Mexico ranks second to last to face post-COVID-19 economic crisis: Imco

Post COVID economic crisis in Mexico (Photo: EFE / Rungroj Yongrit)

In a collaboration for the World Economic Forum (WEF, for its acronym in English), the Mexican Institute for Competitiveness (Imco), as a local partner, helped create the Global Competitiveness Report: How Countries are Performing on the Road to Recovery 2020.

It is ranqueo the ability of States to adapt economically to the new context and initiate a speedy recovery is evaluated, in this list Mexico is in place 36 of 37.

For this edition, what the International Monetary Fund (IMF) named The Great Confinement Well, after the appearance of the new strain of coronavirus, the entire world, almost immediately, began an economic crisis derived from measures of social isolation and productive paralysis.

Health sector workers during the COVID-19 pandemic (Photo: Reuters / Luis Cortés)

Health sector workers during the COVID-19 pandemic (Photo: Reuters / Luis Cortés)

Understanding the complexity of the context, the IMF decided change measurement parameters for economic development presented by COVID-19; however, the evaluation task did not stop.

They recognize “The extraordinary events that occurred in 2020 and the unified global effort required to address the health crisis and its socioeconomic consequences”, the WEF suspended for this occasion the dissemination of the Global Competitiveness Index rankings. Nonetheless, the 2021 edition will return to benchmarking, providing a renewed framework to guide future economic growth.

On this occasion, the report defines the countries’ priorities for recovery and economic reactivation, which was reduced by the SARS-CoV-2 with a maximum peak in April 2020 and that with the presence of the rebound in some countries, they are threatened again.

Workers in the restaurant sector demonstrated in Mexico City (Photo: Cuartoscuro / Victoria Valtierra)

Workers in the restaurant sector demonstrated in Mexico City (Photo: Cuartoscuro / Victoria Valtierra)

It also ranks the characteristics that helped nations to be more effective in managing the pandemic and introduces a innovative metric that facilitates the detection of better prepared countries for an economic transformation.

According to what was published by Imco in an official statement, “to move towards the total integration of the objectives social, environmental and institutional in their economic systems over the next five years, with the purpose not only to reactivate its growth, but also to establish a new direction that generates a sustainable and inclusive prosperity in the years to come ”.

Imco states that although most countries in the world are in a hurry to combat the presence of COVID-19, “the conjuncture offers an opportunity to transform economic systems so that they are not only productive, but also lead to environmental sustainability and shared prosperity. “

The AMLO government has decided not to contract debt to face COVID (Photo: Presidency of Mexico)

The AMLO government has decided not to contract debt to face COVID (Photo: Presidency of Mexico)

In order to observe the progress of this, the WEF developed a metric that allows measuring the level of preparedness of 37 countries, which limits 11 priorities divided into four topics.

1.- Own Environment:

– Ensure that public institutions incorporate sound governance principles and a long-term vision, as well as build trust by serving their citizens.

– Update infrastructure to accelerate the energy transition and expand access to electricity and ICT.

– Move to a more progressive taxation, rethinking how corporations, wealth and work are taxed, at the national level and within a framework of international cooperation.

2.- Human Capital:

– Update educational curricula and expand investment in skills needed for jobs and the “markets of tomorrow”.

– Rethink labor laws and social protection for the new economy and the new needs of the workforce.

– Expand the infrastructure, access and innovation of elderly care, child care and health for the benefit of people and the economy.

Arturo Herrera, head of the Mexican Treasury, has rethought the administration policies in Mexico so that they do not suffer negative effects (Photo: Reuters / Gustavo Graf Maldonado)

Arturo Herrera, head of the Mexican Treasury, has rethought the administration policies in Mexico so that they do not suffer negative effects (Photo: Reuters / Gustavo Graf Maldonado)

3.- Markets:

– Increase incentives to direct financial resources towards long-term investments, strengthen stability and expand inclusion.

– Rethink the competition and antitrust frameworks necessary in the Fourth Industrial Revolution, ensuring market access, both locally and internationally.

– Facilitate the creation of “markets of tomorrow”, especially in areas that require public-private collaboration.

4.- Innovative Ecosystem:

– Encourage and expand long-term investments in research, innovation and invention that can create new “markets of tomorrow”.

– Encourage companies to embrace diversity, equity and inclusion to enhance creativity.

Finally, according to these evaluation criteria, the best rated country was Finland with 69.9 points; In the Americas, Canada had the highest score with 64.2, placing it in sixth place; However, Mexico did not do well as it reached 46.9 points, putting it below countries in the region such as Chile, Brazil and Argentina, who obtained 53.0, 51.0 and 49.0 points, respectively.

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