The international organization points out that according to the National Council for the Evaluation of Social Development Policy (Coneval), approximately 42% of the Mexican population lived in poverty in 2018, with large differences between states.
However, in 2019, the government headed by Andrés Manuel López Obrador introduced “important changes in social programs (social assistance programs and active labor market policies), focused on universal coverage and social pensions (non-contributory) , as well as in assistance to the indigenous population, the elderly and people with special needs”
These changes resulted in an increase in total spending on social assistance, from 1.8% of GDP in 2018 to 2.1% of GDP in 2019.
“According to Coneval, without social transfers, poverty indicators would have worsened even more, up to 45.9%. In other words, social transfers prevented an additional 2.5 million people from falling into poverty”, noted the IMF.
The IMF specifically indicates two programs:
- The social pensions of the program Pension for the Welfare of Older Adults, which more than tripled between 2018 and 2020, due to the prevalence of poverty in old age and the limited coverage of pensions.
- In education, there are now three programs according to the different educational levels. One of them, Benito Juárez Basic Education for Welfare Scholarship Program, is aimed at families living in poverty and have children under 15 years of age.
Increased investment in social welfare programs in Mexico prevented 2.5 million people from falling into poverty due to the COVID-19 pandemic. #COVID19 and helped reduce the negative impact on employment, highlighted the International Monetary Fund #IMF.
– Government of Mexico (@GobiernoMX)
January 26, 2022