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Part 2: Poverty in Mexico: Economic Crisis and A H1N1 virus, poverty rates rise

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  • Part 2: Poverty in Mexico: Economic Crisis and A H1N1 virus, poverty rates rise


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    Economic Crisis A H1N1 virus and poverty rates rise

    * Chiapas, Guerrero and Oaxaca, entities with the highest levels of poverty in Mexico, the North Zone has the further marginalization

    The GDP fell 8.2% in the first quarter of 2009, the most devastating blow to the national economy from the "error 1995". Specialists agree that the worst scenario is to come

    Part 2

    The day that Theresa was expelled for beating his father's home in Canyon de Tlaxcala in Tuxpan of Bola?os, who would have dreamed of a better life. Escaped from extreme violence, but he expected another harsh reality.

    She walked aimlessly and invisible for others. Harassment hunger, disease and cold. In the helplessness, the Indian died at 16 years old when 2009 began. Is an example of the misery faced by the most marginalized people in Mexico, where more than 44.7 million people (42.6% of total population) live in poverty, says the latest official figures. What is worrying is that this sector has more than 14.4 million poor food (13.8% of the population).

    Chiapas, Guerrero and Oaxaca are the entities with the highest levels of poverty in the municipalities of San Lorenzo Temexmelucan, San Juan Cancuc, Chanal, Santiago El Pinar and Chichiquila. That salaries in high levels of public administration to reach millions is a fact that puts the finger on the pulse by the inadequacy of social development in the country.

    "In Mexico there are a large number and dispersion of social programs, lack strengthen external evaluations in states and municipalities, as the quality of public services is inadequate; Greater coordination among social programs, social security policy and labor policy for better enforcement of social rights "are the new recommendations of the evaluation of the National Assessment of Social Policy Development (Coneval), filed in October 2008 and obtained under measurement instruments and analysis of the National Survey of Income and Expenditure of Households 2006 (ENIGH), prepared by the National Institute of Statistics, Geography and Informatics (INEGI).

    The results of the evaluation this year face an economic recession in 2008 originated in the United States, which exacerbates the effects in countries with high raw material prices, food crisis and high inflation. The impacts are also in mortgage crisis, credit and confidence in markets. When you start the year highlighted phrases like "The outlook in Mexico 2009 is disappointing and dark," agreed to specialists who were joined by the billionaire Carlos Slim, which sparked criticism from federal officials and politicians of the Partido Acci?n Nacional (PAN). The tycoon displayed a complicated scenario for the country, the collapse of the Gross Domestic Product (GDP) and unemployment at levels never seen before.

    The Ministry of Social Development (SEDESOL) recognized on June 1 that the recession will increase the food poverty. While awaiting the update of the Income and Expenditure Survey by the INEGI, the federal agency accepts that scholars suggest an increase of up to eight million Mexicans in this sector of marginality, ie poverty more "terrible", which translates not have money to buy food, would impact more than 22 million people this year.

    Gonzalo Hern?ndez Licona, Executive Secretary of Coneval coincides with the predictions: "There are important factors that could influence changes in poverty, for example, there is an increase in the cost of basic food basket, by which the measured Coneval this problem. " From January 2008 to March 2009, the basket recommended by the National Institute of Nutrition for the daily diet of a family with five members, up 31% from 103.22 to 135.12 pesos. The increase in cost of goods continues unstoppable. The price of a kilogram of beans increased 100 percent.

    The federal official added that the lack of jobs, low wages, the devaluation of the peso and a decline in remittances in U.S. dollars has been reduced and is an important source for many families, affecting the growth of poverty.
    The following is an update of the impacts of the economic crisis in Mexico:

    First quarter 2009

    The jobless rate is 2.3 million people. The incidence is highest in large cities.
    In the informal economy, occupancy increased from 11.7 million to 12.1 million between the fourth quarter 2008 and first quarter of 2009 (thus bringing together 28.2% of the population in the country).

    Underemployment stands at 559 thousand people, 3.4 million Mexicans sought additional work to offset their income.

    Drop in tax revenues, in remittances, exports and even a gap of more than 300 billion pesos in the fiscal resources that are used from the reserve and insurance coverage for oil, as well as the Bank of Mexico. The Ministry of Finance suggests to compensate them with new taxes, less spending or borrowing.

