Araceli Damian - Adjustment, Poverty and Employment in Mexico

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ADJUSTMENT, POVERTY AND EMPLOYMENT IN MEXICO

To my beloved Len and Julio

Adjustment, Poverty and Employment in Mexico

ARACELI DAMIN

El Colegio de Mxico

First published 2000 by Ashgate Publishing

Reissued 2018 by Routledge

2 Park Square, Milton Park, Abingdon, Oxon OX14 4RN

711 Third Avenue, New York, NY 10017, USA

Routledge is an imprint of the Taylor & Francis Group, an informa business

Copyright Araceli Damin 2000

All rights reserved. No part of this book may be reprinted or reproduced or utilised in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in writing from the publishers.

Notice:

Product or corporate names may be trademarks or registered trademarks, and are used only for identification and explanation without intent to infringe.

Publishers Note

The publisher has gone to great lengths to ensure the quality of this reprint but points out that some imperfections in the original copies may be apparent.

Disclaimer

The publisher has made every effort to trace copyright holders and welcomes correspondence from those they have been unable to contact.

A Library of Congress record exists under LC control number: 00134008

ISBN 13: 978-1-138-72868-4 (hbk)

ISBN 13: 978-1-315-19045-7 (ebk)

Contents

CENIET	Centro Nacional de Informacin y Estadistica del Trabajo National Centre for Employment Statistical Data
CEPAL	Comisin Econmica para Amrica Latina Economic Commission for Latin America and the Caribbean
CONAPO	Consejo Nacional de Poblacin National Population Council
COPLAMAR	Coordinacin General del Plan de Zonas Deprimidas y Grupos Marginados General Coordination of the National Plan for Depressed Zones and Marginalized Groups
EA	Equivalent Adult
EAP	Economically Active Population
ECLAC	Economic Commission for Latin America and the Caribbean
ECSO	Encuesta Continua sobre Ocupacin Continued Occupational Survey
ELFPR	Equivalent Labour Force Participation Rate
ENE	Encuesta Nacional de Empleo National Employment Survey
ENEU	Encuesta Nacional de Empleo Urbano National Survey of Urban Employment
ENIGH	Encuesta Nacional de Ingresos y Gastos de los Hogares Household Income and Expenditure National Survey
EPL	Extreme Poverty Line
EWT	Excess Working Time
HLFPR	Household Labour Force Participation Rate
ILO	International Labour Organisation
IMF	International Monetary Fund
IMSS	Instituto Mexicano del Seguro Social Mexican Institute of Social Security
INCO	Instituto Nacional del Consumidor National Consumer Institute
INEGI	Instituto Nacional de Estadstica, Geografa e Informtica National Institute of Statistics, Geography and Informatics
INNSZ	Instituto Nacional de Nutricin Salvador Zubirn National Institute of Nutrition Salvador Zubirn
IPMM	Integrated Poverty Measurement Method
LFPR	Labour Force Participation Rate
LSS	Labour Survival Strategies
LSSCT	Labour Survival Strategies Current of Thought
MAMC	Metropolitan Area of Mexico City
NA	National Accounts
NBES	Normative Basket of Essential Satisfiers
OECD	Organisation of Economic Cooperation and Development
PL	Poverty Line
PNUD	Programa de Naciones Unidas para el Desarrollo United Nations Development Project
SBSS	Standard Basket of Subsistence Satisfiers
SFB	Standard Food Basket
SPP	Secretara de Programacin y Presupuesto Secretariat of Programming and Budget
STPS	Secretara del Trabajo y Previsin Social Secretariat of Labour and Social Welfare
UBN	Unsatisfied Basic Needs
UNDP	United Nations Development Project
YT	Income Time

The 1992 World Development Report estimated that the absolute number of poor increased by more than 100 million during the five-year period from 1985 to 1990 (World Bank, 1992:30). The increase in the number of poor during the 1980s took place in parallel with the implementation of structural adjustment reforms, especially in Sub-Saharan African countries and in many Latin American countries. The increase in poverty in the context of adjustment programmes has given rise to the question of whether or not these programmes were the cause of, or even a major contribution to, this increase in poverty.

The relationship between structural adjustment policies and the increase in poverty has become the subject of a vigorous policy debate. Some scholars have suggested that adjustments have had social costs in employment and in income losses (increasing the number of the working poor), as well as in regard to a deterioration of social indicators, such as school enrolment, nutrition and health (see Cornia, et al., 1987 and Stewart, 1995). Other writers postulate that the results of structural adjustment policies have been generally encouraging, in the sense that adjustment has contributed to a more rapid GDP growth in many countries, and, consequently, the poor have benefited (see Please, 1996; and World Bank, 1995 and 1996a).

This book is concerned with the changes in the living conditions of the Mexican population and, in particular, of the population living in Mexico City, including a sample survey conducted in one of its poor neighbourhoods.1 The period of analysis covers 1982 until 1994, that is, when stabilisation and structural adjustment policies were implemented in Mexico.

The present chapter discusses the almost universal process of structural adjustment implemented in many developing countries during the 1980s and the main arguments concerning the implications of that process for poverty and economic growth. I will also examine the main methodological problems involved in the measurement of the impact of adjustment policies on the economy and on poverty.

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