BARCELONA, Spain — If credit unions wanted to know how they contribute to the greater good, they needed listen only to Vincente Fox, the former president of Mexico.
In remarks before the World Council of Credit Unions' World CU Conference, Fox talked of his own country's struggles with poverty (45% of the population) and corruption, and of where a growing credit union movement fits. He also had some tough words for the U.S., comments not welcomed by everyone in his audience (see related item).
"Where we missed in the 20th century was in democracy, freedom, and sound responsible market economies," he said. "The first step to prosperity is enjoying democracy and freedom. That is where we human beings perform at our best. When we don't have that we cannot accomplish our dreams."
Fox, the first democratically elected president in Mexico in 70 years, extolled the value of education, calling it critical for the building of "building human capital"
"The key link on the chain in moving from poverty to prosperity is what brought all of us here: access to credit, financing, access to a savings account, where throughout our productive life we can put together the money we need for our family and our retirement," said Fox, who spoke in English without notes.
Fox said that during his term as president the country enacted regulatory requirements that differentiated between small and large institutions, a proposal he urged others to consider. Providing few details, Fox also loosely proposed the creation of "something like a stock exchange for the poor," in which people who "cannot obtain credit for their dreams" would be able to work in partnership with a financial institution to raise funds.
The Fat Cow vs. the Thin Cow
Fox said Mexico is seeing negative economic growth as the result of decisions made in the U.S. that were "not wise and not visionary and (which) maybe in the future increase the problems of that leading economy."
Still, Fox, who grew up in a rural area of Mexico, was generally optimistic about the economy, first noting he learned as a child that "If you have a good milking cow, you don't drink all the milk. You save some. Those who save some money do better." He then predicted that the year of the "thin cow" will be limited to 2009.
As president, Fox had an ongoing relationship with Mexico's credit unions as well as those in the U.S., especially in Texas, and is very familiar with CUs. "I know of two words that define credit unions: performance with purpose," he said. "You perform well. You have a great efficient system that is moved with the energy and commitment of millions of people moving together. It is a strong performance because it has a purpose, and the purpose is to bring opportunities to people and families, to reduce poverty, to upgrade human beings, and to make sure each one has the opportunity to accomplish their dream."
