Introduction to Claudia Sheinbaum and Her Role
Claudia Sheinbaum, the President of Mexico, has raised concerns about the economic projection models employed by international financial organizations such as the International Monetary Fund (IMF) and the World Bank. She argues that these models fail to account for the impact of national policies, like Mexico’s “Plan México.”
Sheinbaum’s Critique of International Economic Models
Sheinbaum pointed out that these international models automatically predict a recession in Mexico when they foresee one in the United States, without considering the current context or local economic measures. She emphasized that these models disregard significant national investments, such as Grupo Modelo’s $3.6 billion investment and additional public investments, infrastructure, and housing.
Mexico’s Independent Economic Models
The President of Mexico highlighted that her government has its own economic models, developed by the Secretariat of Finance. These models take into account variables such as domestic and foreign investment, public spending, and social welfare programs.
“Our economic model is functioning, not just focusing on GDP growth with its limitations but also on development, sustainable development with well-being,” Sheinbaum stated.
Reducing Poverty through Minimum Wage Increases
Sheinbaum identified the consistent increase in the minimum wage as a crucial factor in reducing poverty. She mentioned that for 36 years, the minimum wage was deliberately kept stagnant, which increased poverty and decreased well-being. Mexico’s minimum wage had fallen below those of Nicaragua, El Salvador, and even Haiti.
Sheinbaum projected that by 2030, the minimum wage would enable workers to purchase two basic food baskets, aligning with the goal of “shared prosperity.”
Key Questions and Answers
- Who is Claudia Sheinbaum? Claudia Sheinbaum is the President of Mexico City and serves as the head of the executive branch of the government of Mexico City, equivalent to a mayor in the United States.
- What is the “Plan México”? The “Plan México” refers to a set of national policies and programs implemented by the Mexican government, focusing on development, social welfare, and economic growth.
- Why are international economic models criticized? These models are criticized for failing to consider the impact of national policies and local economic measures, leading to inaccurate predictions for countries like Mexico.
- How is poverty being addressed in Mexico? One key strategy is the consistent increase in the minimum wage, which aims to improve the living standards of low-income workers.
