Juarez Strategic Plan Association

Sugerencias y herramientas para crear para crear y presentar

diapositivas en formato panorámico

Juárez at a Crossroads:

from a Juárez Strategic Plan Optical Approach

Presented at:

Border Trade Alliance ConferenceSecurity and Safety: The Impact of Cross-Border Trade

February 23-24, 2009

Mexico, D.F.



Juárez Strategic Plan AssociationCentral Objetive:

Promote the organization of the community so that public, private and social institutions, together,

elaborate and implement a

Strategic Plan for Juárez that contemplates all dimensions of

development with the aim of substantially improving the quality of life of the city.

A long-term, comprehensive development strategy for Juárez



Why a Strategic Plan for Juárez?



JUAREZ

KEY CHALLENGE:to achieve

sustained growth with

sustainable development



JUAREZ SNAPSHOT (+)

• Strategic geographic location• High economic growth vis-à-vis the rest of Mexico• Hard-working, dynamic and entrepreneurial people• Maquiladora Sector (global production sharing)

• High FDI levels; strong industrial-park infrastructure • International reputation for its manufacturing base

(presence of over 70 Fortune 500 firms)• State-of-the-art technology• Technical, engineering and R&D centers (Delphi MTC)

• Strategic alliances and linkages with the local economy• Tight link with the U.S. economy (U.S.-demand-driven) • Considerable employment impact

Source: Mexico NOW



JUAREZ SNAPSHOT (-)• POPULATION: 1.5 million approx.; Mexico’s 5th-largest city

Traditionally, high population growth through in-migration

• SIGNIFICANT UNDERDEVELOPMENT: – 580,000 residents in some form of poverty– Estimated cost to improve conditions in poverty areas: US$ 3.3 billion – Annual city budget: US$ 275 million

• KEY PROBLEMS / BOTTLENECKS:• Basic services• Housing • Health • Education• Road pavement• Security and safety, narcotics traffic• Increasingly negative image through crime/violence situation

• Incorporation of results of previous phases

• Draf of the Plan: strategies, actions and projects

• Follow-up groups and mechanisms

• Public presentation and approval of the Plan:

La Propuesta: VISION 2015

• Public forumsPublic forums

• Scenario Analysis

• First list of initiatives and projectsFirst list of initiatives and projects

• Project forumsProject forums

• Analysis of existing data and informationAnalysis of existing data and information

• Project Task Forces

• Diagnostic analysis

2002–2004 Calendar2002–2004 Calendar Phases of the PlanPhases of the Plan Principal tasksPrincipal tasks

• Vision or city model

DEFINITION OF DEFINITION OF TASKS TASKS

STRATEGIC STRATEGIC FRAMEWORKFRAMEWORK

DIAGNOSISDIAGNOSIS

DEFINITION OF DEFINITION OF PROJECTSPROJECTS

IMPLEMENTATION IMPLEMENTATION AND FOLLOW-UPAND FOLLOW-UP

MayMay

March 2004March 2004

SeptemberSeptember

September 2002September 2002

February 2003February 2003

PRINCIPAL PHASES AND TASKS OF PLAN JUÁREZ

• Analysis of preliminary information and interviews of Steering Committee members

• Pre-assessment Pre-assessment ““¿Quién es Juárez?”¿Quién es Juárez?”

December 2003 December 2003

• Interviews of specialists

• Population survey

• Public opinion pollPublic opinion poll

September 2004September 2004

October 2004October 2004

• “ “El Juárez que queremos” El Juárez que queremos”



Plan JuárezCitizen Participation

Consultation and participation of the community at large

(representation of all sectors)

Total: 14,000+ personas

VISIONEl Juárez que queremos

Juárez, head of a metropolitan binational region, a socially-integrated place with a high

quality of life, a center of educational excellence

and cultural creation with a dynamic economy

highly capable of generating quality employment

and wealth among its citizens.

