Publication: Mexico Poverty and Equity Assessment
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2025-02-20
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2025-02-20
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This Mexico Poverty and Equity Assessment reviews the evidence about poverty and equity in Mexico over the last two decades, compares it to comparable international experience, and identifies a set of critical areas of policy intervention to answer the opening question. The report aims at contributing to an open conversation in Mexico about how to achieve this essential policy objective. This report postulates three main policy areas needed for poverty eradication in Mexico: inclusive growth, efficient social policy, and infrastructure to confront vulnerability. The report includes four sections, the first three of which collect evidence about poverty, social deprivations, and vulnerability and how the evolution of these three correlates to patterns of economic growth, social protection policy and territorial development. The fourth section provides some quantitative benchmarks of what it would take to eradicate extreme poverty in Mexico. Poverty in Mexico is defined not only in monetary terms, but also in a multidimensional manner that includes social deprivations. These are social deprivations that often define formal-vs-informal employment, so policy changes that close these carencias, as they are called in Mexico, will also reduce the informality gap. This report documents the evolution of poverty, social deprivations, and vulnerability to poverty. It explains the main forces that have driven this evolution and advises that many of these forces may not operate the same in the future as they did in the past. It provides the basis to argue that short to medium term extreme poverty eradication requires newer policy actions in terms of inclusive growth, more efficient social policy, and investments in physical and social infrastructure to reduce vulnerability. The report indicates that short to medium term eradication to extreme poverty is a major, but within reach, development challenge for Mexico.
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“World Bank. 2025. Mexico Poverty and Equity Assessment. © World Bank. http://hdl.handle.net/10986/42839 License: CC BY-NC 3.0 IGO.”
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