    GDP declines 8.2% (dollar value of total current production of goods and services a country for a period, usually a quarter or a year. Does not include informal work), the worst decline since the second quarter of 1995, when he fell 9.2 percent.

    The annual decline in GDP is estimated at 5.5%, similar to the 1995 crisis.
    In the first quarter, 137 thousand people left the country (13.5% decrease). The number of immigrants amounted to 138 thousand (14.8%).

    Declining remittances. Mexicans in the United States sent to the country 780 thousand million dollars, 18.67% less for the same month of 2008.

    Between January and April were no longer listed on the IMSS about 213 thousand workers. In four months was not seen by 800 million pesos as payment of employers' contributions, a 5% drop in revenues.

    It is expected a reduction of 592 thousand workers insured in the IMSS, where a month before the expectation was of 493 thousand jobs lost.

    Caen 23% resources of the federal government by oil revenues in the first four months of the year, in comparison with a 2008.
    Revenue down 13.9% for non-oil tax revenues in the Federation. However, in the period January to April this year, budget revenues fell 3.8%, offset mainly by extra revenue from the Bank of Mexico by 95 billion pesos in profit in the exchange rate.

    Raising taxes overall have fallen as a result of lower dynamism in economic activity and the extension of the deadline for individuals to file their income tax (ISR) for the year 2008.
    Decrease of 18.8% for the Value Added Tax (VAT) for the same period last year.
    Caen 12% income tax, Business Single Rate (IETU) Cash and Deposits (IDE).

    Lower 14.9% Special charge on Production and Services (IEPS), compared with January-April 2008.
    Specialists predict that in the second quarter the impact will be worse, expect a reduction of 8.6% of the productive activity. For the third and fourth quarter, predicting a fall of 4.5% and 1.4% respectively.

    In the first four months of 2009 took 5.1 million people in temporary beds or informality, ie 63% more than in December 2008.

    The federal government cut spending 35 billion pesos in response to "severe external economic shocks."

    Given the funding needs facing the federal government, employers recommend taxing food and medicine, leaving a basket of commodities exempt. The Business Coordinating Council and the Employers Confederation of Mexico requested that no taxes are charged only to them; that small taxpayers, the self-employed and those in the informal economy also provided.

    The firm Consultores Internacionales SC warns that failure to change the course of fiscal policy, the "tax gap" by 2010 would add 620 billion pesos, which would mean a foreign debt of up to 130 billion dollars. The public sector external debt rose 50% from December 2008 to March 2009 due to recognition as a direct result of debt liabilities of Pemex, previously considered under the scheme Pidiriegas. In this way, our country recognizes a debt to a rate of 316.5 million dollars per day or 13.2 million dollars per hour.

    The virus attacks
    The Mexican economy registered another strong impact in the beginning of the second quarter: the Federal Government issued a health alert by the national epidemic of "swine flu" last April 23 which resulted in suspension of classes at all levels of education at the national level and unemployment of governmental activities and commercial twists "not essential". The epidemic of H1N1 virus causing the "swine flu", which changed its name to "human influenza" to the economic damages that resulted in the pig sector, combined with the economic crisis.
    Update theme
    Health alert triggered the suspension of classes at the national level and stop activities of governmental and commercial twists "not essential".

    The Health Ministry confirms five 717 thousand cases of influenza A H1N1 in the country, of which 106 died. The 32 states reported confirmed cases. Most are concentrated in the Federal District, followed by San Luis Potos?, Veracruz, Jalisco, Estado de Mexico and Zacatecas.

    With respect to the global picture, the World Health Organization, the Center for Disease Control (CDC) United States and Mexico reported that the epidemic spread to 66 countries, with 20 thousand 948 infections.
    The epidemic causes the loss of 100 thousand direct jobs in tourism, but also affects hundreds of thousands in informal trade.

    500 break six thousand, with a loss of up to 55 thousand jobs in the sector. Cancun, Los Cabos, Puerto Vallarta and Mexico are the cities most affected.

    The contingency impacts the National Assessment of Academic Achievement in Schools (LINK). The suspension of classes impossible to compare schools and previous reviews.

