The secretary specifically cited the need for investment in infrastructure to create a rapid change and allow for faster economic growth in Mexico. Credito Publico Secretary Jose Angel Gurria Secretary Gurria provided an overview of the current world economic situation and its impact on Mexico. Asia's downturn directly impacted Mexico, he said, because oil markets had been driven by demand from that region. With the drop in demand and changes in OPEC production, prices fell sufficiently to affect government revenues one-third of the government budget depends on oil income. Gurria emphasized that Mexico's basic economy is strong because of strict fiscal discipline, low debt, a diverse export base, a free-floating exchange rate and a liberal trade regime.
Challenges remain for Mexico.
Gurria noted the need for a broader tax base so that the government is not as dependent on oil revenues, a stronger banking system with better supervision and increased savings. Procuradur a General de la Rep blica Attorney General Jorge Madrazo Attorney General Madrazo outlined Mexico's prosecutorial system, comparing it to the U.S., outlining challenges and discussing bilateral efforts against criminal activity. He said that 60 percent of his agency's operations are aimed at fighting drug trafficking. Bilateral cooperation with the United States is important, he said, but with the ultimate guiding principle of respect for the sovereignty of the state. On the U.S. side, the attorney general commented that the U.S. Congress' drug certification process is not constructive and, in fact, benefits drug traffickers by interfering with cooperative bilateral efforts.