Mexico
New Opportunities with Oportunidades
Countries: Mexico

So far, more than 4 million Mexican families have benefited from a government program aimed at combating some of the country’s toughest problems: poverty, illiteracy and poor health.
Oportunidades, which began in 2002, takes the innovative approach of paying these families to go to school, eat well and stay healthy. Eight years later, the concept is gaining international momentum.
The program is based on a “conditional-cash” idea, whereby eligible adults are given money for achieving specific goals, including regular medical checkups, taking classes on healthier eating habits, and making sure their children are enrolled in school.
Santiago Levy, a social economist and one of the men credited with implementing the “conditional-cash” approach in Mexico, recently spoke about Oportunitidades with PBS. Levy said that he wanted to focus on lasting ways to bring people out of poverty.
These families were trapped in … some kind of an intergenerational mechanism, by which parents were poor, children were poor, and the next generation were also poor. The kids were so poor, they had to be picking coffee in the fields, and they couldn't go to school ... [Through Oportunidades,] what you are saying is, your kid will be equally valuable to you if he's in the school, as opposed if he is in the street begging for money.
One of the most intriguing aspects of Oportunidades is its rigorous evaluation process. The program uses an outside firm to review every aspect of its impact, and so far the results have been convincing. In some affected regions, school enrollment is up 20 percent for girls and 10 percent for boys, according to a World Bank report.
The unique evaluation process has also offered Oportunidades a certain degree of credibility and international recognition. PBS reports that more than 30 counties — many in South America and Southeast Asia — are developing their own "conditional cash" programs.
Cash That Goes Back Across the Border

Mexican workers often come to the United States to earn money and send it to their relatives back home. But NPR reports that as the U.S. economy has gotten worse, some of these worker's families are sending them money from Mexico.
It's a phenomenon that could have a positive economic impact: These reverse remittances, as they're called, allow the migrants to keep searching for higher-paying work than they could get in Mexico, explains an NPR report. These reverse remittances may also prevent a flood of returnees from further devastating Mexico's economy and increasing unemployment.
When the U.S. economy rebounds, these workers are well-positioned to start sending remittances back to their families again.
These remittances play a big roll in Mexico's economy — they're the country's second-largest source of foreign income.
Still, the total dollar amount of reverse remittances remains small in comparison to the traditional southward flow of cash and there is no reliable data about its overall volume, points out a World Bank report.
As one Mexican father of a migrant worker told the New York Times, “We have an obligation to help them [until they find work again]. They’re our sons. It doesn’t matter if they are here or there."
Guide to the Global Summit
Countries: Saudi Arabia, Russia, Mexico, Japan, Italy, Indonesia, India, Germany, France, China, Canada, Brazil, Argentina, South Africa, South Korea, Turkey, United Kingdom, United States
The G-20 is meeting this week in Pittsburgh, Pennsylvania. Chaired by President Barack Obama, the purpose of the summit is to, “review the progress made since the Washington and London Summits and discuss further actions to assure a sound and sustainable recovery from the global financial and economic crisis.” I’ve heard of the G-8, but the G-20? I began to wonder about this alphanumeric soup of organizations. Who are they and what are they concerned with? The following scorecard should help interested followers of this subject keep track of the major players.
The G-6: Organized in 1975 by the finance ministers of Germany and France who were frustrated with the formality and structure of larger international meetings, the G-6 and subsequent evolutions of this body are strictly informal bodies that meet to discuss economic issues of mutual interest. After the creation of the G-8, the term G-6 is now used to refer to the six most populous members of the European Union. The member countries are: the United States, United Kingdom, France, Germany, Italy, Japan
The G-7: Formed in 1976, this is an informal forum for the finance members of seven big industrial economies to discuss economic issues and seek agreement. Member countries include: Canada, France, Germany, Italy, Japan, United Kingdom, United States. Now also includes the European Union.
The G-8: An evolution of the G-7, membership grew to include Russia. The European Union is a limited member; it cannot host a meeting or hold the presidency of the body. Members are: Canada, France, Germany, Italy, Japan, United Kingdom, United States, Russia. European Union (limited member)
The G-8 plus Five: Recognizing the growing influence of other countries, the original group sometimes broadens their meetings by including the Outreach Five. As with all meetings, other countries are sometimes invited to attend. Members: Canada, France, Germany, Italy, Japan, United Kingdom, United States, Russia. European Union (limited member) Plus: Brazil, China, India, Mexico, South Africa.
The G-20: According to their website, “[t]he G-20 was created as a response both to the financial crises of the late 1990s and a growing recognition that key emerging-market countries were not adequately included in the core of global economic discussion and governance.” Where the earlier groups (G-6 through G-8) were organized around the industrialized countries of the world, the G-20 begins to bring emerging economies into the dialog. Their first meeting was in Berlin, Germany. The Managing Director of the International Monetary Fund (IMF) and the President of the World Bank, plus the chairs of the International Monetary and Financial Committee and Development Committee of the IMF and World Bank, also participate in G-20 meetings on an ex-officio basis.
The G-20 is made up of the finance ministers and central bank governors of 19 countries: Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, United Kingdom, United States, European Central Bank
The G-33: The name for a group of developing countries that coordinates on trade and economic issues. It was created in order to help group countries which were all facing similar problems and give a unified voice to countries that were traditionally excluded from discussions among the industrialized countries. Members: Antigua & Barbuda, Barbados, Belize, Benin, Botswana, China, Côte d’Ivoire, Cuba, Democratic Republic of the Congo, Dominican Republic, El Salvador, Grenada, Guyana, Guatemala, Haiti, Honduras, India, Indonesia, Jamaica, Kenya, Laos, Mauritius, Madagascar, Mongolia, Mozambique, Nicaragua, Nigeria, Pakistan, Panama, Peru, Philippines, St Kitts & Nevis, St Lucia, St Vincent & the Grenadines, Senegal, South Korea, Sri Lanka, Suriname, Tanzania, Trinidad & Tobago, Turkey, Uganda, Zambia and Zimbabwe.
There are other groups variously labeled as G-8, G-20, G-33, and even N-11 (countries which Goldman Sachs considered in 2005 to have a high potential of becoming the world’s largest economies this century: Bangladesh, Egypt, Indonesia, Iran, Mexico, Nigeria, Pakistan, Philippines, South Korea, Turkey and Vietnam).
One of the best, reliable, sources of information about these groups and their members may be found on the websites of the World Trade Organization and the previously mentioned G-20.
You can Track the ongoing discussions of the Pittsburgh G-20 Summit here. But be prepared for slow page loading. It is a very busy website.
Amidst Falling Oil and Remittances, Soccer Saves the Day in Mexico

