Tackling Inequality to Foster Growth

This chapter examines the interrelationship between economic and social challenges and the need to address both with regional policies that expressly look for policy complementarities between them. The chapter presents the reader with several dimensions of inequality in Chihuahua: interpersonal, regional, wage, gender and inter-ethnicity. The chapter continues with a section on insecurity trends in Chihuahua and the challenge it represents the review argues in this chapter that insecurity is one of the systemic challenges of the region and failure to curve down crime will impinge on any economic development strategy. The chapter revises policies at the federal and state levels to reduce inter-personal, regional, ethnic and gender inequality and while recognising the progress made thus far, it argues for an integrated approach to regional policy in which synergies between economic and social policies should be sought. The chapter ends with a discussion on fiscal challenges focusing on tax autonomy, the nature of federal transfers and the need to address recent indebtedness to avoid another systemic challenge.