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  THE UNITED MEXICAN STATES: COUNTRY PARTNERSHIP STRATEGY

                     CHAIRMAN'S CONCLUDING REMARKS

                             Meeting of Executive Directors

                                      April 8,2008


        The Executive Directors welcomed the joint IBRDIIFC Country Partnership
Strategy for the United Mexican States for FY08-13 and noted that it built on the
successful outcomes of the previous CPS.

        Directors commended the progress achieved by the Authorities in macroeconomic
management, fiscal discipline, and economic growth. They pointed out that Mexico still
faced major challenges of accelerating productivity growth, improving competitiveness,
developing infrastructure, addressing regional imbalances and income inequalities,
reducing poverty, and maintaining environmental sustainability. In this context, Directors
emphasized the need for structural reforms and urged the Bank to support the
Government's efforts in addressing regional disparities.

        Directors noted that the CPS presented an appropriate strategic framework for the
Bank Group engagement in the country based on its mandate and comparative advantage,
and welcomed the CPS alignment with the National Development Plan. They broadly
supported the innovative approach to partnering with a middle-income country with a
streamlined lending program and enhanced analytical and advisory activities. Directors
generally agreed that such an approach would promote flexibility and lower the
transaction costs of borrowing from the Bank. Several Directors, however, suggested to
proceed with caution and underlined the importance of regular monitoring of the impact
of the Bank Group's interventions. In addition, they underscored the need for the Bank's
involvement at the sub-national level.

        Directors welcomed the strong cooperation between the Bank and IFC and the
growing role of IFC in the country, especially its engagement in infrastructure, health
sector, business enabling environment, and corporate governance. They also encouraged
greater involvement of MIGA in the CPS implementation.

        Directors observed Mexico's increasing role in the international development
agenda, particularly in climate change. They noted that successful implementation of the
CPS requires strengthened coordination of the Bank Group with other development
partners, including regional development banks.

        Finally, Directors looked forward to the CPS progress report in 2011.