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““Structural Reforms and Long-Term Economic Structural Reforms and Long-Term Economic Growth in Mexico”Growth in Mexico”..
Alejandro Díaz-Bautista, Alejandro Díaz-Bautista, Ph.D.Ph.D.
Professor of International Economics at Colefand Distinguished ResearcherNational Council of Science and Technology
Center for U.S.-Mexican Studies at UC San DiegoWednesday, May 21, 2014. 12 - 1:30 p.m.Gildred Latin American Studies Building, CILAS Library, UCSD. .
IntroductionIntroduction Since President Peña Nieto took office last year, Mexico has Since President Peña Nieto took office last year, Mexico has
been pushing for an ambitious agenda of structural been pushing for an ambitious agenda of structural reforms. Mexico recently enacted a structural reform of its reforms. Mexico recently enacted a structural reform of its telecommunications and broadcasting industries aimed at telecommunications and broadcasting industries aimed at increasing competition and investment. A fiscal reform and increasing competition and investment. A fiscal reform and a comprehensive financial reform aimed at boosting credit a comprehensive financial reform aimed at boosting credit was proposed by the current administration. was proposed by the current administration.
The Mexican government recently announced the energy The Mexican government recently announced the energy reform that is expected to include significant changes to reform that is expected to include significant changes to Mexico’s current oil and energy sector, partly aimed at Mexico’s current oil and energy sector, partly aimed at attracting foreign investment.attracting foreign investment.
Congress passed the basic legislation last year to open up Congress passed the basic legislation last year to open up the oil and gas industry and spur competition in a telecoms the oil and gas industry and spur competition in a telecoms sector dominated by Carlos Slim. But it must still approve sector dominated by Carlos Slim. But it must still approve the secondary laws to implement those changes.the secondary laws to implement those changes.
IntroductionIntroduction The reforms are a result of the Pact for Mexico, by which The reforms are a result of the Pact for Mexico, by which
the current administration and the major political parties the current administration and the major political parties pledged to pass structural reforms in such sectors as pledged to pass structural reforms in such sectors as telecommunications, financial, energy, education and a telecommunications, financial, energy, education and a fiscal reform. fiscal reform.
The presentation analyzes the impacts of the structural The presentation analyzes the impacts of the structural reforms in Mexico’s economy during 2014, twenty years reforms in Mexico’s economy during 2014, twenty years after the passage of the NAFTA agreement. after the passage of the NAFTA agreement.
Mexico’s structural reforms in the areas of Mexico’s structural reforms in the areas of telecommunications, financial, fiscal and energy sectors are telecommunications, financial, fiscal and energy sectors are expected to improve long-term economic growth prospects.expected to improve long-term economic growth prospects.
Fiscal ReformFiscal Reform
TAX REFORM HIGHLIGHTSTAX REFORM HIGHLIGHTS The Social and Tax Reform has several components worth The Social and Tax Reform has several components worth
mentioning:mentioning: 1. The health related tax1. The health related tax 2. Continuing zero percent tax to food and medicines2. Continuing zero percent tax to food and medicines 3. Harmonization of VAT (Value Added Tax) in all of Mexico at 3. Harmonization of VAT (Value Added Tax) in all of Mexico at
16%.16%. 4. Elimination of special treatment and preferential tax regimes4. Elimination of special treatment and preferential tax regimes 5.Establishment of limits on personal tax exceptions and 5.Establishment of limits on personal tax exceptions and
deductionsdeductions 6. Tax on stock and capital profits6. Tax on stock and capital profits 7. Elimination of IETU (Special Tax on Production and Services), 7. Elimination of IETU (Special Tax on Production and Services),
IDE (CashIDE (Cash Deposit Tax) and new ISR (Revenue Tax) lawDeposit Tax) and new ISR (Revenue Tax) law 8. Changes to the customs regulation 8. Changes to the customs regulation
Political ReformPolitical Reform Mexico's Congress gave final approval to a political reform bill Mexico's Congress gave final approval to a political reform bill
that will help clear the way for the passage of legislation that will help clear the way for the passage of legislation needed to implement a major energy reform.needed to implement a major energy reform.
