OECD Territorial Reviews: Chihuahua, Mexico 2012

Located at the border with the US, Chihuahua has benefited from FDI and NAFTA.
Chihuahua has been one of the richest regions in Mexico and one of the most
dynamic in the OECD. However, the region’s FDI-trade link with the USA has
also led to some vulnerability to external shocks. The two crises affecting
the USA in the past decade affected Chihuahua more than any other state.
Despite recent progress in the quality of education, other structural
challenges such as lower productivity growth, high inactivity rates and
dwindling employment rates have been factors in Chihuahua’s sluggish growth.
Chihuahua not only displays large intra-regional and gender inequalities, but
also the largest inter-ethnic inequality levels in the country. Chihuahua can
gain from a territorial approach to policymaking that integrates sectoral
policies, fostering value-added in rural activities, better linking SME-
development and FDI-attraction policies, as well as between innovation
capacities and applications. The region could also strengthen their recent
inclusive governance arrangement with civil society and the private sector.
Growth and development can only be possible if the current challenges in
insecurity, water shortage and public finance are addressed.