What does it cost to evaluate a bill properly, and what does it cost to pass one without evaluating it?
On 15 September 2024, Mexico enacted a constitutional overhaul of its judiciary: popular election of every judge, magistrate and justice, new disciplinary bodies, and the replacement of the Federal Judiciary Council. The bill cleared the legislature in six working days, with no regulatory impact assessment and no published budget estimate. The extraordinary judicial election of 2025 alone was budgeted above 13 billion pesos (INE, 2024), more than the entire 2024 federal election that renewed the presidency and both chambers. Severance for displaced judges, administrative restructuring and training for newly elected jurists followed. One decree cost more than a decade of running OACRA.
This chapter sets out the institutional arithmetic any finance ministry needs before committing public funds:
1. Phased cost structure. Gradual scaling from an $800K–1.5M pre-implementation stage to a mature system of $50–70M per year staffed by 100–120 professionals. Ten-year capital investment: $12–20M.
2. A salary architecture benchmarked to Latin American markets, with an annual payroll of $5.45–10.6M across economists, constitutional lawyers, data scientists and engineers.
3. Financing that matures from multilateral support (IDB, World Bank) toward an automatic constitutional allocation of 0.15 percent of the national budget, shielded by a two-thirds threshold.
4. Cost-benefit ratios tested through cross-sensitivity analysis: 2.8:1 in the base case, and still 1.4:1 assuming only fifteen percent effectiveness.
5. The price of the status quo, traced through legislative correction, fiscal leakage, economic distortion and democratic erosion.
The empirical anchor is the Congressional Budget Office: $73.5 million and 275 staff, figures strikingly close to OACRA's Phase 3 projection. Established in 1974, the CBO retains bipartisan backing half a century on. Independent central banks typically draw 0.10–0.30 percent of national budgets (Cukierman, 1992); autonomous electoral bodies 0.05–0.20 percent (IDEA Internacional, 2022). OACRA sits squarely inside that band.
The argument stays sober throughout: OACRA is institutional capital, preventive maintenance for the legislative system. As North (1990) and Acemoglu and Robinson (2006) argued, institutional quality works as a precondition for development. Its worth lies in making the cost of political decisions visible before they are taken, leaving a public and verifiable record of what was projected and when.
🔹 OACRA — Algorithmic Office for Enhanced Regulatory Quality
Jesús Bernal Allende | Escuela del Deber-Optimizar y la Soberanía de la Evidencia
https://a.co/d/09Xzy0z8 🌐 https://deber-optimizar.mx/en/ 🔗 https://www.linkedin.com/in/jesus-bernal-allende-030b2795