Setting out details of a law to allow lawmakers to serve Setting out details of a law to allow lawmakers to serve consecutive terms and establish rules for coalition consecutive terms and establish rules for coalition governments, the so-called secondary laws for the electoral governments, the so-called secondary laws for the electoral reform were given the green light by the lower house in a vote reform were given the green light by the lower house in a vote of 311 in favor and 91 against. The reform now heads to of 311 in favor and 91 against. The reform now heads to President Enrique Pena Nieto to be signed into law.President Enrique Pena Nieto to be signed into law.
Mexico's opposition conservative National Action Party (PAN) Mexico's opposition conservative National Action Party (PAN) had demanded passage of the political reform before it would had demanded passage of the political reform before it would vote for Pena Nieto's energy reform, which forms the central vote for Pena Nieto's energy reform, which forms the central part of his vision to breathe new life into the economy and part of his vision to breathe new life into the economy and increase future economic growth. increase future economic growth.
Political ReformPolitical Reform The electoral bill completes a constitutional reform that The electoral bill completes a constitutional reform that
enables the re-election of mayors and congressmen, places enables the re-election of mayors and congressmen, places new restrictions on campaign financing, and creates a new new restrictions on campaign financing, and creates a new national body responsible for organizing federal and local national body responsible for organizing federal and local polls.polls.
The National Electoral Institute will replace the Federal The National Electoral Institute will replace the Federal Electoral Institute. The National Electoral Institute will Electoral Institute. The National Electoral Institute will oversee all federal elections and control the financial oversee all federal elections and control the financial resources for political campaigns.resources for political campaigns.
Each local electoral body will now report to the National Each local electoral body will now report to the National electoral institute, breaking the control previously held by electoral institute, breaking the control previously held by state governors and legislative bodies over the voting state governors and legislative bodies over the voting process.process.
Political ReformPolitical Reform The new National Electoral Institute eliminates the control that the The new National Electoral Institute eliminates the control that the
governors of the states had on local institutes. The new model governors of the states had on local institutes. The new model seeks to remedy the excesses that many governors committed. seeks to remedy the excesses that many governors committed.
The time between the presidential election and the inauguration The time between the presidential election and the inauguration will also be reduced to three months from the current five will also be reduced to three months from the current five months. The president elected in 2018 will be decided in a poll in months. The president elected in 2018 will be decided in a poll in early July and sworn in by October 1. early July and sworn in by October 1.
Another key reform will be allowing the president to establish Another key reform will be allowing the president to establish coalition governments with political forces outside the ruling coalition governments with political forces outside the ruling political party. The coalition government would have to be political party. The coalition government would have to be approved by the entire congress but only the senate will have to approved by the entire congress but only the senate will have to approve government programs.approve government programs.
Most of the new electoral laws will come into effect for 2015, Most of the new electoral laws will come into effect for 2015, during the net intermediate federal elections, while others dealing during the net intermediate federal elections, while others dealing with the presidency and senate will only take effect in 2018.with the presidency and senate will only take effect in 2018.
Energy ReformEnergy Reform
Pena Nieto's Institutional Revolutionary Party, or PRI, is relying on PAN Pena Nieto's Institutional Revolutionary Party, or PRI, is relying on PAN support to see through the energy reform, which could end a 75-year-old support to see through the energy reform, which could end a 75-year-old oil and gas monopoly in Mexico.oil and gas monopoly in Mexico.
The reforms would allow outside companies to participate in oil, gas and The reforms would allow outside companies to participate in oil, gas and natural gas liquids (NGLs) production in Mexico. Right now, production is natural gas liquids (NGLs) production in Mexico. Right now, production is limited to the state energy producer, Pemex.limited to the state energy producer, Pemex.
By allowing more participation in the country's energy sector, the reforms By allowing more participation in the country's energy sector, the reforms could increase oil production in the country and reduce the trade deficit could increase oil production in the country and reduce the trade deficit that Mexico has in every other hydrocarbon and derivative, such as natural that Mexico has in every other hydrocarbon and derivative, such as natural gas, oil products and petrochemicals.gas, oil products and petrochemicals.
By allowing third parties to fractionate natural gas, the reforms could even By allowing third parties to fractionate natural gas, the reforms could even provide the foundation for a petrochemical resurgence along the lines of provide the foundation for a petrochemical resurgence along the lines of what is already occurring in the US.what is already occurring in the US.