Mexico's finance secretary recently warned that falling oil prices and production may lead to the nation's worst recession in 30 years.
But on Wednesday, economic worries took a backseat to Mexico's World Cup qualifying match against the United States, which many Mexicans viewed as more than just a soccer match.
“This was life or death for the whole country,” Kurt Vogt, a Mexican supporter, told The New York Times, which headlined their article about Mexico's 2-1 victory, "Mexico Restores Order to Its Universe."
Not only did Mexico's World Cup 2010 hopes rest on the outcome of the match, as well as an impressive home unbeaten streak — they're 23-0-1 against the U.S. at Azteca Stadium — but the country's hard-hit ego and slumping economy stood to gain substantially as well.
“It's incredible how it effects our emotions and our economy — one game,” said Eliseo “Papo” Santos, a former professional player and coach told Mark Zeigler of The San Diego Union-Tribune. “Not qualifying for the World Cup, it would be devastating for us. It'll bring your country down big time.”
This isn't just a gut feeling — it's "soccernomics." The Union-Tribune's Zeigler points out that after Italy won the World Cup in 2006 its gross domestic product grew by 2 percent, after two years of zero growth.
No wonder both Mexico and the U.S. played their recent World Cup qualifier as if it was the championship match.
China's Not So Cheap Anymore

