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Economic and financial crisis that hit the world during 2008 and 2009 severely impacted the lower income population in Mexico. While income generally declined for all deciles, as indicated by the INEGI in the presentation of the National Household Income and Expenditure Survey (ENIGH), the reduction in income is proportionally greater for the first deciles.
The Social Development Secretariat (SEDESOL) presented in July 2009 a report of the National Council for Evaluation of Social Development Policy (CONEVAL) in which unveil the 2008 poverty measurement.
According to the methodology adopted by CONEVAL, poverty information released is based on a measure of household income and the ability of these to buy a certain set of goods.
In this sense, the CONEVAL reported that 14.3% of households (18.2% of people) are in food poverty, 20.1% of households (25.1% of people) are in poverty of capabilities (including those in food poverty) and 40.2% of households (47.4% of people) live in conditions of material poverty (including those in food poverty and capabilities).
These figures indicate an increase in the number of Mexicans who do not have enough income to meet basic needs.
Poverty measure is based on two elements: one, measuring the income of a family, and two, the cost of various goods and services.
The level of poverty measured using the methodology of CONEVAL is closely linked to income sources and is particularly sensitive to general economic conditions, so an environment so severe of international economic recession generates affectation in poverty measurements.
Particularly, the ENIGH shows an important reduction in remuneration to subordinate work among the poorest, but also decreases in other revenue sources such as remittances and non-cash current income, while one of the items showing the growth of government transfers.
Another important factor to be taken into account for the results presented by CONEVAL is that in 2008 Mexico also faced an international rise in food prices and some basic food products.
This meant that the cost of common goods consumed by Mexican families and that used for measurement of poverty by CONEVAL, presented significant increases.
Thus, the combination of two factors determined internationally: an economic crisis that reduces the income of households and the rise in the price of food and other products, severely affected people who have less and generated increased observed in the levels of poverty.
Special needs
Is hard to imagine that most people in an emerging country with Mexico's growth potential is in precarious situations, but still is thinking about how to face the challenge.
Most of the dispossessed, 23.6 million live in urban areas (Mexico City, Monterrey, Guadalajara, Puebla, and Tijuana), while the remaining 21 million are in rural areas, particularly in southern states (Oaxaca, Guerrero, Chiapas, Tabasco, Veracruz and Yucatan), and other entities of central and western Mexico, including the State of Mexico, Hidalgo, Tlaxcala and Michoacan.
The overall picture cannot be complete without seeing the individual indicators, which can see the magnitude of the situation.
In this age of information, 7.7% of Mexicans cannot read or write, while 54.5% lack health care to the extent which is not registered to any of the social security schemes.
The latter is of vital importance in a time when the population is in the process of demographic transition and now, life expectancy exceeds 70 years for men and 75 for women.
It is also calling attention the inadequacy of public services for the vulnerable population: 10% of households lack drinking water, 13% has no drainage, while 30% of the buildings are made of unstable materials.
This requires from federal and local authorities a great deal of administrative and financial engineering to reach the most vulnerable groups and to properly address their specific needs.
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