ICTSD Programme on Competitiveness and Sustainable Development
17
Since the Automobile Decree of 1989, the assembly firms were obliged to maintain in 2002 a national value added (VAN) from Mexican sources of 30 percent in 2002 and 29 percent in 2003. The decree also established that the assembly could import new vehicles only when they account with a positive trade balance. The Automobile Decree also establishes that the manufacturers of auto parts have to maintain a VAN of at least 20 percent.
18
For a discussion of the literature on fragmentation see Puyana, Cord, 2007.
19
As a director of two dissertation works in obtaining a master’s degree in Public Policy at FLACSO, the author discovered that the programmes have clearly not been evaluated.
20
ECLAC considers as low productivity activities the following: micro business (less than 5 workers), domestic service and unqualified independent workers (CEPAL, 2006, Tables 21, 21a and 21b).
21
CEPAL defines low productivity activities as follows: i) micro enterprises (employers and wage earners in establishments with less than 5 workers); ii) domestic services; and iii) unskilled self–employed workers in construction, commerce and services, (CEPAL, 2006, Panorama Social de America Latina, 2005, Anexo Estadístico, Tables 21; 21.1; 21.2).
22
Table 29 (see Annex) presents the summary data and evolution of the relationship between wages for the two types of work.
23
For a detailed analysis of this point see, inter alia: World Bank (2001); Ingco and Nash, (2004); De Gorter, Ingco and Short, (2004); Polaski (2004); Schwentesius, R., ed., (2004); Puyana and Romero (2005a); and Anderson, Martin and van der Mensbrugghe, (2006).
24
The reasons are, inter alia, first, that the type of workers who migrate has not experienced any radical change; average wages in the destination country remain similar and average monthly remittances received by recipient households is stable. See CEPAL, 2006:Ch. I.
25
Such understanding is suggested by Stiglitz and Charlton (2006), under the title of “Country ownership”. “Best practices in aid delivery indicate that donors must be responsive to partner countries’ priorities for aid financed projects” (Stiglitz and Charlton, 2006:9).
26
“The aid should be designed to facilitate job creation in areas most adversely affected and to help those who have lost their jobs obtain alternative employment” (Stiglitz and Charlton, 2006:18).
27
For a list of such goods in the Mexican case, see Puyana and Romero, 2005c.
28
“In the context of low productive capacity, a deficient policy environment, poor infrastructure, poor access to technology, and missing/imperfect markets (especially financial markets), liberalized markets will not stimulate the required development to take advantage of new trading opportunities” (Stiglitz and Charlton, 2006:18).
29
“The Global Trade Facility could support the development of institutions capable of facilitating the transfer of technology (e.g. science and technology oriented universities, research centres, standards centres). It could help organize global internship programs, in which those from developing countries learn from the practices of the advanced industrial countries” (Stiglitz and Charlton, 2006:27).
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