OECD Territorial Reviews: Morelos, Mexico

Annex A. Monitoring progress at a glance – Morelos

 

3	Significant Progress
2	Progress / Partial Implementation
1	Modest Progress / Further implementation is needed
0	No progress / Changes need to be addressed

 

ST	Short-term = 0-1 year
MT	Medium-term = 1-3 years
LT	Long-term = More than 3 years

Note: The category “Progress reported” reflects the OECD's own impressions based on mission findings and evidence-based analysis.

Table A A.1. Detailed analysis of progress per sub-recommendation

Progress reported on sub-recommendations	T	N	Nature of the action	Bottlenecks identified	The way forward
Recommendation #1: Improve the quality of basic education, especially in peri-urban areas and lagging rural communities, and increase participation in upper secondary and tertiary education
1. Centralise the collection of information/data about schools and student performance in Morelos.	ST	1	Software proposal was designed and presented to the state fund (fideicomiso) in February 2018	● Software to collect and manage information/data on students’ enrollment and abandonment rates in schools still to be implemented ● The system to evaluate students’ performance should be digitalised and integrated to the one on abandonment and enrolment dates	● Implement software to include primary education (primary and elementary schools) and high schools ● Include data about students’ performance ● Apply software in all schools ● Create a single number by student See Personal Identification Number in the Netherlands (OECD, 2017, p. 102) [equally valid to sub-rec 2].
2. Introduce measures to identify low performing students at early stages and mobilise specialised school staff for remedial support in schools located in municipalities at the periphery of metropolitan areas, but also lagging rural areas where a high share of underperforming schools are located.	MT	1	Continued efforts to maintain programmes for schools in lagging behind areas and for population groups with specific needs (Indigenous, migrants, those with disabilities).	● Such system exists in high schools and HEIs but it is divided into evaluation of socioeconomic conditions and performance evaluation. ● There is no single system to follow the student throughout his/her student life, creating a “dossier” per student. ● School abandonment is not addressed as a multi-dimensional phenomenon.	● Develop an integrated system to evaluate both performance and attendance that can follow the student from primary education to high school. Extend this evaluation system to high schools right away (no need to wait until primary education students get to high school). ● Invest in school infrastructure in lagging-behind areas. ● Create specific tutoring or after-school programmes to aid under-performing students. ● Strengthen link with students’ families for accompaniment. ● Create financial aid programme to the specific needs of Indigenous students. ● Include Indigenous school abandonment as an indicator in the PEDI and monitor progress on it.
3. Revise the “universal” dimension of the Beca Salario scholarship programme available from lower secondary up to tertiary education (postgraduate studies excluded) in order to better target students at high risk of dropping out for financial reasons. The resources of the current programme go to all students independently of their socio-economic conditions and risk of dropping out.	MT	1	Diagnostic study to assess the effectiveness of the programme will be concluded in 2018 and presented to the competent authorities.	● The programme’s objective and conditions of operation contradict each other: ● If the objective is to fight school abandonment by alleviating financial difficulties, the selection of beneficiaries should prioritise those with poorer socioeconomic status. ● If the objective is to support all students, then the programme can be kept as it is but should be monitored and evaluated.	● Conclude the diagnostic study and use it to promote informed policy change. ● The state can either: change the objective of the programme, by saying that it aims to benefit all students by offering them assistance to pay for public transportation and one meal per day; or change the way that beneficiaries are selected, targeting the ones most in need of such aid. ● Monitor the trajectory of beneficiaries, regarding both attendance and performance, in order to evaluate the efficiency of the programme. ● Consider other forms of assistance to students, such as public transport passes or meal tickets.
Recommendation #2: Ensure training programmes are more responsive to the needs of the economy and target the informal sector too
4. Increase private sector involvement in the updating of training programmes and the provision of work-based learning opportunities for young people.	MT	2	The dual education programmes on tourism and gastronomy by UTSEM with the support of the Ministry for Tourism formed their first class. Certification courses were taught by business owners and representatives.	● The region is locked in a low-skills equilibrium whereby low supply of skills translates into low demand of skills. ● Little involvement of private sector in the design of training curricula.	● Starting with gastronomy and tourism was a good strategy. Moving forward the state should expand programme to other industries, especially to strategic high-skill sectors, such as ICT, energy and automobile. ● Involve Human Capital Council in forecasting skills and labour market trends. ● Evaluate skills needed by industry to identify new courses. ● Involve businesses in the design of new courses.
