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This article discusses the political transition of Mexico to democracy following the July 2000 defeat of the Institutional Revolutionary Party after more than 70 years of rule sparked a revolution in expectations. Newly elected president Vicente Fox projected a triumphant image of strength and confidence that inflated hopes at home and abroad. Three years into democratic transition, few of these dreams have been realized. Mexican politics is more democratic but less governable and is suffering from gridlock between the executive and legislative branches. The economy is stable, but growth and competitiveness are lagging. The principal concern of Mexico's elite today is how to build governing majorities and achieve consensus. Fox's leadership style is unconventional and ideologically heterogeneous. Some commentators find him refreshing and authentic, whereas others complain that he has not established clear priorities. Looking ahead to the 2006 presidential election, one can envision a scenario similar to that of the 2000 election, weak parties and strong candidates who lack electoral coattails. The United States and Mexico must erect a new North American security architecture. Protection of the North American perimeter is essential to the security of both nations.

The article discusses the future of fragile democratic system of Mexico. There are various signs of progress of a democratic free-market revolution in the country. There is a large part of its economy which is privatized, election frauds are eliminated and the central bank operates with great transparency. But, it should not be considered as an easy task to liberalize the oldest single-party regime in the world. The economic reforms in the country have been only partially consolidated, so they remain susceptible to change in political scenario. Also, drug lords are trying to increase their power and revolutionaries are struggling to establish their own control. The presidential elections in 200 are supposed to give an indication of peoples' aspiration for the democratic institutions.

States that setting the record straight on Mexico is more than just an academic point, it is essential to a sane United States policy on Mexico. Mexico's perfect dictatorship image; Question behind Mexico's democratic transition; Washington's stance toward Mexico's democracy. INSET: Want to know more?..