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Country Partnership Strategy for the United Mexican States for the Period FY2014-2019

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Country Partnership Strategy for the United Mexican States for the Period FY2014-2019 Development Public Disclosure Authorized Challenges Development Ending Solutions extreme poverty Promoting Public Disclosure Authorized shared prosperity Ensuring Country Sustainable partnership growth Public Disclosure Authorized strategy thefor United bancomundial.org.mx Mexican Public Disclosure Authorized States 2014-2019 IBRD IFC MIGA Regional Vice President: Hasan A. Tuluy Vice President for LAC: Jean Philippe Prosper Vice President and CFO: Michel Wormser Country Director: Gloria M. Grandolini Senior Manager: Roberto Albisetti Director of Economics and Sustainability: Ravi Vish Task Managers: Harold Bedoya Task Managers: Laura Vila and and Samuel Freije Jaya Anderman Toiber Task Manager: Dan Biller The Mexico Country Partnership Strategy was prepared by a joint World Bank Group team led by Harold Bedoya, Samuel Freije, Laura Vila, Gloriana Echeverria, and Dan Biller under the overall guidance of Gloria M. Grandolini, and Roberto Albisetti, Edith Quintrell, and Ravi Vish. Core team members included Jaya Anderman Toiber, Alexandra Ortiz, Wendy Cunningham, Eva M. Gutierrez, Sabine Hader, Jutta Kern, Karim Omar Lara Ayub, Gabriela Vidals and Karina M. Kashiwamoto. Valuable contributions were received from: Aline Coudouel, Andrea Coppola, Carlos Rodríguez Castelán, Daniel Villar, Eduardo Wallentin, Eguiar Lizundia González, Elizabeth Currie, Elizaveta Perova, Ernesto Sánchez-Triana, Jozef Draaisma, Kinnon Scott, Erwin Tiongson, Kiyomi Cadena, Santiago Garriga, Pedro Arizti, Luis de la Plaza Bringas, and Steen Byskov. Many other comments and suggestions were received from numerous participants at the concept review and operations committee meetings. Gabriela Vidals and Karim Lara Ayub prepared the CPS Completion Report under the guidance of Harold Bedoya. We would like to thank specially members of the Operationalizing the World Bank Goals Working Group who shared their insights with us: Ernesto May, Christoph Kurowski, John Lincoln Newman, and Gladys Lopez-Acevedo. Key government counterparts in developing the partnership strategy were: Juan Bosco Martí Ascencio, Gerardo González Anaya, Silvia Rodríguez Díaz, Luis Cartas Paredes, and Alexandra Alarcón Cisneros. Country partnership strategy thefor United Mexican States October 23, 2013 Colombia and Mexico Country Management Unit Latin America and the Caribbean Region The International Finance Corporation, Mexico Regional Office Latin America and the Caribbean Region Multilateral Investment Guarantee Agency Country Partnership Strategy for the United Mexican States for the Period FY2014-2019 Copyright © 2013 by the International Bank for Reconstruction and Development / The World Bank. 1818 H Street, N.W. Washington, D.C. 20433, U.S.A. Internet: www.worldbank.org. All Rights Reserved Printing and Manufactured in Mexico / 2013 First Printing: October 23, 2013 The findings, interpretations, and conclusions expressed in this book are entirely those of the authors and should not be attributed in any manner to the World Bank, to its affiliated organizations, or to members of its Board of Executive Directors or the countries they represent. The World Bank does not guarantee the accuracy of the data included in this publication and accepts no responsibility for any consequence of their use. The boundaries, colors, denominations, and other information shown on any map in this volume do not imply on the part of the World Bank Group any judgment on the legal status of any territory or the endorsement or acceptance of such boundaries. Rights and Permissions The material in this publication is copyrighted. The World Bank encourages dissemination of its work and normally will promptly grant permission to reproduce portions of the work. For permission to reprint individual articles or chapters, please fax a request with complete information to Fernanda Zavaleta, Communications Officer – The World Bank Colombia and Mexico Fax (55) 5480-4222. All other queries on rights and licenses should be addressed to the Communications Officer, The World Bank Mexico at the above faxed to (55) 5480-4222. The World Bank Cover and Design: www.sonideas.com / Alejandro Espinosa Country Partnership Strategy for the United Mexican States for the Period FY2014-2019. – Mexico : The World Bank, 2013. 