Made in China.
It's a label you might associate with cheap labor and mass production — but a recent study featured in BusinessWeek says that China's products may no longer be the best bargain for U.S. companies.
Outsourcing to mainland China has several "hidden costs" related to rising labor and currency rates, the report reveals. In the last three years, the yuan has gained ground on the weakened U.S. dollar and factory workers wages are going up. This translates to a drop in the average price gap between China and U.S.-manufactured products — from 22 percent to 5.5 percent.
And when you add in the costs that come with producing goods halfway around the world — storage fees, shipping delays and the price to repair or replace high-tech product parts — the ultimate savings are minimal. "A couple of years ago, outsourcing to China was a no-brainer," says Stephen T. Maurer, director of AlixPartners, the firm that led the study. Now, he tells BusinessWeek, manufacturers are thinking twice about where to send their business.
Some U.S. companies are turning to Mexico, where manufacturing rates are cheaper than China's and suppliers across the border are more accessible.
That doesn't necessarily mean that the label "Made in Mexico" will replace "Made in China." Low wages for factory workers still make China a top competitor when it comes to labor-intensive products like toys and clothes.
The Roots of Green Living
Countries: Mexico, Nepal, Papua New Guinea, United States
Are the people who've lived on this planet the longest the best-suited to protect it?
Liza O’Reilly thinks so.
She's a researcher with the Institute for Agriculture and Trade Policy who spent last week in Alaska at a climate change summit with native peoples around the world. Participants from Borneo, Mexico, Kenya, Nepal traveled to attend … like the rest of us, they all recognize the earth is in peril. What they're saying is, "Let us help save it."
O'Reilly says it makes sense to take them up on their offer, in part because many indigenous groups are themselves affected by climate change. Not far from the conference site, even, the village of Newtok has lost 320 residents because of swollen rivers and melting permafrost.
Another reason for inviting indigenous peoples to the table is their strong spiritual connection with the earth, O'Reilly says. Because of this, they're more likely to come up with solutions that are sustainable over the long haul.
This very timeless wisdom recognizes [Indigenous peoples’] capacity to lead "developed" Nation/states, corporations, and other failed institutions and models out of the dark, wiping the soot out of their infirmed and capitalistic eyes to look at the Indigenous-based model of micro-energy, developed and controlled by the people.
So what would a climate change solution engineered by indigenous peoples look like? Well, it wouldn't involve massive-scale energy solutions like big dams and new nuclear power plants. Instead, it would curb the production of new fossil fuels and call on the various UN agencies to work with indigenous peoples to "address climate change impacts in their strategies and action plans."
Check out O'Reilly's posts on the Indigenous Peoples' Global Summit on Climate Change.
Is Your Doctor from India and His Nurse Filipino?

There are an estimated 17,553,000 foreign workers in the United States.
Not surprisingly, the largest percentage are Mexicans. But what you might not know is that most foreign-born doctors are from the Indian sub-continent and nurses are from the Philippines. Or that almost 13 percent of workers born in Vietnam are employed in the beauty industry, while most Middle Easterners are in sales-related occupations.
Check out these and other immigration-occupation stats in this New York Times' interactive graphic.
U.S. Economic Problems Have Ripple Effect in Mexico

As Americans grapple with plunging retirement savings, declining home values and rising gas prices, our neighbors to the south are suffering, too.
A decline in both exports — most of which go to the U.S. — and remittances are putting the brakes on the Mexican economy.
Mexican manufacturers rely heavily on U.S. consumers; Americans buy more than 80 percent of the country's exported goods. But as American consumers cut back, Mexican manufacturers are laying off workers. The Arizona Republic ran a story quoting one factory manager who cut nearly half his staff after sales dropped 40 percent.
The slowdown in the manufacturing sector has a trickle-down effect. In Nuevo Laredo, taco vendor Jorge Flores has lost 40 percent of his business in recent weeks due to the economic hard times.
Also hurting the Mexican economy is the decline in money sent back to Mexico from Mexicans living in the U.S., also known as remittances.
One in four families in Mexico relies on remittances as its primary source of income. And remittances have dropped by 12 percent in the past 12 months.
Fewer visits to Western Union are partly due to a fall in U.S. home construction, an industry staffed heavily by Mexican laborers. One day labor center in Los Angeles, for example, says there's been a drastic drop in demand for workers.
Help is on the way, according to Mexican President Felipe Calderon: Yesterday Calderon proposed a 65.1 billion pesos ($5.26 billion) stimulus package to shore up the flagging economy.
Mexico's War on Drugs: A War on the Economy?

