Sustainable Development in Mexico Presented by Letvia M

Sustainable Development in Mexico Presented by: Letvia M. Arza-Goderich

Sustainable Development - History § 1972: The Club of Rome advanced the notion of “zero growth” – Theory: economic growth is the primary cause of environmental degradation; thus, the goal of sustainable development policy should be ‘no growth. ’ § Many environmental activists continue to embrace and lobby to advance this view today. § However, the concept has evolved through world summits – Our Common Future (1987) – Agenda 21 – The Rio Summit (1992) – Rio +5 (1997) – Johannesburg World Summit (2002) 10/22/2021 12: 02 PM © Preston. Arza - All Rights Reserved 2

Sustainable Development Defined § The environment has a limited capacity to absorb the effect of human activity. § Humanity has the ability to make development sustainable (i. e. , ensuring that the needs of the present generations are met without compromising the ability of future generations to meet their own needs). § Breakthrough: Concept of intergenerational equity demands conservation of resources by present generations to ensure steady reserve for future consumption by generations to come. – Source: Bruntland Report (World Commission on Environment and Development, 1987). 10/22/2021 12: 02 PM © Preston. Arza - All Rights Reserved 3

Mexico’s Challenges § Mexico’s economic crisis (1982 -1996) had effects that contrasted sharply with the world-wide launch of the sustainable development movement. – The economy, the environment, and social welfare suffered gravely. – Socially and politically, Mexico’s crisis and its harsh national realities made it difficult, if not impossible, for the nation to embrace the principle of limiting economic growth advanced by the early sustainable development movement. 10/22/2021 12: 03 PM © Preston. Arza - All Rights Reserved 4

Resurgence of Mexico’s Economy Mexico restructured its economy through: § Trade liberalization and reform – More international commercial treaties than any other nation in the hemisphere. § Strong industrialization § Prudent fiscal and monetary policies § Deregulation § Source: Pacheco-Vega, “The Challenge of Sustainable Development in Mexico, ” Journal of Business Administration and Policy Analysis (1999) 10/22/2021 12: 03 PM © Preston. Arza - All Rights Reserved 5

The Challenge § In its battle to leave its economic crisis behind, Mexico faced a dual challenge: – Achieving economic recovery, while – Combatting environmental degradation. § Mexico’s leaders for the past several decades have recognized the correlation between the environment and economic development. 10/22/2021 12: 03 PM © Preston. Arza - All Rights Reserved 6

Meeting the Challenge: Legal Framework § Mexico enacted a constitutional right to sustainable development and an adequate environment. – Major breakthrough in Mexican environmental and constitutional law, with deep repercussions: § A Mexican citizen may sue on constitutional grounds for his or her right to an adequate environment. 10/22/2021 12: 03 PM © Preston. Arza - All Rights Reserved 7

Meeting the Challenge: Government Action § § § Built system of indicators to measure environmental impact of government policies and programs. – Abandoned burning of 70% of natural gas in petroleum exploitation (2000) – Avoided emission of tons of carbon dioxide – Substantially reduced methane gas emissions Ratification of treaties and conventions advancing the cause of sustainable development. – First country in Americas to ratify Kyoto Protocol – Leading role in World Summit on Sustainable Development. Initiative in fostering sustainability as a global development model: Monterrey Conference (2002): – Increase sustainable development aid – Develop new mechanisms to finance sustainable development. 10/22/2021 12: 03 PM © Preston. Arza - All Rights Reserved 8

Mexico as Defender of World’s Bio Resources § Decreed its Exclusive Maritime Economic Zone as a Refuge for Whales and Dolphins § Efforts to enact national legislation to promote safe and responsible research and sustainable use of genetic resources – Source: Statement of President Vicente Fox Quesada at World Summit on Sustainable Development (Johannesburg, Sep. 3, 2002) 10/22/2021 12: 03 PM © Preston. Arza - All Rights Reserved 9

Mexico as Defender of World’s Bio Resources § Drove creation of Like-Minded Megadiverse Countries – Agreed to join effort to significantly reduce loss of biodiversity by 2010 § Promoted implementing Convention on Biological Diversity by creation of International Regime for equitable distribution of benefits resulting from utilization of genetic resources – Source: Statement of President Vicente Fox Quesada at World Summit on Sustainable Development (Johannesburg, Sep. 3, 2002) 10/22/2021 12: 03 PM © Preston. Arza - All Rights Reserved 10

