Historic Poverty Reductions in Mexico
Mexico has achieved a remarkable milestone in poverty reduction, thanks to the transformative welfare policies spearheaded by former president Andrés Manuel López Obrador (popularly known as AMLO). According to official reports, 13.4 million Mexicans escaped poverty during AMLO’s administration, marking a decrease of nearly 26% over six years. This change reflects the growing success and impact of social programs and wage reforms implemented under his leadership.
Transformative Social Policies
One of the most impactful decisions AMLO undertook was tripling the minimum wage. When his administration began in 2018, the daily minimum wage in Mexico was 88.40 pesos (approximately $4.75 USD). Today, it has risen to 278.80 pesos (approximately $15 USD). This dramatic increase created a ripple effect across various sectors, raising incomes even in informal parts of the economy.
Further contributing to the nation’s poverty reduction was the development of a universal cash transfer system. This initiative provided financial support to Mexico’s most vulnerable populations, such as elderly citizens, young people in apprenticeships, and farmers planting crops. These cash transfers strengthened household incomes and reduced the pressure on families struggling with rising costs.
Poverty Metrics and Notable Achievements
According to the report from Mexico’s national statistics agency, the number of people living in extreme poverty dropped from 9 million to 7 million over the six-year period. Access to food, social security, and dignified living conditions also improved significantly during this time.
“This is something extraordinary – truly historic,” said Claudia Sheinbaum, AMLO’s successor. “For the good of all – first the poor’ is not just a slogan, but a reality in Mexico.” Independent analysts echoed this sentiment, with experts labeling AMLO’s welfare policies as a landmark achievement for tackling inequality in the country.
Challenges Remain
While astounding progress has been made, challenges persist. A glaring issue highlighted in the report is the significant decline in access to healthcare. The number of people without healthcare more than doubled, reaching 44 million in 2024, up from 20.1 million in 2018. Access to affordable medications and quality health services remains a critical area for development.
Gloria Palacios, 84, a beneficiary of AMLO’s cash transfer program, shared her struggles. Though the program helps her afford basic needs, she expressed frustrations with high healthcare costs: “Medicines are so expensive. I don’t have anything.”
Looking Ahead
Despite the setbacks in healthcare, many remain optimistic about Mexico’s direction. Addressing inequalities, expanding healthcare access, and solidifying the success of anti-poverty programs are seen as the next steps in the nation’s development. AMLO’s tenure showcases how focused social policies and economic reforms can lift millions out of poverty in a relatively short time.
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