The World Bank has released a new Poverty and Equity Report on Mexico, suggesting that the eradication of extreme poverty in the country can be achieved through targeted public policy. The report emphasizes three main areas for intervention: fostering inclusive growth, implementing more efficient social policies, and investing in infrastructure to mitigate vulnerability.
During a presentation at the Faculty of Economics of the National Autonomous University of Mexico (UNAM), experts from various fields discussed strategies for equitable and sustainable growth to combat poverty. The report highlights that while Mexico has made progress in reducing poverty, its pace lags behind similar countries. Projections indicate that if Mexico's per capita GDP grows by 2% annually from 2024 to 2030, poverty could drop from 21.8% to 15.4%. A 3% growth rate could further reduce it to 13.4%.
Mark R. Thomas, World Bank Country Director for Mexico, Colombia, and Venezuela, stated: "Economic growth must be inclusive to ensure that the most vulnerable sectors benefit directly. Investing in access to decent and formal employment is essential for sustainable poverty reduction."
The report identifies integrating women into the labor market, improving rural household conditions, and increasing formal employment as priorities for achieving inclusive growth. It also underscores the importance of enhancing social policies' coverage and efficiency to broaden their impact on poverty reduction.
Education is highlighted as vital for consolidating gains against poverty by ensuring youth acquire necessary skills through improved educational access and quality from early childhood through higher education.
Additionally, the report stresses ongoing investment in infrastructure as crucial for reducing vulnerability amidst climate change challenges. One-third of Mexico’s population currently faces severe climate-related risks threatening progress in poverty alleviation.
Samuel Freije-Rodríguez presented the report alongside Lorena Rodríguez León from UNAM's Faculty of Economics; Marcela Amaro Rosales from UNAM's Institute of Social Research; Gerardo Esquivel from UNAM and El Colegio de México; with further discussions planned at El Colegio de México this week.
The report concludes that with focused strategies on inclusive growth, effective social policies, and consistent infrastructure investments, Mexico can potentially eradicate extreme poverty within a short-to-medium timeframe.