Introduction
As an economist, I have been passionate about studying inequality gaps for many years. That’s why my civil association, Nación Inclusivo, creates the National Inclusive Development Index annually. However, studying is not enough; we must contribute from any platform, and I’ve learned that willpower is the most crucial ingredient for change. Today, the latest poverty data confirm a positive improvement that’s worth celebrating but also demands further effort. In 2024, multidimensional poverty decreased from 36.3% in 2022 to 29.6%, meaning seven million people escaped extreme poverty. This is the broadest reduction in a decade!
Key Factors Behind Poverty Reduction
Behind the average, there’s a crucial detail: without social transfer programs, poverty would have been 32.8%, and extreme poverty 6.9%. Social income policies have helped soften the impact by 1.6 to 3.2 percentage points. This data doesn’t diminish the achievement; instead, it highlights that social programs do make a difference. However, we need to anchor progress in productivity, formal employment, and effective public services.
Remaining Challenges
Despite the progress, two critical social gaps persist. Access to health services still affects 34.2% of people (44.5 million), and 48.2% lack access to universal social security (62.7 million). Without universal health and social security, economic vulnerability resurfaces in the face of any shock—illness, old age, or job loss.
Proposals for Addressing Challenges
- Universal Health Insurance: Unify the registry and portability of services (IMSS-Bienestar, ISSSTE, state services) with minimum standards for time, supply, and primary care. Establish quarterly public targets by state and a leveling fund with clear rules to close infrastructure, medical personnel, and medication gaps.
- Social Security for All: Create a “portable social account” scheme for freelancers, gig workers, and SMEs that integrates retirement savings, work risks, and childcare. With 62.7 million lacking social security, this must be prioritized.
- Smart Formalization: Lower the cost of becoming formal: graduated quotas based on company size, simplified billing, swift IVA refund for compliant SMEs, and public procurement with preference for suppliers who enroll their employees.
Conclusion
Mexico has shown that poverty can be reduced through a mix of employment, wages, and support. The next step is ensuring quality healthcare and social security. Closing these two gaps will transform the statistics from “good data” into quality of life.
