Mexico Reform Agenda for Inclusive and Sustainable Growth

Mexico needs to broaden and deepen its
financial system without compromising the financial
stability gains of the last decade. Much more private
investment is needed to transform the economy to boost
productivity, and despite improvements in recent years, many
households and firms still lack adequate access to financial
services. Strengthening competition and streamlining key
regulations for firms are key to increasing Mexico's
competitiveness. This note provides a medium-term agenda for
supporting Mexico's competitiveness by fostering
greater innovation. This policy note outlines short- and
medium-term policy options for addressing critical
challenges affecting labor markets in Mexico, and in
particular labor productivity. This note reviews the
challenges in Mexico's social protection system and
possible options to achieve an integral and effective system
that is more than the sum of its parts. This policy note
contributes to the debate on Mexico's looming fiscal
challenges. To achieve higher growth and reduce poverty and
inequality, Mexico needs to improve public service delivery.
This note assesses Mexico's pending subnational fiscal
reform agenda. This note is structured as follows: chapter
one is fostering sound financial sector development; chapter
two is toward a more competitive business environment;
chapter three is fostering innovation for productivity and
competitiveness; chapter four gives labor markets for
inclusive growth; chapter five deals with promoting an
integral social protection system; chapter six deals with
reducing the footprint of growth; chapter seven gives ways
of using natural resources in an optimal way; chapter eight
presents managing medium-term fiscal challenges; chapter
nine deals with strengthening public revenue and expenditure
management to enhance service delivery; and chapter ten is
strengthening subnational public finance.