Energy ReformEnergy Reform
Energy ReformEnergy Reform Mexico holds a sizable Mexico holds a sizable
unconventional resource base. With unconventional resource base. With an estimated 545 tcf of technically an estimated 545 tcf of technically recoverable shale resources, the recoverable shale resources, the country ranks sixth in the world in country ranks sixth in the world in terms of shale gas potential, terms of shale gas potential, behind China, Argentina, Algeria, behind China, Argentina, Algeria, the US, and Canada. the US, and Canada.
New contract models for New contract models for exploration and production exploration and production companies could include a companies could include a combination of profit-sharing or combination of profit-sharing or production-sharing agreements production-sharing agreements with Pemex or the federal with Pemex or the federal government, license agreements government, license agreements with the federal government, and with the federal government, and service agreements with Pemex service agreements with Pemex involving only cash payments.involving only cash payments.
Telecommunications ReformTelecommunications Reform The reforms would raise or eliminate limits on foreign investment, create The reforms would raise or eliminate limits on foreign investment, create
two new national television channels and form a new independent two new national television channels and form a new independent regulatory commission along the lines of the U.S. Federal Communications regulatory commission along the lines of the U.S. Federal Communications Commission, with the power to unilaterally punish non-competitive Commission, with the power to unilaterally punish non-competitive practices, including withdrawing corporations' licenses. A second practices, including withdrawing corporations' licenses. A second independent commission would be able to order firms to sell off assets in independent commission would be able to order firms to sell off assets in order to reduce their market dominance.order to reduce their market dominance.
The existing commissions that oversee competition and The existing commissions that oversee competition and telecommunications have no independent ability to alter permits, order telecommunications have no independent ability to alter permits, order divestment or issue fines. Those powers sit with a Cabinet secretary, a divestment or issue fines. Those powers sit with a Cabinet secretary, a position that in the past frequently has been accused of bowing to position that in the past frequently has been accused of bowing to telecommunications firms.telecommunications firms.
The reforms would require TV networks to provide their programming free The reforms would require TV networks to provide their programming free to most cable operators, and require cable operators to carry all broadcast to most cable operators, and require cable operators to carry all broadcast channels, measures seen as essential for opening television markets to channels, measures seen as essential for opening television markets to competition. The changes would also block telecommunications and competition. The changes would also block telecommunications and broadcasting companies from indefinitely freezing regulatory decisions broadcasting companies from indefinitely freezing regulatory decisions simply by obtaining a private injunction, a peculiarity of Mexican law that simply by obtaining a private injunction, a peculiarity of Mexican law that has thwarted dozens of attempts to regulate media and communications has thwarted dozens of attempts to regulate media and communications firms.firms.
Reform Opens Way for New Telecom PlayersReform Opens Way for New Telecom Players
Mexico’s Federal Institute of Telecommunications, Ifetel, Mexico’s Federal Institute of Telecommunications, Ifetel, which assumed oversight of the country’s $30 billion which assumed oversight of the country’s $30 billion telecommunications industry last September, is reshaping telecommunications industry last September, is reshaping the country’s TV, cable and telco businesses and openning the country’s TV, cable and telco businesses and openning up the field to outside investors.up the field to outside investors.
New regulations opened the way for new over-the-air New regulations opened the way for new over-the-air broadcasters to enter the market, enacted must-carry, broadcasters to enter the market, enacted must-carry, must-offer rules that apply to the nation’s TV duopoly of must-offer rules that apply to the nation’s TV duopoly of Televisa and TV Azteca, which together have most of the Televisa and TV Azteca, which together have most of the market share and also announced auction rules for as many market share and also announced auction rules for as many as two new over-the-air broadcasters, which must be as two new over-the-air broadcasters, which must be majority owned by Mexican interests.majority owned by Mexican interests.
Telecom MexicoTelecom Mexico
Reform Opens Way for New Telecom PlayersReform Opens Way for New Telecom Players
Mexico now has become a focal point for potential market Mexico now has become a focal point for potential market change after Mexican President Enrique Peña Nieto signed into change after Mexican President Enrique Peña Nieto signed into law a new framework for competition in the telecommunications law a new framework for competition in the telecommunications and TV broadcast industries that has the express aim of limiting and TV broadcast industries that has the express aim of limiting market power and shifting market share in Mexico’s market power and shifting market share in Mexico’s communications and media businesses.communications and media businesses.