Mexico as Defender of World’s Bio Resources § Advocate of protection of local and indigenous peoples and the just valuation of their traditional knowledge as a factor in the granting of intellectual property rights affecting areas of great natural resources and cultural wealth – Effective battle against poverty – Fostering dignified life – Advancing investment in health § Source: Statement of President Vicente Fox Quesada at World Summit on Sustainable Development (Johannesburg, Sep. 3, 2002) 10/22/2021 12: 03 PM © Preston. Arza - All Rights Reserved 11

Mexico and Sustainable Development: The Track Record § Amongst three NAFTA countries, Mexico has achieved the best track record under internationally recognized indicators: – Lowest use of forest resources – Lowest level of municipal emissions – Lowest level of emission of sulphur oxides § Troublesome: Mexico remains the NAFTA country with the lowest percentage of protected areas. 10/22/2021 12: 03 PM © Preston. Arza - All Rights Reserved 12

Mexico as Promoter of Sustainable Tourism § Home to 26 UNESCO World Heritage Sites (recognized by international convention for their outstanding universal value), protected by 1972 UNESCO World Heritage Convention and promoted by UN Foundation sustainable development program – Protected by UN programs to promote responsible tourism and travel practices to preserve their rich world cultural and natural heritage § Mexico Tourism Board (1974) fosters travel and tourism industry as partner in sustainable tourism practices § Source: Friends of World Heritage, News Release, May 21, 2007 10/22/2021 12: 03 PM © Preston. Arza - All Rights Reserved 13

Sustainable Real Estate Development in Mexico § Case in point: LORETO BAY in central region of Baja California – Project developed on the basis of sustainable development principles: § Partnership with FONATUR, Mexico’s Tourism Development Fund, to redevelop the Loreto Bay property in a sustainable way. § A sustainable approach to the goal of serving as economic engine to bring prosperity and alleviate poverty in the region. 10/22/2021 12: 03 PM © Preston. Arza - All Rights Reserved 14

Loreto Bay’s Approach § Sustainability Priorities: – energy and water conservation – habitat protection and enhancement – reduction of solid waste materials – prevention of air pollution § Economic development through: – housing – planning – training – creation of new jobs and local business enterprises 10/22/2021 12: 03 PM © Preston. Arza - All Rights Reserved 15

Loreto Bay’s Contributions § Help fund local medical facility § Support local education, culture, recreation, health and business enterprises § Contribute 1% of RE sales in perpetuity to an independent foundation which supports community social and ecological services 10/22/2021 12: 03 PM © Preston. Arza - All Rights Reserved 16

The Sustainability Master Plan § Energy efficient construction – Hybrid construction system with materials made on site § Energy efficient design – Urbanist villages without gas-powered cars § Wind-farm generated energy § Solar energy § Water conservation § Habitat preservation and enhancement 10/22/2021 12: 03 PM © Preston. Arza - All Rights Reserved 17

The Sustainability Master Plan § Energy efficient construction – Hybrid construction system with materials made on site § Energy efficient design – Urbanist villages without gas-powered cars § Wind-farm generated energy § Solar energy § Water conservation – Eco benign desalination utility on site § Habitat preservation and enhancement – Estuary restoration – Watershed restoration – Waste management – Marine conservation 10/22/2021 12: 03 PM © Preston. Arza - All Rights Reserved 18

The Sustainability Master Plan § Agriculture & Landscaping – Growing food on site – Replanting rescued plants § Air Travel Carbon Offsets – In 2006, 200 tons of carbon dioxide emissions 10/22/2021 12: 03 PM © Preston. Arza - All Rights Reserved 19

The Results § 400 permanent full-time jobs in Loreto to date (6, 000 by completion) § Skills development and on-the-job training § Employ over 900 construction workers § Over $4 million spent on local restaurants, transportation and hotels during sales events § $12 million spent in marketing § Increased airline flights to Loreto § $10 million spent annually in Loreto Bay, Baja California Sur 10/22/2021 12: 03 PM © Preston. Arza - All Rights Reserved 20