Noida, India. December 2012

International Training in Managment Developmentand Social Security Measures

Nayeli Salgado(nayeli.noyolitzin@gmail.com)

V.V. Giri National Labor Institute

NOTE: Responsibility for the information and views set out in this presentation lies entirely with the author.

Mexico

• The 14th largest country in the world in territory.

• it is the world's 11th most populous country and

the most populous Spanish-speaking country.

• 14th economy in the world.

• Mexico is a Federation comprising 31 states and a Federal District (capital city).

2,456 municipalities which are the smallest administrative political entity in the

country.• Bicameral Congress of the Union, composed

of a Senate and a Chamber of Deputies.

• Total population: 112.8 million (51% women, 49%

men).

• Life expentancy: 76 years (77.8 for women; 73. 1 for

men).• Average size of households: 5

members.

• 78% of the population live in urban

areas and 21% in rural (less than

2,500).

• Ethnical groups: mix people (93.5%) and native people (6.5% ) of the population.

• Migration to United States (mainly), aprox 2 million people annualy.

Sources: Author’s elaboration based on INEGI.

• According with the official methodology 46.3% (52.3 million) people ismultidimensional poor which means they are deprivated by income(49.0%)and also have one of the next indicators: Education (22%), Access to healthservices (19.2%), Quality and spaces in the house (17.75%), Access to social

services (40.8%), Social security (60.5%) and Access to food (21.7%).

• The average rate of growth during the last 5 years is around 3-5% (3.9% in 2011).

• The contribution of the sectors are: primary activities (8.1%); secodary (25.4%) and terciary (66.4%).

• The annual rate of inflation during the last 5 years is around 3-5%.

• Unemployment rate: 4-5.2% (2012).

Sources: Author’s elaboration based on INEGI.

Indicators National Female Male Urban

areas

Rural

areas

Labour force (14

years old or more)60 44 78 62 56

Working force 95 95 95 94 97

Type of occupation

Salaried and subordinated

66 64 67 73 48

Employers 5 3 6 5 4

Self employee 23 24 22 18 34

No salary 7 10 5 3 14Sector

Primary 14 4 20 0.7 48Secondary 24 16 28 24 20Terciary 62 80 51 75 32

Sources: Author’s elaboration based on INEGI.

Indicators National Female Male Urban

areas

Rural

areas

Level of income

Less than 2 min.salaries (1=4$)

37 46 32 29 49

3 To 5 min. salaries 36 29 41 43 22

More than 5 salaries 8 6 6 11 3

No salary 8 10 8 3.5 22

Sources: Author’s elaboration based on INEGI.

39.960.1

Ocupación formal

Ocupación informal

Formal and informal sector

People

29 271 023

No paid workers 3 219 552

Independent

workers9 879 841

Employers 979 011

Paid workers 15 192 61951.9%

3.3%

33.8%

11.0%

Sources: Author’s elaboration based on INEGI.

Mexican Constitution (1917). Art. 123

Social Security Law (1943) (IMSS)

Law for the State’s workers (1960)

(ISSSTE)

Health Law

Promotion of Housing Law (Infonavit)

Systems of Pensions to the retirement

(CONSAR)

30.7

69.3

Voluntary sheme

Obligatory schme

Worker Employer State

Disability to work and death 0.625 1.75 0.125

Retirement and elderly 1.25 5.15 0.225

Illness and maternity 0.25 0.70 0.05

Risks at work OnlyEmployerSeche and others

Cover 38% of the

LabourForce.

Cover 43 millionpeople

Contributions of workers, employers and State

Worker Employer State

Disability to work and dead

0.625 1.75 0.125

Retirement and elderly 1.25 5.15 0.225

Illness and maternity 0.25 0.70 0.05

Risks at work Only

employerSeche and others

6% Labour Force

10 million people

• Marine

• Electricity Company

• Others

Mexican Constitution (1917). Art. 123

Social Development Law

Health Law

Reform to the Act.1 that rises the individual guarantieesto human rights.

• Implemented in 2003.Covered 48.0 million of the population. It covers284 health interventions, 522 kinds of medicines, laboratory studies, radiodiagnostic. Preventive medicine an curative, emergencies, hospitalisation, especialised services.

• Children below 5 years are covered in all aspects. • Independent workers, self employees, indigenous people, agricultural

workers, and others who don’t have access to IMSS or ISSSTE.

Without services

Social security

Seguro popular

Fuente: elaboración CONEVAL. (2012).

México is one of the member of the OCDE which spend less in policies for employment as

proportion of GDP.

The policies are activities for training, subsidies for employment, employment and placement for

workers.

In 2010 México spent 1,437 millon of pesos in policies for employment which benefited

470,587 people, most of them from rural areas .These people were unemployed or

underemployed.