5. Promote entrepreneurial skills development early in the education system. The integration of current curricula with business insights would promote entrepreneurship and a closer relationship between educational institutions and the private sector.	MT	2	Creation of centre to support youth entrepreneurship (Casa del Emprendedor Poder Joven de Morelos) and organisation of Youth Business Camps (Campamento Desafío Inova) in 2017	● Difficult to promote structural changes in schools e.g. curricular reform. ● View of entrepreneurial skills too narrow on technological skills, less emphasis on the aspects of problem-solving and creativity.	● Include non-cognitive social and emotional skills in the teaching methods of early education, via collective activities and arts ateliers. ● Continue investing in the youth entrepreneurship centre and the innovation business camps. ● Offer to elementary school students the possibility to carry out a 1-week internship in a firm or public institution (see French model).
6. Establish a monitoring framework for the regional labour market training and entrepreneurship support programmes of the National Employment Service and ICATMOR.	ST	1	Indicators under development.	● Data is not systematised and digitalised. ● There are few M&E models to copy from in the state. ● The COEVAL and the Council of Human Capital haven’t been involved in this task.	● Learn and adopt monitoring and evaluation techniques, e.g. use of indicators. ● Involve the COEVAL in M&E. ● Strengthen link between SNE and Human Capital Council.
7. Make a better use of the process of validation of previous learning and certification of skills acquired in informal and informal environments, to increase the possibility to access formal employment, while also boosting incentives for individuals to pursue further education.	MT	1	● The SNE has invested in certification of skills for self-employment since October 2017.	Besides validating learning experiences, which is important, but done by the national SNE, Morelos should give incentives for recent graduates or accredited people to pursue further education. This concerns skills training and certification, but also access to college.	● Further invest in validation of skills in technical education via the accredited CONOCER centres. ● Expand training programmes to strategic sectors such as logistics and energy. ● Consolidate existing programmes. ● Ensure approval criteria are rigorous enough that only qualified students obtain certificates. ● Support financial security to access college education via scholarships and apprenticeship systems
Recommendation #3: Improve knowledge creation, diffusion and exploitation
8. Supporting the development and emergence of innovative companies by creating structures which can provide legal and business advice for the commercialisation of innovative ideas.	MT	2	● The Ministry of Innovation changed the professional profile of staff in order to provide more structured and sound advice. ● Eindhoven agreement helps to structure companies and give them visibility. Few companies but high-profile.	● It is important that the activities of the Ministry for Innovation outlast the current administration. ● Concept of innovation limited to high-technology change.	● Institutionalise relation and ensure channels reach more stakeholders. ● The ministry could develop written guidelines or rulebooks on how to start a company. ● Broaden the definition of innovation. ● Improve outreach to firms beyond S&T, to include process innovation in services and social innovation.
9. Improve access to capital for knowledge-based start-ups. The public administration can help new firms access financial institutions, providing guidance and sharing part of the business risk by providing collateral for credit.	MT	1	● The Ministry of Innovation signed an agreement with the business incubator High Tech XL in Eindhoven, Netherlands, to launch new start-ups. ● Primer Impulso, InnovaTIC and TecnoCemiTT programmes continue to offer seed money.	● Limited access to internal sources of private capital. Most money for research is public or foreign.	● Have a strategy for private funding, e.g. American Sciences Academy. ● Support incremental innovation across multiple sectors. ● Combine seed money with private funds, such as a co-financing model. Expand Primer Impulso and InnovaTIC.
10. Bridging the existing gap between public research facilities and the business sector, by promoting platforms of co-operation between public and private stakeholders.	LT	2	In 2017, 59 business owners and 177 researchers received capacitation to design joint innovation projects. As a result, in the 2018 call for projects of PEI CONACYT, 36 out of the 58 projects presented by Morelos’ businesses and research institutions were approved and will receive funding from the federal government.	● The process of linking firms and research institutions is very dependent on interpersonal relations of the ministry’s current staff, which raises concerns on continuity in next administration. ● Concept of innovation limited to high-technology change.	● Continue offering capacitation and training. ● Besides agreements, the ministry could think of more organic, independent ways to fund businesses, e.g. fairs, events, innovation vouchers. ● Consolidate more institutionalised relations. ● The ministry should invest in an automated platform to connect business needs and research profiles in order to improve communication and generate new opportunities. ● Support firms that are not highly technological but can innovate in services or social activities.
