Mexico Reform Agenda for Inclusive and Sustainable Growth

Abstract

Mexico needs to broaden and deepen its
 financial system without compromising the financial
 stability gains of the last decade. Much more private
 investment is needed to transform the economy to boost
 productivity, and despite improvements in recent years, many
 households and firms still lack adequate access to financial
 services. Strengthening competition and streamlining key
 regulations for firms are key to increasing Mexico's
 competitiveness. This note provides a medium-term agenda for
 supporting Mexico's competitiveness by fostering
 greater innovation. This policy note outlines short- and
 medium-term policy options for addressing critical
 challenges affecting labor markets in Mexico, and in
 particular labor productivity. This note reviews the
 challenges in Mexico's social protection system and
 possible options to achieve an integral and effective system
 that is more than the sum of its parts. This policy note
 contributes to the debate on Mexico's looming fiscal
 challenges. To achieve higher growth and reduce poverty and
 inequality, Mexico needs to improve public service delivery.
 This note assesses Mexico's pending subnational fiscal
 reform agenda. This note is structured as follows: chapter
 one is fostering sound financial sector development; chapter
 two is toward a more competitive business environment;
 chapter three is fostering innovation for productivity and
 competitiveness; chapter four gives labor markets for
 inclusive growth; chapter five deals with promoting an
 integral social protection system; chapter six deals with
 reducing the footprint of growth; chapter seven gives ways
 of using natural resources in an optimal way; chapter eight
 presents managing medium-term fiscal challenges; chapter
 nine deals with strengthening public revenue and expenditure
 management to enhance service delivery; and chapter ten is
 strengthening subnational public finance.