policy highlights territorial review of morelos, mexicothe review is a follow-up study to the oecd...

Territorial Review of Morelos, Mexico Monitoring Progress and sPecial Focus on accessibility

POLICY HIGHLIGHTS

BackgroundThis document summarises the key findings of OECD (2018), Territorial Review of Morelos, Mexico: Monitoring Progress and Special Focus on Accessibility, OECD Publishing, Paris.

The full publication is available at: https://doi.org/10.1787/9789264304482-en

For more information: www.oecd.org/regional

Photo creditsCover illustration: © Jeffrey FisherPhotos: @ Getty Images, © Unidos por Morelos and © State of Morelos

© OECD 2018

This work is published under the responsibility of the Secretary-General of the OECD. The opinions expressed andarguments employed herein do not necessarily reflect the official views of the Organisation or of the governments of itsmember countries.

This document and any map included herein are without prejudice to the status of or sovereignty over any territory, tothe delimitation of international frontiers and boundaries and to the name of any territory, city or area.

https://doi.org/10.1787/9789264304482-en

http://www.oecd.org/regional

Territorial Review of Morelos, Mexico:

Monitoring Progress and Special Focus on Accessibility

Highlights

Contents

Setting the scene…………………....……………………..……………………3

Overview of advancements……………………….............................5

Human capital and skills……………………..…………........................8

Integrated territorial development..........................................12

Governance and finance……………………………….........................17

The Review is a follow-up study to the OECDTerritorial Review (TR) of Morelos, Mexicocarried out in 2016, approved by the OECDRegional Development Policy Committee on 7November 2016 and published in 2017.

The TR identified 12 main recommendationsand 39 sub-recommendations to the State ofMorelos, ranging across the policy sectors ofhuman capital and skills, integrated territorialdevelopment, governance and finance.

The recommendations seek to help Morelosimprove its economic performance and the

well-being of its citizens through themobilisation of its assets. The state has adiversified economy, a youth premium, afavourable geographic location and is rich innatural and cultural amenities. These assetscan lead the state to overcome bottlenecks fordevelopment, notably low education levelsand informality of the labour market. Thecreation of the first Council for Human Capitalat the state level in Mexico and policies topromote inclusive growth and innovationindicate that the state is aligned with thepriorities set in the recommendations.

3

The context of the Morelos Monitoring Review

Setting the scene

Recommendations of the 2017 OECD Territorial Review of Morelos

Human Capital and Skills

1Improve the quality of basic education, especially in peri-urban areas and lagging rural communities, and increase participation in upper secondary and tertiary education

2Ensure training programmes are more responsive to the needs of the economy and target the informal sector too

3 Improve knowledge creation, diffusion and exploitation

4Strengthen the role of the Council for Human Capital to promote the upskilling of the labour force and an integrated vision

Integrated territorial development

5 Spatial planning requires a better implementation strategy

6 Urban policies should design and implement policies at the metropolitan scale

7Rural policy must go beyond agriculture and develop further synergies with the tourism sector

8Accessibility of the region should strengthen both a. connections to external markets in neighbouring states and export and b. internal connectivity

9Preserving the environment by co-ordinating and implementing policies to mitigate climate change

Governance and finance

10Foster co-ordination of the state administration with municipalities, and with neighbouring states

11 Improve governance mechanisms and the business climate

12Morelos should improve the management of its own funds, including transfers to municipalities

Since the launch of the TR, Morelos has keptpace with the existing trends. GDP per capitahas maintained its growth trajectory, of USD 11471 in 2015. The economy has continued todiversify, with an important manufacturingsector, agricultural and service sectors (namelytourism) and 44 research centres.

Despite these positive aspects, Morelos stillfaces significant challenges to fully unleash itsdevelopment potential. Employment remainsprecarious, in the face of the stubbornly highlevel of informality at 68% as of 2017. Besides

that, low education levels and an incipient andstill fragmented, inward-oriented innovationecosystem, amongst other factors, contributeto productivity per capita below OECD andMexican standards.

Perception of security, an essential element ofwell-being and instrumental for regionalattractiveness, remains as low as 13% in 2017.Accessibility and connectivity challengeshamper Morelos’ potential to benefit from itsnatural geographic advantage.

