Wednesday, February 20, 2013

World Bank: Mexico has 14th largest global economy, but its citizens rank 81st in food purchasing power


Guadalajara -
One of five Mexicans lives in hunger - an aggregate 22 million people. And although measured by gross domestic product the nation holds a respectable 14th place among the world's economies, its citizens are far back in 81st position in their ability to buy food sufficient for daily sustenance.

Such are the conclusions of an end of the year report by the World Bank, the subject of commentary here today.

The Bank, an international financial institution which lends money to emerging nations for capital investment and economic development, and whose primary focus is the reduction of poverty, concluded that only two of every 10 Mexicans is completely free from worry about adequate nutrition. The other eight frequently or periodically experience food shortages. Worse, 20% of the nation is never able to feed itself the minimum established by government standards.

The World Bank analysis is in accord with a survey by Mexico's federal government published last November. That study, by the National Institute of Public Health, found that 70% of households reported less food available in 2012 than in 2011. And one of ten homes acknowledged that in the previous 24 hours, a family member had gone without anything to eat. In rural areas where poverty is chronic, the latter number rose to 13%. Seven of 10 Mexican households report food shortages.

Food price increases which have far outpaced the rising costs of many other items accounts for the problem, according to experts. "Since wage adjustments are based upon the average rate of inflation, every time food prices rise more than those of most other products, the consumer has less buying power to secure adequate nutrition," said the World Bank report.

On Jan. 21 Mexico launched a National Crusade Against Hunger in the southern state of Oaxaca. The project targets 7.4 million people in 400 counties across the country who are most at risk.

The right to adequate nutrition became at least a theoretical legal guarantee under amendments to Mexico's constitution adopted in October 2011, modeled after United Nations guidelines. The U.N. defines that right as "the ability to feed oneself with dignity, whether by producing foodstuffs or buying them in the marketplace. Every man, woman and child should have physical and economic access, at all times, to adequate means of self-nutrition."

Probreza alimentaria - the inability to feed one's self or one's family - is directly connected to the general rise in poverty in this country. In a country where the median age is only 26, the issue has both economic and social repercussions.

In February 2012 Mexico's federal government reported that poverty increased by four million people between 2008 and 2012. The country's population is nearing 112 million, 46% of whom - 52 million - officially are counted in the ranks of the poor. In January Mexico's Secretary of Social Development (SEDESOL) said that since 2010, the number of people living in the most extreme poverty rose from 11.7 million to 13 million - a jump of over 11% in just 24 months. Mexico's impoverished soared in two years, with 13 million citizens now in extreme conditions.

The country's new president has said that ending poverty will be one of his administration's primary goals (Ending poverty key focus of incoming PRI government), but severe drought north of the border last summer may complicate that task. Enrique Peña Nieto's biggest challenges will be economy and environment, not drug cartels.

Mexico should be able to feed itself, based upon the overall performance of its economic engine. Despite pessimistic predictions for 2012 the year turned out much better than planned, with 4% expansion of its gross domestic product - at least twice the rate of growth in the United States.

Some have opined that the nation will be unable to solve domestic security concerns until underlying economic disorders have been cured. Economic inequality the primary cause of Mexico's insecurity, says Manuel López Obrador.

Jan. 5, 2014 - U.K. report: life is getting harder, not easier for Mexicans

July 29 - 53.3 million - that's how many Mexicans live in poverty
June 21 - Banixco raises storm flag warning on Mexican economy
June 12 - 59% of Mexicans remain trapped in underclass

A nine year old drug addict dies alone on Jalisco street
Enrique's challenging homework

Mexican peso "well anchored," says central bank director
Peña Nieto: Mexico poised for 4% economic growth in 2013
Banxico chief: grim prognosis for U.S. economic growth
Mexican governors raise their salaries, while almost half the nation remains in poverty
Gross economic disparity still a hard fact of Mexican life
Increasing poverty and rising state debt in Mexico
Mexico's southeastern states - including Yucatán - suffer endemic child poverty

© MGRR 2013. All rights reserved. This article may be cited or briefly quoted with proper attribution or a hyperlink, but not reproduced without permission.

No comments:

Post a Comment