[Marxism] Mexico: State Terrorism and Education, the New Speculative Sector in the Stock Market

Greg McDonald gregmc59 at gmail.com
Sun Jun 26 07:07:09 MDT 2016


http://avispa.org/2016/06/24/state-terrorism-and-education-the-new-speculative-sector-in-the-stock-market/

The reasons why the Mexican government wants to impose the Educational
Reform, even if it means killing people, as with the massacre in Nochixtlán
by repressive state forces on June 19, are rooted in economic objectives
guided by international financial organizations. The reform, proposed by
the Organisation for Economic Co-operation and Development (OECD),
with the *OECD-Mexico
Agreement* *to Improve the Quality of Education in Schools of Mexico*, aims
to lay the groundwork to shift education from being a State responsibility
to instead being resolved in the realm of the financial market.

One of the state’s actions accompanying the Educational Reform is the
issuing of bonds to the speculative market. Just over a year after the
adoption of the reform, in December 2015, the first educational bonds or
National School Infrastructure Certificates (CIEN) were issued by the
Mexican Stock Exchange, which investors BBVA Bancomer and Merrill Lynch
purchased for 8.581 billion pesos.

When a company or state issues bonds, the investors who buy them are
lending them money in exchange for the issuer – in this case the Mexican
State – committing to pay the interest at fixed intervals over a
predetermined period of time. These payments will be made every six months
and by the states and their inhabitants.

With the educational bonds, the state aims to attract investors to this
sector and, in a first stage, aims to renovate existing infrastructure and
promote the development of new schools and basic services. That is, the
state has converted the bonds into a given number of common stocks to
attract investors to this sector that, since its establishment, is seen as
another company that will have to generate profits for shareholders.

The Educational Reform is part of the Structural Adjustment Programs (SAP),
guided by the World Bank (WB), International Monetary Fund (IMF) and the
Inter-American Development Bank (IDB).  In total, 11 structural reforms
have been approved: labor, the treasury, education, finance, energy, reform
on transparency, political and electoral reform, reform in
telecommunications and broadcasting, the new court-ordered protection law,
the national criminal procedures code, and reform in economic competition.
Twenty-two more reforms still need to be approved.



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