Morelos has kept pace with previous trends

4

0

10

20

30

40

50

60

70

80

90

%

2005 2017

0

10

20

30

40

50

60

70

80

%

2011 2017

Figure 2. Perception of security between 2011 and 2017, per state

Figure 1. Informality in Mexican states, 2005 and 2017

Source: Own analysis based on data from (INEGI, 2018[5]) INEGI Databases, http://www.inegi.org.mx/.Note: State values are calculated based on the population aged 18 years old and over.

Source: Own analysis based on data from (INEGI, 2018[5]) INEGI Databases, http://www.inegi.org.mx/.

6

http://www.inegi.org.mx/

http://www.inegi.org.mx/

Morelos has advanced in all recommendationsidentified in the 2017 TR. Progress was made in43% of the sub-recommendations (17 out of 39),meaning that significant changes have beenundertaken. The restructuring of the HumanCapital Council is noteworthy, and so are thecontinuous efforts to strengthen the innovationsystem in Morelos. Modest progress wasrecorded in 49% of them (19 out of 39), hencefurther efforts are still needed to supportimplementation. Finance and taxation arechallenging areas in which stronger advances areyet needed. For the remaining 3 sub-recommendations (8%), Morelos made verysubstantial progress. The state’s commission forevaluation and monitoring (COEVAL) hassolidified its actions, and tourism policies havebeen better defined and become more strategic.

Overview of advancements

Since the 2017 report, the State of Morelos has made progress in all of the 12 recommendations,with significant progress in implementing 8% of the sub-recommendations, progress in 43% of themand modest progress in the remaining 49% .

5

49%

43%

8%

No progress Little progress

Progress Significant progress

Figure 3. Progress on sub-recommendations

Considering the timeframe of each sub-recommendation, 15% are to be implemented over theshort term (0 to 1 year), 51% over the medium term (1 to 3 years) and 33% over the long term(more than 3 years). Short-term changes could be observed in the structure and organisation ofthe Human Capital Council. The most significant advances are found in the group of medium-term recommendations, notably regarding skills development, tourism and rural policy. Long-term changes, such as building trust in the public administration, consolidating metropolitanspatial planning and enhancing the state’s internal connectivity, have shown understandably lessrapid change at this stage and require stronger commitment to be fulfilled.

0

1

2

3

4Long termMedium termShort term

Figure 4. Progress by timeframe

Significant Progress

Progress

Modest Progress

No progress

On 19 September 2017, an earthquake of 7.1magnitude hit Morelos, Puebla and theGreater Mexico City area, the deadliest one ofthe past 32 years in the country, amounting to369 casualties. In Morelos, it caused 74casualties and 1 944 physical injuries. 7 410homes suffered total loss, and 16 386 werepartially affected.* Medical centres, schools,public offices, historic buildings, hydraulicinfrastructure and roads were also damaged.

The state’s emergency response was well-coordinated with municipal authorities of civilprotection. In the 33 municipalities, a civilservant from the state government cabinetwas appointed as liaison staff to lead theemergency response. Rescue actions includednew Emergency Operations Centres andshelters, isolation of risk sites, transfer of thewounded to hospitals and casualties’ registry.

The state reconstruction strategy has beenbroad. Reconstruction of damaged publicinfrastructure has been a priority. Financialsupport has been provided to entrepreneursand firms to recover their businesses.Psychological services were put at the disposalof the affected population. Thedeconcentrated state agency Unidos porMorelos is responsible for the housing re-construction efforts. Accredited citizensreceive financial compensation, which can beused to purchase a house built by privatefoundations, or to acquire materials. The statecommission COEVAL is monitoring this processand will assist in evaluating the strategy.

Such comprehensive reconstruction effortshave diverted state resources from previouslyagreed actions and programmes. With lessfinancial resources, less personnel and analtered course of action, the State of Moreloshas understandably invested less in the policyareas not directly concerned by reconstructionand recovery. In this sense, the impacts of theearthquake negatively affect the progress ofthe recommendations made in the 2017 TR.

Indications for future progress:

The State of Morelos can further leveragetheir policy response, in order to improveinfrastructure and foster well-being, along thefollowing lines:

• Ensure safety in reconstructing schools,hospitals, fire stations and public buildings.

• Revise spatial planning and urbandevelopment plans, with the goals ofresilience and environmental sustainability.

