Located at the border with the US, Chihuahua has benefited from FDI and NAFTA. Chihuahua
has been one of the richest regions in Mexico and one of the most dynamic in the OECD.
However, the region’s FDI-trade link with the USA has also led to some vulnerability
to external shocks. The two crises affecting the USA in the past decade affected Chihuahua
more than any other state. Despite recent progress in the quality of education, other
structural challenges such as lower productivity growth, high inactivity rates and
dwindling employment rates have been factors in Chihuahua’s sluggish growth. Chihuahua
not only displays large intra-regional and gender inequalities, but also the largest
inter-ethnic inequality levels in the country. Chihuahua can gain from a territorial
approach to policymaking that integrates sectoral policies, fostering value-added
in rural activities, better linking SME-development and FDI-attraction policies, as
well as between innovation capacities and applications. The region could also strengthen
their recent inclusive governance arrangement with civil society and the private sector.
Growth and development can only be possible if the current challenges in insecurity,
water shortage and public finance are addressed.