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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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Strengthening Hidalgo's governance for an effective policy outcome

This chapter provides a diagnosis of the main multi-level governance mechanisms and the regulatory policy of Hidalgo, as well as an analysis of subnational governments’ finance of the state and its municipalities. The chapter has four sections. The first presents an overview of the national governance structure and the distribution of competencies between levels of government. The second focuses on the fiscal revenues and expenditures of the State of Hidalgo and its municipalities. The third discusses the State Development Plan and its governance mechanisms. The fourth analyses the regulatory improvement policy and the actions to enhance the business environment in Hidalgo.

English

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