second commitment



	Government Plan 2000-2006 AN ECONOMY THAT SERVES ALL AND IS IN HARMONY WITH THE ENVIRONMENT.
	PRESENTATION The second commitment of our government is to encourage the development of an economy that serves the people. Together we will ensure a greater number of better-paid jobs and a fairer distribution of wealth. We will boost production and seek more balanced regional development. We will promote rural and agricultural development supported by an industrial policy that favors their development. We will pay special attention to foreign trade and the transport and communications infrastructure: all this in an attempt to ensure that all the women and men of Guanajuato have the means available to them to ensure their individual growth and development. There can be no real progress where there is a conflict between wealth and nature. Similarly, since there can be no future where people fail to live in harmony with the environment, every action we take to benefit development will be taken in conjunction with a program that encourages respect for the environment and, above all, one that considers a policy regarding the supply, consumption and treatment of water a priority. CURRENT SITUATION PRODUCTION In terms of its contribution to the national economy, the state of Guanajuato stands in eighth place¹⁹, accounting for approximately 3.3% of national Gross Domestic Product. From 1995 on, the state economy maintained an average growth rate of 5% p.a.²⁰. The state boasts a combination of soil and climatic conditions that enable it to produce a wide variety of agricultural products. However, grains such as maize and sorghum predominate. This has resulted in oversupply and marketing problems which reduce market prices and provoke problems that, in some cases, have reduced investment in the sector and discouraged agricultural activity. Manufacturing activity has gained evermore importance within the state: in 1995, for example, it accounted for 19.1% of state GDP, rising to 20.7% by 1999. The most dynamic elements of the manufacturing sector include: the textile industry (clothing and leather) and the metallic products industry (machinery and equipment). From 1995 to 1999, these industries grew by 30.8 and 42.8% respectively, whilst activity in the timber industry fell by 46.8%. In the state, micro, small and medium-sized enterprises have not been completely successful in their attempts to form part of the local and national chain of production, and have experienced difficulties in breaking into national and international markets. The main problems have been the lack of training available to workers and executives, the precariousness of markets, and the limited access to technical and technological support that would allow them to improve quality and productivity. The full development of manufacturing activity in the state has been impeded by a number of factors: limited access to timely financing, the lack of an enterprise and exporting culture, the limited use of administration and investment systems, together with a general lack of competitiveness The concentration of industry in the Bajio region’s industrial corridor has meant that development there has been superior to that experienced in the state’s southern and northern regions. This in turn has resulted in uneven demographic growth. Furthermore, there are no land regulations that would allow more sound social and economic development TOURISM The state has succeeded in consolidating the cities of Guanajuato, San Miguel de Allende and Leon as important tourist destinations. Indeed, these three cities account for 50% of hotel availability within the state. The tourist sector will need to maintain the importance of these its principle destinations, as well as promote other sites, both conventional and alternative. Our state receives some 2.8 million tourists a year, of whom 7% come from abroad. The average stay of each visitor is around 1.5 days²¹. The state’s hotel industry employs 2.11% of all service sector employees. This places Guanajuato in eighth place nationally in terms of the number of personnel employed in this industry²². EMPLOYMENT Between 1999 and 2000, the average number of people in the state permanently affiliated to the IMSS (the Mexican Institute of Social Security) rose from 478,506 to 499,280, an increase of 4.3%. The increase in the number of people temporarily affiliated was even greater, reaching a figure of 19.1%. The overall increase was of some 31,391 new affiliates, a total increase over the period of 5.9%²³. The footwear industry is one of the most important sources of employment to be found in the commercial, service and manufacturing sectors. In 1998, it employed some 71,790 people, that is, 10.5% of all those employed in the aforementioned sectors. The new investment that has been attracted to the region as a result of increased opening and greater diversification in business