• Housing resettlement must attend themost vulnerable population first and beconnected with public transport networks.

• Monitor closely the quality of housingreconstructions led by private foundations.

• Provide technical assistance to citizenswho opted for self-construction of housing.

• In the property registry process, beware ofpre-existing rights and promote women’stenure security.

• Invest strongly in data collection, developdisaster reduction management planningand promote transparent risk governance.

18

Reconstruction and recovery efforts after the earthquake

6

* Numbers stipulated by October 31st, 2017.

Connectivity and logistics are key structuralenabling factors for inclusive growth and well-being. Improved connectivity will reducetransport costs for businesses based in Morelos,expand the market for local producers andachieve better integration with centres ofproduction and consumption across Mexico.Policies to improve connectivity must becomplemented within the framework of policiesaddressing other enabling factors (education,innovation and business environment).

Road connectivity investments comprise theAutopista del Sol running through the capitalCuernavaca, which is a key north-south federalhighway connecting Mexico City to Acapulcoand the south border. Investments have alsobeen made to strengthen east-west roadconnections, particularly the link with Puebla,and in regional airports.

The state is rehabilitating a 103 km section offreight rail. Currently, Morelos has 259 km ofrail alignments but no operational railway line.The link will run from the Cuautla industrial parknorth to La Paz, an inter-connecion point in thesoutheast of the Mexico City conurbation.Together with the industrial park, the rail linewill serve agricultural businesses in the regionand a new intermodal container depot aimed atdeveloping a more diversified economic pole in

Cuautla. Shifting freight from road to rail willreduce air pollution and increase road safety,which are important secondary objectives.


• Strategic, medium-term planning can fostera more balanced vision of development,overcoming short-termism.

• Implement cost-benefit assessments andimpact assessments more consistently, inorder to identify promising projects andmeasure risks.

• Adopt public policy statements on strategicinfrastructure planning for connectivity.Current policy documents focus on thedetails of individual investments but lack anexplanation of the approach to projectprioritisation and value for money.

• To strengthen evidence-based decision-making, make use of already existing data ontraffic and modelling of freight flows.

• Collaborate more closely with nationalregulators with the goal of benefitting fromtheir capacity in analysing particularlycomplex processes and projects.

7

Towards a comprehensive approach to logistics and transport

The state has boosted investments in humancapital and the quality of education in schools.However, given the short amount of time sincethe 2017 TR, limited progress has beenattained on the specific measures indicated inthe three sub-recommendations below.

A positive step was to request state funding(via the fideicomiso) for a softwaredevelopment project, to centralise datacollection in schools (sub-recommendation 1).The state still needs to develop and implementthe software. A related step would be to createa single cadastre to follow the educationaltrajectory of students .

There are specialised programmes to supportschools in lagging rural areas, but specificmeasures to identify low-performing studentsare to be developed (sub-recommendation 2).The state needs to invest further on schoolinfrastructure in lagging-communities, createspecific tutoring or after-school programmesto aid under-performing students and providespecific financial aid to Indigenous students.The state should also include Indigenousschool abandonment as an indicator in the PEDand monitor progress on it.

The Beca Salario programme has not beenmodified, maintaining its distributivecharacter. The universal design might fall shorton more effectively targeting students at riskof abandoning school for financial reasons(sub-recommendation 3). An ongoingdiagnostic study is assessing the effectivenessof the programme, which may lead toevidence-based policy change in the future.The state should also consider other forms ofassistance to students, such as public transportpasses and meal tickets.

Human capital and skills

Morelos needs to continue to improve the quality of basiceducation, especially in peri-urban and lagging rural areas, andincrease participation in upper secondary and tertiary education

8

Sub-recommendations Progress Timeframe

1. Centralise data collection about schools and student performance. Modest progress Short-term

2. Introduce early measures to identify and support low performing students and mobilise specialised staff for remedial support in lagging rural areas.

Modest progress Medium-term

3. Revise the schemes of financial student support guaranteeing that it is targeted at those who need it the most.


The second recommendation comprisestraining and certification programmes, jobplacement services and teachingentrepreneurial skills.

Solidifying vocational training in thesecondary and tertiary levels can ensurebetter skills matching in the labour market.The State of Morelos has made progress withthe creation of apprenticeship courses ontourism and gastronomy.