Recommendation #4: Strengthen the role of the Council for Human Capital to promote the upskilling of the labour force and an integrated vision
11. Better define the Council’s mission and operating model. The council should define its role, functions, and tasks, including the mutual goals of the involved stakeholders.	ST	2	Organisational changes: The Council better developed its mission and vision; established the functions of sectorial groups; and set up short-term goals.	The Council has made great efforts to advance its mission and operation model. Yet since they are still at the beginning of activities, the Council is more formal than material: ● Activities are not organically promoted. ● Some functions remain unclear. ● Sustainable funding streams not assured.	● Consider hiring a second co-ordinator. ● Involve a broader range of stakeholders and create more organic relationships, follow example of Brainport model. ● The Council should avoid rigid models and have enough flexibility that gives room for experimentation. ● Look for complementarities in the example from the Consejos de Vinculación Laboral which exist at upper-secondary and tertiary level. ● Be more forward-looking. ● Cross-fertilise practices.
12. The council should work closely with state labour market training agencies to define its priorities.	MT	2	The SNE and the ICATMOR participate in the transversal group of education and in some sectorial groups.	● There is little participation of private sector in some sectorial groups, especially SMEs and start-ups. ● The Council has to act as “broker”, approximating business needs and training opportunities.	● Involve the SNE and ICTAMOR in matching business needs and training opportunities. ● Have a stronger leadership role in defining business needs and priorities over the medium and long term. ● Invest in conversations about the future of work, together with academic institutions.
13. Ensure a more varied composition of sectoral representatives. Officials from the state government and the education sector are currently over-represented to the detriment of business professionals.	ST	2	Organisational change: with the creation of groups of Pharmacy, Construction and Automotive, more representatives of private sector have joined the council.	● There is little participation of private sector in some sectorial groups, especially SMEs and start-ups. ● Gender imbalance in the composition of the Council. ● Geographic imbalance, too: few councillors from outside Cuernavaca and Industrial Parks.	● Continue with outreach and have clear plan of work. ● Incentivise participation of private sector, notably start-ups and PMEs, via learning and networking opportunities and involvement in international events such as fairs. ● Make use of technology to hold virtual meetings. ● Invite women working in different fields to be part of the Council. ● Approximate calendar of meetings with the one of large events to gather representatives from all over the state.
14. Adopt a demand-led approach to training content by involving the private sector into the early definition of programmes.	LT	2	UTSEM, UTEZ and the Ministry of Labour carried out situational analysis of labour to understand the needs of the business sector and divulgated the results to the Tourism Ministry.	● Still limited dialogue with private sector in the early definition of programmes.	● Complete diagnostic of labour market demand for skills. ● Invest in links with ICATMOR and SNE. ● Make sure the curricula of new capacitation programmes are designed in collaboration with private sector, Ministry of Labour and Ministry of Tourism.
15. The definition of sectoral groups should not preclude cross-fertilisation. Organising sectorial and thematic areas around a matrix may ensure that sectors and thematic areas meet. Working groups of thematic areas should participate in all sectoral activities in order to develop a common vision. For instance, insights from the high-tech working group should inform the activity of working groups in tourism and the agro-industry.	MT	3	Organisational change: the groups of Education and Research and Innovation were made transversal, and short-term objectives were established.	The transversal groups do not have as of yet a clear strategy on how to promote common objectives that can create engagement among the different groups.	● Establish schedule for members of Innovation and Research group to participate in the activities of the sectoral groups. ● Elaborate key common objectives that two or more groups can work together in. ● Involve Ministry for Innovation more closely, for instance, by creating a “duo” of sectorial group co-ordinator and representative of the ministry in each group.
16. The outcome of the Council should be measured and evaluated according to agreed targets.	ST	1	The council established short-term goals and a strategic plan on how to achieve them. Nine indicators to track progress were also set. The council met with COEVAL to develop a monitoring framework.	● The Council only has short-term goals. ● The indicators only refer to outputs of state programmes. ● Monitoring and evaluation mechanism has not been set yet.	● Develop long-term goals with related targets and strategies of how to achieve them. ● Adopt indicators that reflect outputs of actions carried out by the Council itself, and that account for the quality of actions, such as outcome indicators. ● Invest in a structured mechanism to monitor and evaluate progress in the long run. ● Continue dialogue with COEVAL.