PROGRAMME BENEFITSPOPULATION

ATTENDED

Support for the employment ProgrammeTraining, support in cash to travel and get the

training. 439,842

Programme to support the productivitySupport to companies to provide training to their

workers1,672

Atention for Labour Contingencies

ProgramMonetary support 29,073

65Source: CONEVAL

•Opciones productivas

• Rural areas with high poverty or municipalities with high presence of indigenous.

• Technical support, training.

• Tree different schemes to support people.

• Empleo temporal• Infraestructure and activities for the community.

99 % of a minimum salary, .maximum 2 salaries per day. No more than 132 salaries

per year

• Estancias infantiles

• 700 (60 dollars aprox) pesos monthly per every child between 1 to 3 years.

• 1400 (140 dollars aprox.) pesos monthly per every child with disabilities.

• 50,000 pesos (3,900 dollars) for infrastructure and renovation of the place..

Source: CONEVAL

Saving for

retirement system

(SAR)

AFORES

The worker has the option to choosebetween both shemes. SAR AFORE

How does CONEVAL contribute to social policy-making?

Identification of the problem

Analysis of the problem

Design of social programs

Public budget

Operation

Monitoring and evaluation

Public accountability

Source: CONEVAL

Methodological approach

PovertyMeasurement

Social Rights Economic

Wellbeing

• Constitutional guarantees

• Poverty associated with social deprivation

• Economic policy and income have an impact on social development

Source: CONEVAL

Degree of social cohesion

Territorial

What are the main features of the new methodology?

Social Rights

Deprivations

Mexican Population

We

llb

ein

g

In

co

me

Current income per capita

03 2 1456

Source: CONEVAL

Territorial

What are the main features of the new methodology?

Social Rights

Deprivations

Mexican Population

We

llb

ein

g

In

co

me

Current income per capita

• Education

• Health

• Social Security

• Housing

• Basic services

• Feeding03 2 1456

Source: CONEVAL

Social Rights

Deprivations

Poverty identification

EWL

WithoutDeprivations

035 24 16

MULTIDIMENSIONAL POOR

Vulnerable people by

social deprivations

Vulnerable people by

income

Population without

deprivations and with an

adequate level of

economic wellbeing

Source: CONEVAL

Derechos sociales

Carencias

LBE

03

Vulnerables por carencia social32.3millones

28.7%1.9 carencias promedio

Vulnerables por ingreso

6.5 millones5.8%

5 24 16

Población no pobre y no vulnerable

21.8 millones19.3%

LBM

Bie

ne

sta

rIn

gre

so

Indicadores de pobreza, 2010

40.3 millones35.8%

2.1 carencias

Fuente: estimaciones del CONEVAL con base en el MCS-ENIGH 2008 y 2010

Pobreza46.2 %52.0 millones

2.5 carenciaspromedio

Urbano = $978 Rural = $684

Urbano = $2,114 Rural = $1,329

Pobres moderados

Pobres extremos11.7 millones

10.4%3.7 carencias promedio

Source: CONEVAL

Fuente: estimaciones del CONEVAL con base en el MCS-ENIGH 2008 y 2010

Indicadores de incidencia

2008 2010 2008 2010 2008 2010

Pobreza

Población en situación de pobreza 44.5 46.2 48.8 52.0 2.7 2.5

Población en situación de pobreza moderada 33.9 35.8 37.2 40.3 2.3 2.1

Población en situación de pobreza extrema 10.6 10.4 11.7 11.7 3.9 3.7

Población vulnerable por carencias sociales 33.0 28.7 36.2 32.3 2.0 1.9

Población vulnerable por ingresos 4.5 5.8 4.9 6.5 0.0 0.0

Población no pobre multidimensional y no vulnerable 18.0 19.3 19.7 21.8 0.0 0.0

Privación social

Población con al menos una carencia social 77.5 74.9 85.0 84.3 2.4 2.3

Población con al menos tres carencias sociales 31.1 26.6 34.1 29.9 3.7 3.6

Indicadores de carencia social1

Rezago educativo 21.9 20.6 24.1 23.2 3.2 3.0

Carencia por acceso a los servicios de salud 40.8 31.8 44.8 35.8 2.9 2.8

Carencia por acceso a la seguridad social 65.0 60.7 71.3 68.3 2.6 2.5

Carencia por calidad y espacios de la vivienda 17.7 15.2 19.4 17.1 3.6 3.5

Carencia por acceso a los servicios básicos en la vivienda 19.2 16.5 21.1 18.5 3.5 3.3

Carencia por acceso a la alimentación 21.7 24.9 23.8 28.0 3.3 3.0

Bienestar

Población con un ingreso inferior a la línea de bienestar mínimo 16.7 19.4 18.4 21.8 3.0 2.7

Población con un ingreso inferior a la línea de bienestar 49.0 52.0 53.7 58.5 2.5 2.2

1 Se reporta el porcentaje de la población con cada carencia social.

Estados Unidos Mexicanos

PorcentajeMillones de

personas

Carencias

promedio

31Source: CONEVAL

Access tosocial

security

•If the worker does not receive medical

services as a work benefit or through

voluntary enrollment and a retirement

investment plan

Directaccess

Familynucleus

Other family nucleusand voluntary

enrollment

•If a person is not enrolled in an institution that

provides medical services by voluntary

enrollment.