The transition of workers from the informalto the formal sector can be supported viaskills certification programmes.

In Morelos, the capacitation for self-employment is quite basic and not enoughdiversified across different stages of businessdevelopment.

The development of entrepreneurship skillsfrom the early ages, as documented in manyOECD studies, is key to stimulate businesscreation and the dynamism of the economy.Morelos has taken important steps with theopening of a youth entrepreneurship centreand the organisation of youth businessinnovation camps.


• Expand apprenticeship programme toother industries, especially to strategichigh-skill sectors, such as ICT, energy andautomobile.

• Support financial security of tertiaryeducation students with scholarships andapprenticeship programmes.

• Solidify the role of accredited CONOCERcentres in skills certification.

• Job counselling and job matchingservices need a broader range.

• Include non-cognitive social andemotional skills in the teaching methodsof early education, through collectiveactivities and arts ateliers.

Training programmes in Morelos need to be more responsive to the needs of the economy and also target the informal sector too

9

Sub-recommendation Progress Timeframe

4. Better involving the private in the program designs and provision of work-based learning opportunities for young people.

Progress Medium-term

5. Develop entrepreneurial skills early on in the education programs


6. Improving the effective counselling and job placement services. Modest progress Short-term

7. Develop skill certification for both informal and formal workers. Modest progress Medium-term

Morelos has strong potential for innovation,given the concentration of 44 researchcentres in the region. Nonetheless, limitedaccess to markets and geographicalconcentration of research hampers thispotential. Morelos needs to develop a moreoutward-looking innovation system.

Driven by the Ministry for Innovation,Sciences and Technology, progress has beenmade. By hiring new specialised staff, theministry is better equipped to give businessand legal advice to companies. The Ministrysigned an agreement with a start-upincubator in the Netherlands, which hasensured financial aid and productdevelopment support to 3 companies so far.In 2017, the ministry offered capacitation to59 business owners and 177 researchers on

how to design joint innovative projects andapply for federal funds. Moreover, theMinistry gave continuity to twoprogrammes that provide seed funding tonew companies, InnovaTIC and PrimerImpulso.

Innovation is the road to the future: Morelos needs to improve knowledge creation, diffusion and exploitation

10


8. Supporting the commercialisation of innovative ideas. Progress Medium-term

9. Improve access to capital and financial support for knowledge-based start-ups


10. Bridge the gap between public research facilities and the business sector with co-operation mechanisms

Progress Long-term


• Develop written guidelines or rulebook on how to start a company.

• Institutionalise existing networks and ensure channels reach more stakeholders.

• Invest in an automated platform to connect business needs and research profiles inorder to improve communication and generate new opportunities.

• Improve outreach to firms beyond S&T, to include innovation in services and socialinnovation.

• The programmes InnovaTIC and Primer Impulso, which offer access to seed fundingstreams, require constant support.

• Tools such as innovation vouchers and fairs can create opportunities to fundbusinesses.

• Invest in co-financing model for business development, combining private and publicfunds.

The fourth recommendation refers tostrengthening the role of the Human CapitalCouncil. The Human Capital Council, the first ofits kind in Mexico, has the mission to improvehuman capital development and innovationacross the state. Beyond the current mandateof matching and networking, the Councilshould expand its role to undertake analyses ofcurrent and future skills required in the labourmarket.

Since the 2017 Territorial Review of Morelos,the Human Capital Council has made progressby better defining its structure, mission andobjectives. It has also substantively taken up

its role as co-ordinator and has stronglyreached out for the different stakeholders,including government bodies, academia andbusiness representatives, from each one of thesectors defined as strategic for the economy.Education was made a transversal group, givenits impact on the other economic sectors, aswell as Innovation and Research. The Councilco-ordinator has played a leading role inorganising activities and reaching out topartners. In the field of policy monitoring andevaluation, the Council has set up 9 indicatorsto monitor progress, but they merit somereconsideration.

Morelos needs to continue to strengthen the role of the Council for Human Capital to upskill its labour force and an integrated development

11


11. Better define the Council’s mission and operating model. Progress Short-term

12. Work closely with state labour market training agencies in thedefinition of priorities.


13. Ensure a more varied composition of sectoral representatives. Progress Short-term

14. Adopt a demand-led approach to training content by involvingthe private sector into the early definition of programmes.

