Other Public Sector Study

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    Promoting Competition in Local Markets in Mexico: A Subnational Application of the World Bank Group's Markets and Competition Policy Assessment Tool
    (World Bank, Washington, DC, 2018-06-01) World Bank
    Stagnant productivity growth and high disparities in productivity levels across Mexican states have been holding back economic growth. In general, Mexico’s federal government has a solid competition policy framework in place. Subnational regulations in transport, agriculture, tourism, retail, and other sectors are holding back the potential of local economies to grow and provide consumers with affordable goods. Anticompetitive regulations for professionals such as notaries also increase the cost of doing business. The World Bank Group (WBG) was requested to address a critical gap and to pilot a reform-oriented engagement on competition policy at the subnational level. WBG engaged to motivate an actionable reform plan that can unlock competition in key markets at the local level. This note discusses the main findings of the WBG’s markets and competition policy assessment tool (MCPAT) application to various subnational governments in Mexico and the initial reform experience. It draws on the results of multiple pieces of analysis and implementation support projects since 2012 to assess, identify, prioritize, and modify regulations that restrict competition at the subnational level in key markets. This note is structured as follows: section 1 gives an introduction, section 2 discusses the international experience on the role of competition at the local level for development. Section 3 provides a brief presentation of the methodological steps of the MCPAT subnational application. Section 4 discusses incidences of anti-competitive regulation (some of which have been removed) to exemplify their harmful effect. Section 5 provides several examples of how to prioritize and design reforms based on how government interventions at the subnational level interact with particular features of subnational Mexican markets, as well as based on their feasibility and their potential effects.
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    Technical Assessment of the Oaxaca Water and Sanitation Sector Modernization Program
    (Washington, DC, 2014-03) World Bank
    In 2012 the Government of Oaxaca (GoO) prepared a Strategic Plan (Plan Estrategico Sectorial) for the Water Supply and Sanitation sector as part of its State Development Plan (Plan Estatal de Desarrollo) covering the period 2011-2016 corresponding to the six years of its administration. The objectives of the Strategic Plan for the WSS sector can be grouped under four pillars, expanding access to WSS services urban areas, improving water service quality and financial sustainability of water utilities, increasing wastewater treatment coverage, and expanding access to WSS services rural areas.
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    FONDEN: Mexico's Natural Disaster Fund--A Review
    (World Bank, Washington, DC, 2012-05) World Bank
    FONDEN (Natural Disasters Fund), Mexico's fund for natural disasters, was established in the late 1990s as a mechanism to support the rapid rehabilitation of federal and state infrastructure affected by adverse natural events. FONDEN was first created as a budget line in the Federal expenditure budget of 1996, and became operational in 1999. Funds from FONDEN could be used for the rehabilitation and reconstruction of: 1) public infrastructure at the three levels of government (federal, state, and municipal); 2) low-income housing; and 3) certain components of the natural environment. FONDEN consists of two complementary budget accounts, the FONDEN program for reconstruction and FOPREDEN program for prevention, and their respective financial accounts. The FONDEN program for reconstruction is FONDEN's primary budget account. It channels resources from the federal expenditure budget to specific reconstruction programs. The FOPREDEN program for prevention supports disaster prevention by funding activities related to risk assessment, risk reduction, and capacity building on disaster prevention. The FONDEN system is continuously evolving to integrate lessons learned over the course of years of experience.