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The Informal Economy and Social Programs in Mexico: A Critique

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In the wake of neoliberal reforms that devastated the country, Mexico and the World Bank converged on providing at least two social programs in the guise of “humanitarian” capitalism. Progresa,… Click to show full abstract

In the wake of neoliberal reforms that devastated the country, Mexico and the World Bank converged on providing at least two social programs in the guise of “humanitarian” capitalism. Progresa, also known as Oportunidades and more recently Prospera, involves a workfare-based cash transfer program aimed at enhancing the human capital of future generations. The program has been criticized for its exploitation of the work of mothers. Seguro Popular involves extending basic health care to those employed in the informal economy. Both, with all their weaknesses and exploitative aspects, serve the function of providing skills and enhanced health status to the subproletariat in the hope that a competitive formal economy will expand and employ them; they are also intended to mute social protest. A raíz de las reformas neoliberales que devastaron el país, México y el Banco Mundial acordaron la creación de por lo menos dos programas sociales disfrazados como capitalismo “humanitario.” Progresa, también conocido como Oportunidades y más recientemente Prospera, es un programa de asistencia de transferencia de efectivo dirigido a mejorar el capital humano de futuras generaciones, y ha sido criticado por explotar el trabajo materno. El Seguro Popular extiende servicios de atención de salud básica a los empleados en la economía informal. Ambos, con todas sus debilidades y características explotadoras, tienen por objeto mejorar las habilidades y estado de salud del sub-proletariado, con la esperanza de que se amplíe una economía competitiva formal que los emplee. También buscan silenciar las protestas sociales.

Keywords: informal economy; social programs; economy social; programs mexico; economy; mexico critique

Journal Title: Latin American Perspectives
Year Published: 2018

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