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OECD Territorial Reviews: Chihuahua, Mexico 2012

image of OECD Territorial Reviews: Chihuahua, Mexico 2012

Located at the border with the US, Chihuahua has benefited from FDI and NAFTA. Chihuahua has been one of the richest regions in Mexico and one of the most dynamic in the OECD. However, the region’s FDI-trade link with the USA has also led to some vulnerability to external shocks. The two crises affecting the USA in the past decade affected Chihuahua more than any other state. Despite recent progress in the quality of education, other structural challenges such as lower productivity growth, high inactivity rates and dwindling employment rates have been factors in Chihuahua’s sluggish growth. Chihuahua not only displays large intra-regional and gender inequalities, but also the largest inter-ethnic inequality levels in the country. Chihuahua can gain from a territorial approach to policymaking that integrates sectoral policies, fostering value-added in rural activities, better linking SME-development and FDI-attraction policies, as well as between innovation capacities and applications. The region could also strengthen their recent inclusive governance arrangement with civil society and the private sector.  Growth and development can only be possible if the current challenges in insecurity, water shortage and public finance are addressed.

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Annex B. Cross-Border Economic Co-operation in Chihuahua

Over the course of the past decades, there have been various forms of cross-border development programmes in different parts of the world. They include, among others, the European Territorial Co-operation (formerly called the INTERREG programmes) launched in the European Union (EU), the Indonesia-Malaysia-Singapore Growth Triangle (IMS-GT, formerly entitled the “Singapore-Johor-Riau Growth Triangle”), the Greater Tumen Initiative (GTI, formerly known as the Tumen River Area Development Programme, or TRADP), China’s Special Economic Zones (SEZs), and the US-Mexico Border Industrialisation Programme (BIP) (called “maquiladoras” in Mexico). The creation and organisation of these cross-border development programmes have provided many valuable times-series data and other specific information. Obviously, this will help scholars and practitioners involved in cross-border co-operation to assess the effectiveness of such instruments, and eventually derive useful policy implications.

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