•If the spouse,child, parent, -law of the head

of household is not enrolled in an medical

institution

If the person does not have a

relative who has access to

social security

If the person is not beneficiary of a social program of pensions for senior citizens

How is determined the thresholds of social security in the official methodology?

Source: CONEVAL

Fuente: estimaciones del CONEVAL con base en el MCS-ENIGH 2010 y la muestra del Censo de Población y Vivienda 2010.

Percetange of the population with social security deprivationby municipality, 2010

Rangos

[ 20 - 40 ] [ 40 - 60 ] [ 60 - 80 ] [ 80 - 100 ]

Total de

municipios48 299 717 1392

Source: CONEVAL

Condiciones laborales

Población en

pobreza

extrema

Población en

pobreza

moderada

Población total

% % %

Población económicamente activa ocupada 41.5 45.9 53.9

Adultos desocupados 5.4 4.6 3.7

Personas ocupadas en el sector primario 52.4 19.0 13.6

Personas ocupadas en el sector secundario 19.7 27.3 25.4

Personas ocupadas en el sector terciario 27.9 53.7 61.1

Personas ocupadas con derecho a incapacidad con goce de sueldo 1.3 13.1 33.4

Personas ocupadas con derecho a SAR o AFORE 0.5 8.8 28.1

Personas ocupadas con derecho a servicios médicos por parte del trabajo 1.7 15.6 35.6

Personas ocupadas sin prestaciones 40.0 45.8 32.8

Población de 65 años o más jubilada 0.6 14.2 26.5

Indicador

Fuente: estimaciones del CONEVAL con base en el MCS-ENIGH 2010 34Source: CONEVAL

Fuente: Inventario CONEVAL de Programas y Acciones Federales de Desarrollo Social, 2010.

Existe un gran número de programas dirigidos a

atender problemáticas similares. Éstos

programas están dispersos en las dependencias

y no siempre se coordinan entre sí.

Adicionalmente, existen intervenciones a nivel

estatal de las cuales no se cuenta con

información sobre sus resultados.

PROGRAMAS Y ACCIONES DEL INVENTARIO CONEVAL 2004-2011

AñoNúmero de Programas

Número de. Acciones

Total

Presupuesto Original

MDP

2004 89 0 89 $ 72,122.23

2005 78 0 78 $ 73,006.65

2006 188 0 188 $ 122,131.83

2007 104 0 104 $ 73,171.71

2008 139 107 246 $ 487,579.09

2009 180 92 272 $ 587,588.07

2010 186 87 273 $ 626,083.64

2011 178 94 272 $ 692,003.81

Fuente: elaboración del CONEVAL con base en el Inventario CONEVAL de Programas y Acciones

Federales de Desarrollo Social.

94

Educación, 94

Bienestar

Económico, 56

Salud, 40

Medio Ambiente

Sano, 27

No

Discriminación,

19

Trabajo, 19Vivienda, 9

Alimentación, 5 Seguridad Social,

4

Programas y Acciones federales por tipo de derecho social o por

dimensión de bienestar económico, 2010

Fuente: Inventario CONEVAL de Programas y Acciones Federales de Desarrollo

SEP35.1%

(96 programas)

SEMARNAT9.9%

(27 programas)

SEDESOL8.8%

(24 programas)

SAGARPA8.1%

(22 programas)

ISSSTE7.3%

(20 programas)

SHCP7.3%

(20 programas)

SALUD6.2% (17

programas)

SE5.5% (15

programas)

CONACYT4.0% (11

programas)

IMSS3.3% (9

programas)

STPS2.6% (7

programas)

SRA1.8% (5

programas)

Porcentaje de Programas y Acciones federales por institución, 2010

Fuente: Inventario CONEVAL de Programas y Acciones Federales de Desarrollo Social 2010

Social programmes by type of social right, 2011

Source: CONEVAL

Users

President of the Republic

Congress Party

Local Governments

• Comisión Intersecretarial de Desarrollo Social• Comisión Nacional de Desarrollo Social

Media, scholars and public

Percentage of population in poverty if there were universal coverage of health services and social security

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

100.0

NationalUniversal coverage of health services

and social security

10.5

3.1

33.7

28.1

33.0

16.6

4.5

16.8

18.3

35.4

Without deprivations, adequate level of wellbeing

Vulnerable by income

Vulnerable by social deprivation

Moderate poverty

Extreme poverty

Source: estimates of the CONEVAL based on the MCS-ENIGH 2008. Source: CONEVAL

Now weare goingto cut yourpension

Source: Internet