I would like to share a translation of the latest article published by Enrique de la Madrid In Mexico’s El Universal newspaper. It emphasizes the need for a second round of reforms, in Mexico to ensure the success of the ones that were passed during the past two years. This second round should focus on justice, rule of law, security and anti-corruption. I hope you will find it interesting. As always, let us know if we can support your business operations in Mexico or Latin America. * Enrique de la Madrid is the General Director of Bancomext, Mexico's National Export Development Bank.

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The Second Round of Reforms Proposed by the OECD
By Enrique de la Madrid
As I mentioned in my previous column, the Organization for Economic Cooperation and
Development (OECD), in an economic study on Mexico 2015, indicated that this country has
undertaken an important package of structural reforms with the potential to end three decades
of slow growth, low productivity, a high degree of informality in the labor market and income
inequality. According to the OECD, these reforms could raise growth in annual GDP by a full
percentage point, if they are implemented correctly for five years.
As such, the international body has acknowledged that Mexico has made the right decisions on
economic issues. Therefore, I would suggest that there is need of a second round of reforms to
reaffirm and guarantee that the first delivers the desired results.
The OECD has determined the need to improve our institutions of justice, consolidate the Rule
of Law, address problems of security and reduce corruption by way of reforms oriented toward
the effectiveness of judicial resolutions on civil, commercial and criminal issues, as well as by
strengthening transparency in public tenders.
On the other hand, the OECD also emphasized the level of inequality which continues to exist in
Mexico. In the organization’s own words, the high level of inequality has limited families’ access
to education and quality medical attention, a fact which affects perspectives for long term
growth. Recent reforms will help, but they will need to be reinforced, warned the organization.
Accordingly, reforms for fighting inequality in Mexico must be aimed at raising the level of
education, promoting health services, fostering more inclusive working conditions and
strengthening the social security network for the country’s most vulnerable citizens.
Therefore, the OECD proposes that the efficacy of education spending must be improved by re-
directing it toward preschool, primary and secondary education, as well as by concentrating on
improving the quality of teaching.
Additionally, authorities must promote access to quality medical attention using better
coordination between health institutions, in order to reduce duplication of functions and
thereby increase the optimal use of resources. Fostering the exchange of services between
medical treatment networks is another of the OECD’s recommendations on this issue.

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For the purposes of creating a more inclusive labor market, greater participation by women in
the formal workforce should be encouraged through greater access to quality childcare for
children under three, as well as applying policies intended to improve the labor market.
The Organization also urged Mexico to approve bills on unemployment insurance and universal
pensions in order to protect those seeking employment and senior citizens. On the other hand,
the OECD considers that the new cash transfer program Prospera should be expanded as much
as possible, in order to assist beneficiaries in growing their capacities, complete their studies,
incorporate themselves into the formal sector and obtain well-paid jobs.
The OECD estimates that full implementation of this second round of reforms will add an
additional percentage point to economic growth after 5 years.
The above provides an overview of the complementary measures recommended by the OECD
in order to ensure that the enormous potential of the reforms approved does not dissolve in
the process of regulation and implementation. For this to occur, it will be necessary to conserve
the impetus to modernize which led to the country’s most transcendent structural changes in
recent years.
@edelamadrid
The autor is the General Director of Mexico’s Export Bank (Bancomext)
This article was originally published in El Universal Newspaper on 29 January 2015.
http://www.eluniversalmas.com.mx/editoriales/2015/01/74577.php
Translation provided by Nuricumbo + Partners
Nuricumbo + Partners is a consulting firm based in Mexico City. We are specialists in Mexico and Latin America.
Our lines of business includes:
 Covering interim finance positions at the CFO/Controller level
 Performing special audit projects (due diligence, internal controls, fraud prevention)
 Business development and business representation in Mexico