Mexican President Felipe Calderon's war on drugs targets the drug cartels that constitute a large portion of Mexico’s economy. Drug trafficking is an estimated US$50 billion a year business there. In fact, one study reported that the loss of the drug business would shrink Mexico's economy by 63 percent.
These statistics seem to beg the question: Can Mexico eliminate its drug trade without inflicting too much damage on its own economy?
The drug war's economic impact isn't necessarily positive, either. The Mexican government estimates that the jump in violence resulting from its crackdown on drugs has taken a percentage point off the country's economic growth. Costs for Mexican businesses, who need increased security, have increased by 5 to 10 percent.
But the cost in human lives is readily apparent. Earlier this year, for example, two children and a police officer's wife were murdered as Tijuana schools and neighborhoods were evacuated in the search of a drug-cartel official. The murders came in retaliation for the arrest of other cartel members days before. In August, gunmen killed 13 people — including a baby — when they opened fire in a dance hall. And kidnappings are now commonplace.
Mexico's drug war has resulted in over 4,000 drug-related deaths since 2006, including Mexico City’s federal police chief and 400 other police officers.
Last weekend tens of thousands of Mexicans gathered to protest the bloodshed. But despite the violence, residents of Badiraguato, considered the heart of the drug trade, told Newsweek they don't want trafficking to end.
"The drug traffickers do good things here. They employ people. There's no corn, no beans here — the people here are all about drugs," said 22-year-old José de Jesús Landell García, who co-owns a shoe shop with his father. He added that most of his friends took up employment with the drug cartels "because it was the only thing they could do."
Calderon's government faces a nasty predicament. How does Mexico dismantle a system so firmly entrenched in the state and the economy? For starters, at least, it will require steps to increase Mexicans' faith in their government — particularly in its ability to offer them good-paying jobs in licit trades.
Let Them Eat Bugs
Scientists are jumping on an underutilized protein source that is abundant and environmentally friendly.
Sounds great — until you realize that what the scientists from National Autonomous University of Mexico are suggesting is dining on insects.
Entomophagy, or eating bugs, is already a common practice in over 13 countries, including Thailand, Vietnam, and Cambodia, according to this week's Economist.
And what better then bugs? Gram for gram, bugs provide more nutrients than beef or fish.
And while the Food and Agriculture Organization at the United Nations considers livestock “one of the top two or three most significant contributors to the most serious environmental problems, at every scale from local to global,” bug farming is a low-impact process.
Khon Kaen University in Thailand has already developed an inexpensive cricket-rearing technique and taught it to 4,500 families. On just a 100 square feet of land, a family can raise enough crickets to make a tidy profit. Or they can even be “grown” inside homes. Because bugs are a crop that doesn’t require much food or water, grows and reproduces quickly, the yield can be incredible.
The Mexican university researchers themselves cite numerous reasons for insect eating: the 75 percent rise in some food prices, the additional 100 million people pushed into poverty, and global warming as reasons to shift to these more sustainable sources of protein.
Of course, there are perils to introducing new species of insects to areas. And there are those who just plain won’t eat bugs.
A more palatable option suggested by the Economist might be to replace supplements in processed food or animal feed with insect-derived protein, which would still help make carnivorous habits a little more sustainable.
Filling Up: Who's going to pay?
Rising gas prices are driving Californians to fill up in Mexico, according to the Wall Street Journal.
Gas is approaching $5 a gallon in San Diego — twice as much as it is in neighboring Tijuana. Many Californians not only filling up in Mexico, they're even installing extra-large fuel tanks in pickups and work vehicles for later use, often bringing back enough to sell in California for a large profit.
Suppliers of fuel tanks and San Diego auto shops are happy at the phenomenal business. For example, fuel tank company Transfer Flow made more than half a million dollars in May alone.
But many Mexicans are unhappy about the “gringo invasion," which has meant long lines at gas stations and diesel shortages. This week, the number of Tijuana stations offering diesel dropped significantly. Many stations are beginning to refuse to serve Americans.
Historically Pemex, the Mexican state oil monopoly, set gas prices along the border within a few cents of U.S. prices, deterring motorists from comparison shopping. But as gas prices have shot up in the U.S., Mexico has kept its prices down with massive government subsidies to keep gas affordable for Mexican citizens. But these subsidies are causing problems for the government's budget. In fact, an additional $20 billion dollar subsidy was added to the Mexican federal budget as an emergency measure in May, as part of an effort bolster the economy.
And because Mexico doesn’t have the refinery capacity to turn their own oil into gasoline, it imports a large percentage of its gas from the U.S.. So by subsidizing the fuel — and then reselling it to U.S. citizens at cheap rates — the Mexican government is losing money any way you look at it.
The Wheel World
Ciclovía Documentary shot by Streetfilms
Bogotá, Colombia is holding a 70-mile long block party. And everyone’s invited.
Ciclovía — "bike path" in Spanish — is an event that closes down major roads for pedestrian use every Sunday and holiday from 7 a.m. to 2 p.m. Created in 1976, it rapidly grew from eight miles and 140,000 bicyclists to 70 miles and an average of 1.5 million weekly riders. Ciclovía is championed as a community building event that attracts people from all backgrounds for a day of biking, walking, skating and dancing in the streets.
In the above video, Bogota’s former park commissioner Guillermo (Gil) Penalosa discusses Ciclovía’s main appeal: social integration.
You will see people in $5,000 bikes and others in $50 bikes, and all having the same fun! Rich and poor, young and old, men and woman, tall or short... ALL!
Cited for “endless benefits” such as the improvement of personal and public health, Ciclovía has inspired other cities to develop similar programs, including Guadalajara, Mexico; Quito, Ecuador; Santiago, Chile; and Paris, where an expressway along the Seine is transformed into a pedestrian refuge one month out of the summer.
Cities in the U.S. are also developing similar programs, starting with El Paso, Texas. This Sunday Portland, Ore., is clearing 6 miles of roadway for six hours in its inaugural "Sunday Parkways." New York Mayor Michael Bloomberg announced his city's plans for Ciclovía-like event this August that would stretch from 72nd to the Brooklyn Bridge along Park Avenue.
Events such as Ciclovía are not only free, but they also bring all sorts of people together to get healthy and build a happy community. It seems like a no-brainer that every city should have a Ciclovía!
Frozen Food Prices
Today, Felipe Calderon announced Mexico would freeze prices on 150 basic foods through the end of the year to help ease the pain of rising food prices.
Mexico's North-South Divide

