## Social Spending in Mexico: Needs, Priorities and Reforms

_IMF Working Papers, October 18, 2021_

## Source details

**Canonical URL:** [Social Spending in Mexico: Needs, Priorities and Reforms](https://www.imf.org/en/publications/wp/issues/2021/10/18/social-spending-in-mexico-needs-priorities-and-reforms-494702)

## Other formats

- [Markdown version](/en/publications/wp/issues/2021/10/18/social-spending-in-mexico-needs-priorities-and-reforms-494702/index.md)
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## Bibliographic details
- Authors: Swarnali A Hannan, Juan Pablo Cuesta Aguirre, David Bartolini
- Published: October 18, 2021
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781513599618.001

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### Executive summary and key findings
- Poverty in Mexico was high before the COVID-19 pandemic and has been exacerbated by the pandemic, with significant variation across states.
- Education losses from the pandemic are likely to be large and worsen pre-existing disparities; unless mitigated soon, they could contribute to heightened scarring over the medium term.
- Using state-level and cross-country comparisons, the paper reviews key social programs as well as priorities in education and health.
- The paper finds that higher spending and improved design of social programs (e.g., better targeting) would:
  - reduce socioeconomic gaps,
  - mitigate scarring risks, and
  - foster inclusive growth.

### Analysis themes
- Poverty dynamics
  - Pre-pandemic poverty levels were high and the pandemic has exacerbated poverty.
  - There is significant heterogeneity in outcomes across states.
- Education
  - Pandemic-induced education losses are likely to be large.
  - These losses will worsen pre-existing disparities.
  - Without prompt mitigation, education losses could contribute to heightened scarring over the medium term.
- Health and social programs
  - The paper reviews key social programs at state and cross-country levels.
  - Policy design aspects such as targeting are highlighted as important for effectiveness.

### Policy priorities and recommendations
- Increase social spending where warranted to address gaps amplified by the pandemic.
- Improve design of social programs, with emphasis on better targeting to reach disadvantaged populations.
- Prioritize interventions in education and health to reduce scarring risks and promote inclusive growth.

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## Content in this bundle

- **Working Paper**
  - [Working Paper (Markdown version)](/-/media/files/publications/wp/2021/english/wpiea2021244-print-pdf.pdf.md){rel="alternate" type="text/markdown"}
  - [Working Paper (PDF)](/-/media/files/publications/wp/2021/english/wpiea2021244-print-pdf.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/wp/issues/2021/10/18/social-spending-in-mexico-needs-priorities-and-reforms-494702_