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Earthquake to spur growth opportunity

News Desk
Published on : 11 October 2017, 10:29 AM
Earthquake to spur growth opportunity Mexico`s richest man, telecom magnate Carlos Slim


Mexico`s business tycoon, telecom magnate Carlos Slim, said Tuesday that reconstruction from two destructive earthquakes last month will create jobs and propel growth and announced that more than $100 million had been raised for relief efforts.

Tens of thousands of people lost their houses and the country will have to be rebuilt them following the Sept. 19 magnitude-7.1 quake, which took the life of 369 people, and an earlier, even more devastating one that hit the southern part of Mexico on Sept. 7 with a magnitude of 8.1.

"Even though it was a very sad tragedy ... it will be a big factor in spurring economic activity and employment," Slim said during a news conference called by his charitable foundation.

Even though the Mexican peso has fallen by six percent against US dollar in the last 21 days, the business tycoon Carlos is quite indifferent about the slumped economy of his country.

It is supposed that due to the impending impasse in North American Free Trade Agreement renegotiation, the peso has faced a slump.  However, Carlos said the World Trade Organization rules that would come into effect if the NAFTA talks founder are satisfactory.

"The WTO rules are very stimulating for commerce," he said.

Slim said private donors had raised the equivalent of about $22 million for earthquake relief and his foundation matched those donations five to one, for a total of $134 million.

The money will be used for immediate housing and food for quake victims as well as shoring up damaged historic churches and buildings while experts decide how to restore them. The funds will also go to rebuilding hospitals and schools and "constructing better housing, respecting the uses and customs of each place."

That was an apparent reference to the states of Oaxaca and Chiapas, which were severely hit by the Sept. 7 quake. There, Slim proposed building small concrete-frame houses — the traditional material is brick or adobe — of about 500 square feet (50 square meters), with enough strength to bear a second-story addition if needed.

He acknowledged that the $7,000 loans the government is offering to people in Oaxaca and Chiapas might not be enough to build such homes, noting "it would be tight" to fit that budget.

Slim called for changes in building regulations to make structures more quake-resistant and said rules should require reinforcement for buildings erected before Mexico`s deadly 1985 earthquake, which spurred tighter construction codes.

As for the capital, Slim said the best thing would be for rebuilding to follow the kind of dense, mixed-use and high-rise development that his companies have done in a west-side neighborhood known as New Polanco.

Those shopping centers, museums and offices were built on the site of former factories and are close to apartment towers. Critics have called the developments sterile and cite traffic problems, however.

"It would be ideal if this could be done throughout all of Mexico City," Slim said.

Source: AP/UNB

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