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Policy Consultation on Promotion of Mechanical Parts Industry, And Policy Consultation on Promotion of Mechanical Parts Industry, and Technical Manpower Development and Promotion of Industry-Academy Cooperation in Hidalgo of Mexico Policy Consultation on Promotion of Mechanical Parts Indus- try, and Technical Manpower Development and Promotion of Industry-Academy Cooperation in Hidalgo of Mexico Project Title Policy Consultation on Promotion of Mechanical Parts Industry, and Technical Manpower Development and Promotion of Industry-Academy Cooperation in Hidalgo of Mexico Prepared by Center for Korean Prosperity Korea Research Institute for Vocational Education & Training Moravian Fratrum Consulting KR Consulting Supported by Ministry of Strategy and Finance (MOSF), Republic of Korea Korea Development Institute (KDI) Prepared for The Government of the United Mexican States In cooperation with Mexican Agency for International Development Cooperation, United Mexican States Ministry of Education, United Mexican States Secretariat of Economic Development of the State of Hidalgo, United Mexican States Secretariat of Education of the State of Hidalgo Program Directors Hong Tack Chun, Executive Director, Center for International Development (CID), KDI MoonJoong Tcha, Senior Advisor to Deputy Prime Minister and Minister of Strategy and Finance, Former Executive Director, CID, KDI Taihee Lee, Director, Division of KSP Consultation, CID, KDI Program Officer Jeong Seok Kim, Associate Research Fellow, Center for Korean Prosperity JongPil Moon, Research Associate, Division of KSP Consultation, CID, KDI Senior Advisor Young Kyo Oh, Former Minister of Public Administration and Home Affairs Project Manager Joseph Im, Director, Center for Korean Prosperity Authors Chapter 1. Man Soo Joun, Professor, Gyeongsang National University; Kang-Rak Lee, CEO, KR Consulting Chapter 2. Eun Sang Cho, Research Fellow, Korea Research Institute for Vocational Education & Training; Young Soo Kim, CEO, Moravian Fratrum Consulting Government Publications Registration Number 11-1051000-000342-01 ISBN 978-89-8063-760-7 978-89-8063-739-3 (set) Copyright © 2013 by Ministry of Strategy and Finance, Republic of Korea Government Publications Registration Number 11-1051000-000342-01 Knowledge Sharing Program Policy Consultation on Promotion of Mechanical Parts Industry, and Technical Manpower Development and Promotion of Industry- Academy Cooperation in Hidalgo of Mexico 2013 K R I V E T Preface In the 21st century, knowledge is one of the key determinants of a country’s level of socio-economic de- velopment. Based on this recognition, Korea’s Knowledge Sharing Program (KSP) was launched in 2004 by the Ministry of Strategy and Finance (MOSF) and the Korea Development Institute (KDI). KSP aims to share Korea’s development experience and knowledge accumulated over the past decades to assist socio- economic development of the partner countries. Former high-ranking government officials are directly involved in policy consultations to share their intimate knowledge of development challenges, and they complement the analytical work of policy experts and specialists who have extensive experience in their fields. The government officials and practitioners effectively pair up with their counterparts in develop- ment partner countries to work jointly on pressing policy challenges and share development knowledge in the process. The Program includes policy research, consultation and capacity-building activities, all in all to provide comprehensive, tailor-made assistance to the partner country in building a stable foundation and fostering capabilities to pursue self-sustainable growth. 2012 is the first year to conduct KSP with Mexico. Based on the written demand survey form as well as the discussion with the Mexican government, the program was launched in May, 2012, focusing on the following two topics: Promotion of Mechanical Parts Industry, and Technical Manpower Development and Promotion of Industry-Academy Cooperation in Hidalgo of Mexico. I would like to take this opportunity to express my sincere gratitude to Senior Advisor Mr. Young Kyo Oh and Project Manager Mr. Joseph Im, as well as all the project consultants including Dr. Man Soo Joun, Dr. Eun Sang Cho, Mr. Kang-rak Lee, and Mr. Young Soo Kim for their immense efforts in successfully completing the 2012 KSP with Mexico. I extend my warmest thanks to Dr. Octavio Tripp, Director General for Technical and Scientific Cooperation of the Mexican Agency for International Development Cooperation (AMEXCID), as this bilateral project would have not been productive as desired without his sincere leadership and com- mitment of his team. I appreciate from my deepest heart, contributions of Mr. Eduardo Calderón, Advisor to the Vice Minister of Upper Middle