Recommendation #5: Spatial planning requires a better implementation strategy
17. Build more accountability into the spatial planning system to reduce discretion in the implementation of policies and ensure the continuity of territorial and urban development plans.	LT	1	Changes in progress. ● The procedure of revision of the State Programme for Sustainable Land Management and Urban Development (PEOTyDUSM) is ongoing. Public consultations took place in December 2017. ● The Ministry for Sustainable Development has recognised the need to publish projects evaluated and violations in the website of the Bitacora Ambiental.	● The State of Morelos still has to harmonise the Federal Law of Housing, Territorial Planning and Urban Development (LGAHOTDU) into their own legislation. The deadline was November 28, 2017, according to the transitory article 3 of the Federal Law. ● The websites to publish projects, documents and violations are not up-to-date.	● Give continuity to the revision of the PEOTyDUSM. ● Follow three-stage harmonisation plan: enactment of a new Law of Territorial Planning and Urban Development (LOTDUSEM), enactment of the corresponding set of rules (reglamento) and capacity-building of civil servants. ● Ensure that there are participatory mechanisms in place during the elaboration of the LOTDUSEM. ● Capacitate municipalities on the overall content and guidelines of the federal and state laws so they can develop their own spatial planning laws in accordance to the federal and state legislation. ● Regularly publish the projects and violations in the correspondent websites, such as the Bitácora Ambiental and the CUSF system.
18. Create an independent council, with technical competencies, to assure continuity and effective implementation of long-term spatial planning. This is important to integrate short-term projects into long-term goals. For instance, with regards to urban planning, the council could help the alignment of local projects with the state urban development vision.	MT	2	Organisational change with the creation of the State Council for Spatial Planning (CEOT) in 2017.	● The council has to be involved in planning processes which are scattered across policy sectors. ● The council’s technical function may supersede its capacity to get strategically involved in decision-making. ● The council is presided by the state, thus not being an independent council.	● The council should work together with the IDEFOMM as co-ordinator between state and municipal actors, as a broker. ● Include representatives of the Ministry for Mobility and Transport in the Council. ● Include direct representation of municipalities; the Association of Municipalities could be the actor. The IDEFOMM is a state actor. ● Consider handing the presidency over to civil society groups, as is in the Sustainable Development Council. ● Guarantee that the sub-technical committee has sufficient technical and financial resources to operate.
Recommendation #6: Urban policies should design and implement policies at the metropolitan scale
19. The governance of metropolitan areas in the State of Morelos relies on a large number of actors. The State Ministry for Mobility and Transport should be integrated into the co-ordinating agency of the metropolitan areas to ensure policies tackle metropolitan-wide challenges in a harmonised way.	MT	2	Organisational change by which the Ministry for Mobility and Transport became a permanent member of the Metropolitan Development Council, in the sub-committee of project evaluation of the board of the trust committee.	● The Metropolitan Development Council funds project in a piecemeal, fragmented manner. ● The role of the Ministry for Mobility and Transport in the council remains weak. ● There is little involvement of civil society and federal actors.	● Elaborate integrated plans for metropolitan development. ● Resort to long-term integrated metropolitan planning to justify funding allocations by the Council. ● Involve civil society actors and federal representatives in the operations of the Council.
20. The Metropolitan Fund should respond to a comprehensive urban development plan that prioritises the needs of the broader metropolitan areas.	LT	1	No change in how the Metropolitan Fund is used, but legal changes on urban development are in progress: ● LOTDUSEM is being updated to harmonise with the federal LGAHOTDU. ● PEOTyDUSM is being revised according to the updated LOTDUSEM.	● The Metropolitan Development Councils of Cuernavaca and Cuautla fund projects in a piecemeal, fragmented manner. Resource allocation is not based on strategic view for metropolitan development. ● Metropolitan Spatial Planning Programmes are missing; they exist only for 2 conurbations.	● The Metropolitan Development Councils of Cuernavaca and Cuautla have to follow the national guidelines on how to fund projects using the Metropolitan Fund. ● Elaborate integrated plans for metropolitan development. ● Formulate the 2 Metropolitan Spatial Planning Programmes (Cuernavaca and Cuautla), in respect to LOTDUSEM guidelines, and with the participation of municipalities. ● Include in the new LOTDUSEM the 2 Metropolitan Spatial Planning Programmes as mandatory tools of the Spatial Planning system in Morelos. ● Use spatial planning programmes and metropolitan plans to create a strategic, common vision for the development of the territory.
