ECONOMIC GROWTH ESSENTIAL FOR MEXICO TO EXPAND SOCIAL SERVICE FUNDING

Mexico has experienced a significant reduction in monetary poverty and inequality in recent years. However, this trend may not continue due to changes in the global economic landscape. This concern was highlighted in the World Bank’s Report on Poverty and Equity in Mexico, presented at UNAM’s School of Economics.

During the presentation, Samuel Freije Rodríguez, lead economist at the World Bank’s Global Poverty Practice, pointed out that while the country has made progress in poverty reduction, overall deprivation levels have stagnated and, in some cases, worsened. “Nevertheless, we believe that redesigning existing social programs and their funding mechanisms could quickly reverse this trend,” he explained.

Speaking before School of Economics Director Lorena Rodríguez León and faculty and students, Freije Rodríguez emphasized that vulnerability to climate-related events is a significant factor contributing to poverty in Mexico. The report highlights three key areas for eradicating extreme poverty: promoting inclusive economic growth through increased female employment, higher agricultural productivity, and labor formalization; restructuring and financing social programs to ensure fiscal sustainability; and making strategic investments that simultaneously enhance well-being and resilience to climate events.

While acknowledging Mexico’s progress in poverty reduction, the economist noted that the country continues to struggle with social deficits, particularly in health, security, and housing. He stressed that achieving meaningful improvements in these areas requires significantly stronger economic growth.

Freije Rodríguez underscored the need for increased public health spending. However, he noted that this would only be possible if economic expansion generates sufficient tax revenue to sustainably finance improved social services.