This note reviews the challenges inMexico s social protection system and possible options toachieve an integral and effective system that is more thanthe sum of its parts. Mexico s social protection systemincludes contributory social security schemes, socialassistance programs, and labor market programs. Thecontributory social security schemes offer pensions andhealth insurance to formal sector workers to protect againstincome shocks and help smooth consumption over the lifecycle. The recent noncontributory Social Protection Systemin Health (SPSH) provides health insurance to people notcovered by formal schemes. To prevent poverty and promotegreater human development, Mexico has several socialassistance interventions, including Oportunidades, aconditional cash transfer program for the chronically poor,and 70 y Mas, a noncontributory old-age income-supportprogram. Finally, the social protection system also includesseveral labor market interventions that promoteemployability, facilitate job matching, and protect workersagainst economic shocks. This note reviews the progressachieved so far by Mexico s social protection system and itsremaining challenges to achieve an integrated system thatprovides effective protection to all Mexicans from incomeshocks, that helps them smooth consumption over the lifecycle and promotes greater human development.
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