Recommendation #7: Rural policy must go beyond agriculture and develop further synergies with the tourism sector
21. Adopt a multi-dimensional territorial approach to rural areas, which goes beyond the agricultural sector and looks at opportunities for other sectors of the rural economy to develop and contribute to growth. For instance, the natural and agricultural landscape can be integrated into agro-tourism activities. It is important that the policy content is open to the contribution of all involved stakeholders, avoiding a top-down type of approach. Finally, financial resource should be channelled towards productive investment projects rather than compensate for lost income.	LT	2	● More emphasis was given to the agro-tourism, with the creation of new routes (rice and avocado). ● Training courses in tourism and gastronomy are being offered. ● Certifications of sustainability and excellence are being awarded. ● The Magical Towns programme has received international prizes.	● Implementation of routes suffered significant delays due to damages caused by the earthquake. ● The Strategic Plan of Rural Tourism is still in preparation. ● The establishment of Economic Areas of Environmental Value (UEVAs) is still in diagnosis stage.	● Elaborate and implement the Strategic Plan of Rural Tourism. ● Implement routes of rice, avocado and goat cheese. ● Develop action plan to promote these routes. ● Consolidate Orgullos Morelos brand, by linking it to food products that are specific to Morelos. ● Improve internal accessibility, e.g. pave roads. ● Consolidate UEVAs and invest in sustainable tourism activities to generate wealth for the local population. ● Invest in S&T to improve the quality of agriculture produce, e.g. EMBRAPA in Brazil. ● Support entrepreneurship. ● Move forward with cultural and culinary diplomacy strategy in national and international arenas.
22. Develop tourism policies in accordance with environmental preservation, but first and foremost complementary to other policy areas.	MT	2	40 touristic establishments received training on Sustainable Tourism Practices and are in the process of being awarded the sustainability certificate (Distintivo S).	● The establishment of Economic Areas of Environmental Value (UEVAs) is still in diagnosis stage.	● Invest in broadband connectivity. ● Rebuild route of convents (cultural heritage). ● Consolidate UEVAs and invest in sustainable tourism activities to generate wealth for the local population.
23. Elaborate and deliver appropriate training to upskill workers in the tourism sector. Develop support for tourism entrepreneurship.	MT	3	● 62 training courses were offered under the Programme of Capacitation and Touristic Competiveness. ● Specific capacitation to develop productive chains under the Magical Towns programme took place in 28 municipalities.	● Specific capacitation to municipalities under the Programme of Technology Transfer suffered delays because of the earthquake. ● The Tesoros de México will assist and qualify 14 companies but it didn’t take place yet.	● Consolidate capacitation programmes for tourism and gastronomy. ● Involve the Human Capital Council in the elaboration of capacitation programmes. ● Expand capacitation to high-skills sectors. ● Continue supporting local gastronomy. ● Continue supporting entrepreneurship in the Magical Towns programme.
Recommendation #8: Accessibility of the region should strengthen both a. connections to external markets in neighbouring states and export and b. internal connectivity
24. Investments in railroad and road networks should continue to improve the accessibility of the region to Mexico City, neighbouring states of Puebla, State of Mexico and Guerrero and to external markets in the Pacific and Atlantic coasts.	LT	2	Investments are moving forward, the Siglo XXI road will be inaugurated in 2018 and the project of the railroad in Cuautla with the creation of the multimodal station is advancing.	● Viability study of volume of goods to be transported via the railroad not published.	● Consider joint initiative with Puebla and Guerrero to improve connectivity to the Pacific. ● Clarify viability of Cuautla railroad project.
