The Poverty and Equity Report in Mexico presented by the World Bank at the Faculty of Economics of the National Autonomous University of Mexico warns about the stagnation of progress in reducing poverty in the country. According to the document, Mexico is facing a slowdown in poverty reduction, with signs of deterioration in some areas.
During the presentation, Samuel Freije Rodríguez, lead economist in the World Bank's Global Poverty Practice, mentioned the importance of redesigning social programs and their financing to quickly reverse this situation. Mark R. Thomas, director for Mexico, Colombia, and Venezuela at the World Bank, highlighted the need for more dynamic and inclusive economic growth, proposing the incorporation of more companies into global value chains and increasing female labor participation.
The report projects that with an annual GDP growth of 2%, poverty would decrease to 15.4% by 2030, while with a growth of 3%, the rate would drop to 13.4%. However, these measures must be complemented with childcare policies and access to credit to improve economic inclusion.
To combat extreme poverty, it is recommended to promote inclusive growth with more female employment and labor formalization, redesign social programs to make them fiscally sustainable, and encourage investments that combine social well-being and climate resilience. Additionally, the need to increase health spending is emphasized, which requires higher economic growth to strengthen basic services.
Lorena Rodríguez León, director of the Faculty of Economics at UNAM, emphasized the extreme inequality in Mexico, where the richest 1% holds 41.2% of total wealth and the 0.1% accumulates 22.3%, contrasting with the 64.2% of households that have less than 50% of net wealth. Focusing on critical areas of intervention is fundamental to eradicating poverty and inequality in the country, according to the director.
