Insights from Mexico's Urban Competitiveness Index 2023

In the dynamic landscape of global economic shifts, cities play a pivotal role as engines of growth and societal well-being. Mexico, with a staggering eight out of ten citizens residing in urban areas, recognizes the significance of effective city management.

The annual Urban Competitiveness Index (UCI) by the Mexican Institute for Competitiveness (IMCO) provides a comprehensive overview of the performance and challenges faced by 66 cities, collectively home to over 62% of the country's population.

Progress and Pitfalls

Progress:

The 2023 UCI reveals promising strides in various areas:

1. Law and Safety: Average improvements in the Law sub-index, marked by a decrease in the homicide rate and vehicle theft, alongside an increase in the perception of safety.
2. Labor Conditions: A reduction in informality rates from 47.4% to 46.3%, coupled with a decline in the number of plaintiffs in labor disputes.
3. Economic Recovery: Post-pandemic, cities experienced a nearly 30% increase in air passenger flow and a notable rise in hotel occupancy.

Setbacks:

However, challenges persist, underscoring areas requiring urgent attention:

1. Corruption Perception: Over 80% of the adult population in all cities perceive frequent corruption in their governments, revealing a pervasive issue.
2. Crime Incidence: Despite overall improvements in the Law sub-index, common crime rates increased, accompanied by a rise in attacks on journalists.
3. Gender Disparities: The income gap between men and women widened, with the average woman earning 17% less than her male counterpart. Disparities were most pronounced in certain cities.

Strategies for a Better Tomorrow

In light of these findings, IMCO provides a handbook for building better cities and enhancing competitiveness in Mexico:

1. Attracting Investment:
   • Establish investment promotion agencies involving the public, private, and academic sectors.
   • Execute infrastructure investment plans for basic services in collaboration with state and municipal governments.
   • Identify and prioritize sectors with the greatest potential for attracting investment.
2. Digital Government:
   • Promote communication channels between municipalities for sharing digital government best practices.
   • Develop applications for online requests and complaints to enhance accessibility to essential services.
   • Prioritize user experience in the development and evaluation of digital services.
3. Efficient Cadastres:
   • Share free software to support digital cadastre management in municipalities with limited resources.
   • Implement a career civil service in cadastres to ensure continuity and technical expertise.
   • Professionalize staff, enhance capacities, and adopt information and communication technologies.
4. Sustainable Water Treatment:
   • Optimize existing water treatment capacities through maintenance and personnel allocation.
   • Ensure municipalities have the infrastructure to maintain, improve, and expand wastewater treatment plants.
   • Update regulations to encourage private participation in wastewater treatment.
5. Safe and Inclusive Mobility:
   • Regulate public transportation with formalized units and inter-municipal coordination.
   • Utilize gender-focused mobility data to address safety concerns and enhance transportation infrastructure.
   • Implement inclusive mobility infrastructure, such as ramps and lighting, to cater to diverse needs.

Conclusion

The ICU 2023 serves as a vital tool for stakeholders – citizens, governments, civil society organizations, and business leaders – to collaboratively address urban challenges. As the nation looks towards the 2024 electoral process, leveraging these strategies promises not just competitive cities but a thriving and inclusive future for Mexico.