The Juárez we envision




VISION



Metropolitan infrastructure development

Comprehensive neighborhood development

Civic interaction

Pact for education Pact for culture

Recovery of the city’s

historical heritage

Juárez, city of expositions and

conventions

Promotion and recruitmentof high value-added

investments

Juárez, automotive center

Promotion of localentrepreneurial

activities

Governance and binational cooperation

Pact for sustainable

mobility

Sustainable development of the

new Juárez

New financing model for Juárez

Health industry development

and promotion

Juárez, bilingual city Juárez, safe city

New image for Juárez

Strategic Projects, engines of change to achieve the Juárez we envision

Juárez, cabecera de una reunión metropolitana binacional

Juárez, espacio de convivencia conun alto desarrollo social y

elevados estándares de calidad de vida

Juárez, Centro de excelencia

educativa y de creación cultural

Juárez, economía pujante

generadora de riqueza y alto valor agregado

Eje 1 Eje 2

Eje 3 Eje 4

El Juárezque queremos

(Visión)

El Juárezque queremos

(Visión)

Racionalización e impulso

a las infraestrctucturas

Metrópoli Binacional

Nuevas Centralidades

Apuesta por la identidad y

culturas propias

Nuevas formasde gobernabilidad

Metropolitana

Marco de relaciones

Estatal y FederalCiudad Bilingue

Espacio de covivenciacon alto

desarrollo social

Lucha contra lainseguiridad,

violencia e impunidad

CIudad de derechos

Viviendas y barrios

más dignos

Acceso universal

servicios básicos de calidad

Movilidadsostenible y

transportepúblico

Pacto por unadesarrollosostenible

Calidad Educativa

Refuerzo a laformaciónprofesional

Centro de referencia

en educaciónsuperior e

investigación de la frontera norte

Mosaico cultural y plataforma

para la creación artística

Programa de impuslo y

mejora de los equipamientos

culturales

Ciudad atractiva para las

inversiones de alto

valor agregado

Desarrollo de nuevas

centralidade económicas

Apuesta por sl sector

servicios

Estrategia integral

de turismo, entretenimiento

y cultura

Marco favorable a las inciativas empresariales

Mejorar y optimizar la

obtención de fondos

y recursos financieros

Polo logístico

Centro de negcios Ponaf-Wordl Trade Center

Area para la implantación de

empresas de software

La industria de la salud

Observatorio económico empresarial

Política pro-activa

de promoción y captación de inversiones

Plan de impulso a la innovacióncomo fuente de

desarrollo económico

Desarrollo de laindustria

automotríz

Política activa de suelo para actividades económicas

Grupos de proyecto identificados

Impulso al comercio

“histórico”

Plan de Marketing

de la ciudad

Programa de impulso de los

servicios a empresas

Centro de exposiciones y convenciones

Oficina única del

empresario

Productos turísticosde Juárez

Centro para nuevos

emprendedores

Concurso de ideas

innovadoras

Programa de Incentivos“forntera

emprende”

Pacto-interInstitucional para lograr

más recursos



Implementation Stage



SD1: Binational Metropolis “Green” and Ecological Network

SD 2: Social Development Integral Neighborhood Development

SD 3: Educational Excellence and Cultural Creation Network of Art, Science and Knowledge Education Forum / Education Promotion InstituteSD 4: Thriving, wealth-generating and high value added

economy Expo and Convention Center Promotion and recruitment of high value added investments

(Competitiveness/Benchmarking Study to identify strategic niches)

PLAN JUAREZ Implementation: Pilot or Initial Projects

PLAN JUAREZ Implementation: Pilot or Initial Projects



Implementation Results:

not as expected given the planning tool



Where the Plan is Now:

the importance of Governance




VISION



Juárez Strategic Plan Mandate…a commitment to improve governance in Juárez





Directrices y Principios que guían el Pacto por la Gobernabilidad de Juárez

Pact for Governance in Juárez

7 Key Principles Respect for laws and institutions

A citizenry aware of its rights and respectful of its obligations

Citizen participation in the formulation and implementation of public policies

Efficiency, efficacy and promotion of objective evaluation and measurement as a basic tool of improvement

