August 9, 2019
1. Coneval reports no improvements in fight against poverty in Mexico
The National Evaluation Committee of Social Development Policy (Coneval) published a report on poverty in Mexico over a ten year period ending in 2018. The committee found no improvement in the percentage (16%) of population living below the poverty line as the ten-year study increased to 21 million from 18.7 million people.
People living below the poverty threshold can’t purchase essential food items to ensure proper nutrition even if they spend their whole salary. In addition, the entity reported southern states such as Oaxaca, Chiapas and Veracruz contain most of the country’s population living in extreme poverty, while Coahuila and Nuevo León have the fewest.
2. Mexico Attorney General’s Office to hold a meeting with FBI to address El Paso shooting
A shooting at a supermarket in El Paso, Texas on August 3rd killed 22 people and injured 24 more. Foreign Affairs Secretary Marcelo Ebrard pointed out that 8 Mexican citizens were killed in the incident and 7 additional Mexican citizens were injured during the attack.
Secretary Ebrard reported that Mexico would charge the suspect for terrorism against Mexicans and may request his extradition. Moreover, Marcelo Ebrard revealed that Mexico’s Attorney General Office will hold a meeting with high-ranking U.S. officers and with the FBI in Mexico City as well to follow up the event.
3. Former health secretaries protest dismantling of universal health care system
President López Obrador announced the dismantling of the universal health care system known as ‘Seguro Popular’ and $40 billion pesos (USD $2.06 billion) of its former budget will be allocated to the soon-to-be-created Institute of Health for Welfare. The President assured the Seguro Popular was inefficient and riddled with corruption.
Six former Health Secretaries criticized the decision to dismantle this universal health care system calling it a “wrong, rash and baseless decision”. Likewise, former public officials the achievements of the institution such as the decrease of child mortality, disease control and a comprehensive immunization registry.
4. Rating agency Moody’s warns about current Mexico’s economic policy
Rating credit agency Moody’s released a press release to acknowledge that economic policy in Mexico needs certainty and investor confidence, otherwise it would cause a slower growth pace for this year.
In the same way, the rating agency warned about increased risks in environment and social issues, and within the government as well. The agency added that salary increase will lead to credit risks among Mexican companies in 2020. Previously, President Andrés Manuel López Obrador has downplayed Moody’s and other rating agencies’ statements after they downgraded Mexico’s growth forecast.
Aristegui Noticias: Falta de coherencia en políticas afecta confianza de inversionistas: Moody’s
5. Private sector to take a stand to balance federal government’s power
Last week, Proceso magazine reported that the Mexican Confederation of Business Owners (Coparmex), representative of the private sector, is setting up the ‘Alternative for Mexico’ plan aiming to balance the power of the Federal Government.
Gustavo de Hoyos, leader of Coparmex, made clear to Forbes magazine that the project would target working with the government but avoiding political activism. On the other hand, the business leader said the project will acknowledge government achievements such as the creation of the National Guard to fight crime and violence in the country, but won’t hesitate to point out to their failures.