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OECD Territorial Reviews: Hidalgo, Mexico

image of OECD Territorial Reviews: Hidalgo, Mexico

Hidalgo is one of the smallest states in Mexico. It benefits from its close proximity to Mexico City and contains a number of economic and environmental assets in its territory. After a long period of economic stagnation, the state is now closing up the gap with national standards. Yet, productivity and income levels remain low with respect to national levels, and there exist high socio-economic disparities between the south of the state and the municipalities in the northern and mountainous area. This review looks at how the state of Hidalgo is seeking to boost its economy, particularly through a series of institutional reforms and policies to improve the business environment. It highlights opportunities to accelerate the economic convergence and transit towards high-value added economic sectors. The review also identifies a number of recommendations to promote inclusive growth and reduce its north-south divide and offers suggestions to address governance challenges in the territory.

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Towards a more prosperous and competitive Hidalgo

In response to the new signs of opportunity for tackling Hidalgo’s economic challenge, the newly elected executive of the state of Hidalgo implemented in 2016 some reforms to reignite Hidalgo’s economy. Most of this chapter analyses the steps taken, their implementation and, where possible, the results that can already be observed. It highlights the lessons and benchmarks that can be learnt from Hidalgo’s experience, and formulates some assessments and recommendations for Hidalgo based on the experiences of other OECD members.

English

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