Mexico - State-level Public Expenditure Review : The Case of Veracruz-Llave
The State of Veracruz-Llave, commonly known as Veracruz, is the third-largest Mexican state in terms of population, with 7 million, but growing only 1.05 percent per year, which is below the national rate of 1.85 percent. The population of the stat...
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| Format: | Public Expenditure Review |
| Language: | English en_US |
| Published: |
Washington, DC
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2003/10/2693532/mexico-state-level-public-expenditure-review-case-veracruz-llave http://hdl.handle.net/10986/14648 |
| Summary: | The State of Veracruz-Llave, commonly
known as Veracruz, is the third-largest Mexican state in
terms of population, with 7 million, but growing only 1.05
percent per year, which is below the national rate of 1.85
percent. The population of the state is predominantly urban
(59 percent) and young (44 percent is 19 years old and
younger). Veracruz's indigenous population is the third
largest of any Mexican state, and represents close to 10
percent of the state total. Veracruz is one of the poorest
states in Mexico. It still is the fifth-largest state in
terms of GDP. There are four problems from an economic and
social development point of view: (a) inadequate access to
communications and public services in rural areas, (b) low
productivity of the labor force, (c) low diversification of
industries in the northern and southern regions of the
state, and (d) lack of a coordinated strategy among
government agencies. The following policies address these
problems: 1. Develop a coordinated strategy, under the
umbrella of the state's six-year development plan,
which would support economic growth while improving the
ability of the poor to participate in it. 2. Invest in
physical capital such as roads and water. Roads are
strategic for economic and social development of rural
regions. Nevertheless, the authorities need to find a
balance between providing overly costly infrastructure to
villages, and providing too little, so that the residents
have no access to the transport system. Shortage of water in
rural areas seriously harms the well being of the
population. 3. Invest in human capital, in particular,
improve the provision of technical training to rural areas,
and improve the quality and relevance of basic and secondary
education. In the global economy, workers need the capacity
to learn quickly and take advantage of current information
and emerging technologies. 4. Analyze the labor market in
Veracruz, with a study of its relationship with economic
development. 5 . Create a strategic plan for economic
development that emphasizes diversifying into high-value
industries, including in the northern and southern regions.
The state can do little for the oil sector except to lobby
for the energy reform, since it is by constitution
controlled at the federal level. World market conditions
offer little hope for a major comeback in sugarcane and coffee. |
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