Mexico did not take sufficient measures to protect households during the pandemic and had one of the lowest emergency budget allocations: 0.42% of GDP, below Brazil, Bolivia, Peru, Salvador, and Honduras, indicates an ECLAC report.
The most recent report by the Economic Commission for Latin America (ECLAC) shows a bleak outlook in the region and the need for a different economic reactivation, with inclusion and equality. The economic recovery we have is slow and inertial, it increases inequality and does not reduce poverty.
Particularly noteworthy are the poor results for Mexico due to the growth of poverty. ” The Social Panorama of Latin America 2020 ” ECLAC projects an increase of at the least 22 million more people in poverty in the region, of which Mexico would bring to the least half.
The ECLAC report documents that our country did not take sufficient measures to protect households during the pandemic, and that it had one of the lowest emergency budget allocations: 0.42% of Gross Domestic Product.
This extremely low investment contrasts with 4% in Brazil, 2.8% in Bolivia, 2.3% in Peru, and even below the 1.85% assigned by El Salvador and 1.4% in Honduras, countries that obviously have a less developed economy than Mexico. And therefore, our country has no poverty reduction due to transfers
The ECLAC report clarifies that Mexico does not have very high social spending either. In fact, it is about the average for Central America! And well below the budget assigned by the sister countries of the south: Chile, Brazil, Argentina, Uruguay. All this of course, as a proportion of GDP, that is, to the size of each economy.
The economic reactivation with equality requires the economic and labor inclusion of women. Mexico has one of the lowest rates of female labor participation.
As many voices have insisted around # 8M, to grow you have to include women at work. And there, ECLAC reminds us that the “care economy” is a strategic sector for reactivation and growth.
That is why the creation of the National Care System, already approved as a constitutional reform by the Chamber of Deputies, is so relevant. But it is important that the system is not a “paper promise”. A budget is required to create childcare centers and also to pay for homecare work. The approval of legal reform to achieve equal pay between men and women is a good measure, but it depends on its practical application (ECLAC’s “Panorama 2020” shows Mexico with the largest wage gap, see page 201)
From Citizen Action Against Poverty, we reiterate the urgency of a special plan to achieve inclusive and equal economic reactivation. To be effective, the plan cannot be solely from the government. A serious plan requires a great social agreement, with the participation of the productive sectors and other civil society actors, as well as state governments.
The inclusive and equal reactivation, in addition to accelerating economic growth, must have among its strategies achieving decent work, facilitating economic inclusion for women, opening opportunities for young people, and also universal health coverage (disconnected from the labor regime). All of this can reduce poverty.
Our analysis can be consulted in the networks facing poverty: Frentealapobreza.mx .
And the analysis shared with Claudia Maldonado (UAM – X and CONEVAL counselor), Roberto Vélez (CEEY) and Rogelio Gómez Hermosillo, can be seen there or on our YouTube channel.
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