OECD territorial reviews, Mexico.

204 Pages·2003·5.388 MB·English

by  OECD

«
OECD Territorial Reviews
Mexico
OECD
Despite its impressive export-growth performance and sizeable inflows of FDI during the
1990s, Mexico has been unable to alleviate the social and regional disparities that exist
Territorial Reviews
within the country. The differences in enabling assets are pertinent to the varied paces of
development across Mexico’s regions and highlight the existing divide between several
parts of the Centre-North and the South-Southeast, where the majority of the population
continues to live in poverty. The co-existence of a high concentration and dispersion of the Mexico
population and economic activities poses further policy challenges for increased balanced
economic development across the country.
ThisTerritorial Review of Mexicoevaluates the emerging territorial development strategies
as well as the relevant changes in governance, such as new horizontal and vertical
co-ordination mechanisms, that are being introduced in conjunction with improved federal
arrangements. In particular, the review focuses on three policy objectives that are
considered as having the greatest priority in confronting and redressing Mexico’s stark
regional disparities: alleviating poverty, fostering competitiveness and enhancing
connectivity.
The Territorial Review of Mexicois integrated into a wider programme of national and
thematic regional reviews undertaken by the OECD Territorial Development Policy O
Committee. The overall aim of the territorial review series is to provide practical policy E
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advice to governments. D
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OECD Territorial Reviews
Mexico
ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT
ORGANISATION FOR ECONOMIC CO-OPERATION
AND DEVELOPMENT
Pursuant to Article 1 of the Convention signed in Paris on 14th December 1960,
and which came into force on 30th September 1961, the Organisation for Economic
Co-operation and Development (OECD) shall promote policies designed:
– to achieve the highest sustainable economic growth and employment and a
rising standard of living in member countries, while maintaining financial
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countries in the process of economic development; and
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discriminatory basis in accordance with international obligations.
The original member countries of the OECD are Austria, Belgium, Canada,
Denmark, France, Germany, Greece, Iceland, Ireland, Italy, Luxembourg, the
Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, Turkey, the United
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subsequently through accession at the dates indicated hereafter: Japan
(28th April 1964), Finland (28th January 1969), Australia (7th June 1971), New
Zealand (29th May 1973), Mexico (18th May 1994), the Czech Republic
(21stDecember1995), Hungary (7th May 1996), Poland (22ndNovember1996),
Korea (12th December 1996) and the Slovak Republic (14th December2000). The
Commission of the European Communities takes part in the work of the OECD
(Article 13 of the OECD Convention).
Publié en français sous le titre :
EXAMENS TERRITORIAUX DE L’OCDE
Mexico
© OECD 2003
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Foreword
The globalisation of trade and economic activity is increasingly testing the
ability of regional economies to adapt and exploit or maintain their competitive
edge. There is a tendency for performance gaps to widen between regions, and
the cost of maintaining cohesion is increasing. On the other hand rapid technolo-
gical change, extended markets and greater use of knowledge are offering new
opportunities for local and regional development but demand further investment
from enterprises, reorganisation of labour and production, skills upgrading and
improvements in the local environment.
All these trends are leading public authorities to rethink their strategies. The
role of policies aimed at improving the competitiveness of regions by promoting
the valorisation and use of endogenous resources and at capturing trade and
additional economic activities has been strengthened. At the same time central
governments are no longer the sole provider of development policies. The
vertical distribution of power between the different tiers of government needs to
be reassessed as well as the decentralisation of fiscal resources in order to better
respond to the expectations of the public and improve policy efficiency.
The Territorial Development Policy Committee (TDPC) was created at the
beginning of1999 to assist governments with a forum for discussing the above
issues. Within this framework, the TDPC has adopted a programme of work that
puts its main focus on reviewing Member countries’ territorial policies and on
evaluating their impact at regional level. The objectives of Territorial reviews are:
a)identify the nature and scale of territorial challenges using a common analytical
framework; b)assist governments in the assessment and improvement of their
territorial policy, using comparative policy analysis; c)assess the distribution of
competencies and resources among the different levels of governments; and
d)identify and disseminate information on best practices regarding territorial
policy and governance.
The Committee produces two types of reviews:
Territorial reviews at the national level. Requested by national authorities, they
analyse trends in regional performances and institutional settings and focus on
policies to reduce territorial disparities and to assist regions in developing 3
© OECD 2003
OECD Territorial Reviews: Mexico
competitive advantages. They also concentrate on the governance framework, on
the impact of national non-territorial policies on subnational entities and on
specific aspects of fiscal federalism. The final report proposes territorial policy
recommendations.
