Mexico's States of Opportunity 2012

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Mexico's States of Opportunity 2012 Aguascalientes Durango Nayarit Sonora www.pwc.com/mx/estados-2012 Baja California Guanajuato Nuevo Leon Tabasco Baja California Sur Guerrero Oaxaca Tamaulipas Campeche Hidalgo Puebla Tlaxcala Chiapas Jalisco Queretaro Veracruz Chihuahua Mexico Quintana Roo Yucatan Coahuila Michoacan San Luis Potosi Zacatecas Colima Morelos Sinaloa Mexico’s States of Opportunity 2012 I do not know if modernity is a blessing, a curse or both. I know that it is destiny: if Mexico wishes to be, it must be modern. Octavio Paz* Mexico’s States of Opportunity 2012. Comprehensive Visions of Development makes its first analysis of the nation’s fast rising urban landscape. The study compares 31 states and one Federal District where 32 zonas metropolitanas sit through a prism of 10 indicators that include 74 different data variables. The result is a picture of urban Mexico that is comprehensive and consistent, as well as balanced economically and socially. It reflects the reinforcing threads of city life today and provides a reliable measure of current performance that each urban area, as well as all of Mexico, can use on the journey toward shared prosperity. Cover image: Zacatecas Downtown, world heritage. ©Banco de imágenes CPTM / Ricardo Espinosa (REO), Photographer * Paz, O. (1990), Pequeña crónica de grandes días. México: Fondo de Cultura Económica, 5ta. ed., 2003, p. 57. More strengths than meet the eye anchor Mexico’s journey of transformation Mexico means many things depending on the A “States of Opportunity” balance economic vantage point from which one observes. and social strengths that provide good quality of life in the present while actively planting For Mexicans, it means home, family, work. For the seeds for vibrant growth in the future. tourists, Mexico represents beaches, historic That is why our variables reflect a nearly equal towns, colourful traditions, warmth of people mix of economic and social data. The aim is to and place. For international businesses and create a balanced and realistic picture of urban Mexican multinational companies, the nation Mexico that recognizes both our strengths and provides a center for manufacturing, logistics, challenges. natural resources and increasingly more sophisticated services. The geography explains For some readers, recognizing the strengths some of that: Mexico stands at the crossroads of Mexico may come as a bit of a surprise. The of a vast, resource-rich and still growing part nation is today succeeding on a wide variety of of the world – physically in North America, fronts and will continue to do so based on the culturally linked to Latin America. momentum we have created. But only one perspective cuts across the Economically Mexico is strong, and getting spectrum of changes in Mexico as we move into stronger. We have the second largest economy the 21st century: the future of Mexico will be in Latin America. The nation has an open urban. Today almost 78% of Mexicans live in a economy with greater imports and exports as city or zona metropolitana1 -a great challenge a percentage of Gross Domestic Product than for a nation whose history was rural. How we China or Russia, far more than Brazil. Trade is manage the transition to the new urban world not just with the United States, but increasingly will determine much of our success in the with Asia, Central and South America. A future. good regulatory framework protects foreign investors. What Mexico produces is diversifying The objective of Mexico’s States of Opportunity also –and doing so in sophisticated, valuable 2012. Comprehensive Visions of Development areas like aerospace, biotechnology, research is to set standards by which we can measure and development. ourselves and build an urban Mexico based on foresight, logic, resolve and work. The nation stands on solid macroeconomic foundations. The banking and finance system “Opportunity” is a distinguishing word for has remained healthy and committed to long- us in developing this study. Businesses and term growth even during the world economic people come to cities for a chance economically crisis. In fact, we recovered quickly from the or culturally. Whether they migrate across downturn and Mexico runs a low relative borders, across a nation or simply commute budget deficit compared to other nations. Our into town from 20 miles away, the ideas of National Infrastructure Bank, which played a opportunity and city are often synonymous. key role in transforming a rural land into one with highways and transport systems, hospitals and schools in a few decades, can in many ways serve as a model for other nations. 