Simply Economics, from Mexico

Mexico’s Economic Landscape Under Sheinbaum’s Administration, Green Economy Commitment

Marcelo Ebrard's appointment and its implications for Mexico's relationship with the US. The commitment to sustainability and the green economy for job creation. Gain insights into the economic landscape under Claudia Sheinbaum's government and the future of Mexico's economy.Sources:https://revistafortuna.com.mx/2024/06/20/marcelo-ebrard-a-economia-y-la-diplomacia-estrategica/https://elpais.com/economia/formacion/2024-06-21/sostenibilidad-y-economia-verde-una-apuesta-de-futuro-para-la-creacion-de-empleo.htmlOutline:(00:00:00) Introduction(00:00:41) Marcelo Ebrard to Economy and Strategic Diplomacy(00:03:57) Sustainability and the green economy, a commitment to the future for job creation

Duration:: 7m
Broadcast on:: 21 Jun 2024
Audio Format:: mp3

Marcelo Ebrard's appointment and its implications for Mexico's relationship with the US. The commitment to sustainability and the green economy for job creation. Gain insights into the economic landscape under Claudia Sheinbaum's government and the future of Mexico's economy.

Sources:
https://revistafortuna.com.mx/2024/06/20/marcelo-ebrard-a-economia-y-la-diplomacia-estrategica/
https://elpais.com/economia/formacion/2024-06-21/sostenibilidad-y-economia-verde-una-apuesta-de-futuro-para-la-creacion-de-empleo.html

Outline:
(00:00:00) Introduction
(00:00:41) Marcelo Ebrard to Economy and Strategic Diplomacy
(00:03:57) Sustainability and the green economy, a commitment to the future for job creation

(upbeat music) - Good morning and welcome to Simply Economics from Mexico. It's Friday, June 21st. On today's show, Marcelo Abroad takes on the role of economy and strategic diplomacy, and we explore sustainability in the green economy as a commitment to the future for job creation. Plus, stay tuned for more economic news from Mexico. This coverage and more up next. (upbeat music) I'm David and you're listening to Simply Economics from Mexico. Mexico's relationship with the United States is set to be a key focus in the coming year with appointments in three key ministries under the incoming government of Claudia Shinebaum. Here to discuss the economic implications is our correspondent. What can you tell us about the importance of these appointments? The appointments in the ministries of foreign relations, economy and foreign affairs will all play crucial roles in navigating the complex bilateral relationship with the US. With elections coming up in the US and likely pressure from Republicans to restrict immigration, the foreign relations ministry will need to manage those challenges. But perhaps most important economically is the ministry of economy with the upcoming review of the US MCA trade agreement and the impact of near-shoring on production chains. If managed well, this could help the Mexican economy match or exceed the 3.5% GDP growth seen in 2023. The financial markets seem to react positively to the specific appointments of Marcelo Abroad, Alicia Barcenas and Juan Ramondela Fuente. Why do you think investors are optimistic about this team? There are a few potential reasons. One is that skilled diplomacy from this group could help alleviate concerns foreign investors have about judicial reforms, especially to the Supreme Court. The appointees may also give investors confidence that their existing rights and investments, particularly in the energy sector, will be protected under US MCA. And Abroad in particular is expected to bring a cohesive team to the ministry of economy, avoiding the disagreements that emerged in the foreign affairs ministry. Turning to another key institution, ENEG, Mexico Statistics Agency, they are now categorizing the Ministry of National Defense as an economic unit in their survey of construction companies. What's the significance of this change? This is an acknowledgement of the expanding role the armed forces have played in the construction sector under the current administration. By treating the defense ministry like any other major construction firm, ENEG will capture its impact on employment, suppliers and the overall industry. However, this role is expected to diminish in the next administration without the same level of projects being directed to the military. Finally, what do we know about the dynamics between the government and private sector business leaders in the early days of the current administration and how that might evolve under President-elect Sheinbaum? Interestingly, it was Ricardo Salinas-Plee Aiego, a major government contractor who initially served as the coordinator of sorts for the Business Advisory Council at the start of President Leopold's term, though that group's influence seemed to fade over time. For the incoming administration, we may see more emphasis on the existing national council for the promotion of investment or cofiness to capitalize on near-shoring opportunities. There are also expectations that development banks will play a larger role in supporting small and medium enterprises compared to commercial banks. The green economy is poised to be a major driver of job creation in the coming years. According to a study by Randstad, the total demand for green jobs in Spain alone will grow by 38% between now and 2030. But there are concerns about a potential deficit of over 40,000 jobs if appropriate measures aren't taken. For more on this, we're joined now by our simply economics correspondent. So tell us, what's behind this expected surge in green jobs globally? Well, David, a number of global initiatives are pushing this trend, like the UN Sustainable Development Goals, the 2030 Agenda, and the EU's goal to achieve a carbon neutral economy by 2050. The renewable energy sector in particular is expected to gain 8 million jobs worldwide, more than offsetting the 2.5 million currently in fossil fuels who will need retraining. The challenge is that while demand for these specialized roles is growing rapidly, the market isn't yet prepared to supply enough professionals with the right skills. So where specifically are we likely to see the most green job creation in the near term? The growth of clean energies like wind, solar, and hydroelectric will be a major factor, as will the increasing use of biofuels. New needs around resource and waste management are also expected to drive job creation. Even areas like organic farming and green tech are seen as opportunities. But to fill all these emerging roles, a greater educational effort is needed, both through vocational training and at the university level, as well as continuous upskilling within companies. How are educational institutions and businesses adapting their training to meet this need for green skills? In vocational training, we're seeing more specialized modules being introduced for renewable energies, sustainability, and related fields like electronics. Universities are also creating new degrees and master's programs focused on environmental engineering, renewable energy, sustainability management, and so on. But experts say continued collaboration between education and industry is critical. Companies also need to invest in continuous retraining of their existing workforce. Can you give us an example of how workers in traditional roles might make the transition to green jobs? Sure, an electrician is a great example. Many of their core skills would allow them to readily adapt to a role like solar panel installer with some retraining. The needs cut across diverse fields too, from engineering and tech roles to areas you might not expect, like specialized lawyers and economists focused on sustainability. In fact, Randstad's study found 55% of companies in the energy sector are already investing in re-skilling their workers for the green transition. It's clear that sustainability won't just be good for the planet, but also a major economic engine, assuming we can adapt our workforce to harness the opportunity. Thanks for breaking this down for us. And with those fascinating insights, we wrap up our stories for today. Thanks for listening to Simply Economics from Mexico. We'll see you back here tomorrow. (gentle music) [BLANK_AUDIO]