Why%20Mexico%20needs%20a%20fiscal%20reform?

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Why Mexico needs a fiscal reform? the
territorial dimension
Paris, 26 March 2007
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• Globalisation / Decentralisation
• Growing disparities between regions
• Ineffectiveness of conventional policies
• and governance

Does this sounds like Mexico?
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Territorial disparities in OECD Countries (gdp
per capita 94-2000)
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Economic Growth and Regional Disparities
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Adopting a territorial approach ?

• factors of national growth are strongly localised
• promoting national growth requires improving the
  use of these factors within regions
• regional policies

an example of what NOT to do
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When spending forgets the regional dimension
the case of Italy
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MEXICO fiscal reform cant ignore the regional
dimension
Individual and territorial disparities unused
potential gt Threats to Mexicos competitiveness
and cohesion
32
70
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3 key territorial challenges and potential
resources
Dispersion
Concentration
Urban development challenges
Rural development challenges
cross-border dimension
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Metro-urban dimension the case of the ZMVM
metropolitan commissions

• do / can actors co-operate?
• cost63/66

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Rural dimension

• Rural Mexico not synonymous with decline
• nor is synonymous with agriculture

What is the spending strategy?
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Cross-border dimension Mesoamerica

• Strategic geo-political location

Tampico
Central and Northern Mexico North America
North America
Tuxpan
Europe
PUEBLA
XPUJIL
Chetumal
Villahermosa
Coataacoalcos
Flores
BELMOPAN
San Pedro Sula
Sto. Tomas

La Ceiba
GUATEMALA
North America
TEGUCIGALPA
Quetzal
SAN SALVADOR
Key Pacific Corridor Inter-oceanic
corridors Caribbean tourism corridor SE Mexico
highway expansion
Cutuco
MANAGUA
Asia
Europe and South America
SAN JOSÉ
Limón
South America
PANAMÁ
South America
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Territorial approach rethinking multi-level
governance
Federal Regional Local
Upper Horizontal co-ordination Mechanisms
Vertical co-ordination Local horizontal
co-ordination

• Objetcive
• Finding the right mix of knowledge/responsibilitie
  s/resources

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• Key issues
• need to tackle the disparities issue
• fiscal reform crucial for regional policy
• regional policy can support fiscal reform

long-term vision, political commitment are key