152 p. : tabs. + map 338.972/C68/2013-2019 1. Mexico – Productivity – Unleashing. -- 2. Mexico – Social Prosperity – Improve. – 3. Mexico – Public Finance and Government Efficiency – Strengthening. – 4. Mexico – Green, Promoting – Inclusive Growth. – 5. Productivity – Unleashing – Mexico. – 6. Social Prosperity – Improve – Mexico. – 7. Public Finance and Government Efficiency – Strengthening – Mexico. – 8. Green, Promoting – Inclusive – Mexico. CURRENCY EQUIVALENTS (Exchange rate effective as of October 23, 2013) Currency Unit = Mexican Pesos US$1.00 = 12.9352 FISCAL YEAR January 1 to December 31 WEIGHTS AND MEASURES Metric System ABBREVIATIONS AND ACRONYMS APL Adaptable Program Loan BANSEFI Banco del Ahorro Nacional y Servicios Financiero (Bank of Financial Services) BB Bank Budget CFE Comisión Federal de Electricidad (Federal Electricity Commission) CONACYT Consejo Nacional de Ciencia y Tecnología (National Council of Science and Technology) CONAFE Consejo Nacional de Fomento Educativo (National Council of Education Development) CONEVAL Consejo Nacional de Evaluación (National Council on Evaluation) CPPR Country Performance Portfolio Reviews CPS Country Partnership Strategy CTF Clean Technology Fund DPL Development Policy Loan ECD Early Childhood Development ENIGH Encuesta Nacional de Ingresos y Gastos de los Hogares (National Household Income and Expenditure Survey) EPI Environmental Performance Index ESMAP Energy Sector Management Assistance Program ESW Economic Sector Work FBS Fee-Based Services FIRST Financial Sector Reform and Strengthening Fund FONDEN Fondo de Desastres Naturales (Natural Disaster Fund) FY Fiscal Year GAC Governance and Anti-Corruption GDP Gross Domestic Product GEF Global Environmental Facility GHG Greenhouse Gas COUNTRY IADB Inter-American Development Bank PARTNERSHIP IBRD International Bank for Reconstruction and Development STRATEGY FOR ICT Information and Communications Technology THE UNITED MEXICAN IDA International Development Association STATES IDF Institutional Development Trust Fund 5 IEG Independent Evaluation Group IFC International Finance Corporation IMF International Monetary Fund IMSS Instituto Mexicano del Seguro Social (Mexican Social Security Institute) INADEM Instituto Nacional del Emprendedor (National Entrepreneurship Institute) INEGI Institutito Nacional de Estadística y Geografía (The National Institute of Statistics and Geography) ISSTE Instituto de Seguridad y Servicios Sociales de los Trabajadores del Estado (Mexican Institute of Social Security for State Officers) LAC Latin America and the Caribbean MIGA Multilateral Investment Guarantee Agency MoU Memorandum of Understanding MSME Micro, Small and Medium Size Enterprises NAMA National Appropriate Mitigation Actions NDP National Development Plan NHSFO Non-Honoring of Sovereign Financial Obligation OECD Organization for Economic Co-operation and Development PEC Programa de Escuelas de Calidad (School-based management program) PEMEX Petróleos Mexicanos (Mexico state oil company) PET Programa de Empleo Temporal (Temporary Employment Program) PKS Programmatic Knowledge Services PPP Public-Private Partnerships PROTRAM Programa de Transporte Masivo (Federal Mass Transit Program) PSIA Poverty and Social Impact Analysis RAS Reimbursable Advisory Services REDD+ Reducing Emissions from Deforestation and Degradation RESOL-V Red de Soluciones a la Violencia (Solutions to Violence Network) REPSS Régimen Estatal de Protección Social en Salud (Seguro Popular) R&D Research and Development SAT Servicio de Administración Tributaria (Mexico’s Tax Administration Service) SBL Single borrower limit SCI Savings and credit sector institutions SEDESOL Secretaría de Desarrollo Social (Ministry of Social Development) SHCP Secretaría de Hacienda y Crédito Público (Ministry of Finance) SHF Sociedad Hipotecaria Federal (Federal Mortgage Society) SIDAFF Sistema Integral de Administración Financiera Federal (Financial Management Information System) SME Small and Medium Size Enterprises SFP Secretaría de la Función de la Pública (Ministry of Public Administration) SSA Secretaría de Salud (Ministry of Health) STPS Secretaría del Trabajo y Previsión Social (Ministry of Labor and Social Welfare) TA Technical Assistance TELECOMM Telecomunicaciones de México (Telecommunications of Mexico) TRACE Tool for Rapid Assessment of City Energy COUNTRY UN United Nations PARTNERSHIP UNDP United Nations Development Programme STRATEGY FOR THE UNITED VAT Value Added Tax MEXICAN WBG World Bank Group STATES WSS Water and Sanitation Sector 6 Contents Executive Summary ········································································································································································································································································· 13 Diagnosis of Mexico’s Development Challenges ·····························································································································································································13 Selectivity Framework and Principles of Country Engagement ·····················································································································································13
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