The new law creates a brand new regulatory body, Ifetel, which The new law creates a brand new regulatory body, Ifetel, which will have the ability to apply more restrictive regulations on will have the ability to apply more restrictive regulations on dominant competitors or force them to sell assets.dominant competitors or force them to sell assets.
Two new national television networks will be authorized, and Two new national television networks will be authorized, and existing satellite and cable TV companies will be required to existing satellite and cable TV companies will be required to carry those signals at no charge to the new networks.carry those signals at no charge to the new networks.
Foreign businesses will be permitted to own up to 49 percent Foreign businesses will be permitted to own up to 49 percent (up from zero percent) of radio firms, and can increase their (up from zero percent) of radio firms, and can increase their stake to 100 percent (up from 49 percent) in other stake to 100 percent (up from 49 percent) in other telecommunications operations.telecommunications operations.
Financial ReformFinancial Reform President Enrique Peña Nieto promulgated the financial reform law, saying President Enrique Peña Nieto promulgated the financial reform law, saying
that it will promote responsible lending which will create true economic that it will promote responsible lending which will create true economic growth and greater productivity in Mexico.growth and greater productivity in Mexico.
He promised that changes to the lending rules would have a favorable He promised that changes to the lending rules would have a favorable impact on the national economy by making credit more easily available to impact on the national economy by making credit more easily available to Mexicans and local companies, as well as increasing and democratizing Mexicans and local companies, as well as increasing and democratizing productivity, which will facilitate entrepreneurs’ access to much needed productivity, which will facilitate entrepreneurs’ access to much needed resources. With “more and cheaper credit,” President Peña Nieto said that resources. With “more and cheaper credit,” President Peña Nieto said that small- and medium-sized companies will be able to grow, modernize and small- and medium-sized companies will be able to grow, modernize and generate more jobs for Mexicans.generate more jobs for Mexicans.
The four central objectives of the new banking law, according to President The four central objectives of the new banking law, according to President Peña Nieto, are to boost the Mexican development bank; to improve the Peña Nieto, are to boost the Mexican development bank; to improve the judicial framework providing more credit at lower interest rates; to judicial framework providing more credit at lower interest rates; to increase competition in the financial sector multiplying and improving increase competition in the financial sector multiplying and improving credit options for Mexicans; and to strengthen the soundness of the credit options for Mexicans; and to strengthen the soundness of the financial system.financial system.
U.S.-Mexico Relations, a Shift U.S.-Mexico Relations, a Shift from Security to Economyfrom Security to Economy
Economics is at the center of the relation Economics is at the center of the relation between both countries in 2013 and 2014.between both countries in 2013 and 2014.
The United States is Mexico’s largest The United States is Mexico’s largest trading partner, and the two countries trading partner, and the two countries engaged in nearly 500 billion dollars worth engaged in nearly 500 billion dollars worth of trade in 2012. Much of that trade is in of trade in 2012. Much of that trade is in what are known as intermediate inputs, what are known as intermediate inputs, referring to semi-finished U.S. goods that referring to semi-finished U.S. goods that are finalized with Mexican resources, a are finalized with Mexican resources, a process seen as increasing the process seen as increasing the competitiveness of both countries.competitiveness of both countries.
United States - Mexico Border States
Description:
• 10 border states.
• Nearly 2,000-mile (3,169 km or 1,969 miles) of international border.
• Population: more than 83 million.
The United States Mexico The United States Mexico BorderBorder
People cross the United States People cross the United States Mexico border every day to do Mexico border every day to do business, go shopping, visit family business, go shopping, visit family members, or simply to enjoy each members, or simply to enjoy each other’s tourism. other’s tourism.
This results in around 350 million This results in around 350 million crossings and almost $400 billion in crossings and almost $400 billion in trade each year, making it the most trade each year, making it the most important border region in the world.important border region in the world.
The United States- Mexico border regionThe United States- Mexico border region
The ten Border States represent the largest binational regional economy in The ten Border States represent the largest binational regional economy in the world, with over 83 million people and a combined economy ranked the world, with over 83 million people and a combined economy ranked estimated at number four in the world in economic terms.estimated at number four in the world in economic terms.
This region has 51 border crossings, 32 bridges and seven federal railway This region has 51 border crossings, 32 bridges and seven federal railway routes, placing it as the busiest border in the world, with over 350 million routes, placing it as the busiest border in the world, with over 350 million people cross the border each year.people cross the border each year.
