Farmers and businesses need to adapt constantly if they are to survive and compete in the rapidly evolving environment associated with the contemporary agricultural sector. Rethinking agricultural research as part of a dynamic system of innovation could help to design ways of creating and sustaining conditions that will support the process of adaptation and innovation. This approach involves developing the working styles and practices of individuals and organizations and the incentives, support structures and policy environments that encourage innovation.
This report summarizes and consolidates the findings of three Bank studies on poverty issues in Mexico, written as part of the second phase of this work: Urban Poverty, Rural Poverty, and Social Protection. It also expands on how Mexico will seek to use social protection policy as a vehicle for redistribution. Discussed in Chapter 1, the state has a clear role in providing risk-pooling mechanisms where private insurance markets fail (e.g., old age and health insurance), but the role of social protection policy in promoting redistribution is more an issue of national choice.