Professionalism of public sector functions

Transparency, accountability and elimination of corruption

Exemplary conduct of leadership, especially of public administration officials



Where Juárez is Now:at a crossroads of the

“perfect storm”(the security and economic crisis)



Crisis conditions in:• Security/public safety:

2008: 1,600+ organized crime related homicides

2009 crime-related deaths:

• January: 154 • February (through the 22nd): 204 (February 10: 28 in 1 day)

2009 most recent developments:• Resignation of top security city official

• Attempt on Chihuahua governor’s life

• Death threats to city mayor and family

JUAREZ 2008 and into 2009



Crisis conditions in:

• Economy:– Maquiladora sector on a decline:

Hit by acute downturn in U.S./global economic cycle

– Business sector closures due to security crisis

. . . extorsions, kidnappings, robbery/assault…indirect impact through maquiladora downturn




Juárez Maquiladora Crisis

The evidence: • Some 53,000 jobs lost between Nov 07 and Dec 08

From an employment base of 245K+ to just under 192K)

• 10,000 employees laid off in January 2009

• 20,000 employees from 56 plants have been furloughed (paros técnicos)



Crisis conditions…Maquiladoras: Now also a direct target of crime beyond the

impact the security factors have on the business climate

The evidence:– Kidnapping of a top manager

– Employees: – Victims of various crimes

– Daily stress of constant vigilance (from just going to or coming from work; from the risk of being a victim at any moment) depresses morale and therefore productivity

– High-level employees quitting, fleeing (joining the flight of others…some toEP)

– New potential recruits refusing to accept Juarez assignments

– Some personnel now refusing to cross into Juarez; remain in EP




Juárez Maquiladora Sector

• Motor and anchor of the city’s economy• Synchronicity with U.S. business cycle: All maquiladora downturns due to any U.S. economic

deceleration have always been accompanied by the appropriate rebound in the industry in line with any U.S. economic recovery

• NOW:Maquiladora investors questioning the soundness of

remaining in Juarez given the climate of crime and violence in the city.



Juárez Maquiladora Sector

Is permanent loss of foreign investment for Juarez a possibility?

Even if it’s hard to just assume it (FDI) all away, losing the presence of juts one company like DELPHI in Juarez (with its different operations, including the MTC) would deal a $750 billion annual blow/loss to the Juarez economy.



Governance Implications on Overall Competitiveness

and Development



Competitiveness:

“A solid and stable macroeconomic environment is not sufficient for sustained economic growth…

…we understand national competitiveness to be the combination of factors, public policies and institutions that determine the level of a country’s productivity.”

--Global Competitiveness Report

World Economic Forum



12 PILLARS of factors that determine Productivity and Competitiveness:

Institutions Infrastructure Macroeconomic stability Health and primary education Higher education and training Goods market efficiency Labor market efficiency Financial market sophistication Technological readiness Market size Business sophistication Innovation

World Economic ForumWorld Economic Forum:Global Competitiveness Index (GCI)



1 United States

2 Switzerland

3 Denmark4 Sweden5 Singapore6 Finland7 Germany8 Netherlands9 Japan10 Canada…17 Taiwan……

28 Chile…… 30 China

GCI 2008-2009 Country Rankings

35 Kuwait……50 India...…55 Indonesia…58 Panama…

60 MÉXICO60 MÉXICO…64 Brazil…105 Venezuela……134 Chad

Source: The Global Competitiveness Report, 2008-2009

MEXICO Ranking2007: 2006: 52 59

MEXICO Ranking2007: 2006: 52 59



1st Pillar: Institutions

To evaluate the effectiveness of public institutions, the GCI uilitzes the following five criteria:

Respect for private property rights

Ethical government performance and level of corruption

Independent judiciary and degree to which the government allows freedom to the private sector to operate or the degree to which the government utilizes discretionary and interventionary practices (concepts of “undue influence” by government)

