MEXICO-POVERTY Mexican government says poverty rate rose to 46.2 percent in 2014

Record ID: 149465

  • Title: MEXICO-POVERTY Mexican government says poverty rate rose to 46.2 percent in 2014
  • Date: 23rd July 2015
  • Summary: MEXICO CITY, MEXICO (JULY 23, 2015) (REUTERS) (SOUNDBITE) (Spanish) EXECUTIVE SECRETARY FOR THE NATIONAL COUNCIL FOR THE EVALUATION OF SOCIAL DEVELOPMENT POLICY (CONEVAL), GONZALO HERNANDEZ, SAYING: "There has been a substantial increase (in government spending) and we really have not seen a similar increase in rural productivity or the reduction of rural poverty. I said,
  • Embargoed: 7th August 2015 13:00
  • Keywords:
  • Location: Mexico
  • Country: Mexico
  • Topics: General
  • Reuters ID: LVA5ELAMLNVG53BZJGBO18XHWRMY
  • Aspect Ratio: 16:9
  • Story Text: Two million more Mexicans fell into poverty between 2012 and 2014, government data showed on Thursday (July 23), highlighting the challenges President Enrique Pena Nieto faces in meeting pledges to lift millions out of need.
    The poverty rate increased by 0.7 percentage point to 46.2 percent last year from 45.5 percent in 2012, equivalent to a total of 55.3 million people in the nation of nearly 120 million, said government social development agency Coneval.
    Coneval defines poverty as living on no more than 2,542 pesos ($157.70) a month in cities and 1,615 pesos in rural areas. The benchmark for extreme poverty was 1,243 pesos in cities and 868 pesos a month in the countryside. The agency also takes into account other factors like healthcare and education.
    The poverty level is roughly in line with that in 2010, suggesting that the modest economic growth of the last four years has not been enough to improve low-income people's circumstances.
    Officials spoke to Reuters about bright spots.
    "What we announced is the increase in poverty in general but we should also recognise a reduction of extreme poverty. This shows us that in terms of Mexican people, the country is running on two tracks. The extreme poverty, which has been declining in 2012, 2014 and also from before. This is possibly due to support of social programmes or the dynamics of extreme poverty has improved or has attenuated the biggest problem of the country, which from the point of view of Coneval (National Council of Evaluation of Social Development Policy), continues to be economic growth, income and an increase in productivity," explained Executive Secretary for the National Council for the Evaluation of Social Development Policy (Coneval), Gonzalo Hernandez.
    The Coneval findings cover the first two years of Pena Nieto's six-year term. During his election campaign, he pledged to lift 15 million people out of poverty.
    The figures also showed a 0.3 point drop in the rate of extreme poverty to 9.5 percent as government social programs supported those on the lowest rungs of the income scale, largely among the nation's indigenous population.
    Hernandez said it's not for a lack of government spending.
    "There has been a substantial increase (in government spending) and we really have not seen a similar increase in rural productivity or the reduction of rural poverty. I said, there are several possibilities. Maybe our spending is wrongly invested or the spending is uneven and goes to the biggest producers rather than the smaller producers. Two, the spending benefits the intermediaries of programmes in the countryside. Maybe, they are really the beneficiaries, rather than the poor rural population and fourth, what we don't rule out, is corruption," said Hernandez.
    More of the poor moved to cities, continuing the trend of urban migration. The poverty rate declined to about 61 percent in rural areas but rose to 41.7 percent in urban areas.
    Chiapas remained the poorest state out of 32 regions, including Mexico City, with its poverty rate rising to 76.2 percent last year. Oaxaca edged out Guerrero to become the second-poorest state, with a rate of 66.8 percent.
    Both states are on the southern Pacific coast, traditionally the poorest parts of the country.
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