Progress Long-term

15. The definition of sectoral groups should not preclude cross-fertilisation with the participation of thematic areas in sectorialactivities to develop a common vision.

Significant Progress Medium-term

16. Measure and evaluate the HCC’s outcomes based on agreedtargets.

Modest progress Short-term


• Hire a second co-ordinator.

• Continue with outreach and have clear planof work.

• Elaborate key common objectives that twoor more groups can work together in.

• Develop long-term goals with relatedtargets and strategies of how to achievethem.

• Involve a broader range of stakeholders andcreate more organic relationships, followingthe model of Eindhoven, Netherlands.

• Involve the SNE and ICTAMOR in matchingbusiness needs and training opportunities.

• Complete diagnostic study of labour marketdemand for skills.

• Invest in conversations about the future ofwork, together with academic institutions.

• Broaden the scope of participants, bymaking use of technology to hold virtualmeetings, inviting women to be part of theCouncil, and approximating calendar ofmeetings with the one of large events togather representatives from all over thestate.

• Adopt indicators that reflect outputs ofactions carried out by the Council itself, andthat account for the quality of actions, suchas outcome indicators.

• Invest in a structured mechanism to monitorand evaluate progress in the long run, indialogue with COEVAL.

The current system of land use planning stilllacks a full pledged integrated vision of theterritory and of urban development policies.This can be partially attributed to the sectorialinclination of national urban policies and the factthat the state has to follow national regulations.Despite this, insufficient participation,accountability and enforcement are persistentchallenges. To make reforms effective, long-term efforts and co-ordinated actions withother levels of government are necessary. Thetwo sub-recommendations focus on improvingthe spatial planning system and on ensuring thecontinuity and enforcement of adopted plans.

Morelos has made progress in this area bycreating the State Council for Spatial Planning(Consejo Estatal de Ordenamiento Territorial –CEOT) in 2017. This council replaces the formerCEDU, with a leaner composition and strongertechnical competencies (sub recommendation18). The council needs to get involved inplanning processes which are today scatteredacross policy sectors. Moreover, the councilneeds to act as an intermediary between stateand municipalities in such matters, for which itcould seek to become closer with the Institutefor Municipal Development and Strengtheningof the State of Morelos (IDEFOMM).

Nonetheless, accountability and continuity toterritorial and urban development plans meritstronger attention (sub-recommendation 17).The Ministry for Sustainable needs sufficientstaff with capacity to update, co ordinate, enact

and implement plans. To improve accountability,he websites to publish projects, documents andenvironmental violations should be updated.

The revision procedure of the State Programmefor Sustainable Land Management and UrbanDevelopment (PEOTyDUSM) is ongoing. Publicconsultations took place in December 2017.After the programme is updated, the stateneeds to instruct and train municipal civilservants to adopt municipal programmes that liein accordance with such state regulations. As oftoday, municipalities do not receive sufficienttraining to perform their functions, and whenplans are designed, they are often not enacted.This way, implementation of spatial planningremains low, and co-ordination between stateand municipal levels, too.

These long-term challenges can be addressedby:

• Investment in competent staff.

• Direct representation of municipalities in theCEOT.

• CEOT should liaise with IDEFOMM to increasebrokering role between state and municipallevels.

• Broader consultation processes.

• Revision of the PEOTyDUSM.

• Availability of information online.

• Capacitation of municipal civil servants.

Integrated territorial development

Spatial planning requires a better implementation strategy

12


17. Build more accountability into the spatial planning system and ensure the continuity of territorial and urban development plans.

Modest progress Long-term

18. Create an independent council, with technical competencies, to assure continuity and effective implementation of long-term spatial planning.


Morelos has two metropolitan areas(Cuernavaca and Cuautla) recognised by thenational statistics office (INEGI). Both receiveresources from the Federal Metropolitan Fund,which are managed by the two correspondentCouncils for Metropolitan Development. Thesecouncils tend to have too many actors and lackthe active involvement of the Ministry forMobility and Transport, an essential actor toensure coherence in urban planning and toreap the benefits of agglomeration. Fundstends to finance small municipal projectsrather than comprehensive metropolitaninitiatives.

