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Social Protection Systems in Latin America and the Caribbean: Mexico

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Social Protection Systems in Latin America and the Caribbean: Mexico Project Document Social protection systems in Latin America and the Caribbean: Mexico Enrique Valencia Lomelí David Foust Rodríguez Darcy Tetreault Weber Economic Commission for Latin America and the Caribbean (ECLAC) This document wasprepared by Enrique Valencia Lomelí, consultant with the Social Development Division of the Economic Commission for Latin America and the Caribbean (ECLAC), David Foust Rodríguez and Darcy Tetreault Weber, researchers with the University of Guadalajara, and is part of the series of studieson “Social Protection Systems in Latin America and the Caribbean”, edited by Simone Cecchini, Social Affairs Officer, and Claudia Robles, consultant with the same Division. Luna Gámez and Daniela Huneeus, consultants, provided editorial assistance. Humberto Soto and Astrid Rojas provided valuable comments. The document was produced as part of the activities of the project “Strengthening social protection” (ROA/1497) and- “Strengthening regional knowledge networks to promote the effective implementation of the United Nations development agenda and to assess progress” (ROA 161-7), financed by the United Nations Development Account. Printing of this publication was made possible by the contribution of the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH and the Federal Ministry of Economic Cooperation and Development of Germany (BMZ), in the framework of the project "Social covenant for more inclusive social protection" of the ECLAC/BMZ-GIZ cooperation programme "Promoting low-carbon development and social cohesion in Latin America and the Caribbean" (GER/12/006). The opinions expressed in this document, which has been reproduced without formal editing, are the sole responsibility of the authors and do not necessarily reflect the views of the Organization. LC/W.512 Copyright © United Nations, December 2012. All rights reserved Printed at United Nations, Santiago, Chile ECLAC – Project Documents collection Social protection systems in Latin America and the Caribbean: Mexico Contents Foreword .......................................................................................................................................... 5 I. Introduction: Mexican social protection institutions seen through the lenses of rights ........... 7 II. Mexico: main economic and social indicators.......................................................................... 9 III. The pension system in Mexico .............................................................................................. 15 A. Overview of contributive pension regimes in Mexico ..................................................... 15 1. Mexican Social Security System (Instituto Mexicano del Seguro Social, IMSS) .......................................................................................................... 15 2. Social Security and Social Services Institute for State Workers (Instituto de Seguridad y Servicios Sociales de los Trabajadores del Estado, ISSSTE) .................................................................................................................. 16 3. Social Security Institute for the Mexican Armed Forces (Instituto de Seguridad Social para las Fuerzas Armadas Mexicanas, ISSFAM) ....................................... 16 4. Collective Work Contract for Workers of the PEMEX- Trade Union of Oil Workers of the Mexican Republic (Contrato Colectivo de Trabajo PEMEX- Sindicato de Trabajadores Petroleros de la República Mexicana, STPMR) .................................................................................................................. 17 B. Non-contributive pensions in Mexico ............................................................................. 17 C. Spending on pensions .................................................................................................... 18 D. Coverage of pensions .................................................................................................... 18 IV. The Living Better (Vivir Mejor) strategy for social development ............................................ 21 A. Overview of the main anti-poverty programmes and the Vivir Mejor strategy ............... 21 B. Consumption and food production subsidies ................................................................. 23 C. Funding and coverage of poverty reduction programmes ............................................. 24 V. The health sector in Mexico ................................................................................................... 27 A. Health social security system in Mexico ........................................................................ 27 1. Mexican Social Security Institute ............................................................................ 27 2. Social Security and Social Services Institute for State Workers ............................ 27 3. Social Security Institute for the Mexican Armed Forces ......................................... 28 4. Collective Work Contract for PEMEX Workers - Trade Union of Oil Workers of the Mexican Republic ......................................................................................... 28 B. The non-contributive Social Health Protection System .................................................. 28 C. Coverage of the contributive and non-contributive health system ................................. 29 3 ECLAC – Project Documents collection Social protection systems in Latin America and the Caribbean: Mexico D. Social spending and funding in the health system ......................................................... 32 VI. The education sector in Mexico ............................................................................................. 33 A. Overall description of the education sector .................................................................... 33 B. Coverage of the education system................................................................................. 33 C. Social spending on education ........................................................................................ 34 VII. Employment protection in Mexico .......................................................................................... 35 VIII. Final remarks ......................................................................................................................... 37 Bibliography ................................................................................................................................... 39 Tables Table 1 Participation in total income by income deciles, 1977-2010 .................................. 10 Table 2 Income poverty, 1992-2010 .................................................................................... 11 Table 3 Multidimensional poverty, 2010 .............................................................................. 12 Table 4 Total public spending and social spending relative to GDP, 2000-2010 ........... 13 Table 5 Workers with AFORES by income deciles, 2008-2010 .......................................... 19 Table 6 Persons receiving a pension by income deciles, 2008-2010 ................................. 19 Table 7 Persons who receive an old age non-contributive pension, 2008-2010 ..................... 20 Table 8 Average amount of the transfers included in Oportunidades, 2008-2010 .............. 22 Table 9 Persons affiliated to social security institutions in health by income deciles, 2008- 2010 ............................................................................................................. 30 Table 10 Affiliation to health services, 2008-2010................................................................. 31 Table 11 Affiliation to Seguro Popular, 2008-2010................................................................ 31 4 ECLAC – Project Documents collection Social protection systems in Latin America and the Caribbean: Mexico Foreword Simone Cecchini Claudia Robles This report is part of a series of national case studies aimed at disseminating knowledge on the current status of social protection systems in Latin American and Caribbean countries, and at discussing their main challenges in terms of realizing of the economic and socialghts riof the population and achieving key development goals, such as combating poverty and hunger. Given that, in 2011, 174 million Latin Americans were living in poverty—73 million of which in extreme poverty— and that the region continues being characterized by an extremely unequal income distribution (ECLAC, 2012), the case studies place particular emphasis on the inclusion of the poor and vulnerable population into social protection systems, as well as on the distributional impact of social protection policies. Social protection has emerged in recent years as a key concept which seeks to integrate a variety of measures for building fairer and more inclusive societies, and guaranteeing a minimum standard of living for all. While social protection can begeared to meeting the specific needs of certain population groups —including people living in poverty or extreme poverty and highly vulnerable groups such as indigenous peoples—, it must be available to all citizens. In particular, social protection is seen a fundamental mechanism for contributing to the full realization of the economic and social rights of the population, which are laid out in a series of national and international legal instruments, such as the United Nations’ 1948 Universal Declaration of Human Rights or the 1966 International Covenant
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