United Mexican States 83344 rev Country Partnership Strategy FY2014-2019 Chair Summary ∗ Meeting of the Executive Directors December 12, 2013 Executive Directors welcomed the discussion of the joint IBRD/IFC/MIGA Country Partnership Strategy (CPS) for the United Mexican States for the period of FY2014 -2019. Directors acknowledged Mexico’s strong track record in macroeconomic performance and social improvements and recognized that important challenges remain to tackle persistent poverty, inequality and regional disparities. They were pleased to note that the CPS is aligned with Mexico’s Development Plan for 2013-18 and supports the Government’s increased focus on productivity and inclusive and sustainable growth. Directors appreciated the comprehensive country analysis on the key development challenges, the gender focus in the results framework and the long-term engagement illustrated in the CPS. They also welcomed the incorporation of lessons learned from the previous CPS such as the need for maintaining flexibility to adjust to country specific circumstances. Directors endorsed the four themes selected for the CPS: (a) increase productivity and ensure its gains are widespread; (b) ensure that poorer segments of society benefit from basic social services and contribute to economic growth; (c) strengthen public finances and improve government efficiency; and (d) continue the economic and environmental aspects of sustainable development. Directors valued the “selectivity filtering approach” and the assessment of the impact on poverty reduction and shared prosperity introduced in the CPS, but Directors recognized the need for further refinement in this approach. In addition, Directors welcomed the approach taken in this CPS which can contribute to the future Country Partnership Framework. Directors discussed areas for additional interventions, in particular positioning the WBG within the Government infrastructure program. However, Directors noted that Mexico is close to reaching the Single Borrower Limit and wondered to what extent this may limit the World Bank support to the development agenda. Directors underscored the importance of growing IFC’s activities, particularly in transformational projects and programs in the poorest states, and to support infrastructure development. Given the required level of financing, Directors called for a more strategic and stronger engagement from IFC and MIGA in promoting private sector investment in Mexico. Directors welcomed the WBG’s continued support in Mexico as a global knowledge leader and encouraged the Bank to enhance knowledge exchange with other developing and emerging countries. They also underlined the importance of maintaining a continuous dialogue with other development partners, in particular the Inter-American Development Bank, both for the preparation and implementation of the CPS. Finally, Directors welcomed the use of national metrics to measure poverty reduction and called for improved metrics to measure achievement of shared prosperity. ∗ This summary is not an approved record.