The state has made progress in this area byincluding the State Ministry for Mobility andTransport as a permanent member of theCouncil for Metropolitan Development ofCuernavaca (sub-recommendation 19). It is yetto be seen how the state ministry will be ableto make their voice heard in the Council.

The Councils of Cuernavaca and Cuautla havestill not adopted long-term, integratedstrategies for metropolitan development, andongoing projects still lack a clear metropolitandimension (sub recommendation 20).


• Promote an integrated vision ofmetropolitan planning, aligning land usegovernance and transportationdevelopment.

• Invest in skills development of personnel.

• Engage with the citizenry throughout thewhole process.

• Develop diagnostic studies to supportevidence-based reforms.

• Make long-term commitment to enact andimplement them., beyond electoral cycles.

Urban policies should design and implement policies at the metropolitan scale

13


19. Reduce the number of actors in the governance of metropolitan areas but include the State Ministry for Mobility and Transport in the co-ordinating agency of the metropolitan areas.


20. The Metropolitan Fund should respond to a comprehensive urban development plan.


Following the rural development frameworkadopted across OECD countries, the 2017 TRinvites Morelos to take a multi-dimensionalapproach to rural development, going beyondagriculture and leveraging synergies with othersectors such as tourism. This policy entails abottom-up approach to development andinvestment in productive regional assets and inwell-being, rather than compensatory measuresbased on subsidies. Such approach also requiresmaintaining rural amenities and biodiversity,with the aim of supporting Morelos’ tourismindustry.

The State of Morelos has made progress on sub-recommendations 21 and 22, and significantprogress on sub-recommendation 23. Newroutes of rural tourism are being developedaround premium products such as rice andavocado. Training courses in the fields of tourismand agriculture are being offered, andcertificates of quality are being awarded. Theeco-tourism programme called Pueblos Mágicos(Magical Towns) is getting internationalrecognition and attracting visitors to the area.The regional brand Orgullo Morelos has beenexpanding and consolidating.


• Consolidate capacitation and trainingprogrammes for tourism and gastronomy, withspecial emphasis to eco-tourism, organicagriculture, traditional cuisine and sustainabletourism practices.

• Involve the Human Capital Council in theelaboration of capacitation and trainingprogrammes.

• Enact and implement the Strategic Plan forRural Tourism.

• Develop an action plan for the routes ofavocado, rice and goat cheese, givingconsideration to associated hotels andrestaurants, road infrastructure, broadbandcoverage and enhanced quality of agriculturalproduce.

• Elaborate strategies to promote food exportsand reach international markets, in relation tothe touristic routes.

• Restore the convents which are part of theheritage of the route of convents.

• Consolidate the Economic Areas ofEnvironmental Value (UEVA), after diagnostic iscomplete.

• Support sustainable economic activitiesdeveloped by local communities within thenewly-consolidated UEVAs, with the aim ofgenerating wealth for the local communities,promoting their collective well-being andpreserving the environment.

• Continue supporting local gastronomy bypromoting traditional ingredients; organisingculinary events; participating in internationalfairs; capacitating chefs; and helping restaurantsobtain certificates of excellence and culturalrepresentativeness.

• Consolidate the Orgullo Morelos brand.

• Support entrepreneurship by offering legaladvice to business formation; facilitatingbureaucratic procedures and informing aboutlicensing; investing in programmes that supportmarketing and brand development; and trainingeco-tourism guides.

• Improve road infrastructure.

• Invest in broadband connectivity in rural andremote areas.

Rural policy must go beyond agriculture and develop further synergies with the tourism sector

14


21. Adopt a multi-dimensional territorial approach to rural areas going beyond agriculture and channel financial resources towards productive investment projects.

Progress Long-term

22. Develop tourism policies in co-ordination with other policy areas and in accordance with environmental preservation.


23. Elaborate and deliver appropriate training to upskill workers in the tourism sector. Develop support for tourism entrepreneurship.

Significant progress Medium-term

This recommendation stresses theimportance of investing in transportationand mobility to capitalise on Morelos’geographic position, close to Mexico Cityand on the routes to the Atlantic andPacific Coasts. These investments can bringthree sets of benefits: improved mobilityfor state residents; stronger connectivitywith the neighbouring states of Puebla,Mexico and Guerrero; and moreaccessibility to external markets via thecoasts.