Thematic Territorial Reviews at Regional Level. Requested by subnational
authorities (local or regional) with the agreement of national ones, they aim to
support cross-country analyses on the following themes: multi-level governance,
sustainable development at local and regional levels and regional networks for
competitiveness.
4
© OECD 2003
Acknowledgements
This Review was elaborated by the Directorate of Public Governance and
Territorial Development (PGTD) of the OECD, in co-operation with the Mexican
authorities. Peer reviewers in this process were Italy and Austria, represented by
Ms.Flavia Terribile (Ministry of the Economy) and Mr.Roland Arbter (Federal
Chancellery) respectively.
A team of international experts contributed to the process: Professor Timothy
Goodspeed (City University of New York), Mr.Vincent Lacour (UNHCR), Professor
Emilson Silva (Tulane University), Professor Gianfranco Viesti, (University of
Bari). Other valuable information and assistance was provided by Professor Rafael
Tamayo-Flores (CIDE). Special thanks are given to Mr.José Antonio Madrigal, from
the Office for Strategic Planning and Regional Development of the Presidency of
Mexico.
This Review was co-ordinated by Mr.Nicola Crosta, Administrator, under the
direction of Mr.Mario Pezzini, Head of the Territorial Reviews and Governance
Division of the OECD. Individual contributions to the final report were provided
by Mr. Alejandro Aurrecoechea, Mr. Hansjörg Blöchliger, Mr. Nicola Crosta,
Mr.Patrick Dubarle, Ms. Lamia Kamal-Chaoui and Mr.Timothy Wojan of the OECD
Secretariat with the participation of Ms.Lina Kee and Ms.Soo-Jin Kim.
5
© OECD 2003
Table of Contents
Assessment and Recommendations....................................................................................... 11
Introduction................................................................................................................................. 29
Chapter 1. Territorial Disparities and Development Potentials......................................... 31
1.1. Disparities........................................................................................................................ 31
Macroeconomic performance and inequality.............................................................. 31
Potential sources of inequality and poverty................................................................ 36
The territorial dimension of inequality and poverty.................................................. 47
1.2. Unused potentials, local comparative advantages and development challenges. 74
Land regularisation.......................................................................................................... 74
Infrastructure.................................................................................................................... 75
Natural and cultural resources....................................................................................... 76
Industrial clusters............................................................................................................ 84
Chapter 2. Territorial Governance in an Emerging Federation.......................................... 95
2.1. Institutional background................................................................................................. 95
2.2. Strengthening institutional capacity and intergovernmental governance............... 98
2.3. Fighting corruption: Rule of law and accountability.................................................... 101
2.4. Main features of fiscal federalism.................................................................................. 107
2.5. Reshaping education finance......................................................................................... 118
2.6. Conclusions and recommendations.............................................................................. 121
Chapter 3. Strategies and Policies for Territorial Development........................................ 127
3.1. Strategies.......................................................................................................................... 127
Recent changes in territorial policy............................................................................... 131
Conclusions and recommendations.............................................................................. 135
3.2. Alleviating poverty.......................................................................................................... 137
General framework of poverty alleviation policy........................................................ 138
Increasing the educational level of the poor............................................................... 145
The Micro-region Programme......................................................................................... 149
Rethinking urban poverty............................................................................................... 157
Reaching more social cohesion: Indigenous peoples................................................. 159
Conclusions and recommendations.............................................................................. 163
3.3. Competitiveness policy, foreign investment and support to SMEs.......................... 164
Mexico: A fragmented economy.................................................................................... 165 7
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OECD Territorial Reviews: Mexico
The productivity and innovation gap........................................................................... 167
Conclusions and recommendations.............................................................................. 178
3.4. Enhancing connectivity: Transport and telecommunications infrastructure........... 179
Connectivity infrastructure: The main issues............................................................... 179
Plan Puebla-Panama and connectivity for the South.................................................. 185
Conclusions and recommendations.............................................................................. 192
Acronyms..................................................................................................................................... 197
Bibliography............................................................................................................................... 199
List of Boxes
1.1. Demographic trends in Mexico..................................................................................... 44
1.2. The definition of Meso-regions for development planning...................................... 48
1.3. Identifying high marginalisaton areas........................................................................... 60
1.4. Best practices: Sustainable tourism in Siena.............................................................. 83
1.5. Clusters in Mexico: The case of Aguascalientes.......................................................... 88
2.1. Evaluation and monitoring technical units in Italy..................................................... 100
2.2. Best practices: Greater transparency and accountability inMexico........................ 106
2.3. Anti-corruption institutions in Germany...................................................................... 107
