Mexico Economic Growth Davos Altagracia Gómez
Mexico Prioritizes Public-Private Partnerships for Industrial Policy Development
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Mexico aims to foster collaboration between the private sector, academia, and the goverment to create an industrial policy that promotes economic growth and shared prosperity, according to Altagracia Gómez, Coordinator of the Council for Economic and Regional Development Advisory and Relocation (CADERR). Gómez made this announcement during her first public appearance at the World Economic Forum in Davos on January 15, 2024.
The Role of CADERR
The Council for Economic and Regional Development Advisory and Relocation (CADERR) serves as a key advisory body to the mexican government on economic and regional development strategies. It was established in October 2023 by Presidential Decree published in the Diario Oficial de la Federación (DOF). CADERR’s mandate includes promoting nearshoring opportunities and developing policies to attract foreign investment.
Strategic Focus on Nearshoring and Industrial Policy
Mexico is actively pursuing a strategy centered on nearshoring – the relocation of business processes and manufacturing closer to the end consumer - to capitalize on shifting global supply chains. This strategy is closely linked to the development of a comprehensive industrial policy.Gómez emphasized that the goal is not simply to attract investment, but to ensure that this investment contributes to enduring and inclusive growth. The Mexican government intends to incentivize industries that align with its long-term economic objectives.
Public-Private Collaboration as a Cornerstone
A central tenet of Mexico’s approach is the belief that effective industrial policy requires strong collaboration between the public and private sectors. Gómez stated that CADERR is working to create a framework where businesses, universities, and government agencies can work together to identify opportunities, address challenges, and develop innovative solutions. This collaborative model aims to leverage the expertise and resources of all stakeholders. According to a press release from the Mexican Presidency on February 9, 2023, President López Obrador highlighted the importance of creating a favorable investment climate to attract nearshoring projects.
Investment in Infrastructure and Human Capital
To support its industrial policy and nearshoring strategy, Mexico is investing in infrastructure projects, including transportation networks, energy infrastructure, and digital connectivity. The government is also prioritizing investments in education and training programs to develop a skilled workforce capable of meeting the demands of a modern industrial economy. the Banco de México reported a 38.6% increase in Foreign Direct Investment (FDI) during the first quarter of 2023, indicating growing investor confidence in Mexico’s economic prospects.