THE STATE TO DO BUSINESS
During a pandemic with global economic and health consequences, Jalisco stood out in Mexico for its rapid public health response and fast economic recovery. Governor Enrique Alfaro has argued that the decision to react quickly helped the state not to be seriously affected by Covid-19. Putting health ahead of the economy was a priority. Preparing the hospital system well and coordinating closely with specialists, academics and local universities to make decisions on public health made a fundamental difference. Another notable fact: an economic reactivation working group was established to develop a plan and every decision was made in conjunction with business owners and workers' unions.
The numbers don't lie. The economic reactivation has been much faster than in other states, as shown by Jalisco being the state with the 2nd most jobs recovered in the country. Just to give a couple of data points, while in the first quarter of 2021 the country still had negative growth of -3.0%, in the first quarter of the same year Jalisco grew 2.2%. Additionally, while the country had a drop in foreign direct investment of -19%, this state grew by 40%.
By 2022, it is estimated that Mexico will have a 2.4% growth in its Gross Domestic Product (GDP). For his part, the president of the National Chamber of Commerce in Guadalajara, Raul Uranga Lamadrid, expects Jalisco to have a higher growth than the country, between 3.5% and 4.5%.
Uranga also indicates that Jalisco will exceed the creation of 80 thousand new jobs. To date, Jalisco is generating more than 10% of the jobs generated nationally.
"It is a great pleasure that Jalisco's contribution to Mexico also means the possibility of turning the western part of the country into the engine of the nation's economic reactivation," said Enrique Alfaro, Governor of Jalisco. The success has been based on having built an ecosystem of 226 universities and more than 55 research centers, such that the academic sector is the cornerstone that supports future growth, particularly in agribusiness, the electronics industry, the real estate sector and, of course, the innovation industry.
On the other hand, the private sector's confidence in public institutions has grown significantly in the last three years, and is related to the successful fight against corruption by increasing transparency and accountability, which have become pillars of the government's performance. "In four years we went from a level of distrust of 88% of businessmen towards public institutions, to 31%. We have used technology as a tool to fight corruption. Trust to do business in Jalisco went from 82% to 96%, from 2016 to 2020. This is a sign that we are on the right path," says Alfaro.
An indicator of this improved trust is that in 2021 the state attracted 14 projects that represented a Foreign Direct Investment (FDI) of 1.2 billion U.S. dollars, a figure that placed Jalisco in third place nationally in attracting FDI. For 2022, the state expects to attract 15 FDI projects, according to the Secretary of Economic Development (Sedeco).
Another factor is security. A new operating model was developed that included the construction of the Metropolitan Police and the implementation of the urban shield, which has allowed an intensive use of technology to address safety issues. The Governor emphasized that a coordination model was estblished with the Federal Government and the Attorney General's
Jalisco is the third state nationally in attracting FDI
Office has been strengthened.
Indicators show a reduction of more than 50% in public safety incidents and this has allowed the recovery of confidence in terms of perception. And although there are issues that seem to put the state in a difficult security situation, particularly issues related to organized crime groups, the reality is that Jalisco is a state with a high level of security, comparable to any big city in the world, where residents and visitors alike feel comfortable doing business, walking through the city´s main attractions and enjoying the local culture.
Also, Alfaro indicates that Jalisco will have the largest public internet network in Mexico, with an investment of 4 billion pesos MXN,
Jalisco is the birthplace of tequila, mariachi and charrería, but it is also the state with the largest agribusiness, electronics and innovation industry in the country
which will bring high-speed internet to every corner of the state. In recent years, the state's energy self-sufficiency and environmental issues have also been a priority.
Regarding Jalisco's bilateral relationship with the United States, Alfaro says: "We have established a network of alliances with different states and cities in the United States. We maintain close communication with the entire Silicon Valley ecosystem in California."
In terms of the economy, Jalisco was the state that received the most remittances in 2021. It was its second consecutive year in this position. The resources sent by Jalisco residents living outside the country grew and reached 5.2 billion U.S. dollars. It is estimated that
97% of the Mexican migrant population resides in the United States, so 95% of the remittances received by Mexico in 2021 came from that country, with California being the main state of origin, according to Banxico.
"Jalisco is an emblematic state in Mexico, the birthplace of tequila, mariachi and charrería, but it is also a state where the largest agribusiness production in Mexico is concentrated, the state with the largest electronics and innovation industry in the country. A state that is betting on the audiovisual industry with a forward-looking perspective, which is improving its infrastructure, which is trying to define the course to be taken in the coming years. A state in which the government has a position of promoter and believes in the private sector," concludes the Governor of Jalisco.
