NUEVO LEON'S ASSISTANCE PROGRAMS SOFTEN THE IMPACT OF

UNCLAS SECTION 01 OF 03 MONTERREY 000433

SIPDIS

E.O. 12958: N/A
TAGS: SOCI PGOV ECON PHUM MX
SUBJECT: NUEVO LEON'S ASSISTANCE PROGRAMS SOFTEN THE IMPACT OF
POVERTY

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1. Summary: Nuevo Leon is the second wealthiest state in
Mexico, yet it has pockets of poverty comparable to those in the
less developed and traditionally poorer southern states.
Nationwide, the poor face increases in the cost of living and a
drop in remittances from the U.S., factors which impact these
disadvantaged populations. So far Nuevo Leon's current state
government has managed to keep poverty levels down, despite
increases in the number of poor migrants from other parts of the
country, because of the state's comprehensive and evaluative
social program. Unfortunately, there is no guarantee the model
will remain once the current state government changes next year.
End Summary.




2. Nuevo Leon has long been known as one of Mexico's most
developed and economically well-off states, second only to the
Federal District. A strong industrial base and Monterrey's
Group of 10 founding companies have contributed to the state's
wealth and development. In 2007, Nuevo Leon's economy grew 5%,
above the national rate of 3.3%. It also drew US$1.8 billion in
foreign direct investment. Yet, according to 2005 statistics,
Nuevo Leon, with a population of nearly 4.2 million, has a
little over one million people at the poverty level (24.6% of
the total population). Out of 51 municipalities, six are
considered to have high levels of poverty. In comparison,
Chiapas has 119 municipalities, almost all of which are
considered to have high or very high levels of poverty.
According to the National Population Council, poverty levels are
measured on the basis of nine factors which include education,
sanitation, housing, utilities, occupation, and population
density. The municipalities in Nuevo Leon with high levels of
poverty are primarily in the rural southern part of the state,
and in the northern part, which has more migrants.



The Council for Social Development




3. The state entity currently responsible for addressing
poverty issues is the Council for Social Development. This
council was established by Governor Jose Natividad Gonzalez
Paras at the start of his administration in 2004. The Council
for Social Development is based on a French model and is run by
a civilian committee with an executive president. The committee
has 23 members, all of which are unpaid, chosen from different
sectors, such as universities, civic associations and the
business community. Currently, the Council has a budget of
about US$75 million, almost double its original budget in 2004.
By law, the Council's budget cannot be decreased. Personnel
include about 300 staff and 500 temporary project workers.




4. The Council has six programs designed to meet the needs of
various disadvantaged populations. These include Brigades for a
Dignified Life, mobile units that are dispatched to needy areas
to provide basic social services; Community Development Centers;
Everyone in Your Neighborhood, which uses alliances with
different sectors to improve housing, work and educational
opportunities; and Productive Projects, which consists of
workshops and training to teach new skills and strengthen
community ties. The Council added two programs in 2006, the
Assistance for the Elderly and Assistance for the Disabled.
According to Irma Martinez Jasso, Director of Planning,
Statistics and Evaluation, these last two programs have proved
to be very successful and popular since they covered prior gaps
in service coverage. She also pointed out that the Council's
programs are complementary to existing federal programs, and
residents of Nuevo Leon can receive both state and federal
assistance. Some of the Council's programs use a mix of state
and federal funds. She notes, however, that the state programs
are more focused and reach the neediest populations.




5. Since Nuevo Leon is wealthy and has generated industrial
employment, it serves as a magnet for migration from other
Mexican states. Various sources report that migrants who used to
pass through on their way to the U.S. are now staying in Nuevo
Leon. Wenceslao Ceballos Bautista, the Council's Community
Centers Coordinator, reported that entire communities have
formed within the state composed entirely of migrants. Despite
this, he stated that poverty levels in the state have remained
about the same.



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6. A unique aspect of Nuevo Leon's social assistance programs
is that they are evaluated by investigative committees.
According to Martinez, Nuevo Leon is the only state which uses a
committee to evaluate its programs. For example, in 2007 the
Council published an evaluation of its Community Centers, which
was the first in a series of investigations to measure the
impact of all the Council's programs. The latest study, not yet
published, compares the Elderly Care program with the national
social assistance program "Oportunidades." Martinez believes
that the Council for Social Development has succeeded not only
in assisting many underprivileged and previously unassisted
populations, but also in drawing attention to the issue of
poverty in Nuevo Leon.



Nuevo Leon's Disadvantaged Speak Out




7. In 2006, the Council for Social Development conducted a
survey of residents in economically disadvantaged areas to seek
their perspectives on their social and economic situations and
better understand the conditions of poverty in the state. Out
of 59 sectors classified as poor, 817 residents within those
sectors were surveyed; 439 in the Monterrey metropolitan area
and 378 throughout the rest of Nuevo Leon.