Are the southern states of Mexico – Chiapas, Guerrero and Oaxaca – getting left out of Mexico's economic growth?
An April 24 article in the Economist suggests that there is a growing socio-economic gap between these three southern states and the rest of Mexico. In 2000, Mexico’s GDP per capita was $7,495, compared to a combined average of $3,634 for Chiapas, Guerrero and Oaxaca, according to a World Bank report. Furthermore, the percentage of people living in extreme poverty – less than $1 a day – was 54-56 percent in the south, compared to 23-25 percent nationwide.
Recently, the government has proposed using large-scale infrastructure projects to address this economic disparity.
In 2001, then-President Vicente Fox released his Plan Puebla Panamá, a project to link southern Mexico and Central America with northern Mexico. It primarily provides funding for building highways and new air and sea ports.
More recently, current President Felipe Calderón announced plans for a six-year, $28.7-billion road investment project. A significant part of the plan focuses on southern coastal regions.
Critics argue that investing in infrastructure isn’t enough to promote economic growth in the south. José Antonio Aguilar, a government official from the state of Puebla (another southern state), tells The Economist that they have experienced “a total transformation” in state infrastructure "but we haven’t been able to turn this into growth in income." Likewise, Miguel Pickard for CorpWatch.org worries that these top-down approaches tend to overlook Mexico’s poor.
To what extent will these ambitious infrastructure projects close Mexico's north-south poverty gap?
The Right to Vote
It's well-known that women's empowerment and economic development go hand-in-hand — which is another reason to support a Mexican woman's fight to allow women in rural Oaxaca to vote.
Women can vote in places as conservative as Afghanistan, as repressive as Burma and as closed-off as Bhutan, but the L.A. Times reports that women in rural Oaxacan communities cannot vote or run for office.
One woman, Eufrosina Cruz, is fighting for a change in Oaxaca, Mexico's second poorest state. (Three of four Oaxacans live in "extreme poverty.") Her state governor and Mexican President Felipe Calderon now support a change in legislation, which would grant thousands of Oaxacan women the right to vote and run for office.

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