Morelos has made progress in improving itsconnectivity with Mexico City and to thecoasts, with the construction of theHighway XXI Century and the project of therailroad station in Cuautla (sub-recommendation 24). The goal ofsustainable urban mobility receivedconsiderable attention from thegovernment in the past year (subrecommendation 25). Several items wereadvanced: organisational change with thecreation of the State Council for SpatialPlanning (CEOT) and the update of the AirQuality Programme (PROAIRE); creation ofa green zone of Cuernavaca; andconversion of 3 000 taxis to natural gas.The internal connectivity of the state,including rural areas and marginalised

municipalities, has not advancedsufficiently. Roads affected by theearthquake, however, are beingreconstructed under the Fonden Road Plan,and dirt roads are being paved under theState Road Plan (sub-recommendation 26).


• Carry out diagnostic study to identifyneeds and solutions for publictransportation.

• Implement pedestrian zones inCuernavaca, as planned.

• Continue paving roads to expandinternal connectivity.

• Complete the Cuautla rail railroadproject in coordination with the railregulator ARTF, particularly with regardto meeting safety requirements andapprovals where roads cross therailway.

• Make conversion to natural gas acondition for renewing bus concessions.

• Better connectivity has to becomplement by development policies(human capital and skills).

Accessibility of the region should strengthen both its internal and external connectivity

15


24. Investments in railroad and road networks should continue to improve the accessibility of the region to external markets.

ProgressLong-term

25. Improve urban mobility while taking into account the environmental dimension.

Progress Long-term

26. Strengthen internal connectivity by better connecting marginalised municipalities.


This recommendation addressessustainable development under threeaspects: comprehensive planning; co-ordination at national and internationallevels; and non-fossil fuelledtransportation. Tackling environmentalchallenges requires planning and co-ordination across a wide range of policysectors, not only transportation but alsohousing, environmental preservation,tourism, agriculture and energy.

The State of Morelos has made progress inthis recommendation. The state is revisingand promoting different planninginstruments regarding risk, sustainabledevelopment and spatial planning, such asthe PEGROTM, the PEOTyDUSEM and thePROAIRE (sub-recommendation 27). Theseplans are yet to be implemented, andmunicipalities will need to harmonise theirown plans and programmes with those. Onnon-fossil fuelled transportation, the statesupported the conversion of 3 000 taxis tonatural gas. The transition to natural gas inpublic transportation modes such as buses

is missing, especially since the Morebusproject was postponed (sub-recommendation 29). Lastly, the state ofMorelos has signed international co-operation agreements in the past, but theengagement in outreach and partnershipscan become more strategic, in liaison withnational authorities (sub-recommendation28).

Indications for future progress:• Develop action plan to implement the

PEGROTM, in connection with Risk Atlas.

• Support municipalities in developingtheir own risk atlases by offeringcapacitation and assisting in channelingfunds.

• Elaborate diagnostic of the maindeficiencies of the state and how toovercome them with the support ofinternational co-operation.

• Continue promoting portfolio ofprojects of renewable energy andenergy sufficiency.

Preserving the environment by co-ordinating and implementing policies to mitigate climate change

16

Sub-recommendation Progress Medium-term

27. Design and implement a comprehensive plan for environmental protection


28. Foster the connection of state programmes to national and international environmental programmes


29. Promote the substitution of fossil combustion with gas for public transportation


Improving co-ordination with other regions canbring benefits in public service provision,economic growth, administrative capacity andreinforced bargaining power vis-a-vis the centralgovernment. Key institutions such as theCOPLADES can help better aligning strategicplanning objectives between the state andmunicipal levels while providing enough room toadapt policies to the local context.

There has been modest progress for the twoelements of this recommendation, yet thepotential for improvement remains high. Indeed,the co-ordinating role of the CONAGO has beenmaintained, but not strengthened (sub-recommendation 30). In enhancing relationshipswith neighbouring states, some co-operationagreements in the relevant areas of researchand tourism have been signed. Strategicmeetings between ministers of economicdevelopment have continued taking place. Co-ordination between the state and municipallevels shows some evolution (sub-recommendation 31). Relationships have beenstrengthened via an enhanced presence ofrepresentatives of the state at the meetings ofCOPLADEMUN. The state has also signed anagreement with some municipalities to channelresources from PRODIM to improve territorialplanning and build an atlas of risks.

