Posts tagged Poverty Line
Global Online Marketing Profile 2010 Forecast – Mexico
Sep 19th
Market Opportunity
Many economic analysts agree that the Mexican economy is closely linked to its American counterpart. As a matter a fact, more than a quarter of the country’s GDP, 1.143 trillion in 2008 is estimated to be directly linked to exports to the U.S. Inflation (6.2% in 2008 est.) and the public sector deficit have been under control thanks to major macroeconomic initiatives launched by the Mexican government. Nevertheless, the country continues to face many challenges, the income distribution remains highly unequal. In 2008, over 14% of the population remained under the poverty line and the PPP per capita for 2008 was estimated to $14,200. According to a study conducted by BusinessWeek, the Mexican middle class is slowing growing due to the financial crisis and has an income between $7,200 and $50,000 a year. Moreover, the Mexican government still needs to upgrade the countries infrastructure, modernize its labor laws, and allow private investment in the energy sector. Currently, the president, Felipe CALDERON Hinojosa is focusing the government efforts into reducing poverty and creating jobs. In the foreign trade front, Mexican Imports are estimated to be $305.9 billion f.o.b. in 2008. Mexico’s main importing partners are the US 49.6%, China 10.5%, Japan 5.8% and South Korean 4.5%.
Best Industry Segments
The Mexican economy is strongly linked wit the American economy. In fact, the US is the second largest trading partner of Mexico. The total value of American exported goods shipped to Mexico in 2008 was US$151.5 billion, up 11.4% from the prior year and up 36.7% since 2004. According to the U.S. Department of State, U.S. exports to Mexico include electronic equipment, motor vehicle parts, chemicals, building and construction material, energy and environmental technologies, and the finance and insurance service. As confirmed by the importance of trade between Mexico and other countries and the socio-economic affluence, Mexico can provide many opportunities to American exports in several sectors of the economy.
Regulatory and Tariff Landscape
According to the CIA Factbook, Mexico has 12 free trade agreements with over 40 countries. As part of the NAFTA (North American Free Trade Association) agreement between the United States, Canada and Mexico, American goods are duty free. In addition, the General Import Duty Law establishes the MFN rates. An annual directive determines the preferential tariff rates applicable to originating goods exported from those countries to which Mexico grants preference. Moreover, the WTO indicates that a ceiling of 35% must cover all tariff items but applied rates are much lower due to tariff preferential treatment granted in trade agreements. Customs authorities collect a value added tax (VAT) upon entry of the goods into Mexico. In addition, Mexican customs charges a customs processing fee (DTA) of 0.8%. Maquiladoras and PITEX companies pay a preferential fee. Mexico regulates products in a number of areas, mainly for health and safety reasons. Goods subject to non-tariff regulations include hazardous materials, pharmaceuticals, food items, medical equipment, etc. Finally, in terms of standards, a NOM, a certification to Mexican customs regarding product safety must be presented to customs. In order to acquire such a license companies can import samples in order to be tested by approved laboratories. For more information, contact the Ministry of Economy Standards Division
http://www.economia.gob.mx/ (search for “Normatividad empresarial” / “Normas”.)
Online Marketing Profile
According to eMarketer.com Mexico is one of the fastest Internet growing countries in Latin America. In fact, over 27 million people are connected through the Internet, which is approximately equal to one-quarter of the population of 110 million Internet users. Furthermore eMarteter.com predicts that the Internet penetration in this market will be of 82% by 2012. Since Spanish is the third most spoken and searched language in the world, advertising in this language could be profitable in Mexico as well as in other Spanish speaking countries.
Popular Spanish Search Websites
Mexico currently has 34 search engines. However, the most popular search engines are Yahoo! Mexico with 30.5% and Google Mexico with 29%. Terra, UOL, and terespondo have also an important presence in the search engine market.
Summary
Despite the effects of the financial crisis on the Mexican economy, the country’s economy continues to grow. U.S. exporters should focus targeting the more affluent Mexican citizens by advertising online especially in the previously mentioned websites. Moreover, American goods have a competitive advantage since they are free from import duties. On the other hand, Mexico suffers from consistently increasing income inequality and unemployment. These could have an impact on US export opportunities.
For all these reasons, GLOBALeMARKETER.com ranks Mexico as a Tier II market for global online expansion. However, from a language point of view GLOBALeMARKETER.com ranks Spanish as a Tier I market for global online expansion.
Understanding Mexico education
Aug 29th
Happy children in their San Quintin, Mexico classroom
© Edd Bissell, 2010
School daze is near which reminds me that most of what I think I know about Mexico education is based on second-hand information.
