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Darian
NPR.
Cierra Juarez
Over the last few years, we've heard a lot about investment in manufacturing booming in Mexico. This was a big deal a couple of years ago when the country became the United States number one trading partner. Banks and credit rating agencies are now warning that Mexico's growth could be in jeopardy, and it's not just because of the ongoing trade war. They're pointing to judicial reform. Joining us today to talk about those reforms is our researcher and fact checker, Cierra Juarez. Nice to have you on this side of the mic.
Darian
Thank you, Darian. It's so nice to be here. So starting this year, every single judge in Mexico, both local and federal, will be elected by the people instead of appointed. Yasmine Robles Cortes is one of those judges and she says the changes are going to be challenging.
Yasmin Robles Cortes
We aren't politicians. We aren't trained for that.
Cierra Juarez
Today on the show, the debate over judicial reform in Mexico. Why is it happening now? What could the consequences be and how?
Darian
Uncertainty over this big change is creating an unsettling business environment in Mexico and potentially threatening its commercial relationship with the U.S.
Sarah Levy
Support for NPR and the following message come from Betterment, the automated investing and savings app. CEO Sarah Levy shares how Betterment utilizes tech tools powered by human advice.
Darian
Betterment is here to help customers build wealth their way and we provide powerful technology and complete human support where technology can deliver ease of use and affordability and the people behind that technology can provide advice and guidance.
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Darian
To really understand what's going on in Mexico right now, we need to look back to the 1990s. Back then, Mexico had an economist as its president and he wanted to make the judicial branch more professional.
Cierra Juarez
David Lopez is an attorney. He also wrote the English language textbook on Mexican law that everyone seems to use.
David Lopez
Mexico altered its judicial institutions to increase judicial independence, to increase the quality of the courts, and to increase the discipline of federal judges.
Darian
But there were critics of the system. They said that it allowed the judiciary to continue to be pretty elitist.
Cierra Juarez
The fear was that a lot of wealthy or well connected people were ending up in judicial positions. They then favored their wealthy or well connected friends both in their judicial decisions and their hiring practices.
Darian
One estimate from Itam University in Mexico said that yes, about half of the federal judges in Mexico have at least one family member working in the regional court system.
Cierra Juarez
And it's worth mentioning, the researcher behind that study said the numbers alone weren't evidence of nepotism per se.
Darian
Either way, this is the historical context for what's happening today. So both former president Andres Manuel Lopez Obrador, better known as Amlo, and his protege, the current president, Claudia Schoenbaum, said, said the system was rife with nepotism, not to mention corruption and reform was needed.
Cierra Juarez
Amlo pushed through the policy change to elect judges in his final days as president last September. And since he left office, Shane Baum has been enthusiastically rolling it out.
Sarah Levy
Ested la defensa del pueblo de Mexico por la justicia.
Claudia Sheinbaum
This is the defense of the people of Mexico for justice, for honesty, for integrity, and for eradicating Mexico of what has caused so much harm to our country, which is corruption. Nepotism is corruption in the judiciary.
Darian
David says there are questions, though, on whether combating nepotism is the real reason behind the reform. Instead, he points to AMLO's prickly relationship with judges. When he was president, he continually ran.
David Lopez
Into issues with the judiciary, the federal judiciary in particular, so that many of the social reforms, political reforms, and legal reforms that he wanted to bring into existence, he met opposition.
Cierra Juarez
AMLO and the political party he founded, Morena, are popular in Mexico. They have the majority in both the House and the Senate. Can Claudia Shane Baum is part of the party too. David says Amlo chose to wield that power.
David Lopez
He decided to use that political power to essentially eliminate his largest opponent, which is the Mexican judiciary.
Darian
Starting this year, citizens will vote on judges from state level positions to the Supreme Court justices.
Cierra Juarez
The elections will take place in two rounds. Half of the country's judges will run in June and the second half will run in 2027.
Darian
The idea is to democratize the judicial system and have judges reflect regular people instead of a fancy judge calling the shots.
Cierra Juarez
Yasmin, the federal judge we heard from earlier, is planning to run. She says under the new system, she'll be running against some people with lesser credentials.