Indications for the future progress:

• Leverage the deeper knowledge of theeconomy coming from the Human CapitalCouncil to better target co-operation.

• Make the most out of the recentinfrastructure investments to improveconnectivity with neighbouring states.

• The role of the COPLADE needs to be furtherclarified.

• Local challenges should be able to feedregional development plans and policies.

• Fiscal incentives could contribute to betteralign policies across levels of government andinvite municipalities to further invest incapacities at the local levels as well as thedevelopment of planning instruments.

• Building across levels of government will beessential to enhance co-ordination.

Governance and finance

Foster co-ordination of the state administration with municipalities, and with neighbouring states

17


30. The State of Morelos should seek strategic alliances with neighbouring regions and leverage the CONAGO forum.


31. Strengthen the roles of the COPLADES to improve strategic co-ordination between state and local administrations.


Restoring trust in the public administration,simplifying administrative procedures andenhancing state accountability remainpressing issues in Morelos, as it is for Mexico.Addressing these issues requires a long-termperspective.

Progress on these three fronts has beenoverall significant. A legal reform requiresthe administration to develop medium- andlong-term planning strategies, but littleevolution has been made on thedevelopment of a more stable civil service inthe public administration (sub-recommendation 32). Reforms have alsobeen undertaken to adapt the national anti-corruption regulation to state law, but somepolitical frictions and legal suits are stillpreventing the approval of the law; and noadvancement has been made to provide asingle-stop shop allowing citizens to navigatethe myriad of available funds (sub

recommendation 33). Finally, the evaluationmechanisms for social policies has beenstrengthened with the augmented provisionof funds and human resources to thecommission COEVAL (sub-recommendation34).


• Ensure strong relationship betweenplanning and budgeting.

• Focus more on long-term objectives withindicators based on outcomes.

• Ensure enough resources for the COEVALto train and evaluate municipalities

• Include more qualitative elements in thetransparency mechanisms and citizen-friendly data provision.

• Finalise the legal and institutionalarrangements of the national anti-corruption scheme.

Improve governance mechanisms and the business climate

18


32. Strengthen public administration and its long-term planning and implementation capacities.

Progress Long-term

33. Restore trust in the public administration by adopting the national anti-corruption policy and creating mechanisms for transparency and accountability.

Progress Long-term

34. Strengthen the capacities and scope of the State Council for the Evaluation of Social Development.

Significant progress

Medium-term

This recommendation concerns the management ofstate funds in order to improve the state’s capacityto raise revenues and spend them efficiently.

Progress has been positive. Some steps have beentaken to increase the tax base at the regional level(sub-recommendation 35). Agreements have beensigned between regional and some municipal taxadministrations to transfer coercive power to theregional tax administration in an effort to pullresources and increase administrative capacities(sub recommendation 36). Training of municipalpublic servants specialised on fiscal matter is alsobeing undertaken (sub-recommendation 37). Thequality of public expenditure is expected toimprove (sub-recommendation 39).

Regarding the transfer formulas, the state couldattach spending of funds by municipalities topriorities defined in their strategic plans andmonitor the impact of how funds are actually usedby municipalities. They could also establish anincentive system for municipalities, which may bebased on revenue collection rates in a given period(sub-recommendation 38).

These efforts go in the right direction. For changesto be promoted in the medium- and long-term, amore complex set of answers is required, as well asstronger political buy-in from the differentstakeholders.

19

Morelos should improve the management of its own funds, including transfers to municipalities


35. Undertake an audit of both the tax base and the tax collection mechanisms to improve own revenue collection in the State of Morelos.

Modest progress Short-term

36. Improve property tax revenue by updating cadastres, and then effectively collecting taxes.


37. Support local governments in increasing revenue from municipal services.

Modest progressMedium-term

38. Reform the transfer formulas to create incentives based on needs and policy outcomes.

Modest progressMedium-term

39. Resources for productive investments should have a results-oriented assignment mechanism conditional on co-ordination between municipalities

Modest progress

Medium-term

@OECD_local #OECDregions

Follow us on Twitter: OECD SMEs, Regions, Cities

More information: www.oecd.org/regional

policy highlights territorial review of morelos, mexicothe review is a follow-up study to the oecd...

Documents