Outline

1. Effects of the economy to water pollution in MexicoNS4540 Winter Term 2018 by Maj Eduardo Barajas

2. Outline • Overview • Economy • Water pollution • Conclusion

3. Overview: Mexico • Background: • Independence. Declared 1810;Gained 1821 • Civil war of 1910 (inequality and land reforms) • Size: 1,964,375 km2 (1/5 of the U.S.) • Population: 123.5M (2017, most populous Sp) • largest number of U.S. citizens abroad • Avg growth: 1.7% (highest in N.A.) • One-party rule (PRI; 1929–2000) • Mexican economic miracle (1940-1970): economy growth rate of 7% and inflation below 5% • NAFTA in 1994 • PAN (2000-2012) • liberal democracy • PRI (2012-2018) • Structural reforms of 2013

4. Overview: Mexico Economy: (2017) • 15th largest economy • GDP (US$): 2.3T (4x since NAFTA) • Avg growth: 2.2% • GDP per capita (US$): 8.56K • Upper middle-income country? • Exports ($359.3B; 80% to the U.S.: • automobiles, electronics, oil and oil products, silver, fruits, vegetables • Imports ($372.8B; 48% from the U.S.): • machinery, steel products, aircraft, and oil production equipment • Public debt: 58% of GDP • Exchange rate: $1US=$18.79MXN • Trade: free trade, signed 12 agreements with 46 countries GDP per year GDP per capita Exchange rate

5. Economy: Projected GDP per capita Structural reforms of 2013 – energy (electricity, oil and gas), financial, and telecom sectors

6. Economy: TFP and income inequality Total factor productivity is recovering Income inequality is high and female labor force participation is lagging

7. Economy: Economic Freedom Corruption Perceptions Index 2017 • Rank 135/180 • Score 29/100

8. Economy to Water Pollution What does the economy have to do with water pollution? • Mexican Economic miracle • Disregard for the environment • NAFTA • Commission for Environmental Co-operation (CEC) • Environmental agencies: SEMARNAT, CONAGUA, and PROFEPA • “Pollution haven effect” • Higher levels of pollution

9. Water Pollution Now Rio Turbio

10. Water pollution: SEMARNAT budget • CONAGUA • manages water resources, extraction, and distribution • Very few water treatment plants • PROFEPA • resolved 57% of enforcement cases in 2010 • backlog of proceedings

11. Water pollution: environmental concerns Major environmental concerns in 2011

12. Water pollution: Environmental issues Environmental expenditure and costs due to depletion of natural resources

13. NPS Thesis • Water Pollution in Mexico: Why has water pollution led to political unrest in some parts of the world, while not in Mexico? • Unlike Nigeria, the United States, China, etc., Mexico has not resorted to social or political unrest due to water pollution • Hypotheses for this research: • poverty forces people to depend on the polluting industry for jobs • people are complacent • corruption of the authorities

14. Conclusion Evidence of a “pollution haven effect” indeed exists in Mexico caused by Industrialization (NAFTA)

15. Questions Questions?

16. Sources • “About OECD.” OECD. Accessed March 1, 2018. http://www.oecd.org/about/. • “Bureau of Labor Statistics,” n.d. https://www.bls.gov/. • “CONAGUA.” gob.mx, n.d. https://www.gob.mx/conagua. • Dovring, Folke. “Land Reform and Productivity in Mexico.” Land Economics 46, no. 3 (1970): 264–74. https://doi.org/10.2307/3145381. • González, Francisco. “Economy (Mexico).” In Europa World Online. London: Routledge, 2016. http://www.europaworld.com/entry/mx.ec. • Hanna-Attisha, Mona, Jenny LaChance, Richard C. Sadler, and Allison C. Schnepp. “Elevated Blood Lead Levels in Children Associated With the Flint Drinking Water Crisis: A Spatial Analysis of Risk and Public Health Response.” AJPH Research, 2016, 283–284. • Logsdon, Jeanne M., and Bryan W. Husted. “Mexico’s Environmental Performance Under NAFTA: The First 5 Years.” Journal of Environment & Development, 2000, 374. • “PROFEPA.” gob.mx, n.d. https://www.gob.mx/profepa. • Publishing, OECD. OECD Environmental Performance Reviews: Mexico 2013. OECD Environmental Performance Reviews. Paris: OECD, 2013. http://dx.doi.org/10.1787/9789264180109-en. • Spring, Ursula Oswald. Water Resources in Mexico Scarcity, Degradation, Stress, Conflicts, Management, and Policy. Hexagon Series on Human and Environmental Security and Peace, 7. Berlin, Heidelberg: Springer Berlin Heidelberg, 2011. https://doi.org/10.1007/978-3-642-05432-7. • “The World Bank,” n.d. https://data.worldbank.org/indicator/NY.GDP.PCAP.CD?locations=US. • Tindall, James A., and Andrew A. Campbell. Water Security. Denver: DTP Publishing, 2012. • Waldkirch, Andreas, and Munisamy Gopinath. “Pollution Control and Foreign Direct Investment in Mexico: An Industry-Level Analysis.” Environmental and Resource Economics 41, no. 3 (2008): 289–313. • Wood, Chris. “Borderline. (Industrial Pollution in Northern Mexico Border Towns).” Maclean’s 106, no. 29 (1993): 24. • Wu, Ch, C Maurer, Y Wang, Sz Xue, and DL Davis. “Water Pollution and Human Health in China.” Environmental Health Perspectives 107, no. 4 (1999): 251–56. https://doi.org/10.2307/3434590. • Zarembo, Alan. “The Canal From Hell.(Water Pollution in Mexico City)(Statistical Data Included).” Newsweek International, 2001, 52.