Poverty alleviation in Mexico

Abstract

This paper is concerned with the problem of poverty in Mexico. Its four objectives are to : i) present evidence; ii) analyze economic determinants; iii) discuss policy options; and iv) assess existing poverty programs. The author begins by giving a very brief discussion of recent economic events, as these set the stage for poverty programs in the 1990's. The paper goes on to discuss the concept of poverty measurement. The author presents evidence of the extent of poverty in Mexico. He aims at answering the question : who, where and how poor are the poor? Also, why are the poor poor? The paper reviews issues of rural development, urban bias and macroeconomic policy. As regards policy, what should the Government's objectives be, and what are appropriate instruments to use? In answering these questions, the author reviews"stylized facts"about the behavior of the poor, as well as information and incentive issues that bear on the design of poverty alleviation programs. Policies are suggested for alleviating extreme and moderate levels of poverty. The paper concludes by assessing, in the light of previous findings, current Government programs to alleviate poverty and offers some suggestions for improvement. A summary of results and unanswered questions is also presented.Environmental Economics&Policies,Safety Nets and Transfers,Rural Poverty Reduction,Services&Transfers to Poor,Poverty Reduction Strategies