Getting it Right

Strategic Priorities for Mexico

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Mexico has been a reform champion, having launched ambitious reforms in a broad range of areas. While the reforms are showing first positive effects they are not delivering to the extent they could. On many dimensions of well-being, including education, health and security amongst others, Mexico still lags behind the OECD average and regional development remains very uneven. While Mexico has done a lot to build a competitive economy, progress has been too slow in two complementary areas, namely strengthening institutions and fostering inclusion. The capacity of the public sector is weak, corruption remains widespread and the rule of law is week, all hindering trust in government institutions and the effective implementation of policies. Similarly, persistent inequalities and widespread poverty do not only mean that higher growth does not translate into widespread gains in well-being; these inequalities are also holding back growth as Mexico is not using all available talent. Mexico has taken measures to tackle these issues, but important implementation gaps remain. It will be important for the next government to build on past reform efforts, ensuring the full and effective implementation of already legislated changes to allow for reform continuity and to launch additional reforms in several priority areas, including the rule of law, education and social protection. Only then will Mexico be able to deliver a higher quality of life for all its people.

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Better protecting Mexico's environment

The Mexican government is faced with multiple environmental challenges, from tackling climate change to protecting its precious biodiversity and avoiding water stress. On fighting climate change, Mexico has made important progress. The government committed unconditionally to reducing greenhouse gas emissions (GHGs) and short-lived climate pollutants. This implies a 22% reduction of GHGs and a 51% reduction of black carbon, relative to business-as-usual levels, by 2030. In its endeavour to reduce emissions, Mexico has moved away from transport fuel subsidies, increased excise tax rates on transport fuels and introduced a new carbon tax. However, carbon tax rates are still very low and emissions from the energy and transport sectors continue to grow rapidly. The Mexican government has also made notable progress in better protecting biodiversity.

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