8. Survey participants were questioned about work and income,
well-being and social justice, poverty and vulnerability,
discrimination, social institutions, and government assistance.
In regards to food, 48% of respondents in the metropolitan area
and 57% outside it said they spend 40-60% of their income on
food. Given the recent increases in food prices, the percentage
is likely to be higher today. Despite this, about 80% of all
respondents expressed general satisfaction with food, housing,
public services and life. In fact, 54% of those in the
metropolitan area and 60% outside of it stated that life in
their community is good. Furthermore, 57% of those in the
metropolitan area and 49% in the rest of the state claimed they
were satisfied with their economic conditions. Yet, when asked
if the majority of state citizens have decent housing, 49% of
metropolitan respondents and 46% of non-metropolitan respondents
said no. When asked whether the majority of state citizens have
enough food, 50% and 48% respectively responded negatively.
This suggests that these residents may be better off than it
would seem, but that their perception of those around them is
that they are lacking basic needs.




9. Respondents' answers also indicated that there has been
progress in poverty reduction. When asked if they felt their
economic conditions were better or worse than that of their
parents, 71% of all respondents said they were better, following
long term national trends. Indeed, Nuevo Leon's poverty rate
went down in 2005, from 26.4% in 2004 to 24.6%. Respondents
were also optimistic about the future, as 87% of them think the
future economic situation of their children will also be better.
In regards to Governor Gonzalez's administration, 69% of those
in the non-metropolitan area believe that the government is
doing a better job in addressing poverty issues than before, as
compared to only 46% of those in the Monterrey metropolitan
area. As for government assistance in general, about 80% of all
respondents believe it helps people to get by, but not to get
ahead. Although participants were also asked about the social
programs offered by the Council for Social Development, few were
in a position to evaluate these as only 4% of those in the
metropolitan area and 9% outside of it claimed to be a
beneficiary of any of these programs.



A Non-governmental Alternative




10. An alternative or supplement to state government assistance
is Caritas, a charitable organization dedicated to serving the
poor and disadvantaged. It is part of Caritas International, a
confederation of Catholic relief, development and social
services organizations. Caritas in Monterrey was established in
1982 and is now considered to be the largest and most well-known
charitable organization in Nuevo Leon. It has five programs
which include health, nutrition, housing, human development, and
transportation. Although Caritas has a food and clothing bank,

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it is not predominantly a charity that provides handouts.
Rather, its work is case-based and consists largely of social
work. Its funding comes from both public and private sources,
including the state government, and has a budget of about US$5.6
million. Its personnel consist of 260 staff and 10,700 trained
volunteers. Caritas works closely with the Council for Social
Development, as well as with 50 other organizations.



11 According to Dr. Sanjuanita Torres, Deputy Director of
Health Assistance, Caritas handles thousands of cases, 90% of
which involve health issues. She noted that about 700,000
people per year receive some kind of assistance from Caritas.
In addition to tending to persons who appear at their 100
parishes and 47 clinics throughout the Monterrey metropolitan
area, Caritas also has five mobile units that go out every day
to disadvantaged rural and urban areas. Dr. Torres pointed out
that the assistance most commonly requested is food, work and
medicine. She reported that its food bank has felt the impact
of the rise in food prices, noting that corn and vegetable oil
now costs three times more. Although she could not say how much
of an impact these price increases have had on the needy, she
believes it is significant. She also noted that they are
currently conducting a study to evaluate the benefits of its
food program. The last study showed a 35% improvement in the
lives of its recipients.




12. Dr. Torres gave high marks to Governor Gonzalez's
administration stating he has given Caritas very good support.
In addition to assistance with funding, the state government has
provided training courses on how to improve services. She noted
that the private sector has also been generous, naming the
Texas-chain supermarket HEB as one of Caritas biggest sponsors.




13. Comment: It does not appear that cost of living increases
have had a significant impact on Nuevo Leon's disadvantaged
populations yet, but it is too soon to tell. Both federal and
state government assistance, as well as subsidies, appears to be
softening the blow. Nuevo Leon's broad range of social
development programs is also countering some of the negative
effects of increased costs and the general economic slow-down.
Yet, the question remains whether the Council for Social
Development and its programs will continue to exist once the
administration of Governor Gonzalez ends. Even if it does, the
civilian committee members and many key managers are not likely
to stay on. Most of these have taken a long leave of absence
from their permanent jobs as university professors, business
consultants, managers, etc. to serve on the civilian committee,
and they are likely to return to their waiting posts. Though
Governor Gonzalez may see the Council for Social Development as
one of his many legacies, it is likely to be superseded by the
next governor's desire to leave a legacy of his own. End
Comment.
WILLIAMSON