25. Improve urban mobility while taking into account the environmental dimension.	LT	2	● Organisational change with the creation of the CEOT and the revision of the PROAIRE. ● Creation of green zone of Cuernavaca. ● Conversion of 3 000 taxis to natural gas.	● Morebus project (BRT) was postponed. ● There is no other public transportation project that promises to augment mobility while reducing the levels of environmental pollution and congestion. ● Strategies to improve circulation and mobility in the Ecozona of Cuernavaca were not implemented. ● The CEOT stands apart from municipalities.	● Carry out diagnostic study to identify needs and solutions for public transportation in the whole of the metropolitan areas. ● Implement zones exclusive for pedestrian traffic, as planned. ● Invest in multi-modal, less pollutant public transportation systems. ● Implement better vehicle circulation in the Cuernavaca Green zone. ● The CEOT should capacitate municipalities and assist them in the development of ecological plans, as to include the dimension of sustainable urban mobility. ● Make conversion to natural gas a condition for renewing of concessions of public transportation, as opposed to having automatic renewal processes as it is today. ● A condition to renew concession of transportation of goods and materials should be the conversion of trucks to natural gas.
26. Strengthen internal connectivity by better connecting marginalised municipalities. These initiatives should be integrated and aligned with policies improving education and capacity at the municipal level.	LT	1	● State Road Plan (Plan Carretero Estatal) for pavement of dirt roads. ● FONDEN Programme for reconstruction of roads affected by the earthquake. ● Percentage of paved roads in good conditions went from 48% to 52%.	● Lack of financial resources. ● Setbacks because of earthquake and insufficient time to carry out works.	● Continue rebuilding and maintaining existing roads. ● Continue paving roads to expand internal connectivity. ● Better connectivity has to be complemented by development policies. “Leaking by linking” argument. ● Increased internal connectivity should be a goal of state spatial planning (PEOT) and municipal development plans.
Recommendation #9: Preserving the environment by co-ordinating and implementing policies to mitigate climate change
27. Design and implement a comprehensive plan for environmental protection, which includes greenhouse gas emissions, waste management, and quality of water.	MT	2	Legal change, with the enactment of the reviewed version of the PROAIRE and with the publication of the PEGROTM which offers a holistic view of risk, linking it with spatial planning. PEACCMOR covers climate change mitigation planning. The Risk Atlas was updated, including now seismic risk.	● The Ministry for Sustainable Development is understaffed [applies equally to 28 and 29] ● Capacitation of civil servants is lagging behind. ● Municipal environmental protection plans are not well linked to urban development plans. ● Ecological land management plans by municipalities and Risk Atlases are lacking, and when they exist, are outdated.	● Municipalities should enact and update their ecological land management plans (ordenamiento ecológico). ● Municipal civil servants should receive training to update the ordenamiento ecológico in alignment with the POEREM. ● Morelos needs a specific action plan to deal with risk. The plan is by nature a generic instrument that needs further operationalisation. I.e. the plan should yield for implementation. One way to do so would to better connect PEGROTM with Risk Atlas. ● Implementation of plans requires more personnel, and qualified one. ● Support municipalities in developing their own risk atlases by offering capacitation and assisting in channelling funds.
28. Foster the connection of state programmes to national and international environmental programmes, such as the Climate and Clean Air Coalition (CCAC).	LT	1	No change. But the Ministry for Sustainable Development has 26 collaborative projects ongoing with 11 different countries on climate change and sustainable development. They have also participated in international fora such as the COP 13 for Biodiversity held in Cancun 2016.	● The connection with international environmental programmes could gain more coherence and more support from other state actors. ● International engagement depends to some extent on actions and orientations issued by the federal government.	● Elaborate diagnostic of the main deficiencies of the state and how to overcome them with the support of international co-operation. ● Continue promoting portfolio of projects of renewable energy and energy sufficiency. ● Involve other state ministries more closely in the elaboration of diagnostic and portfolio of projects. ● Adhere to National Natural Areas Protected Programme.
29. Promote the substitution of fossil combustion with gas for public transportation, exploiting the newly constructed gas pipeline and national programmes fostered by SEMARNAT.	MT	1	Conversion of 3 000 taxis to natural gas.	● The Morebus project (BRT) was postponed; its funds were reallocated to earthquake reconstruction. ● There is no alternative project for sustainable urban mobility.	● Carry out diagnostic study to identify needs and solutions for sustainable public transportation. ● Invest in multi-modal, less pollutant public transportation systems, including cycling. ● Invest in electric buses or convert buses to natural gas, since buses are the main public transportation model in the state. ● Make conversion to natural gas a condition for renewing of concessions of public transportation, as opposed to having automatic renewal processes as it is today.
