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 MONTERREY 00000433 001.2 OF 003 ¶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. MONTERREY 00000433 002.2 OF 003 ¶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, MONTERREY 00000433 003.2 OF 003 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