has created a need for a more highly qualified workforce to operate evermore-sophisticated technology. This situation has also resulted in a need to strengthen training and higher education in order to reach equilibrium between labor supply and demand within the state. In the last five years, a third of all production projects that have come to the region have been set up in municipalities that lie outside the Bajio’s Industrial Corridor. Nevertheless, the municipalities of Leon, Celaya and Silao lead the way in terms of the amount of investment that they have attracted²⁴. THE ENVIRONMENT One aspect that is closely linked to the state’s productive sector is that related to conservation of the environment and the use of natural resources. Of all the water available in the state, 74% is drawn from underground sources and 26% from the surface. The principle users of this supply are agriculture, which uses some 83.28% of the total, followed by domestic users with 14.95% and industry with 1.77%²⁵. The main problems facing the state’s water supply are the overexploitation of underground water deposits, the contamination of surface water due to urban and industrial wastewater discharges, and inadequate use. As for land use, agriculture occupies 1,332,028 hectares, cattle farming 1,565,453, forests 20,849, industrial activity 16,671 hectares, urban areas 64,019, and 59,879 are used for other purposes²⁶. Some 48% of the total area of the state shows signs of soil erosion caused mainly by the massive use of agricultural chemicals and pesticides in agriculture and the constant change in land use brought about by urban growth and agricultural activity ²⁷. Around 274,000 hectares have been identified as being in need of action to ensure their conservation. Atmospheric pollution is a major problem facing the state, particularly in the Bajio’s Industrial Corridor, although there is no data regarding which sectors or activities are primarily responsible for this. INFRASTRUCTURE Guanajuato possesses an important communications infrastructure (1,084km of railway tracks, 3,079.6km of freeways, 302km of highways and an international airport) that makes it an attractive option for domestic and international investors. The state’s road network attained a classification of 3.46 (on a scale of 1 - 5) in terms of service²⁸ on an index that took various characteristics into account, such as quality of the asphalt, signposting, road shoulders, technical specifications, etc., compared to a national average of 3. This evidently reflects well upon the quality of the state’s communications infrastructure FOREIGN TRADE In 1997 and 1998, the trade balance for the state of Guanajuato showed a surplus resulting from a rise in the number of exports and a fall in the number of imports. OBJECTIVES GENERAL OBJECTIVE 1. To stimulate the creation of meaningful and well-paid jobs. SPECIFIC OBJECTIVE 1.1 To promote and attract productive investment that will generate better-paid jobs. Goals to 2006 • To attract 3 billion dollars in investment. • To generate 50,000 direct new jobs annually. • To reduce the annual rate of open unemployment to at least 10% below the national average. Strategies 1.1.1 Promote productive investment in keeping with the range of skills present in municipalities and regions. 1.1.2 Integrate the state's various productive processes. 1.1.3 Promote diversification amongst the range of productive sectors established in the state. ACTIONS • Simplify the bureaucratic procedures required when setting up a new business. • Boost the electronics and software sectors. • Channel productive investment towards rural and underprivileged areas in order to create employment and benefit the population. SPECIFIC OBJECTIVE 1.2 To promote an environment of judicial certainty in the state’s productive activities. Goals to 2006 • To cooperate with the Legislative Power in the drawing up of legislation to encourage economic growth in the state, as well as in its corresponding implementation. Strategies 1.2.1 Create a policy which encourages economic activity in the state within a framework of legal certainty. ACTIONS • Set up a commission to review the existing norms pertaining to the promotion of economic growth and draw up proposals for its reform and application. SPECIFIC OBJECTIVE 1.3 To develop the skills and work potential of the population. Goals to 2006 • To carry out training in productive activities involving a total of 945,000 people between 2000 and 2006. Strategies 1.3.1 Develop permanent training networks, particularly for the economically active population. 1.3.2 Create a system of training and certification based on skills requirements and occupational profiles. 