《OECD TERRITORIAL REVIEWS》

Assessment and Recommendations11

Introduction29

Chapter 1. Territorial Disparities and Development PotenUals31

1.1. Disparities31

Macroeconomic performance and inequality31

Potential sources of inequa]ity and poverty36

The territorial dimension of inequality and poverty47

1.2. Unused potentials, local comparative advantages and development challenges74

Land regularisation74

Infrastructure75

Natural and cultural resources76

Industrial dusters84

Chapter 2. Territorial Governance in an Emerging Federation95

2.1. institutional background95

2.2. Strengthening institutional capacity and intergovernmental governance98

2.3. Fighting corruption: Rule of law and accountability101

2.4. Main features of fiscal federalism107

2.5. Reshaping education finance118

2.6. Conclusions and recommendations121

Chapter 3, Strategies and Policies for Territorial Development127

3.1. Strategies127

Recent changes in territorial po]icy131

Conclusions and recommendations135

3.2. Alleviating poverty137

General framework of poverty alleviation policy138

Increasing the educational level of the poor145

The Micro-region Programme149

Rethinking urban poverty157

Reaching more social cohesion: Indigenous peoples159

Conclusions and recommendations163

3.3. Competitiveness policy, foreign investment and support to SMEs164

Mexico: A fragmented economy165

Theprooucctivty and Innovation gap167

Conclusions and recommendations178

3.4. Enhancing connectivity: Transport and telecommunications infrastructure179

Connectivity infrastructure: The main issues179

Plan Puebla-Panama and connectivity for the South185

Conclusions and recommendations192

Acronyms197

Bibliography199