    The Standing Committee of Congress asked the Health Ministry to report the fate of five billion pesos that the deputies assigned to the Special Fund for Emergency Protection against catastrophic costs, which was implemented in the states and the Distrito Federal health during the contingency.

    The federal government invested 200 thousand pesos to revive the economy as tourism destinations.
    The IMSS 600 million pesos intended to address the health risk.

    Sources: INEGI, Hacienda, Banco de Mexico, IMSS, and CANIRAC SEP.

    Weaknesses and challenges in the country

    Evaluation of the National Assessment of Social Policy Development (Coneval) said that poverty reduction between 1992 and 2006 underlines the document has been relatively slow: the per capita economic growth the country has been very low, formal employment has not grown enough, but the informal way it has done considerable average real wages have not changed in almost 14 years, a significant number of Mexicans have no access to social security, progress in reducing the especially infant mortality and maternal mortality has been barely perceptible and is exacerbated in areas of high deprivation.

    In response, the study adds that the social development policy faces several challenges: "The increase in social investment is associated with increases in current spending, financed largely with oil, still lag behind in infrastructure and road communications in the areas poorest and most marginalized: the object of social policy is partly fragmented and dispersed, so it is necessary to strengthen the evaluation system in the country, particularly in states and municipalities. " And ends: "No social rights explicitly mentioned in the plans and programs (of government). Insufficient coordination both within and between institutions that are responsible for programs and policies for social development, the coordination between the Federation, states and municipalities in social development. "

    The three levels of poverty:
    Food: inability to obtain a basic food basket, even if they use all disposable income in the household to purchase only those products.

    Capacity: lack of disposable income to purchase the value of the food basket and make the necessary expenditure on health and education, while devoting the total household income for these purposes only.

    Heritage: lack of disposable income to purchase the food basket, as well as to make the necessary expenditure on health, clothing, housing, transportation and education, although the total household income is used solely for the purchase of these goods and services.

    Estimation of poverty incidence in 2005 individuals
    Food Heritage Skills
    National (1) 18.2 24.7 47.0

    Chiapas 47.0 55.9 75.7
    42.0 50.2 70.2 Guerrero
    Oaxaca 38.1 46.9 68.0
    Tabasco 28.5 36.6 59.4
    Veracruz 28.0 36.3 59.3
    Puebla 26.7 35.3 59.0
    Hidalgo 25.7 33.0 54.2
    San Luis P. 25.7 33.3 55.5
    Durango 24.4 33.7 59.4
    Michoac?n 23. 3 30.8 54.5
    Zacatecas 20.9 29.3 53.6
    Campeche 20.0 27.3 51.4
    Guanajuato 18.9 26.6 51.6
    Yucat?n 18.1 26.2 51.7
    Tlaxcala 17.9 26.2 51.4
    Nayarit 17.2 23.3 43.8
    Aguascalientes 14.9 23.6 51.1
    Mexico 14.3 22.4 49.9
    Sinaloa 13.7 20.5 44.2
    Queretaro 12.5 17.9 37.7
    Quintana Roo 11.0 16.0 3 6.5
    Mexico 10.9 17.2 41.6
    Morelos 10.7 17.3 41.4
    Mexico 10.3 17.5 44.9
    Sonora 9.6 15.8 40.4
    Colima 8.9 14.9 38.5
    Mexico 8.6 15.2 41.0
    Chihuahua 8.6 13.3 34.2
    Distrito Federal 5.4 10.3 31.8
    B. C. S. 4.7 8.0 23.5
    Nuevo Leon 3.6 7.2 27.5
    Baja California 1.3 2.3 9.2

    Indicators by town

    The highest incidence of poverty is concentrated in municipalities in South and Southeast of the country with indigenous people in mountainous and inaccessible. That is the highest level of poverty and the increased cost for support.

    Suman 137 municipalities in the range between 67.2% and 84% in food poverty. The five are: Santiago El Pinar, San Juan Cancuc, Chalchihuit?n and Chanal, Chiapas and Chichiquila in Puebla.

    On the list are also Oxchuc, Tenejapa, Huixt?n, Aldama, Pentelh?, and Tumbala Larrainzar, Chiapas, San Pablo Cuatro Venados, Texmelucan San Lorenzo, Santa Maria Zaniza, San Sim?n Zahuatl?n and Santos Reyes Yucan? in Oaxaca; Mexquital in Durango; Tehuipango in Veracruz and Yuahualica in Hidalgo.

