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204 Pages·2003·5.388 MB·English
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« 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 C advice to governments. D T e r r it o r ia l R e v ie OECD's books, periodicals and statistical databases are now available via www.SourceOECD.org, w our online library. s This book is available to subscribers to the following SourceOECD themes: M Governance e x Territorial Economy i c Ask your librarian for more details of how to access OECD books online, or write to us at o [email protected] www.oecd.org ISBN 92-64-19934-9 04 2003 02 1 P -:HSTCQE=V^^XY\: © OECD, 2003. © Software: 1987-1996, Acrobat is a trademark of ADOBE. All rights reserved. OECD grants you the right to use one copy of this Program for your personal use only. Unauthorised reproduction, lending, hiring, transmission or distribution of any data or software is prohibited. You must treat the Program and associated materials and any elements thereof like any other copyrighted material. All requests should be made to: Head of Publications Service, OECD Publications Service, 2, rue André-Pascal, 75775 Paris Cedex 16, France. 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 stability, and thus to contribute to the development of the world economy; – to contribute to sound economic expansion in member as well as non-member countries in the process of economic development; and – to contribute to the expansion of world trade on a multilateral, non- 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 Kingdom and the United States. The following countries became members 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 Permission to reproduce a portion of this work for non-commercial purposes or classroom use should be obtained through the Centre français d’exploitation du droit de copie (CFC), 20, rue des Grands-Augustins, 75006 Paris, France, tel. (33-1) 44 07 47 70, fax (33-1) 46 34 67 19, for every country except the United States. In the United States permission should beobtained through the Copyright Clearance Center, Customer Service, (508)750-8400, 222Rosewood Drive, Danvers, MA 01923 USA, or CCC Online: www.copyright.com. All other applications for permission to reproduce or translate all or part of this book should be made to OECD Publications, 2, rue André-Pascal, 75775 Paris Cedex 16, France. 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 © OECD 2003 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 © OECD 2003 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

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