Yasmin Robles Cortes
In the final stage of my class, there were about 1,800 or 1900 people registered and only 30 of us made it. Access was so limited you had to have very good grades. Now they've changed it and it's Good enough to have an 80% in your undergraduate degree.
Darian
Even the requirements for a Supreme Court judge have changed. They've lowered the grading requirements, but have added a three page essay explaining why you want the position and are asking for a few references from neighbors or colleagues.
Cierra Juarez
And as you might expect, they got a lot of judge applications. Nearly 50, 50,000 of them.
Darian
Everyone wants to be a judge.
Cierra Juarez
This could be a new reality TV show. Just saying. So from there, the list was whittled down through a screening process and a random lottery draw. A big portion of the final 4,000 candidates are actually current sitting judges like Yasmine. They're automatically put on the ballots if they choose to run.
Darian
I know that in some parts of the United States, the public can vote on local and state court judges. Yeah, and when I go to vote, it always takes me forever to read up on everyone.
Cierra Juarez
That's one of the reasons that the US and basically every other country doesn't allow the public to choose judges at the top level. David, our legal expert says there is an argument for experts making those decisions.
David Lopez
I think that when the Founding Fathers were creating the federal judiciary, they felt that the voters may not be the best persons to decide on the qualification of federal judges.
Darian
Another argument is that it helps shield judges from voters if they make unpopular but constitutionally sound decisions.
Cierra Juarez
And so the big question is, will voters choose judges who have the training and expertise they need, especially when it comes to antitrust, intellectual property and tax cases, which can be very complicated.
Darian
Most of the experts I spoke to said it's way too soon to say for sure. Still, fear of the unknown has already done some damage to Mexico's reputation.
Cierra Juarez
We spoke to Moody's, who warned that a downgrade to Mexico's credit rating could be coming soon, partly because of the reform the ratings agency said the judiciary used to help balance out the will of the President and Congress. But without a good safeguard, they could pass what Moody's has called radical legal changes. It says some international companies won't want to take on that much risk.
Darian
Mexican President Shane Bomb said these worries are way overblown.
Claudia Sheinbaum
No American entrepreneur or any businesses in any other country nor Mexicans have anything to fear about the judicial reform. On the contrary, we are cleaning up the judiciary.
Cierra Juarez
For her part, Yasmin worries that the judicial overhaul creates more problems than it solves.
Yasmin Robles Cortes
It wouldn't benefit us as Mexicans, and I'm telling you this not as a judge, but as a citizen. It could create devaluation of the peso. We have to create the legal certainty that ensures investment can come to the country.
Darian
Meanwhile, the U.S. ambassador to Mexico says that the reform is threatening the historic commercial relationship between the two countries.
Cierra Juarez
Either way, with Mexico's trade with the US at 30% of its GDP, Mexico has a lot to lose, whether from the issue of judges or from the ongoing trade spats. This episode was produced by Julia Ritchie with engineering by Jimmy Keeley and Robert Rodriguez. It was fact checked by Cooper Kasma. Kim Cake and Cannon is our editor and the indicator is a production of npr.
Sarah Levy
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Cierra Juarez
Com.
The Indicator from Planet Money: Detailed Summary of "Should We Vote for All Judges?"
Release Date: April 1, 2025
In the April 1, 2025 episode of The Indicator from Planet Money, NPR delves into the significant judicial reform unfolding in Mexico. Titled "Should We Vote for All Judges?", the episode explores the shift from an appointed judiciary to one elected by the public, examining its implications for Mexico's economic landscape and its vital commercial relationship with the United States.
To comprehend the current reforms, the episode traces back to the 1990s when Mexico, under an economist-president, aimed to professionalize its judicial branch. David Lopez, an attorney and author of a widely used English-language textbook on Mexican law, explains:
"Mexico altered its judicial institutions to increase judicial independence, to increase the quality of the courts, and to increase the discipline of federal judges." [02:51]
Despite these changes, critics argued that the judiciary remained elitist. Cierra Juarez highlights concerns that wealthy or well-connected individuals dominated judicial positions, leading to favoritism in decisions and hiring practices. An Itam University study revealed that approximately half of Mexico's federal judges had at least one family member working within the regional court system, though the researcher clarified that these numbers alone didn't prove nepotism.