Government inefficiency reflected in waste of public resources and a high regulatory burden

The ability to provide an environment suitable for economic activity characterized by appropriate public security

Global Competitiveness Index (GCI)



1 Singapore2 Finland…29 United States…37 Chile …53 India … 56 China …93 Kenya …97 MEXICO…134 Venezuela

GCI 2008-2009 Country Rankings1st Pillar: Institutions

Source: The Global Competitiveness Report, 2008-2009

MEXICO Ranking 2006: 2007: 69 85

MEXICO Ranking 2006: 2007: 69 85





Hacia el 2030, los mexicanos vemos a México como un país de leyes, donde nuestras familias y nuestro patrimonio están seguros, y podemos ejercer sin restricciones nuestras libertades y derechos; un país con una economía altamente competitiva que crece de manera dinámica y sostenida, generando empleos suficientes y bien remunerados; un país con igualdad de oportunidades para todos, donde los mexicanos ejercen plenamente sus derechos sociales y la pobreza se ha erradicado; un país con un desarrollo sustentable en el que existe una cultura de respeto y conservación del medio ambiente; una nación plenamente democrática en donde los gobernantes rinden cuentas claras a los ciudadanos, en el que los actores políticos trabajan de forma corresponsable y construyen acuerdos para impulsar el desarrollo permanente del país; una nación que ha consolidado una relación madura y equitativa con América del Norte, que ejerce un liderazgo en América Latina y mantiene una política exterior activa en la promoción del desarrollo, la estabilidad y la seguridad nacional e internacional.

VISIÓN 2030:El México que queremos




METAS

1. Estado de derecho y seguridad

2. Economía competitiva y generadora de empleos

3. Igualdad de oportunidades

4. Sustentabilidad ambiental

5. Democracia efectiva y política exterior responsable




GOALS

• Rule of Law target indicators:– Institutional strength:

• NOW: 97/134 WEF GCI Index ranking;

• 2030: 1st quintile

– Impunity: • NOW: 2.3/100 crimes solved of those reported

• 2030: 70% resolution rate of crimes reported



Metropolitan infrastructure development

Comprehensive neighborhood development

Civic interaction

Pact for education Pact for culture

Recovery of the city’s

historical heritage

Juárez, city of expositions and

conventions

Promotion and recruitmentof high value-added

investments

Juárez, automotive center

Promotion of localentrepreneurial

activities

Governance and binational cooperation

Pact for sustainable

mobility

Sustainable development of the

new Juárez

New financing model for Juárez

Health industry development

and promotion

Juárez, bilingual city Juárez, safe city

New image for Juárez

Strategic Projects, engines of change to achieve the Juárez we envision



The Bi-national approach• U.S.-Mexico international trade = $349 billion

• A large proportion is maquiladora-driven (intra-industry trade in manufactures)

• A sizable proportion of maquiladora investment fueling U.S.-Mexico trade is located at the U.S.-Mexico border



• Parallel U.S.-Mexico (illicit) international trade in narcotics

• Source of an estimated $35 billion to $65 billion to the cartels

• The U.S.-Mexico border, as the trans-shipment point of any kind of trade, is the “battleground” for this activity.

The Bi-national approach



• Mexico has its homework to do:– Rule of law; Governance …

• The U.S. has its own homework to do by:– Providing support for Mexico on the “war on drugs” (The Merida Initiative)

– Applying the “war on drugs” at home: dismantling the internal drugs distribution network; addressing the

arms trade linked to the cartels and, foremost in my view, curtailing its huge demand for narcotics or proceeding to legalize the source of this illicit/lucrative trade

– Providing additional direct support to Mexico:• Military incursion in collaboration with the Mexican state• Intelligence infrastructure (human and technological)• Protection on U.S. side of the border:

– Juarez mayor JRF just offered protection from his EP counterpart

The Bi-national approach



GRACIAS

[email protected]

www.planjuarez.org

www.pactoporjuarez.org

News & Politics

Juarez Strategic Plan Association