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This report summarizes and consolidates the findings of three Bank studies on poverty issues in Mexico, written as part of the second phase of this work: Urban Poverty, Rural Poverty, and Social Protection. It also expands on how Mexico will seek to use social protection policy as a vehicle for redistribution. Discussed in Chapter 1, the state has a clear role in providing risk-pooling mechanisms where private insurance markets fail (e.g., old age and health insurance), but the role of social protection policy in promoting redistribution is more an issue of national choice. That choice, however, has clear consequences for equity and poverty reduction outcomes. The economic trade?off between growth and equity, and thus between growth and redistribution, has been refuted by both theoretical advances, and international experience in recent years. International experience points to examples where redistribution has been achieved in a wide variety of ways. The choice is two fold: how much distribution; and through which means. The relative importance given to redistribution, and the role assigned to the social protection system in achieving equity objectives is a question of national objectives, but is crucial to guiding the direction of social protection policy reform. To summarize, the report finally focuses on four key emerging issues within social protection in Mexico: a) social security reform, b) health risks among the poor, c) old age poverty, and, d) the need to balance public risk management mechanisms with a more integrated strategy to combat chronic poverty. In order to tackle these challenges, Mexico faces a range of political choices.
This book takes a new approach on understanding causes of extreme poverty and promising actions to address it. Its focus is on marginality being a root cause of poverty and deprivation. “Marginality” is the position of people on the edge, preventing their access to resources, freedom of choices, and the development of capabilities. The book is research based with original empirical analyses at local, national, and local scales; book contributors are leaders in their fields and have backgrounds in different disciplines. An important message of the book is that economic and ecological approaches and institutional innovations need to be integrated to overcome marginality. The book will be a valuable source for development scholars and students, actors that design public policies, and for social innovators in the private sector and non-governmental organizations.​
This report provides a strategic overview of Mexico's federal social protection system, comprised of both social insurance and social assistance programs. It assesses its performance to date regarding income risk management for vulnerable groups, and identifies options for stepping up that performance. In doing so it responds to an increasing consensus in Mexico regarding the need for a major social protection policy reform, even if the direction of those reforms is still in flux. The report is designed to provide a first stage diagnostic of major issues facing the social protection system, as an input to ongoing discussion and debate in Mexico, and as a platform for further technical work on the specifics of reform. The report focuses on the role of federal government in the design and implementation of social protection policies, while recognizing that sub-national governments are playing an important role in the provision of these services. In doing so, it draws upon the first phase of the Mexico Programmatic Poverty Work, as well as the urban, rural and vulnerability studies conducted in parallel with this analysis. The report is organized into four chapters. Chapter 1 presents a brief review of social protection concepts, and establishes a framework for determining the optimal role for government in the provision of social protection (risk management) tools, as distinct from market-provided risk management tools, and those undertaken informally by and between households. Chapter 2 discusses the major sources of income vulnerability in Mexico, identifying the major risks that Mexican families faces, and explores the extent to which households have access to private risk management mechanisms for addressing these risks. Chapter 3 provides an overview and assessment of the social protection system in Mexico, and finally Chapter 4 discusses issues and options.
This document summarizes the findings of three reports: Urban Poverty in Mexico, Mexico: a Study of Rural Poverty, and Mexico: an Overview of Social Protection, and, focuses on 1) the generation of income opportunities for the urban and rural poor, and, 2) social protection for the poor. The main messages can be summarized as follows. The poor are a heterogeneous group; importantly, long-term income-generating opportunities and coping strategies differ significantly between urban and rural areas, among different regions, between small and larger cities, and even within neighborhoods. This translates into having urban poor limited to low-quality jobs, marked by low productivity and with limited social protection. Additionally, to continue supporting the rural poor move out of poverty, it is important to increase agricultural productivity, especially for small- and medium-sized farmers, and facilitate their diversification into rural non-farm activities (RNF) of higher agricultural value-added. The rural poor depend mainly on self-subsistence agriculture, self-employment, and non-agricultural activities, and have typically not completed primary education. Conversely, the urban poor depend on access to salaried employment, on non-agricultural activities, mainly as employees in manufacturing or services, and have not completed lower secondary education. Since its inception in the 1940s, Mexico's social protection system has not been well-suited to respond to the risks the poor face. A key conclusion of this report is that geographical location must be taken into account, in order to design adequate poverty interventions - income generation opportunities and social protection needs vary depending upon the poor's location.
* Argues strongly for overlooked approach to development by showing how the poor use money in ways that confound stereotypical notions of aid and handouts * Team authored by foremost scholars in the development field Amid all the complicated economic theories about the causes and solutions to poverty, one idea is so basic it seems radical: just give money to the poor. Despite its skeptics, researchers have found again and again that cash transfers given to significant portions of the population transform the lives of recipients. Countries from Mexico to South Africa to Indonesia are giving money directly to the poor and discovering that they use it wisely “ to send their children to school, to start a business and to feed their families. Directly challenging an aid industry that thrives on complexity and mystification, with highly paid consultants designing ever more complicated projects, Just Give Money to the Pooroffers the elegant southern alternative “ bypass governments and NGOs and let the poor decide how to use their money. Stressing that cash transfers are not charity or a safety net, the authors draw an outline of effective practices that work precisely because they are regular, guaranteed and fair. This book, the first to report on this quiet revolution in an accessible way, is essential reading for policymakers, students of international development and anyone yearning for an alternative to traditional poverty-alleviation methods.