The system is not broken. It never worked in rural communities, out in the country, where so many live near or below the poverty line. There is no yellow school bus, no free ride.
Two presidents, Vicente Fox and Felipe Calderon, in ambitious moments, promised educational reform. Almost everybody agrees reform is needed. Reform is generally interpreted as more spending.
Those who tell the truth admit the education system is some degree of a failure. Oh no, not all of it. There are brilliant graduates of excellent schools, most often city schools in high-rent districts. Some private schools, truly superior, are probably more productive than you-know-who to the north.
A classroom volunteer helps students
A classroom volunteer helps students
© Edd Bissell, 2010
The head of the National Institute for Adult Education says a frightening number of Mexicans can’t really read and write and that 45.7 percent are poorly educated. The goal is to reduce that deficiency by 2012. Somebody better hurry.
There is a younger problem. More than half of Mexico’s 15-year-olds are said to be below international standards in basic math and science skills. How can the country expect to compete long-term with better-educated work forces in China and India?
One of the prizes of the revolution, a hundred years ago, was free public primary education, as mandated in article 3 of the constitution. In real life, schools frequently squeeze families for money because, they say, government funding falls short.
nack time under a tree at Mexico's San Quintin school
Snack time under a tree at Mexico’s San Quintin school
© Edd Bissell, 2010
Early education is said to be “compulsory” but that means states are compelled to offer it. In most places, youngsters are not required to attend and certainly aren’t forced to learn. One of my best young friends dropped out in fifth grade and now operates a bulldozer. Many dropouts are not so fortunate.
One of my sources, Dr. T. D. Stong, a regular visitor to rural villages (almost half of the Mexican population is rural), says less than 20 percent go past sixth grade and only a relative few make it past ninth grade.
“I have seen no interest by local governments to sponsor skill training so youth can move into jobs instead of toward cities and the Rio Grande. My personal feeling is that, as seen in many developing nations, the rich sense some advantage in maintaining a goodly portion of poor people.”
Poor education is supposedly the root cause of poverty and too much unskilled labor — which results in illegal immigration. Economists would have you believe education reform is the only possible cure, that high fences and border patrols will never do it.
Edd Bissell and students at Mexico's San Quintin school
Edd Bissell and students at Mexico’s San Quintin school
© Edd Bissell, 2010
The face of Mexico public education is the teachers’ union, with a million and a half members. The face of the union is president Elba Esther Gordillo. She is strong.
The union is not just a union, it pretty much directs educational policy. That is very good for those on the permanent payroll. Once a school employee gains tenured status, he or she is in for keeps. It is almost impossible to fire such a teacher. Incidentally, tenure can be inherited — or sold.
You can believe this or not but 30,000 union officials are supposedly on the educational payroll as teachers. They do not appear in classrooms.
Elba Esther Gordillo says she favors reform. My buddy Javier says looking to her for positive change is like expecting the fox to coax more and better eggs from the chicken house.
Gordillo was lukewarm on testing teachers to see if they know enough to teach. Many ordinary people were stunned to hear that nearly 70 percent of teachers flunked the first nationwide test to measure basic skills. Those who remember yesterday keep an eye on good, old Oaxaca section 22 and the pattern of teachers’ strikes, on general principles, whether they need anything or not. The union got credit for the angry 2006 shutdown of the city.
A boy helps with classroom cleanup at Mexico's San Quintin school
A boy helps with classroom cleanup at Mexico’s San Quintin school
© Edd Bissell, 2010
All that said and heard, I know this much for certain: good teachers make a wonderful difference.
A few weeks ago, I told you about Luis Alberto Martinez Gomez. He was an illegal immigrant who finished high school in California and returned to Mexico with the idea of going to college. He had no money. With smart guidance, he interviewed well for a teaching job, beginning level, go anywhere, do anything you ask. The Tepic district, short on dependable manpower for the inconvenient outback, provided five days of instruction on how to be a teacher and assigned him to a one-room operation in San Quintin.
Luis knew far more than enough to teach his 14 students, ranging from first to sixth-graders. He did much more than the job demanded. The response was
Luis knew far more than enough to teach his 14 students, ranging from first to sixth-graders. He did much more than the job demanded. The response was sensational.
With outside encouragement, gift computers, other resources and a plan to improve the school building, the little community caught on. Parents pitched in. Parents supported the teacher. Attendance suddenly mattered. Children did homework for the first time in their lives. Test scores took off toward the sky. State officials noticed and provided matching money for other improvements. Luis won a promotion.
The meaning of education was revolutionized in that one village. I saw it, before and after. An old gringo named Edd and a highly motivated 19-year-old named Luis made it happen.
From education reality, back to mere supposition: It appears much of rural Mexico needs a similar miracle.
