-year-old former mayor of Mexico City, won widespread support among Mexico’s impoverished and disenfranchised, although his socialist leanings have caused concern within the business and energy industries.
He has promised to build new refineries in the country and review the energy contracts won during the current administration to assure they were awarded fairly and legally. Since 2015, Mexico has granted more than 100 oil and natural gas development contracts to major international producers such as ExxonMobil, Anglo-Dutch major Shell and Chevron.
“The contracts in the energy sector signed with private companies will be reviewed to prevent acts of corruption or illegalities,” Lopez Obrador said in his victory speech. “If we find anomalies that affect national interest, they will be presented to the congress and national and international tribunals. Everything will be done legally and there will not be confiscation or expropriation of assets.”
Members of Lopez Obrador’s proposed cabinet have said that his government will slow the pace of the oil and natural gas auctions while the contracts previously awarded are reviewed. Since July 2015, Mexico has held nine public auctions to award onshore and offshore leases for natural gas and oil development, although the next one, scheduled for September, has attracted little attention from the international oil and gas community. The country’s natural gas production hit record lows last year and Mexican oil production has declined every year since 2004.
With the landslide victory, Morena and coalition parties could claim the majority in both legislative chambers. A majority in the senate and congress could mean less resistance should the administration attempt to designate more public finances to social programs outlined on the campaign trail, such as educational spending and assistance for the impoverished, disabled and elderly.