Mexico needs to broaden and deepen itsfinancial system without compromising the financialstability gains of the last decade. Much more privateinvestment is needed to transform the economy to boostproductivity, and despite improvements in recent years, manyhouseholds and firms still lack adequate access to financialservices. Strengthening competition and streamlining keyregulations for firms are key to increasing Mexico'scompetitiveness. This note provides a medium-term agenda forsupporting Mexico's competitiveness by fosteringgreater innovation. This policy note outlines short- andmedium-term policy options for addressing criticalchallenges affecting labor markets in Mexico, and inparticular labor productivity. This note reviews thechallenges in Mexico's social protection system andpossible options to achieve an integral and effective systemthat is more than the sum of its parts. This policy notecontributes to the debate on Mexico's looming fiscalchallenges. To achieve higher growth and reduce poverty andinequality, Mexico needs to improve public service delivery.This note assesses Mexico's pending subnational fiscalreform agenda. This note is structured as follows: chapterone is fostering sound financial sector development; chaptertwo is toward a more competitive business environment;chapter three is fostering innovation for productivity andcompetitiveness; chapter four gives labor markets forinclusive growth; chapter five deals with promoting anintegral social protection system; chapter six deals withreducing the footprint of growth; chapter seven gives waysof using natural resources in an optimal way; chapter eightpresents managing medium-term fiscal challenges; chapternine deals with strengthening public revenue and expendituremanagement to enhance service delivery; and chapter ten isstrengthening subnational public finance.
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