Développement régional, urbain et rural

In parallel to a sweeping structural reform agenda, Mexico announced in 2013 a new approach to housing and urban policy. Calling for a more explicit qualitative focus on housing and the urban environment, the policy shift is a welcome development. Mexico urbanised more rapidly than most OECD countries in the past half-century, in part as a result of the expansion of housing finance led by INFONAVIT and facilitated by policies aiming to expand access to formal housing. Yet the quantitative push for formal housing came with quantitative costs: inefficient development patterns resulting in a hollowing out of city centres and the third-highest rate of urban sprawl in the OECD; increasing motorisation rates; a significant share of vacant housing, with one-seventh of the housing stock uninhabited in 2010; housing developments with inadequate access to public transport and basic urban services; and social segregation. How can the Mexican authorities 'get cities right' and develop more competitive, sustainable and inclusive cities? How can they improve the capacity of the relevant institutions and foster greater collaboration among them? How can INFONAVIT ensure that its lending activities generate more sustainable urban outcomes as it also fulfils its pension mandate and help Mexicans save more for retirement?

Encompassing 39 municipalities in two states, Puebla-Tlaxcala is the fourth-largest metropolitan zone in Mexico. Over the past five decades, the region has successfully attracted major national and international firms, building its reputation as both a manufacturing hub specialising in auto production and one of Mexico’s most important centres of higher education. Yet it also faces important challenges. Compared to other large Mexican metropolitan zones, Puebla-Tlaxcala has a disproportionate share of individuals with low skills, which could represent a bottleneck to future growth. Urban sprawl is another challenge with important economic, environmental and social consequences. Puebla-Tlaxcala's urban footprint expanded nearly eight times faster than its population over the past three decades, contributing to inadequate service provision and high levels of social marginalisation, particularly in the metropolitan periphery. To ensure that the region remains competitive and grows sustainably over the long term, this review recommends (i) improving workforce and economic development outcomes, particularly by raising the level of low-skilled workers; (ii) guiding urban growth more effectively to tackle urban sprawl and improve serve delivery; (iii) and addressing governance challenges by building capacity in the public sector and transitioning to forms of metropolitan governance.

Located at the border with the US, Chihuahua has benefited from FDI and NAFTA. Chihuahua has been one of the richest regions in Mexico and one of the most dynamic in the OECD. However, the region’s FDI-trade link with the USA has also led to some vulnerability to external shocks. The two crises affecting the USA in the past decade affected Chihuahua more than any other state. Despite recent progress in the quality of education, other structural challenges such as lower productivity growth, high inactivity rates and dwindling employment rates have been factors in Chihuahua’s sluggish growth. Chihuahua not only displays large intra-regional and gender inequalities, but also the largest inter-ethnic inequality levels in the country. Chihuahua can gain from a territorial approach to policymaking that integrates sectoral policies, fostering value-added in rural activities, better linking SME-development and FDI-attraction policies, as well as between innovation capacities and applications. The region could also strengthen their recent inclusive governance arrangement with civil society and the private sector.  Growth and development can only be possible if the current challenges in insecurity, water shortage and public finance are addressed.