1.3.3 Link the syllabi of educational institutions to the demands of productive sectors. ACTIONS • Carry out training programs for people in vulnerable sectors and those living in underprivileged areas. • Reinforce the training of a skilled labor force. • Enhance the work of employment bureaus and hold employment fairs to put those seeking employment in touch with work opportunities. SPECIFIC OBJECTIVE 1.4 To strengthen sustainable productive activity in the agriculture and livestock sector. Goals to 2006 • To rehabilitate 145,000 hectares of the state’s watersheds, subwatersheds, and microwatersheds. • To support 35,000 producers annually in marketing measures. • To provide advice and support to 5,000 producers annually, regarding livestock, and introducing agricultural equipment. Strategies. 1.4.1 Implement projects aimed at revitalizing the state’s watersheds and natural resources. 1.4.2 Encourage the formation of rural microenterprises. 1.4.3 Implement marketing schemes for agricultural products. 1.4.4 Return land to agricultural use. Actions. • Develop projects aimed at regenerating watersheds. • Provide agricultural producers with technical assistance to facilitate the modernization of their work processes. • Support the creation of microenterprises in rural districts. • Strengthen the development of markets by providing initial funding resources. SPECIFIC OBJECTIVE 1.5 To initiate economic development within the state by means of special projects. Goals to 2006 • To boost 3 development focal points. • To install 6 industrial parks. • To implement six special development projects. Strategies 1.5.1 Promote strategic short, medium and long-term productive infrastructure projects. 1.5.2 Generate development focal points. ACTIONS • Boost the automobile, auto parts, leatherwear, footwear, textile and software sectors. • Encourage development focal points in the north (San Luis de la Paz - San José Iturbide), and in the Penjamo and the del Rincon municipalities. • Consolidate the Yuriria-Moroleon and Uriangato regional development focal point. • Develop Industrial Parks in Apaseo el Grande, San Luis de la Paz, Irapuato, Occidente (San Francisco del Rincon-Purisima del Rincon-Manuel Doblado), Silao and Leon. • Press forward the following special projects: • Silao Internal Port (including Customs Office, multimode cargo terminal, airport, industrial complex and general service center). • Leon Poliforum • Irapuato Exhibition Center. • An intercity train system joining the cities of the industrial corridor. • Rail bypass in Celaya • An auditorium in San Miguel Allende. GENERAL OBJECTIVE 2. To bring about an increase in productivity and competitiveness, together with an increase in financing and job protection in all sectors. Goals to 2006 • To achieve a rate of state GDP that is 10% higher than the national average. • To improve the position of the state’s economy in relation to the national economy as a whole. SPECIFIC OBJECTIVE 2.1 To encourage an ongoing entrepreneurial culture amongst micro, small and medium-sized enterprises. Goals to 2006 • To support 2,400 micro, small and medium-sized enterprises with workshops and programs dealing with production increase. • To provide administrative training for 20,000 entrepreneurs and middle management employees in micro, small and medium-sized enterprises. • To endorse the occupational standards and profiles of 40,000 employees. Strategies 2.1.1 Encourage the certification of companies to demonstrate their meeting national and international quality standards. ACTIONS • Initiate total quality programs and schemes. • Link training to micro and small enterprise programs. SPECIFIC OBJECTIVE 2.2 To support research and technology transfer projects aimed at developing productive sectors. Goals to 2006 • Develop 120 new research and technological development projects. • Promote technological innovation and/or improvement in 1,700 products by encouraging the participation of educational, research and technological development institutions. Strategies 2.2.1 Finance technological development and research projects. 2.2.2 Provide technical assistance to productive sectors. 2.2.3 Create networks of technology centers to aid micro, small and medium-sized enterprises. 2.2.4 Consolidate applied technology centers. ACTIONS • Promote scientific and technological development in research centers and in further education institutions. • Encourage links between productive sectors, research centers and further education institutions. • Finance scientific and technological development projects. • Encourage private sector support for scientific and technological development research efforts. SPECIFIC OBJECTIVE 2.3 To encourage greater links between companies involved in the same lines of industry or related in terms of their productive processes. Goals to 2006 • To organize three companies to coordinate and integrate the purchases, production and marketing of firms involved in the same or related lines of industry. • To provide support for 30 business conglomerations of firms involved in the same or related lines of industry. Strategies 2.3.1 Consolidation of each sector’s consultation councils. 