“Mexico is an economic powerhouse in Latin America which is becoming a leader in global issues. Mexico’s success will certainly have a great impact in the region as a whole,” said World Bank President Robert B. Zoellick. “The recently approved partnership strategy for Mexico addresses ways to tackle global issues such as climate change and the country’s challenges of sustaining growth and competitiveness in order to increase opportunities for all.”

During his two day visit, Mr. Zoellick met with President Felipe Calderón to discuss the Bank’s new Country Partnership Strategy for Mexico and sign an innovative loan that will support the country’s efforts to address climate change. President Calderón and Mr. Zoellick also discussed the world food crisis, as well as Mexico’s key role as a leader on global issues such as climate change and trade.

The Bank and its private sector arm, the International Finance Corporation (IFC), are expanding more flexible financial products and knowledge and learning services that are better suited to respond to the challenges that middle income countries in Latin America are facing. The new Country Partnership Strategy for Mexico recognizes this by moving to a new business model that supports the government’s own national development strategy and provides advisory services tailored to country demands.

As part of his visit to Mexico, Mr. Zoellick held discussions with various members of President Calderón cabinet, including Finance Minister and Development Committee Chairman Agustín Carstens, Education Minister Josefina Vázquez Mota, Social Development Minister Ernesto Cordero and Environment Minister Juan Rafael Elvira. In order to gain a broader understanding of the economic and social challenges facing Mexico, Mr. Zoellick also met with legislators, representatives of the private sector, and students from the National Autonomous University of Mexico (UNAM) and the Instituto Tecnológico Autónomo de México (ITAM).

Competitiveness for Accelerated Growth and Social Inclusion

Mr. Zoellick praised Mexico’s sound macroeconomic and fiscal policies, the process of sectoral reforms and the ambitious infrastructure development plan undertaken by the government.

According to Mr. Zoellick “This will contribute to accelerate growth, expanding its benefits more broadly among the population and addressing the needs of vulnerable groups. By improving global competitiveness through lowering barriers to business investment, better infrastructure, an expanded financial sector and highly skilled human resources, Mexico is preparing itself to become a key player in the global economy.”

As part of his visit to Mexico, Mr. Zoellick traveled to the state of Morelos, where he held a roundtable with representatives of “Oportunidades”— the principal anti-poverty program of the Mexican government. Out of a population of approximately 105 million, there are about 45 million poor Mexicans, with substantially higher poverty rates in rural areas. Through conditional cash transfers, “Oportunidades” has helped poor families in rural and urban communities gain greater access to education and health, and improve the nutrition of their children. Its success, based on responsibility and accountability, has shown that it is possible to break the cycle of poverty by empowering poor people to take their future in their own hands. The main principles of “Oportunidades” — cash support linked to school attendance and regular visits to medical centers — have been replicated in 25 countries, and in New York City.

Mexico and the global environment

Mexico is a leader among developing countries in addressing one of the most critical global problems: climate change adaptation and mitigation. The World Bank has worked closely with Mexico to support its environmental agenda, as well as its ever-more-relevant role in the international arena as a key player on climate change.

"For globalization to work, it has to be more inclusive and sustainable,”said Mr. Zoellick.“Mexico has shown a clear commitment to sustainable development and has become a key voice in the global dialogue on climate change. It has set an example through its commitments to reduce CO2 emissions and the Bank is proud to be a partner in these efforts.”

As part of the Bank’s support in this area, the Board of Directors recently approved a Climate Change loan for US$501.25 million, which was signed by Secretary Carstens and Mr. Zoellick during a ceremony at National Palace this Wednesday. The loan aims to support Mexico’s efforts under its National Climate Change Strategy to integrate climate change considerations in public policy.