Recommendation #10: Foster co-ordination of the state administration with municipalities, and with neighbouring states
30. The State of Morelos should seek strategic alliances with neighbouring regions on business development issues (such as with the state of Puebla on the automotive industry) as well as infrastructure provision, such as highways or railroads. The CONAGO forum among state governors represents an opportunity for greater interstate co-operation, but it should be integrated with technical groups of analysis that could provide support to regional governments and exchange good practices in addition to representing states at the national level.	LT	1	Some co-operation agreements have been signed particularly concerning research and tourism. Co-ordination meetings between ministers of economic development have continued taking place.	● Evolution remains limited in terms of enhanced co-ordination of the state with neighbouring states. ● Morelos may face both political and legal limitations (that would have to be removed) to agreements with adjacent regions. It is also going into an electoral year which may complicate political consensus.	● Leverage the deeper knowledge of the economy coming from the Human Council to better target co-operation. ● Make the most out of the recent infrastructure investments to improve connectivity with neighbouring states
31. Strengthen the roles of the COPLADES so that it becomes a real forum for strategic co-ordination and partnerships between state and local administrations. Develop further mechanisms between the state and local administrations.	MT	1	● Relationships have been strengthened via an enhanced presence of representatives of the state to the meetings at COPLADEMUN. ● The state has also subscribed an agreement with some municipalities to channel resources from PRODEMIN to improve territorial planning and build an atlas of risks.	● The State government is strongly dependant on good-will and political agreements with mayors to enhance co-ordination and push the regional agenda at the territorial level. ● The current actions tend to push forward a top-down approach to development; there is little room for local policies to feed regional development plans and actions.	The initiatives go in the right direction, nonetheless, some measures could be taken: ● The role of the COPLADE needs to be further clarified. ● Local challenges should be able to feed regional development plans and policies. ● Fiscal incentives could contribute to better align policies across levels of government and invite municipalities to further invest in capacities at the local levels as well as the development of planning instruments. ● Building across levels of government will be essential to enhance co-ordination.
Recommendation #11: Improve governance mechanisms and the business climate
32. Develop a public service administration that can fully conceive and implement long-term planning and evidence-based policy making and their corollary: policy monitoring and evaluation.	LT	2	The regional regulation changed to include the planning instruments needed to establish objectives at the short, medium and long term.	Amongst the main bottlenecks remaining to improve planning instruments and policy evaluation are: ● Limited capacities. ● Limited amount of data available. ● Limited amount of resources. ● High turnover in civil service and thus limited policy continuity.	● Ensure strong relationship between planning and budgeting. ● Special attention should be put in the design of indicators, making sure, amongst other, that they are outcome indicators rather than input. ● Create the right feedback loops to ensure that evaluation results are taken into account in policy design.
33. Restore trust in the public administration by adopting the national anti-corruption policy, providing public information on policies namely on expenditures, and creating a single-stop shop to clarify the rules and regulations of the myriad of transferred funds.	LT	2	● Strong steps have been taken to adopt the national anti-corruption scheme to the State of Morelos. Some parts of the package are yet to be finalised but a substantial amount of work has been done. ● Further transparency instruments have been installed to enhance public accountability. ● Significant steps have also been taken to improve the business regulatory framework in the state.	● Political blockage seems to be an issue for the adoption of the anti-corruption system. ● Transparency instruments have to allow a real understanding of process, information has to be provided at two different levels: i) citizen friendly and ii) disaggregated for researchers and organised civil society. ● There is no clear objective to build a single stop-shop providing more clarity on the myriad of transferred found.	● Finish the adoption of the legal and institutional arrangements corresponding to the national anti-corruption scheme. ● Put strong emphasis on the enforcement of the scheme providing. ● Include more qualitative elements in the transparency mechanisms as well as citizen and research-friendly provision of data. ● Setting up a single stop shop to provide information on the myriad of funds transferred will be an important step forward to enhance transparency and improve resource assignment under a more competitive basis.