The historical context sets the stage for current reforms spearheaded by Andres Manuel Lopez Obrador (AMLO) and his successor, Claudia Sheinbaum, both affiliated with the Morena party. Cierra Juarez notes:
"Amlo pushed through the policy change to elect judges in his final days as president last September. And since he left office, Shane Baum has been enthusiastically rolling it out." [03:59]
AMLO criticized the judiciary as corrupt and nepotistic, advocating for elected judges to foster honesty and integrity within the system. Claudia Sheinbaum echoed these sentiments:
"This is the defense of the people of Mexico for justice, for honesty, for integrity, and for eradicating Mexico of what has caused so much harm to our country, which is corruption. Nepotism is corruption in the judiciary." [04:13]
However, David Lopez posits that AMLO's true motive might be rooted in his fraught relationship with the judiciary, suggesting that the reforms serve to diminish the judiciary's power, thereby removing a significant opposition force against his political agenda.
Starting in 2025, Mexico has transitioned to an electoral system for all judicial positions, ranging from local judges to Supreme Court justices. Darian explains:
"Starting this year, citizens will vote on judges from state level positions to the Supreme Court justices." [05:27]
The election process is divided into two rounds: the first in June 2025 and the second in 2027. The objective is to democratize the judiciary, ensuring that judges represent the general populace rather than an elite class. Cierra Juarez adds that nearly 50,000 candidates applied, leading to a rigorous screening and randomized lottery process that narrowed the field to about 4,000 finalists, many of whom are incumbent judges like Yasmin Robles Cortes.
Yasmin Robles Cortes expresses concern about the lowered qualifications for judges under the new system:
"In the final stage of my class, there were about 1,800 or 1900 people registered and only 30 of us made it. Access was so limited you had to have very good grades. Now they've changed it and it's Good enough to have an 80% in your undergraduate degree." [06:01]
Additionally, Supreme Court candidates now submit a three-page essay on their motivations and gather references from neighbors or colleagues, further democratizing the selection process but raising questions about the qualifications of elected judges.
Business and Economic Concerns
The judicial overhaul has introduced uncertainty into Mexico's business environment, alarming investors and credit rating agencies. Moody's has indicated a potential downgrade of Mexico's credit rating, citing fears that the judiciary may no longer serve as a check against presidential and congressional power, potentially leading to unpredictable legal changes. This uncertainty threatens Mexico's status as the United States' top trading partner, with trade constituting 30% of Mexico's GDP.
Claudia Sheinbaum reassures stakeholders by stating:
"No American entrepreneur or any businesses in any other country nor Mexicans have anything to fear about the judicial reform. On the contrary, we are cleaning up the judiciary." [08:36]
However, Yasmin Robles Cortes voices skepticism about the reforms' effectiveness and their potential negative impact on Mexico's economy:
"It wouldn't benefit us as Mexicans, and I'm telling you this not as a judge, but as a citizen. It could create devaluation of the peso. We have to create the legal certainty that ensures investment can come to the country." [08:57]
U.S. Concerns
The U.S. has also expressed apprehensions. The U.S. ambassador to Mexico warns that the judicial reforms might jeopardize the longstanding commercial relationship between the two nations, a critical partnership given the extensive trade ties.
While the intention behind Mexico's judicial reform is to eradicate corruption and promote transparency, the transition to elected judges introduces significant uncertainty. Experts remain divided on whether this shift will lead to a more just and representative judiciary or undermine the legal system's integrity. The outcome of this reform will not only shape Mexico's internal governance but also influence its economic standing and international relations, particularly with the United States.
As the reforms unfold, the global community watches closely, recognizing that the success or failure of Mexico's approach could serve as a precedent for judicial reforms worldwide.
Notable Quotes:
This summary captures the essence of the podcast episode, focusing on the critical aspects of Mexico's judicial reform, its historical backdrop, the motivations behind the changes, and the multifaceted reactions from various stakeholders.