2.3.2 Encourage and aenhance the development of local suppliers. ACTIONS • Encourage the integration of production processes. • Facilitate the integration and combining of groups of local producers. SPECIFIC OBJECTIVE 2.4 To make it easier for micro, small and medium-sized enterprises to acquire funding and capital for viable projects. Goals to 2006 • To provide advice and training in financing to 15,000 firms. • To provide capital and support in financial aspects to 30,000 entrepreneurs involved in micro, small and medium-sized enterprises. Strategies. 2.4.1 Consolidate microfinance institutions. 2.4.2 Promote smaller and more accessible savings and credit institutions. 2.4.3 Provide support in the development process of viable projects in order to make it easier for them to acquire financing. ACTIONS • Facilitate access to financing in competitive conditions and in accordance with the nature of each project. • Promote financing mechanisms that employ local resources. • Provide advice and training to entrepreneurs in the preparation of projects and their financial management. • Establish guarantee funds for micro, small and medium-sized enterprises. SPECIFIC OBJECTIVE 2.5 To boost the marketing of products and services supplied by micro, small and medium-sized enterprises. Goals to 2006. • To provide support in the marketing of 3,000 products and services. • To promote 2,000 companies. STRATEGIES 2.5.1 Innovate systems of marketing. 2.5.2 Promote business opportunities. ACTIONS • Encourage the development and funding of publicity campaigns, fairs and missions to promote products. • Develop research into markets and campaigns aimed at penetrating them. GENERAL OBJECTIVE 3. To guarantee respect for and the rational use of natural resources in the social and economic development of the state. SPECIFIC OBJECTIVE 3.1 To establish and put into force a regulatory framework to protect, conserve and bring about the regeneration of the environment. Goals to 2006 • To prepare 10 rules to deal with technical/ecological matters that are required for the sustainable economic development of the state and the process of federal decentralization. • To bring about the drawing up of a system of ecological regulations and guidelines in the state’s 46 municipalities. • To encourage the state’s municipalities to dispose of solid waste in accordance with regulations. STRATEGIES 3.1.1 Promote and encourage the use of environmentally friendly technology in productive processes. 3.1.2 Decentralize environmental management towards the municipalities 3.1.3 Introduce industrial practices that favor sustainable development. ACTIONS • Develop and distribute a system of environmental rules and regulations. • Encourage the use of safe technology that favors sustainable development. • Advance municipal agreements regarding environmental issues. • Create sound programs to deal with the disposal of solid waste. SPECIFIC OBJECTIVE 3.2 To make good use of, to conserve, and to bring about the regeneration of natural resources. Goals to 2006 • To declare as protected 17 areas within the state covering a total area of 274,000 hectares. • To improve the quality of the environment of 40% of the area surrounding the state’s highways (1,200km). • To reduce the deficit between the amount extracted and the amount replacing the state’s underground water deposits by 30%. STRATEGIES 3.2.1 Declare and ensure the appropriate use protected nature reserves. 3.2.3 Carry out a program of reforestation in the areas surrounding the state’s highways. 3.2.4 Campaign to encourage people to value and conserve water and to use it more rationally. ACTIONS • Commission studies aimed at identifying areas to be declared nature reserves, decide which are valid and formalize the declaration and operation of these areas. • Design information and promotion programs aimed at encouraging the conservation and efficient use of water. • Identify areas, techniques and species that favor the reforestation of the areas surrounding the state’s highways. SPECIFIC OBJECTIVE 3.3 To establish the bases for public participation in the conservation of natural resources, respect for the environment and sustainable development. Goals to 2006 • To carry out training activities in environmental matters in 46 municipal governments, 450 industries and 100% of non-governmental environmental organizations (NGOs). STRATEGIES 3.3.1 Sound management in the conservation and use of natural resources. ACTIONS • Boost the general involvement of the public in environmental issues and environmental conservation. • Provide environmental education programs at all levels and in all sectors. • Provide support for environmental conservation projects. GENERAL OBJECTIVE 4. To reinforce the infrastructure required for economic growth and social development. SPECIFIC OBJECTIVE 4.1 To build, conserve, modernize, and regulate road infrastructure in accordance with the needs of the state. Goals to 2006 • To build and/or modernize 100 km of state highways annually. • To ensure the comfort and safety of the state’s highways to a level of service factor of 3.46. STRATEGIES 4.1.1 Modernize the state road network. 