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This report on Mexico’s state-owned oil company PEMEX is part of a series of OECD reviews of Mexico’s procurement institutions. PEMEX’s procurement system was overhauled after Mexico’s 2013 Energy Reform opened up the sector to private participation, requiring PEMEX to compete in an open market. Using the 2015 Recommendation of the OECD Council on Public Procurement as a benchmark, the review assesses the effectiveness and integrity of PEMEX’s entire procurement system while identifying a series of actions for improvement. A state-of-the art procurement system can not only help PEMEX achieve value for money on a sustainable basis, but also support other social and environmental policy objectives in Mexico.

Morelos is one of the smallest states in Mexico, and close to Mexico City. It contains a number of economic and environmental assets in its territory, but has weak productivity levels. This review looks at how Morelos is seeking to boost its economy, particularly through inclusive growth policies such as enhancing human capital and promoting innovation. It also highlights areas of untapped potential for economic growth across rural areas and the tourism and environmental sectors, and offers suggestions for how Morelos could address governance challenges.

The OECD's Integrity Review of Mexico is one of the first peer reviews to apply the new 2017 Recommendation of the Council on Public Integrity. It assesses i) the coherence and comprehensiveness of the evolving public integrity system; ii) the extent to which Mexico’s new reforms cultivate a culture of integrity across the public sector; and iii) the effectiveness of increasingly stringent accountability mechanisms. In addition, the Review includes a sectoral focus on public procurement, one of the largest areas of government spending in the country and is considered a high-risk government activity for fraud and corruption. The OECD finds that Mexico’s recent integrity reforms have the potential to be "game-changers" in the country’s fight against corruption, however, ensuring successful implementation remains the main challenge going forward. As such, the Review provides several proposals for action aimed at strengthening institutional arrangements and improving vertical and horizontal co-ordination, closing remaining gaps in various existing legal/policy frameworks (protection for whistle-blowers, risk management, administrative disciplinary procedures, etc.), as well as supporting awareness-raising and capacity-building efforts to instill integrity values and ensure the sustainability of reforms.