34. Strengthen the State Council for the Evaluation of Social Development by providing it with proper funding and human resources to evaluate public policies in the State of Morelos at a larger scale.	MT	3	The State Council for Evaluation has been strengthened and more resources have been provided to the service. Funding has increased by 34% and the number of programmed policy evaluations has increased from 10 in 2015 to 24 in 2017.	● Budget constraints and prioritisation are the main constraints to further increase the capacity of the COEVAL.	● Be more active in the design of public policies, building on its evaluation experience. ● Focus on more long-term objectives with indicators based on outcomes. ● Work hand in hand with other institutions to ensure the improvement of the information systems of the state and the quality of data. ● Ensuring co-ordination with other government bodies to guarantee feedback loops in policies based on evaluation results. ● Ensure enough resources for the COEVAL to reach out for municipalities – training and evaluation.
Recommendation #12: Morelos should improve the management of its own funds, including transfers to municipalities
35. Undertake an audit of both the tax base and the tax collection mechanisms to improve own revenue collection in the State of Morelos.	ST	1	● The Finance Ministry has looked into further options of increasing revenues, namely via a tax on touristic activities. ● The steps taken are positive but the impacts on public finance will remain overall limited.	Increasing tax revenues has three main bottlenecks: ● Political cost of reform. ● Willingness to pay and administrative efficiency to collect taxes. ● The structure of incentives of the national transfer system.	● Continue broadening the tax base. ● Establish new taxes (such as the environmental tax in Zacatecas). ● Put strong emphasis on enforcement. ● Work together with other ministries in multi-dimensional policies that will contribute to reducing informality, the latter in turn should contribute to further raising tax collection.
36. Improve property tax revenue by following a two-step action: first updating cadastres, and then effectively collecting taxes. The state should support municipalities (especially small ones) through technical assistance efforts to update the cadastre. With regards to enforcement, the state administration could collect property taxes on behalf of smaller municipalities with low capacity and on the basis of contractual agreements.	LT	1	● Agreements have been established with municipal governments to transfer local tax collection duties to the state tax administration. For the time being only 2 municipalities have signed the agreement.	● Policies to improve cadastres are still too limited given the order of magnitude of the problem. ● Political will, and willingness of mayors to sign the agreements. ● Magnitude of the problem of informal settlements.	● Strive to find agreements with municipal governments to sign agreements. Incentive schemes could be established. ● Invest strongly in capacity building and in updating cadastres. ● Fighting against informal settlements and enforcing urban planning mechanisms.
37. The state administration should support local governments in increasing revenue from services such as water provision, street lights or garbage collection. A transitory period should be considered to reduce resistance to price increase, and allow the quality of the service to improve.	MT	1	The State of Morelos has been working hand in hand with the municipal governments to increase prices charged for local public service provision, by offering capacitation. They have also offered to sign co-payment agreements for projects of water infrastructure.	● Political cost. ● Limited willingness to pay from citizens partially driven by the low quality of public services provided.	● Continue offering periodic training for local finance public servants, in order to achieve systematic collection of local revenues. ● Apply recommendations of the review to create a transition phase allowing gradually increases in the price of services while simultaneously improving the quality of services provided. ● Implement co-payment system for water infrastructure projects with willing municipalities.
38. Reform the transfer formulas to create incentives based on needs and policy outcomes.	MT	1	Recently created infrastructure and assistance funds direct resources of federal government transfers to specific needs of municipalities.	● Margin of manoeuvre is small [5%]. ● Transfer formulas are periodically changed, but disconnected from incentives.	● Monitor the impact of how funds are actually used by municipalities. ● Attach spending of funds by municipalities to priorities defined in their strategic plans. ● Establish an incentive system for municipalities, which may be based on revenue collection rates in a given period.
39. Resources for productive investments should have a results-oriented assignment mechanism conditional on co-ordination between municipalities.	MT	1	The State of Morelos sought to increase the efficiency of productive investments by creating a Public Investment Unit which manages a portfolio of investment projects realised with municipal governments and evaluates investments.	● Such policies require more investment in planning. ● They also require strong evidence to adopt the right policies. ● Introducing competitive process re-evaluated over time are also costly politically.	● Co-ordination between the work of the Investment Unit, planning instruments and the output from the work of Human Capital Council could serve to better target investments. ● Competitive mechanisms for resources could be reinforced. As presented in the Review, a system such as the one put in place in Brandenburg, which reassigns resources annually based on the evaluation results, could be explored.