    Municipalities with lower incidence of food poverty are: G?mez Far?as, Chihuahua (0.1%), San Pedro Garza Garcia, Nuevo Leon (0.1%) Ignacio Zaragoza (0.2%), Casas Grandes (0.3%) and Bach?n (0.4%) These three Chihuahua.
    The highest incidence of poverty is food in the states of Chiapas, Guerrero, Oaxaca, Tabasco and Veracruz. By contrast, banks with lower incidence are Baja California, Nuevo Leon, Baja California Sur, Mexico, Coahuila and Chihuahua.

    Percentage ranges from food poverty municipalities in Mexico:

    Ranges (%) Municipalities
    0.1-16.9 562
    16.9-33.7 848
    33.7-50.4 552
    50.4-67.2 355
    67.2-84.0 137

    Most backward areas with

    The 10 most backward villages in Mexico are located at a distance of 28 kilometers from the nearest paved road leading to urban areas. The community with greater social backwardness is the Palmari, in the Municipality of Batopilas in Chihuahua: 43.6 km is the reference point. These populations are generally isolated from roads and thus is unlikely to become part of the country's economy. Even coincide with the municipalities with the highest incidence of poverty and are inhabited by indigenous people.

    Wealth after the public

    While first level officials of the Federal Judiciary earn 481.9 pesos per hour, there are Mexicans who earn less than 80 cents in the same period, but without social security, allowances, bonuses or privileges

    In the shadow of poverty, economic crisis and the impact on different sectors of society for human influenza epidemic, ministers of the Supreme Court of the Nation (SCJN), judges of the Supreme Electoral Tribunal Judicial Council of the Federation (Trife) and counsel for the Judiciary announced at the beginning of rationality that would implement measures, including the cancellation of wage increases. But in practice that perceptions are more in 2008. Each minister earns 347 pesos a month, the judges, 343 thousand pesos, and counselors, 337 thousand pesos, the data appear in the Handbook of perception, allowances and benefits of Public Servants of the Federal Judiciary. On average, each employee earns 11 pesos a day; receives 460 pesos per hour, and is sleeping. Are the higher salaries of public servants in the country.

    For its part, the nine directors of the Federal Electoral Institute (IFE) approved on February 25, approved his salary with the ministers, "attached to the recent reforms" in Article 41, paragraph D, the fourth paragraph of the Constitution. However, criticism from politicians and media publications pushed the members of the IFE to increase back to a day later, as an action described as "sensitivity and solidarity" to the economic crisis. Each counselor was 172 thousand 379 pesos a month (five thousand pesos to 745 pesos per day or 239.4 hours).

    The increase in wages among counselors IFE caused controversy in Congress. The coordinators of the three main political forces in the Chamber of Deputies agreed to approve the Maximum Wage Law ( "frozen" two years ago) and regulate the perceptions of public officials with the task of anyone who earns more than the President of Republic (152 thousand 467 pesos a month, five thousand pesos or 082 pesos per hour 211.7). But the position of National Action was blunt: that the initiative only applies to officials with access to elected office and have the ability to set the amount of your salary.

    A federal cabinet secretary Felipe Calder?n has a gross monthly collection of 205 thousand pesos, that is, net of taxes, pay about 150 pesos (five thousand pesos, or 208.3 pesos per hour). A document prepared by members of the Committee on Finance of the Federal District Legislative Assembly, the critical difference between the monthly salaries of officials of the first level of capital and their federal counterparts, which is close to 100%. Stresses that a secretary in the administration of Marcelo Ebrard reaches 109 thousand 915 pesos in the same way, ending in 82 to 500 thousand cuts (about two thousand 750 pesos per day or 114.5 per hour).

    Despite the high salary, the report says the Legislature "disparity in salaries." But there are those who face a frightening reality of the 44.7 million Mexicans in poverty identified in the assessment Coneval-figure increase this year due to global economic crisis and the impacts of health alert generated by the epidemic of human influenza, the average monthly income is less than 625 thousand pesos per month (54.1 pesos per day or 2.2 pesos per hour) in urban areas, and less than 086 thousand pesos in rural areas (36.2 pesos per day or 1.5 pesos per hour). Resources, which are not always constant, prevents the poor reach basic requirements such as food, health, education, clothing, footwear, housing and public transport, even devote their total income.