The economic slowdown and unemployment are among the issues that The economic slowdown and unemployment are among the issues that currently affect the people on both sides of the border. currently affect the people on both sides of the border.
The state of Arizona had an unemployment rate of 9.4 percent, Texas, 8.4 The state of Arizona had an unemployment rate of 9.4 percent, Texas, 8.4 percent; New Mexico, 6.7 percent, and California, 12 percent (the percent; New Mexico, 6.7 percent, and California, 12 percent (the highest), according to the figures from July 2011, compared to an highest), according to the figures from July 2011, compared to an unemployment rate of 9.1 percent in the United States during July 2011.unemployment rate of 9.1 percent in the United States during July 2011.
In July 2011, the northern border states of Mexico were also showing high In July 2011, the northern border states of Mexico were also showing high unemployment rates. The state of Baja California had an unemployment unemployment rates. The state of Baja California had an unemployment rate of 5.05 percent, Sonora, 5.65 percent; Chihuahua, 6.81 percent; rate of 5.05 percent, Sonora, 5.65 percent; Chihuahua, 6.81 percent; Coahuila, 6.27 percent; Nuevo Leon, 6.49 percent; and Tamaulipas, 8.81 Coahuila, 6.27 percent; Nuevo Leon, 6.49 percent; and Tamaulipas, 8.81 percent (the highest).percent (the highest).
Economic Indicators 2013-2015Economic Indicators 2013-2015
Economic Indicators 2013-2015Economic Indicators 2013-2015 It is anticipated that the Ministry of Finance will cut its It is anticipated that the Ministry of Finance will cut its
current growth forecast of 3.9 percent to a rate of 3.0 current growth forecast of 3.9 percent to a rate of 3.0 percent, while the central bank revised its projected growth percent, while the central bank revised its projected growth from the 3.0 and 4.0 percent, to one between 2.5 and 3.5 from the 3.0 and 4.0 percent, to one between 2.5 and 3.5 percent.percent.
The data on gross domestic product (GDP) in the first The data on gross domestic product (GDP) in the first quarter of 2014, will be known on Friday.quarter of 2014, will be known on Friday.
We expect a modest recovery of 2.1 percent at an annual We expect a modest recovery of 2.1 percent at an annual rate, down from its previous forecast of 2.4 percent, while rate, down from its previous forecast of 2.4 percent, while the seasonally adjusted estimate calls for an annualized the seasonally adjusted estimate calls for an annualized quarterly rate of 0.9 percent.quarterly rate of 0.9 percent.
Economic Growth ModelEconomic Growth Model
To understand the economic growth model, let’s look at the sources of economic growth….where does production come from?
( )LKAFY ,,=Real GDP
“is a function of”
Productivity Capital Stock
Labor
Real GDP = Constant prices (Inflation adjusted) value of all goods and services produced in the country.
Capital Stock = Constant price value of private, non-residential fixed assets.
Labor = Private and Public Sector Employment.
Productivity = Production unaccounted for by capital or labor.
3
2
3
1
LAKY =
Suppose we have the following production function:
A 1% rise in employment raises GDP by 2/3%
A 1% rise in capital raises GDP by 1/3%
We can rewrite the production function in terms of growth rates to decompose GDP growth into growth of factors:
( ) ( ) ( )LKAY ∆+∆+∆=∆ %3
2%
3
1%%
Real GDP Growth (observable) Employment
Growth (observable)
Capital Growth (observable)
Productivity Growth (unobservable)
Our model of economic growth begins with a production function.
Real GDP
Productivity Capital Stock
Labor
Given our models production function, economic growth can result from
• Growth in labor• Growth in the capital stock• Growth in productivity
3
2
3
1
LAKY =
We are concerned with capital based growth. Therefore, growth in productivity and employment will be taken as given
Productivity grows at rate
AgPop
Pop
LF
LF
LL
=
Population grows at rate
Lg
Employment
Labor Force= Employment Ratio
( Assumed Constant)
Labor Force
Population= Participation rate
( Assumed Constant)
3
2
3
1
LAKY =
3
1
Aky =
Again, the key property of production is that capital exhibits diminishing marginal productivity, that is as capital rises relative to labor, its contribution to production of per capita output shrinks
y
k
Capital stock per capita
Output per capita
Lets assume that households save a constant fraction of their disposable income.
