Mexico Issues & Opinions

Puerto Vallarta • Riviera Nayarit 

  News &
Politics
Issues &
Opinions
Business &
Finance
Health &
Evironment
Lifestyle &
Entertainment
Travel &
Outdoors
Science &
Technology

Rafael Ruiz Velasco: Mexico's Poverty Relief Programs Are a Failure

Rafael Ruiz Velasco - PanAm Post
go to original
April 25, 2016
Share



The 2013 launch of the "Crusade against Hunger" was attended by Guatemala President Otto Fernando Pérez Molina (L), who congratulated Peña Nieto for his leadership. (EFE)

Mexico’s poverty is a problem. About 50 million Mexicans live on less than US $5 a day, and about 2.5 million are in extreme poverty, living on less than US $1.25 a day.

But the situation affects all of Mexico. On the one hand, poverty generates various types of anxiety, depression and insecurity in people who suffer it. On the other hand, it is the main engine for the rise of organized crime, suicide, family violence and addiction.

The Mexican government has been trying to address this issue with social programs. Year after year there are new initiatives, and millions of pesos are allocated to government resources intended to dignify and improve the living conditions of the neediest Mexicans.

Some of the most recent examples is the “Crusade against Hunger,” a milk subsidy and support for the transition to digital television.

But if the budget for such programs increases yearly, why is the number of people suffering in poverty continuing to rise? Here are some answers:

  • Increased tax burden: A higher level of social spending requires a higher level of tax collection. Mexico is not productive, and therefore there is no other way to finance such programs than by punishing those who themselves are productive.

  • Seed of corruption: thousands of contracts are held above market price, and are assigned to friends and or partners of officials in public office.

  • Lack of incentives: contrary to what happens in private entities, the government and its employees have no incentive to be effective when it comes to achieving goals. Whether they meet their goals or not, public servants continue to receive their pay each month.

  • Paternalism and politicization of support: rulers and politicians in general need the existence of the poor. They present themselves as social benefactors and generate greater dependence on their programs. This way they can easily profit from politically loyal citizens.

  • Inefficiency: for every 100 pesos we pay in taxes, only 40 are used correctly. The rest are lost along the redistributive process that is bureaucracy, corruption, price inflation and diversion of resources, among other things.

Today it is necessary to change the way we think about the roles of both government and citizens.

We need to understand and eventually make politicians understand that the country doesn’t need to redistribute wealth, but rather generate it. The only solution to poverty is productivity. Only through entrepreneurship, education, investment, work and savings can the country achieve a true citizen empowerment to enable those living in poverty a potential to succeed in a fair and sustainable manner.

If we call things as they are, then social programs are nothing more than hotbeds of corruption and, paradoxically, are also hotbeds of poverty. A freer economy with a simpler, even and thin tax system would contribute more to reducing poverty in Mexico (through foreign investment and the creation of new small and medium enterprises) than billions of pesos collected and redistributed by the government.

With these changes, everyone has a chance to get ahead and fight for their dreams.

Rafael Ruiz Velasco earned a degree in Business Admininistration from the University of Anáhuac in México. He's passionate about development, project management, soccer, economics, and comic books.

See the original at PanAm Post | Español

  Check out Food Bank of Puerto Vallarta

  Check out Breakfast for Children - School of Champions

  Check out Amigos del Magisterio


We invite you to add your charity or supporting organizations' news stories and coming events to PVAngels so we can share them with the world. Do it now!

CHARITY ALERT Vallarta Botanical Garden Needs Your Help

TripAdvisor singled out the Botanical Garden for removal and placed us on our own page in Cabo Corrientes.

Please write and ask TripAdvisor why all other Cabo Corrientes attractions are still on the Puerto Vallarta page while only the Garden was removed.

Click here to see all the details

Meet the Charities

Community Services

Environmental

Animals & Wildlife

Health Care

Youth & Family

Education

Culture & Recreation

Special Interests

How You Can Help

Use Your Powers for Good

Add Your Favorite Charity

Save a Life - Give Blood

 

Partners for Change

Meet the Partners

Become a Partner for Change

Stay Connected

Find PVAngels on Facebook Follow PVAngels on Twitter Sign up PVAngels Newsletter RSS Feeds on PVAngels


Resources

About PVAngels

Add Your Charity

Add Your News & Events

Locate Yourself on Our Maps

Jobs - Join PVAngels Team

About Puerto Vallarta

Puerto Vallarta Local News

Local Event Calendar

Puerto Vallarta Videos

Puerto Vallarta Photos

Historic Puerto Vallarta

Local Area Maps

Important Phone Numbers

Craig's List in Puerto Vallarta

News Around Mexico

Mexico Issues & Opinions

Mexico Business News

Mexico Evironmental News

Lifestyle & Entertainment

Mexico Travel & Outdoors

Science & Technology News

Mexico News & Travel Videos


FAIR USE NOTICE: This site contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance a more in-depth understanding of critical issues facing the world. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 USC Section 107, the material on this site is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. For more information click here. If you wish to use copyrighted material from this site for purposes that go beyond 'fair use', you must obtain permission from the copyright owner.

m3 • local actions from global awareness