The eradication of extreme poverty in Mexico in the short and medium term can be set as a clear public policy objective. This is the key message of the new Poverty and Equity Report on Mexico by the World Bank, which analyzes poverty trends over the past two decades and proposes three key areas of intervention: inclusive growth, more efficient social policies, and investment in infrastructure to reduce vulnerability.
Presented today at the Faculty of Economics of the National Autonomous University of Mexico (UNAM), the report was discussed by experts in economics, social policy, and development, who emphasized the need to strengthen strategies that foster more equitable and sustainable growth to continue advancing in the fight against poverty.
Mexico has reduced poverty in recent years, although at a slower pace than other countries with similar characteristics. According to the report, if the country's per capita GDP grows by 2% annually between 2024 and 2030, poverty would decrease from 21.8% to 15.4%. A 3% growth rate could reduce this figure even further to 13.4%.
The report highlights that while faster economic growth is essential for continuing progress in poverty eradication, it is not sufficient on its own. The key lies in achieving inclusive growth that generates direct benefits for the most vulnerable sectors. To achieve this, the report identifies three priority areas: integrating more women into the labor market, improving economic conditions in rural households, and increasing formal employment— all essential to ensuring that the benefits of growth reach the entire population.
"Economic growth must be inclusive to ensure that the most vulnerable sectors benefit directly. Investing in access to decent and formal employment is essential for sustainable poverty reduction," said Mark R. Thomas, World Bank Country Director for Mexico, Colombia, and Venezuela.
The report underscores the crucial role of social policies in reducing poverty, noting that Mexico has programs that have achieved significant progress. However, there are still opportunities to expand their impact by strengthening their coverage and efficiency. Redesigning these programs to reach a larger number of people and making them more progressive could further boost progress in poverty reduction. Additionally, improving access to social security and healthcare services is essential for significantly reducing extreme poverty due to social deprivation.
Education is another key pillar in consolidating these advances. The report emphasizes that ensuring young people not only attend school but also acquire the necessary skills to complete their education and access better economic opportunities requires strengthening not only access but also retention and education quality from early childhood to higher education.
The report also highlights the importance of continued investment in physical and social infrastructure to reduce vulnerability, particularly in response to climate change. Currently, around one-third of Mexico’s population is exposed to at least one severe climate-related event, posing a risk to progress made in poverty reduction.
To mitigate this impact, it is essential to improve access to basic services such as sanitation, financial services, transportation, and roads, as well as to develop adaptive social protection mechanisms that strengthen the resilience of the most affected communities.
The report was presented by Samuel Freije-Rodríguez, Lead Economist at the World Bank, during an event that featured the participation of Lorena Rodríguez León, Director of the Faculty of Economics at UNAM; Marcela Amaro Rosales, Director of the Institute of Social Research at UNAM; Gerardo Esquivel, academic at UNAM and El Colegio de México; and Mark R. Thomas, World Bank Country Director.
The report, which will also be discussed this week by a group of experts at El Colegio de México, concludes that Mexico has demonstrated that poverty reduction is possible. With strategies focused on inclusive growth, more efficient social policies, and sustained investments in infrastructure, the country has the potential to eradicate extreme poverty in the short and medium term.