( )TYS −= θ
Savings
Income Less Taxes
Constant between zero and one
Again, convert everything to per capital terms by dividing through by the labor force
−=
L
T
L
Y
L
S θ ( )tys −= θ
c
time
Is a higher steady state worth the transitions structural reforms?
Growth of per capita consumption under old policy regime = 1.5%
Immediate drop in consumption as economy responds to fiscal policy change
Growth of per capita consumption increases during transition period during structural reforms.
Growth of per capita consumption returns to 1.5%
ConclusionsConclusions More than a year ago, as President Enrique Peña Nieto More than a year ago, as President Enrique Peña Nieto
started his administration, the domestic and international started his administration, the domestic and international press were talking about “Mexico’s moment” and the rise of press were talking about “Mexico’s moment” and the rise of “the Aztec tiger.” “the Aztec tiger.”
Increasing pessimism in Mexico stems in part from Increasing pessimism in Mexico stems in part from disappointing economic results: Mexico’s GDP growth has disappointing economic results: Mexico’s GDP growth has fallen, from nearly four percent in 2012 to around an fallen, from nearly four percent in 2012 to around an estimated one and a half percent in 2013. estimated one and a half percent in 2013.
The negativity also reflects the impatience of pundits and The negativity also reflects the impatience of pundits and markets, as the economic dividends from Peña Nieto’s markets, as the economic dividends from Peña Nieto’s ambitious structural economic reform agenda have yet to ambitious structural economic reform agenda have yet to appear.appear.
ConclusionsConclusions As the North American Free Trade Agreement (NAFTA) As the North American Free Trade Agreement (NAFTA)
celebrates its 20th anniversary, many observers forget just celebrates its 20th anniversary, many observers forget just how much Mexico has changed in the last two decades. how much Mexico has changed in the last two decades.
Mexico was once hidden behind high tariffs, quotas, Mexico was once hidden behind high tariffs, quotas, subsidies, and hundreds of state-owned enterprises.subsidies, and hundreds of state-owned enterprises.
Mexico’s economy is now one of the most open in the Mexico’s economy is now one of the most open in the world. Mexico boasts free-trade agreements with over 40 world. Mexico boasts free-trade agreements with over 40 countries and the trade-to-GDP ratio, a common measure countries and the trade-to-GDP ratio, a common measure of economic openness is above 60 percent, surpassing the of economic openness is above 60 percent, surpassing the United States, Brazil, and even China. United States, Brazil, and even China.
And whereas oil once represented over 75 percent of And whereas oil once represented over 75 percent of Mexico’s exports, today it is manufactured goods that Mexico’s exports, today it is manufactured goods that produce three out of every four export dollars in the produce three out of every four export dollars in the country.country.
ConclusionsConclusions A large part of North America’s economic A large part of North America’s economic
dynamism stems from its interdependence. dynamism stems from its interdependence. Since NAFTA entered into force, intraregional Since NAFTA entered into force, intraregional
trade has multiplied, from around $290 billion in trade has multiplied, from around $290 billion in 1993 to over $1.1 trillion in 2012. 1993 to over $1.1 trillion in 2012.
Roughly half of this trade crosses the U.S.-Roughly half of this trade crosses the U.S.-Mexican border each year. The nature of this Mexican border each year. The nature of this back and forth has also changed, as new supply back and forth has also changed, as new supply chains have taken root throughout the region.chains have taken root throughout the region.
The structural reforms elevate the expectations of The structural reforms elevate the expectations of (GDP) growth of the national economy over the (GDP) growth of the national economy over the medium and long term, a factor that medium and long term, a factor that distinguishes Mexico from other emerging distinguishes Mexico from other emerging nations.nations.
““Structural Reforms and Long-Term Economic Structural Reforms and Long-Term Economic Growth in Mexico”Growth in Mexico”..
Alejandro Díaz-Bautista, Alejandro Díaz-Bautista, Ph.D.Ph.D.
Professor of International Economics at Colefand Distinguished ResearcherNational Council of Science and Technology
Center for U.S.-Mexican Studies at UC San DiegoWednesday, May 21, 2014. 12 - 1:30 p.m.Gildred Latin American Studies Building, CILAS Library, UCSD. .
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