Poverty Reduction Approaches in Mexico Since 1950: Public Spending for Social Programs and Economic Competitiveness Programs

Mexico has long suffered from poverty. Two common government approaches to poverty reduction are public spending for social programs, and public spending for economic competitiveness programs. This article summarizes the nature and effects of these two approaches based on information published in Mexican journals and international research institution reports written in Spanish. Since 1990, public spending for social programs has increased at an annual rate of 7%, whereas spending for economic competitiveness programs has become stagnant. Researchers report that: (1) spending on social programs may not be the primary cause for poverty reduction, (2) social programs may not be reaching those with the greatest need, and (3) social program spending may be causing a decrease in productivity and economic growth. More resources are needed for economic competitiveness programs that increase workforce productivity and well-paid jobs.