The World Bank Mexico Sustainable Economic Recovery DPF (P174150) Program Information Document (PID) Concept Stage | Date Prepared/Updated: 28-Oct-2020| Report No: PIDC29792 Page 1 of 5 The World Bank Mexico Sustainable Economic Recovery DPF (P174150) BASIC INFORMATION A. Basic Project Data OPS TABLE Country Project ID Project Name Parent Project ID (if any) Mexico P174150 Mexico Resilient and Sustainable Economic Recovery DPF (P174150) Region Estimated Board Date Practice Area (Lead) Financing Instrument LATIN AMERICA AND Dec 15, 2020 Macroeconomics, Trade Development Policy CARIBBEAN and Investment Financing Borrower(s) Implementing Agency UNITED MEXICAN STATES MINISTRY OF FINANCE AND PUBLIC CREDIT (SECRETAR�A DE HACIENDA Y CRÉDITO PÚBLICO) Proposed Development Objective(s) To facilitate a more resilient private sector economic recovery and enable a more fiscally and environmentally sustainable recovery. Financing (in US$, Millions) FIN_SUMM_PUB_TBL SUMMARY Total Financing 750.00 DETAILS -NewFin3 Total World Bank Group Financing 750.00 World Bank Lending 750.00 Decision The review did authorize the preparation to continue Page 2 of 5 The World Bank Mexico Sustainable Economic Recovery DPF (P174150) B. Introduction and Context 1. The country is experiencing supply and demand shocks to the economy, that will generate impacts on firms, employment, and households. In this context, the implementation of economic policies to improve the business environment and enable new job creation over the recovery period are critical. This operation support the authorities’ efforts toward implementing reforms to support a more resilient and sustainable economic recovery over the medium term. Relationship to CPF 2. The proposed operation is fully aligned with the CPF. Specifically, the authorities’ policies supported by this operation will contribute to reach the CPF’s objectives 1, 2, 3, and 7. C. Proposed Development Objective(s) 3. The development objective is to facilitate a more resilient private sector economic recovery and enable a more fiscally and environmentally sustainable recovery. Key Results 4. The policies supported are expected to support reforms aimed at removing bottlenecks to firms’ growth, reducing regulatory costs, and facilitating entry and operation. They also aim greater transparency and accountability in budget policies in relation to climate change. D. Concept Description 5. The proposed operation aims to support a stronger rebound of economic activities led by the private sector and a stronger, more resilient and sustainable recovery. These includes measures aimed at reducing the regulatory costs for businesses and increasing competition, efforts to expand credit to MSMEs, and a methodology to tag budget expenditures in relation to climate change. E. Poverty and Social Impacts, and Environmental, Forests, and Other Natural Resource Aspects Poverty and Social Impacts 6. The policy measures supported under this DPF are expected to contribute to support the poor and vulnerable . Measures aimed at facilitating a more resilient private sector economic recovery are expected to have positive distributional impacts over the medium term as measures to reduce regulatory costs would enable job creation and thus increased households’ income growth. Reducing the regulatory costs for businesses and increasing competition are expected to have positive impacts on poor and vulnerable populations through job creation and labor income. Other measures supported also have positive distributional impact over the medium term. Environmental, Forests, and Other Natural Resource Aspects 7. Prior actions supported by this operation are not expected to have any significant negative effects on the Page 3 of 5 The World Bank Mexico Sustainable Economic Recovery DPF (P174150) environment, forests and other natural resources. Rather, some the reforms are expected to bring longer-term positive environmental effects. . CONTACT POINT World Bank Stefano Curto, Eduardo Olaberria Senior Economist Borrower/Client/Recipient UNITED MEXICAN STATES JOSE DE LUNA MART�NEZ Titular Crédito Público jose_deluna@hacienda.gob.mx Implementing Agencies MINISTRY OF FINANCE AND PUBLIC CREDIT (SECRETAR�A DE HACIENDA Y CRÉDITO PÚBLICO) JOSE DE LUNA MART�NEZ Titular Crédito Público jose_deluna@hacienda.gob.mx FOR MORE INFORMATION CONTACT The World Bank 1818 H Street, NW Washington, D.C. 20433 Telephone: (202) 473-1000 Web: http://www.worldbank.org/projects APPROVAL Task Team Leader(s): Stefano Curto, Eduardo Olaberria Approved By APPROVALTBL Country Director: Jutta Ursula Kern 28-Oct-2020 Page 4 of 5 The World Bank Mexico Sustainable Economic Recovery DPF (P174150) Page 5 of 5