2.4. An overview of the design of transfers......................................................................... 115
3.1. ICTs for educational purposes in OECD countries...................................................... 146
3.2. A successful story of the Micro-region Programme in El Nayar................................. 156
3.3. Bilingual education: experiences in other OECD countries...................................... 161
3.4. Hungarian policy for FDI and small businesses.......................................................... 173
3.5. Atlantic Canada’s strategy for promoting entrepreneurship..................................... 176
3.6. Regional economic integration and transport in Europe........................................... 189
List of Tables
1.1. Per capita income share by income deciles................................................................ 33
1.2. Average schooling years of the EAP by deciles........................................................... 36
1.3. Secondary completion rates for 20-25year olds by income level, 1994.................. 37
1.4. Percentage of active labour force (ages 25-45) in informal sector
by income level, 1994..................................................................................................... 38
1.5. Differential growth in average earning by sector relative to agriculture,
fishing and forestry.......................................................................................................... 41
1.6. Poverty and extreme poverty rates by Meso-region, 1992and2000....................... 46
1.7. Entity population share by settlement size................................................................ 54
1.8. Share of Meso-region population by settlement size, 2000...................................... 55
1.9. Poverty rates and share of national poverty by municipal size................................ 58
1.10. Mexican municipalities grouped by economic performance.................................... 62
1.11. Secondary completion of economically active population by settlement type
and Meso-region............................................................................................................. 66
1.12. IMSS coverage deficits.................................................................................................... 69
1.13. Share of Meso-region economically active population with no health coverage... 70
1.14. Indigenous population per federal entity.................................................................... 73
8 1.15. Comparison on specific variables between states..................................................... 79
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Table of Contents
1.16. Well-developed clusters by region and CCI................................................................ 85
1.17. Regional rankings according to the sophistication of company operations
and the quality of the regional business environment............................................... 86
1.18. Companies in industrial parks....................................................................................... 89
2.1. Corruption and Good Governance Index, 2001........................................................... 105
2.2. Revenues received by state and local governments, 1980and1998....................... 109
2.3. Transfer income for subnational governments, 2000.................................................. 112
2.4. Conditional transfers to states and municipalities..................................................... 113
3.1. Public expenditure by sector......................................................................................... 138
3.2. Poverty alleviation programmes.................................................................................... 142
3.3. Evolution of the number of families covered byOportunidades (PROGRESA)
since1997......................................................................................................................... 148
3.4. Access to public services according to settlement size............................................. 150
3.5. Access to poverty alleviation programmes according to settlement size................ 150
3.6. Basic indicators on Micro-regions.................................................................................. 151
3.7. Breakdown of Micro-region Programme2001 expenditures by state
of destination................................................................................................................... 152
3.8. Expenditures by types of entities in the Micro-regions in2001................................ 154
3.9. Main programmes included in the2001 expenditures of the Micro-region
Programme........................................................................................................................ 155
3.10. Foreign direct investment by state............................................................................... 166
3.11. Education distribution by economic sector, 1988and1997....................................... 169
3.12. Division of responsibility of road network................................................................... 180
List of Figures
1.1. GDP per capita growth and ratio of top and bottom income deciles....................... 32
1.2. Lorenz curves for Mexican income distribution: 1984, 1994and2000...................... 33
1.3. GDP per capita growth and extreme poverty.............................................................. 34
1.4. Average earnings of employees by sector relative to agriculture, forestry
and fisheries..................................................................................................................... 40
1.5. Pyramids of age groups in the population, 1970-2000................................................ 45
1.6. Meso-regions.................................................................................................................... 49
1.7. Meso-region GDP as share of national average GDP, 1993and1999........................ 50
1.8. Entity GDP as share of national average, 1993and1999............................................ 50
1.9. Meso-region per capita labour income as share of national average,
1990and2000................................................................................................................... 52
1.10. Entity per capita income as share of national average, 1990and2000.................... 52
1.11. Intra-regional income disparities exceed inter-regional disparities,
1990and2000................................................................................................................... 55
1.12. Municipal extreme poverty rates in localities with less than5000inhabitants,
2000.................................................................................................................................... 57
1.13. Extreme poverty by log of municipal population, 2000.............................................. 58
1.14. High marginalisation localities from PNDU.................................................................. 61
1.15. Average level of education of population aged 15and more, 2001.......................... 64
1.16. Current attainment and enrolment of 18-year-olds, 2000.......................................... 65 9
© OECD 2003