Education, Ministry of Public Education (SEP), Mr. José Pablo Maauad, Secretary of Economic Development of Hidalgo, and Mr. Joel Guerrero, Secretary of Public Education of Hidalgo. I cannot fail to thank Mr. Eduardo Cuevas, CIATEQ and Mrs. Rocío Serrano, Prof. José Ibarra Oliva- res for their indispensable roles as local consultants. I feel honored to receive active support from other government agencies and individuals. At last but least, I offer special gratitude to Ms. Lorena García for her devoted efforts in coordination. In your hands is the publication of the results of the 2012 KSP with Mexico. I sincerely hope the final research results including policy recommendations on the selected areas could be fully utilized to help Mexico in achieving economic development in priority areas in the near future. Young-Bong Kim President Center for Korean Prosperity Contents 2012 KSP with Mexico… ………………………………………………………………………………………………………………………………………………………………………………………… 12 Executive Summary………………………………………………………………………………………………………………………………………………………………………………………………… 16 Chapter 1. Promotion of Mechanical Parts Industry in Hidalgo of Mexico Summary… ………………………………………………………………………………………………………………………………………………………………………………………………………………… 23 1. Summary and Analysis of Hidalgo’s Requirements… …………………………………………………………………………………………………… 25 2. Current Circumstances of Mexico’s Key Industries and Hidalgo’s Mechanical Parts Industry… ……… 26 2.1. Mexico’s industry and exports…………………………………………………………………………………………………………………………………………… 26 2.2. Mexico’s automotive industry …………………………………………………………………………………………………………………………………………… 29 2.3. Mexico’s steel industry……………………………………………………………………………………………………………………………………………………………… 32 2.4. Mexico’s major pending issues…………………………………………………………………………………………………………………………………………… 35 2.5. General situation of Hidalgo………………………………………………………………………………………………………………………………………………… 35 2.6. Industrial situation of Hidalgo… ………………………………………………………………………………………………………………………………………… 37 3. Survey of Korea’s Development Experience… …………………………………………………………………………………………………………………… 42 3.1. Meaning of Korea’s related development experience… …………………………………………………………………………………… 42 3.2. Sectoral summary of development process … ………………………………………………………………………………………………………… 44 3.2.1. Industry policy and industrial economy development… …………………………………………………………………… 44 3.2.2. Promotion policy of parts & materials and root industries… …………………………………………………………… 44 3.2.3. Demand industry development… ……………………………………………………………………………………………………………………… 55 3.2.4. Development of basic industry and parts & material Industry……………………………………………………… 57 4. Advisory Research Result by Topics…………………………………………………………………………………………………………………………………………… 61 4.1. Topic selection and background … …………………………………………………………………………………………………………………………………… 61 4.1.1. Topic 1: Technology innovation focusing on existing key industry (casting) ……………………… 62 4.1.2. Topic 2: Fosterage of underdeveloped sector (metal forming) of Hidalgo regarding development of new products and new process… ……………………………………………………………… 62 4.1.3. Topic 3: Industry-academy cooperation and exchange of manpower and goods… ………… 62 4.1.4. Topic 4: Korea-Mexico cooperation (Example: Cooperation Center)…………………………………………… 62 4.2. Advisory research results over the topic 1 ………………………………………………………………………………………………………………… 63 4.2.1. Global casting industry ……………………………………………………………………………………………………………………………………………… 63 4.2.2. Korea’s development experiences ……………………………………………………………………………………………………………………… 64 4.2.3. Development plan for Hidalgo … ………………………………………………………………………………………………………………………… 67 4.3. Advisory research results over the topic 2 … ……………………………………………………………………………………………………………… 69 4.3.1. Global forging industry … ………………………………………………………………………………………………………………………………………… 69 4.3.2. Korea’s experiences ……………………………………………………………………………………………………………………………………………………… 70 4.3.3. Measures to nurture forging in Mexico … ……………………………………………………………………………………………………… 74 4.4. Advisory research results over the topic 3 ………………………………………………………………………………………………………………… 76 4.4.1. Korea’s experiences ……………………………………………………………………………………………………………………………………………………… 76 4.4.2. Development measures for Hidalgo ………………………………………………………………………………………………………………… 80 4.5. Advisory research results over the topic 4 … ……………………………………………………………………………………………………………… 82 5. Conclusion: Implication from Korea’s Development Experiences………………………………………………………………………… 86 5.1. Policies… ……………………………………………………………………………………………………………………………………………………………………………………………… 86 5.2. Establishment of infrastructures………………………………………………………………………………………………………………………………………… 91 5.3. Fosterage of vulnerable field and investment attraction… ……………………………………………………………………………… 92 5.4. Industry-academy cooperation and manpower training ………………………………………………………………………………… 93 5.5. Regional and international cooperation…
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