Building vibrant and systematic partnerships with the private sector is a prerequisite for the successful implementation of the Mexican government’s agenda to accelerate poverty reduction and sustainable development, and ultimately to deliver on the Sustainable Development Goals. This chapter examines how advancing financial inclusion and promoting socially responsible firms can contribute to sustained economic growth and shared prosperity.

Mexico’s structural reforms are already boosting productivity, but more can be done. This chapter focuses on issues that have led to the success of the modern Mexico, and have led to difficulties with the traditional Mexico. These include the success of Global Value Chains (GVCs) in advancing the trade integration and linkages of key sectors, as well as how competition problems, excessive local regulation, and weak legal institutions have led to misallocation across firms.