Guadalajara, also known as La Perla Tapatía, is the capital of Jalisco and was named World Book Capital 2022 by UNESCO. In April, activities will commence to celebrate this recognition. Due to Guadalajara's rising global profile, the proposals in the areas of education, sports and culture have gained importance. Public policies are increasingly focused on positioning Guadalajara as the cultural capital of Mexico…the bet is to turn it into the cultural capital of Latin America.
The Historic Center of the city had an important urban intervention in recent years. The public space received a series of improvements in Avenida 16 de Septiembre, which is now called Paseo Fray Antonio Alcalde. This 2.5 kilometer corridor is a pedestrian and bicycle walkway that the mayor's office decided to fill with activities for the whole family.
The government of Guadalajara presents mariachi and folkloric ballet during the weekends in this space; likewise, the alliance with the Philharmonic Orchestra of Jalisco presents quartets, an orchestra, as well as marimba music. The goal is to bring peoplback to the Historic Center.
This project goes hand in hand with a repopulation policy that
Jalisco is a state in which the government has a position of promoter and believes in the private sector
invites investors to do business and at the same time guarantees sustainable growth of the city.
Another challenge is the modernization of Guadalajara's infrastructure. The expectation for 2024 is to have a safe, orderly and peaceful city, as well as a city that has recovered economically.
Pablo Lemus Navarro offers this invitation: "Come and visit our city, its historic center, its cathedral, the Degollado Theater, the Cabañas Cultural Institute, with the great work of the master muralist José Clemente Orozco. Come and
enjoy the mariachi, the tequila, the public spaces, the tapatía gastronomy, but above all the warmth of the tapatías and tapatíos, we are very cheerful and friendly people." Another of the municipalities with great relevance for Jalisco is Zapopan, which in recent years has had an exponential growth in its economy, innovation, public spaces and even population. It is, to date, the second most populated municipality in Jalisco, with almost one and a half million inhabitants and is the municipality that generates the most employment in the entire state.
Zapopan is one of the most prosperous municipalities in Mexico, but at the same time it is one of the most unequal; a third of its population lives in vulnerable conditions. Combating this problem is one of the main concerns of the Municipal President, Juan José Frangie Saade, who is betting on the economic reactivation of micro and small businesses. Regarding the budget for public works, he mentioned that during his administration he will focus on the most disadvantaged neighborhoods.
On the other hand, Frangie explained that in order to reinforce security, his administration will hire 1,000 more police officers and will purchase 300 patrol cars, to reach 3,500 and 1,000, respectively; there will also be a new police academy and a shooting rang. The National Urban Public Safety Survey,
conducted by Inegi, places Zapopan as the municipality with the lowest perception of insecurity in the Guadalajara Metropolitan Area.
"But that is not the problem, we are going to fix the issue of security in the social structure, which is very deteriorated, giving more opportunities to the people," says Frangie. There are three main social aspects to work on: the recovery of public spaces (parks, sports facilities), the promotion of sports, and attention to culture and education. Important progress has been made in these areas over the last six years, during which Juan José Frangie has served as Chief of Staff of the Zapopan Government.
It is important to mention that Zapopan hosted the WTA Finals 2021 and recently the WTA 250 Zapopan Open.
The municipality's extensive forest areas, such as La Primavera, El Nixticuil and El Centinela, are managed by the recently created forest police.
For the Municipal President of Zapopan, the collaboration of society, the business sector and the government is essential to move forward.
By 2024, the year in which his administration ends, Juan José Frangie sees himself fulfilling the 1,800 commitments he made in his campaign. "I see a very prosperous Zapopan that will continue turning the economy around at all levels," he predicts.
The path to achieve this has already begun. The municipality has already recovered and even surpassed the employment levels prior to the beginning of the pandemic. In addition, the Municipal Government has received more than a dozen recognitions in transparency and accountability, both locally and nationally. On top of that, it has healthy finances, which recently caused the rating agency Moody's of Mexico to improve its financial outlook.
"It is a municipality, many people don't like me to say it, that has a business label. If you have a municipality with healthy finances, you can do many more things, right? Our level of indebtedness is very low; out of the more than 2,400 municipalities in Mexico, we are among the five best in terms of finances," Frangie proudly affirms.
Juan José Frangie sends a message to foreigners to visit Jalisco and Zapopan: "I would like to invite you first to Jalisco, it is a wonderful state, with beaches, beautiful mountains, ecotourism, entertainment, culture and gastronomy. In the case of Zapopan, it is a fantastic place. It has the cultural part, universities, most of the best theaters and cultural centers. We have hospitals, we have the Chivas stadium, we have the Atlas facilities. People who want to come to Zapopan will find it a very nice place. And, finally, I want to tell anyone who wants to invest in Zapopan, that we welcome them with open arms."
Guadalajara was named World Book Capital 2022
Zapopan is the municipality with the lowest perception of insecurity in the Guadalajara Metropolitan Area