By Adina Moloman
Sources: www.oem.com.mx, WEF Global Competitiveness Report
According to the report “The Competitiveness of the United Mexican 2012, The Road to Development” by the Graduate School of Government and Public Policy and its Institute for Regional Development; Baja California State is the state best positioned in Mexico followed by Distrito Federal, Nuevo León and Querétaro.
The global index is based on 4 basic factors: 1) concentrations of talent with advanced degrees and well remunerate labor force; 2) state and municipal-level incentives, usually related to the attraction of large investments for Maquiladora Sector and also the liaison between local governments, academia and foreign companies and their capability of acceleration of public policy; 3) Growth in the outsourced IT services sector and the state production and innovation capacity 4) healthy public finance.
The states that made greater progress in the global index are Tabasco, Campeche, and Morelos, whereas the states that lost competitiveness were Nayarit, Tamaulipas, and Durango.
In the international arena based on WEF Global Competitiveness Report, Mexico climbed 5 places, going from 58th to 53rd place, but still stands behind Chile (33rd), Panama (40th) and Brazil (48th).
Even when Mexico’s economy has remained more stable with regard to core inflation, GDP growth, excessive expansion of credit, and current account balance it still remains in the transition stage towards innovation.
Mexico received high scores from different global indexes such as: a large and deep internal market (11th place), a sound macroeconomic framework (40th), fairly sophisticated businesses (44th), good local supplier quality (37th), quantity (42nd) and cluster development (35th).
Challenges for Mexico to further improve the fiscal competitiveness include conservative business attitudes, attractive incentives and grants to global players.