1 A zona metropolitana refers to Mexico’s national system that classifies and demarcates urban areas. Socially we can also take credit for move forward; and, know that we can do so. strengths. A young population means there Our cities and our zonas metropolitanas will will be able workers as our economy grows. be the testing grounds where transformation Seguro Popular, Mexico’s universal health occurs. This study is undertaken in the hope of care plan, is a world leader in providing developing an accurate view of where urban broad medical protection to all income levels. Mexico stands today so the nation continues to Transparency of public information is assured move ahead tomorrow. legally from national and local governments. It is in that spirit of transformation that Judicial and security reform is equalizing access PwC undertakes Mexico’s States of Opportunity to speedy and fair justice. And the creative 2012. Comprehensive Visions of Development. energy of Mexicans of all ages can be seen Our task in this first edition is to provide in urban projects to clean the environment, rigorous thinking derived from research to address water and waste needs, preserve orient the journey ahead. historic districts and build a greater overall quality of life. We would like to thank the many government agencies at their different levels across the Of course, we are also confronting challenges, nation for giving us access to consistent, among them the need to stem crime and verifiable data. We also gratefully acknowledge violence, to deepen the reach and extent of the academics of the Centro de Estudios en education, and find a way to balance the needs Administración Pública of Universidad Nacional of cities with preservation of countryside and Autónoma de México (UNAM) who worked with its agricultural and often indigenous heritage. us along the way and, especially, for opening But many successful, developed nations today a human window with insightful interviews have had to work in order to reach their current from leaders of thought and action across many level of prosperity. Mexico today is doing just fields. that. Our hope is this study not only sheds light Future progress depends on greater on what makes cities healthy today, but understanding of Mexico –to take pride in illuminates the way ahead. achievements; recognize challenges; see that we collectively share the responsibility to Yours sincerely, Carlos Mendez Rodríguez Territory Senior Partner - PwC Mexico Overview Streets of Queretaro, world heritage. ©Banco de imágenes CPTM / Ricardo Espinosa (REO), Photographer PwC Mexico and PwC’s Global Network are Similar scenes are unfolding elsewhere. proud to present this study. It represents Information and communications as well our effort to portray Mexico in an objective as biotechnology companies are clustering and realistic way. The result is a fair and together in Jalisco and Guadalajara, the state positive picture of a diverse, geographically and its major city. Chihuahua is increasingly rich country that for the past 20 years has a center of universities and advanced confronted economic and social challenges learning. Inland logistics hubs are growing with increasing resolve and success. as dry ports to route seaborne goods arriving in the seaports of Veracruz and Acapulco Mexico is an urbanized nation with much to destinations throughout Mexico and to show and talk about. As a firm with eventually the world. Aguascalientes is home a comprehensive, global perspective, we to a thriving automobile manufacturing and believe opportunities for investment and assembly cluster. innovation thrive throughout the nation, north to south and east to west. Our objective It was not this way a decade or two ago. in undertaking this study is twofold. Mexico’s But Queretaro and urban clusters like it are States of Opportunity 2012. Comprehensive beginning to thrive all around Mexico thanks Visions of Development offers international to its stable and open economy, central investors a comprehensive picture of the location in the Americas, increasing levels nation’s diversity, as well as actions taken to of education and the ability of its people to strengthen public policies that have driven our produce sophisticated products and services. country to be one of the strongest economies All in all, the nation exported $278.8 billion in the world. in manufactured goods in 2011, $38 billion of At the same time, we want to offer Mexicans which were automobiles. Much like Japan’s a balanced scorecard to continue social and metamorphosis in the last half of the 20th economic progress. We decided to analyze century from an inexpensive to a high-quality states and the zonas metropolitanas within exporter, Mexico’s output is climbing the each one of them in order to provide a broader quality ladder in fact and perception. understanding of the country and its immense The nation increasingly makes sense as possibilities to all those who can gain from the a home for a wide variety of businesses knowledge. and investments. As this occurs, Mexico’s For the reader who is not familiar with urbanization will continue. Long-term success Mexican zonas metropolitanas, names like revolves around how urban clusters, regions Aguascalientes, La Laguna, Chihuahua, and cities cooperate to advance our economic Morelia or Culiacan will sound unknown or and social environment.
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