    Another facet in the evaluation of Coneval in the world of poverty in the country, shows that in 2006 there were 14.4 million Mexican food poverty, described as the most terrible for the people. Is considered "food poor" who have a total monthly income less than 810 pesos in urban areas (26.1 pesos or 1.08 pesos per hour) and less than 599 in rural areas (19.3 pesos, or 80 cents per hour). Teresa Wixarika the teenager who died last January at the Hospital Civil de Guadalajara, is an example of this population in extreme poverty.


    In the list of salaries of senior officials, including all benefits, there are governors with perceptions month than the President of the Republic and even above the first presidents of Argentina, Brazil and Chile. In Mexico, the average net salary of the governors is 100 pesos per month, with around 14 who were paid above the average and 16 who have a salary below it, excluding compensation and benefits. This exceeds the reality of a country where half the population is poor.

    The high salaries of public servants first, second and sometimes even third level, are a common factor in all three branches of government, autonomous bodies and public administration in federal, state and municipal levels, even in contrast to the perceptions of low their basic or unionized employees who have salary of three thousand pesos (sweepers, gardeners, guards and receptionists, among others).

    In the federal government officials are superior to those with perceptions of the President, but this also happens in the rest of the country.
    In Sonora Governor Eduardo Bours Castelo receives 64 mil 813.20 pesos a month net, while the general secretary of Government, Wenceslao Cota Montoya receives 67 mil 620.76 pesos. The argument is that it "maintains an additional bonus-old, a product of his 23 years of service." In another angle, over a dozen secretaries of the Government of Mexico gets higher wages than the governors of 16 states and the Distrito Federal, Tlaxcala, Sonora, Campeche, Colima, Durango, Hidalgo, Zacatecas, Veracruz, Morelos, Sinaloa , Nayarit, Yucatan and Coahuila. Officers receive an average monthly net salary of 116 pesos, who has paid more is the general secretary of government, Humberto Ben?tez Trevi?o: 132 mil 114.48 pesos, while the governor of Tlaxcala, H?ctor Ortiz Ortiz wins 42 mil 985 pesos month.
    Bonuses and allowances amounting to millions each order of administration officials is another matter.

    (Note: The above comparison is based on information provided via laws and transparency in the electronic systems obligated).

    The Supreme Judicial

    After a war of statements between legislators to start the year, the Senate approved the April 28 Maximum Wage Law, which requires the Federal Government, states and municipalities, as well as the powers and autonomous agencies, to release the tabs and salaries of public servants. However, ministers and judges in office, as well as members of the General Council of the IFE, they retain their regular salaries until the end of his administration, not the bonds, and compensation that exceeds the income sobresueldos president.

    Alterations and additions also prohibit officers earn a salary greater than their superiors, as some mayors with higher incomes to the governors.

    Constitutional reform must be approved by at least 16 of the 32 local congresses and the assembly of the Federal District, with the intention of copper effect on January 1 2010, otherwise it will be a dead letter.

    Monthly salaries:

    Judiciary of the Federation

    Ministers of the SCJN: 347 mil.
    Judges of the Supreme Trife: 343 mil.
    Directors of the Judiciary: 337 mil.
    Circuit Judges: 200 mil.
    Circuit Judges: 176 thousand pesos.

    Federal Executive Branch *

    President of the Republic: 152 pesos
    Secretary of State: 150 thousand pesos.

    Federal Legislative Branch *

    Senator: 125 thousand pesos.
    MP: 77 thousand pesos.

    Federal Electoral Institute *

    Advisers: 172 mil.

    Governors *
    Average: 100 thousand pesos.

    * Pay no compensation.

    The population according to the INEGI Coneval -

    44.7 million Mexicans in poverty:
    Average monthly income of less than 625 thousand pesos in urban areas and less than 086 thousand pesos in rural areas.

    14.4 million in food poverty *:
    Monthly income less than 810 pesos in urban areas and less than 599 in rural areas.
    * Number of disaggregated 44.7 million in poverty.

    Research: Mario Alejandro Mu?oz de Loza