4.1.2 Bring together and optimize the resources available from the three levels of government for road building. ACTIONS Build new highways from: • San Luis de la Paz to Xichu – Atarjea - Santa Catarina. • Silao to San Felipe • Build freeways and main roads in: Celaya; Valle de Santiago; Dolores Hidalgo; Empalme Escobedo and Comonfort; Guanajuato and Irapuato. Highway modernization: • No. 45 Celaya-Salamanca Federal Highway. • No. 90 Abasolo-Penjamo Federal Highway. • No. 45 Irapuato to Leon Federal Highway. • Salamanca to Moroleon highway and the Celaya to San Miguel de Allende - Highway 57. • La Ordeña highway, crossroads at Juventino Rosas. • Celaya to Juventino Rosas highway. • To take permanent action to preserve the road infrastructure. To build state highways from: • Irapuato to Leon. • Guanajuato to San Miguel de Allende. • Moroleon to Celaya - San Miguel de Allende - San Luis de la Paz and its connection to Salamanca. SPECIFIC OBJECTIVE 4.2 To consolidate regional involvement in the state. Goals to 2006 To create a Land Ordinance Plan. Strategies 4.2.1 Set out and apply mechanisms and rules to govern the use of land. 4.2.2 Effective exploitation of land potential in the drawing up of regional and urban development strategies. ACTIONS • Identify the optimal location of infrastructure projects and regional development focal points. GENERAL OBJECTIVE 5. To promote the provision of international standard tourist services. SPECIFIC OBJECTIVE 5.1 To increase the flow and length of stay of domestic and international tourists. Goals to 2006 • To achieve a total of 20 million tourists in the period 2000-2006. • To increase the average stay of tourists from 1.5 days in the year 2000 to 2 days by 2006. • To obtain international certification for 50 companies involved in the tourist industry. • To achieve an income of 55 million dollars from the tourist sector during the period 2000-2006. Strategies 5.1.1 Promote the state in domestic and international markets. 5.1.2 Operate and integrate regional tourism councils. ACTIONS • Establish sales channels for tourist services through direct marketing. • Increase and diversify the supply and quality of tourist services. • Promote the development of service and goods providers in the tourism sector: • Integrate the state tourist information service. SPECIFIC OBJECTIVE 5.2 To encourage and develop the state’s tourism industry. Goals to 2006 • Increase hotel availability by 15%. • Provide support in the creation of 120 companies involved in tourism. Strategies 5.2.1 Attract investment in the tourist industry. 5.2.2 Encourage the consolidation of companies involved in the tourist industry. 5.2.3 Stimulate regional tourist development. 5.2.4 Promote the development of alternative tourism. ACTIONS • Provide advice regarding the integration and diversification of companies in the state’s tourist sector. • Establish mechanisms to enable the participation of authorities from the three levels of government in the promotion of conventional and alternative tourism • Facilitate the creation and operation of tourist service companies at the community level. GENERAL OBJECTIVE 6. Encourage increased exports within the state. SPECIFIC OBJECTIVE 6.1 Promote a sound support policy for the export of Guanajuato products. Goals to 2006 • 150 new exporting companies in the state. • To consolidate the existing 1,500 exporting companies. • To consolidate 400 export projects. • 25% increase in exports compared to those achieved in the year 2000. Strategies 6.1.1 Promote the creation of exporting companies. 6.1.2 Encourage an export culture in Guanajuato’s businesses. 6.1.3 Provide training in foreign trade norms and techniques. 6.1.4 Set up mechanisms to enable cooperation between national and international foreign trade organizations. ACTIONS • Support a business-training center for foreign trade development. • Grant direct support for activities related to the promotion and development of foreign trade. • Boost handcraft, headwear, leatherwear, metalware and mechanical exports. NOTES 19) INEGI. Sistema de Cuentas Nacionales de México – Mexico’s System of National Watersheds – GNP by federal unit: 1993-1999, 2000. 20) Idem. 21) Guanajuato State Tourism Office. 22) INEGI - Economic Census 1999. 23) http://gto.inegi.gob.mx. 24) Department of Sustainable Economic Growth. Chronicles 1995-2000. 25) Comisión Estatal de Agua de Guanajuato (CEAG) - Guanajuato State Water Commission – analysis of hydrological and underground water deposit studies in the state of Guanajuato, 1998 - 2000. Balance update (CEAG, 2000). 26) IEE. Informe Ambiental del Estado de Guanajuato – Guanajuato state environmental report - 2000. 27) Idem.