Mexico is Changing

Mexico is always changing, just like everywhere else. The changes here in Mexico seem to be ones which would be most evident to expats, and they involve some of the quintessential things that make Mexico, well, Mexican. And therein lies a story.

Ask people who have visited extensively (or expats who live here) what qualities about Mexico are unique, and you’ll quickly find some common themes: the friendliness of the people, the slower pace of life, or the incompetence of the bureaucracy, for example. And in most of these areas, change is afoot.

Take friendliness. Mexicans as a rule remain eager to help and often greet you on the street, regardless of whether they know you or not. Except in big cities like Ciudad de Mexico and Guadalajara. There, you might greet neighbors you know, but if you start “buenos dias“-ing every passerby, you’ll get a mix of responses from greetings to odd looks to being ignored. The larger cities have imported some of the the urban mindset from elsewhere, where you just can’t talk to strangers.

Put on top of that the curse that is the cell phone. Mexicans have taken to their cell phones wholeheartedly, and it’s not unusual to surprise people–even in small towns–by greeting them when they are walking, face-down in their phones. They will startle and still respond, but clearly cell phones are winning the battle for eye-balls.

The slower pace of life is experiencing some acceleration, too. Over the last thirty years, Mexico has developed a sizable middle class, and with it, widespread automobile ownership. Which means traffic, and the delays that come with it. Now Mexicans normally aren’t in a hurry to be on-time, but that’s changing, so when some hit a traffic snarl, they start driving around it in, shall we say, innovative ways. Like creating extra lanes where there are none. Or ignoring traffic lights or turn lanes or even traffic barriers. Some of that is a carry-over from Mexico’s fundamental lack of concern for laws which appear arbitrary (“I only need to go one block the wrong way down this one-way street to get where I want to go.”). But some is an attempt to hurry-up, which is something new.

Finally, many expats comment about changes in taxes and regulations, with the main theme being more enforcement. Many of the small mom-and-pop vendors in Mexico (which can mean nearly every family) operate on a cash-only basis and avoid taxes and regulation. The federal government is gradually tightening its control of money flows, so as to capture the lost tax revenue. There is an growing web of identification which ties people and their income to the taxes they owe. For many larger or recurring transactions, you need a CURP number (Clave Única de Registro de Población), in effect a Mexican Social Security Number. Once you have that, you may also need an RFC (Registro Federal de Contribuyentes) code or clave, a personal/unique tax identification number. We’ve noticed an increase in information required to directly transfer money to Mexican accounts (for example, to pay for our recent home renovations) that have come from Mexican banks, responding to Mexican government directions. Over time, this results in fewer off-the-books transactions and more revenue to the federal government.

Likewise, expats speak of less flexibility in border crossing and immigration enforcement. For a long time, some expats came to Mexico on the automatic 180-day visitor’s visa and simply stayed. They never left the country, never became a temporary or permanent resident, which requires a payment and has financial eligibility requirements. Later, expats with more means came and went every 179 days, in effect renewing their status and avoiding the costs of legal residency. Mexican immigration officials (INM) have started random checks on mass transit hubs (like big city bus stations), arresting and sometimes even deporting those long-time overstays. And border officials sometimes now ask for a departure date (e.g., return flight?) and only renew another visitor’s visa for a set length of time, much less that 180 days. Deportation remains rare; most overstays are offered the opportunity to legalize their status, but again that requires dinero.

As hard as these changes to the bureaucracy are for expats who arrived in the wild west days of yore, they are part and parcel of Mexico becoming a more efficient country. That means making and neutrally enforcing laws, taking control of its borders, collecting tax revenue and distributing it effectively. It won’t be quick, and it surely isn’t painless, but it is necessary.

Most Mexicans will continue to greet and respond to greetings. Most will kindly let you cut in line in heavy traffic. I firmly believe that even after all these changes work out, Mexico will remain Mexico. After all, it will always be full of Mexicans!

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