Mexico City, Mexico — The Organization for Economic Cooperation and Development (OECD) has recommended Mexico remove obstacles to foreign investment, noting things like the low level of education is one reason for the country’s low level of productivity.
The OECD explains this is one reason the country maintains a “wide and persistent gap” with other developed countries.
The recommendation comes in its annual report, which says that “in order to cope with low productivity, it is essential to boost the capacity of the economy to adopt and adapt technology and foreign knowledge.”
The report suggests Mexico “increase education levels, reduce barriers to foreign direct investment and start-ups and reinforce innovation policies.”
Regarding foreign investment, the authors of the study cite “key sectors” such as transport and banking and add that the business environment must also be improved to attract money from abroad to services, which means more transparency in regulatory policies.
They advise Mexico to enact and apply “a second round of legal reforms in the civil and commercial fields” to continue with the transition of written and oral trials to improve the results in economic litigation and to expand anti-corruption systems.
A renewed impulse of initiatives to fight corruption and informality will contribute to making growth more inclusive, “they argue, after recalling that levels of inequality in Mexico remain” among the highest in the OECD, particularly due to the high prevalence of poverty.
The organization recognizes that an evaluation of almost all teaching staff has been carried out and that the infrastructure of the schools has been invested, but insists on the need to increase the educational level, concentrating the expenditure on pre-school, primary and secondary education.
They also believes that teacher training should be reinforced, and institutional programs based on merits established.
The OECD explains that Mexico has introduced a new regime that allows tax deduction of 30 percent of the increase in R & D (research and development), but also that more must be done in this area.
In particular, by promoting financing in the early stages of new companies, with industry cooperation with research institutes or with public programs that favor innovation in local companies and links with foreign affiliates.