OECD territorial reviews, Mexico.

Foreword......Page 5
Acknowledgements......Page 7
Table of Contents......Page 9
Assessment and Recommendations......Page 13
Notes......Page 30
Introduction......Page 31
Macroeconomic performance and inequality......Page 33
Figure 1.1. GDP per capita growth and ratio of top and bottom income deciles......Page 34
Figure 1.2. Lorenz curves for Mexican income distribution: 1984, 1994 and 2000......Page 35
Figure 1.3. GDP per capita growth and extreme poverty......Page 36
Table 1.2. Average schooling years of the EAP by deciles......Page 38
Table 1.3. Secondary completion rates for 20-25 year olds by income level, 1994......Page 39
Table 1.4. Percentage of active labour force (ages 25-45) in informal sector by income level, 1994......Page 40
Figure 1.4. Average earnings of employees by sector relative to agriculture, forestry and fisheries......Page 42
Table 1.5. Differential growth in average earning by sector relative to agriculture, fishing.........Page 43
Box 1.1. Demographic trends in Mexico......Page 46
Figure 1.5. Pyramids of age groups in the population, 1970-2000......Page 47
Table 1.6. Poverty and extreme poverty rates by Meso-region, 1992 and 2000......Page 48
The territorial dimension of inequality and poverty......Page 49
Box 1.2. The definition of Meso-regions for development planning......Page 50
Figure 1.6. Meso-regions......Page 51
Figure 1.8. Entity GDP as share of national average, 1993 and 1999......Page 52
Figure 1.10. Entity per capita income as share of national average, 1990 and 2000......Page 54
Table 1.7. Entity population share by settlement size......Page 56
Table 1.8. Share of Meso-region population by settlement size, 2000......Page 57
Figure 1.12. Municipal extreme poverty rates in localities with less than 5000 inhabitants, 2000......Page 59
Table 1.9. Poverty rates and share of national poverty by municipal size......Page 60
Box 1.3. Identifying high marginalisaton areas......Page 62
Figure 1.14. High marginalisation localities from PNDU......Page 63
Table 1.10. Mexican municipalities grouped by economic performance......Page 64
Figure 1.15. Average level of education of population aged 15 and more, 2001......Page 66
Figure 1.16. Current attainment and enrolment of 18-year-olds, 2000......Page 67
Table 1.11. Secondary completion of economically active population by settlement type.........Page 68
Table 1.12. IMSS coverage deficits......Page 71
Table 1.13. Share of Meso-region economically active population with no health coverage......Page 72
Table 1.14. Indigenous population per federal entity......Page 75
Land regularisation......Page 76
Infrastructure......Page 77
Natural and cultural resources......Page 78
Figure 1.17. Water resources......Page 80
Table 1.15. Comparison on specific variables between states......Page 81
Figure 1.18. Per cent of households without clean water......Page 82
Box 1.4. Best practices: Sustainable tourism in Siena......Page 85
Industrial clusters......Page 86
Table 1.16. Well-developed clusters by region and CCI......Page 87
Table 1.17. Regional rankings according to the sophistication of company operations.........Page 88
Box 1.5. Clusters in Mexico: The case of Aguascalientes......Page 90
Table 1.18. Companies in industrial parks......Page 91
Notes......Page 92
2.1. Institutional background......Page 97
Federal level......Page 98
Municipal level......Page 99
2.2. Strengthening institutional capacity and intergovernmental governance......Page 100
Box 2.1. Evaluation and monitoring technical units in Italy......Page 102
2.3. Fighting corruption:6 Rule of law and accountability......Page 103
Figure 2.1. Control of corruption, 1999......Page 104
Control of corruption......Page 106
Table 2.1. Corruption and Good Governance Index, 2001......Page 107
Box 2.2. Best practices: Greater transparency and accountability in Mexico......Page 108
2.4. Main features of fiscal federalism......Page 109
Tax revenue centralisation at the federal level......Page 110
Table 2.2. Revenues received by state and local governments, 1980 and 1998......Page 111
Decentralisation and deconcentration of responsibilities......Page 112
A significant intergovernmental transfer system......Page 113
“Soft budget constraint” and incentives to overspending......Page 114
Table 2.4. Conditional transfers to states and municipalities......Page 115
Inappropriate design of transfers......Page 116
Box 2.4. An overview of the design of transfers......Page 117
Figure 2.5. Federal education transfers and state GDP per capita, 2000......Page 118
Financial accountability and election periods......Page 119
Current education system......Page 120
Advantages and disadvantages of a decentralised education system......Page 121
Evaluating the Mexican educational finance system......Page 122
Short-term recommendations......Page 123
Long-term recommendations......Page 124
Notes......Page 126
3.1. Strategies......Page 129
Recent changes in territorial policy......Page 133
Conclusions and recommendations......Page 137
3.2. Alleviating poverty......Page 139
Table 3.1. Public expenditure by sector......Page 140
Figure 3.1. Social expenditure in selected OECD countries, 1998-1999......Page 141
Figure 3.2. Evolution of spending for poverty alleviation......Page 142
Table 3.2. Poverty alleviation programmes......Page 144
Increasing the educational level of the poor......Page 147
Box 3.1. ICTs for educational purposes in OECD countries......Page 148
Table 3.3. Evolution of the number of families covered by Oportunidades (PROGRESA) since 1997......Page 150
The Micro-region Programme......Page 151
Table 3.5. Access to poverty alleviation programmes according to settlement size......Page 152
Table 3.6. Basic indicators on Micro-regions......Page 153
Table 3.7. Breakdown of Micro-region Programme 2001 expenditures by state of destination......Page 154
Figure 3.3. Geography of Micro-regions......Page 155
Table 3.8. Expenditures by types of entities in the Micro-regions in 2001......Page 156
Table 3.9. Main programmes included in the 2001 expenditures of the Micro-region Programme......Page 157
Box 3.2. A successful story of the Micro-region Programme in El Nayar......Page 158
Rethinking urban poverty......Page 159
Reaching more social cohesion: Indigenous peoples......Page 161
Box 3.3. Bilingual education: experiences in other OECD countries......Page 163
Conclusions and recommendations......Page 165
3.3. Competitiveness policy, foreign investment and support to SMEs......Page 166
Mexico: A fragmented economy......Page 167
Table 3.10. Foreign direct investment by state......Page 168
The productivity and innovation gap......Page 169
Table 3.11. Education distribution by economic sector, 1988 and 1997......Page 171
Box 3.4. Hungarian policy for FDI and small businesses......Page 175
Box 3.5. Atlantic Canada’s strategy for promoting entrepreneurship......Page 178
Conclusions and recommendations......Page 180
Connectivity infrastructure: The main issues......Page 181
Table 3.12. Division of responsibility of road network......Page 182
Figure 3.4. ODA flows to Mexico......Page 184
Plan Puebla-Panama and connectivity for the South......Page 187
Figure 3.5. Highway construction in the context of the PPP......Page 189
Figure 3.6. Public federal investment in the Southeastern states, 1999......Page 190
Box 3.6. Regional economic integration and transport in Europe......Page 191
Figure 3.7. Telephone density......Page 192
Figure 3.8. Fixed telephone lines in households......Page 193
Conclusions and recommendations......Page 194
Notes......Page 196
Acronyms......Page 199
Bibliography......Page 201