Italian economist Mariana Mazzucato highlighted three of the main water challenges in Mexico.
Mazzucato gave a workshop this Thursday at the Mexican Ministry of Economy on green industrial strategies.
Water challenges in Mexico
Mazzucato specializes in the role of the state and directs the Institute for Innovation and Public Purpose (IIPP) at University College London (UCL).
She identified the following challenges:
- 40% of water in Mexico City is lost through damaged infrastructure.
- 60% of households in Mexico do not have access to safe drinking water.
- 70% of Mexico’s rivers are polluted.
In addition, Mazzucato stated that public investment in Mexico is equivalent to 3% of the Gross Domestic Product (GDP) and 11% of total investment in Mexico, one of the lowest rates in Latin America and lower than the average in the countries of the Organization for Economic Cooperation and Development (OECD).
Financialization of the economy
According to Mazzucato, private banks in Mexico achieved record profits in 2023 and more than 70% of these are foreign-owned.
In particular, BBVA, the largest of these banks, in response, distributed record dividends to shareholders and announced a new share buyback program of 14% of its shares.
“Part of the reason for the success of private banking is the lack of a proper development bank (e.g., BNDES in Brazil),” he said.
Mexican government
On November 21, 2024, the National Water Commission presented the 2024-2030 Water Plan. This plan is based on four fundamental principles. First, water policy and national sovereignty. Second, justice and access to water. Third, environmental impact mitigation and climate change adaptation. Finally, comprehensive and transparent management.
Then, on November 25, 2024, Mexico formalized an important agreement. The National Water Commission, together with national water users, signed the National Agreement for the Human Right to Water and Sustainability. This pact has several key objectives. It seeks to guarantee access to water in adequate quantity and quality. It also seeks to ensure the sustainability of water resources.