Political Risk: Fracas In Oaxaca
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President Vicente Fox finally answered calls to use force against the 'civil-resistance' movement in the state of Oaxaca in November. The protests, which stemmed from a teachers' strike, had turned increasingly violent during September and October, prompting Fox to send in police to take control of Oaxaca city. Fox has rejected claims that the police used heavy-handed tactics against the protestors, despite claims from the Asamblea Popular de los Pueblos de Oaxaca (APPO) that two people had been killed during the government action. Although relative order in the state should now be restored, public discontentment for PRI Governor Ulises Ruiz is unlikely to diminish. Furthermore, Ruiz appears reluctant to agree to Congress' demands for his resignation. As such, we believe that the potential for further uprisings remains a concern, at least in the short term. This could pose a downward risk to our short-term political risk ratings over the coming months.