Mexico on the Cusp of Digital Transformation: The Key to Latin America's Future

Mexico is on the brink of digital transformation, and it has the potential to become a digital government powerhouse in Latin America. With the right investments and support, the country could see a significant boost in productivity, economic growth, and GDP. The Mexican government has already made remarkable progress in digitizing its operations, but there's still a long way to go. In this article, we'll explore Mexico's digital journey so far, its challenges, and the potential rewards of becoming a digitally-enabled country.

Mexico's Digital Success Story

Gone are the days when Mexican citizens had to go through a long, tedious, and uncertain process to obtain a birth certificate. Thanks to gob.mx, a one-stop portal that consolidates 34,000 databases from 250 government institutions, Mexicans can now get a secure, certified, and error-free copy of their birth certificate in just minutes. Launched in 2014, gob.mx is the centerpiece of Mexico's digital government efforts, and it's just the beginning.

Mexico's Underspending on Digital Government

Despite its progress, Mexico is still falling behind in its digital government spending when compared to other countries. Its digital unit receives just 0.003% of the total budget, which is 15 times less than Canada's digital unit and one-and-a-half times less than Estonia's unit. This is despite Mexico's larger economy. Additionally, Mexico's private sector ICT spending is 2% of GDP, compared to the 4.7% average for other benchmark countries.

Mexico's Potential for Digital Transformation

Mexico ranks 55th in McKinsey's analysis of the digital maturity of 151 countries, which is a laudable standing considering its per capita GDP. However, there's still a lot of room for improvement. By aligning its ambitions with higher-performing countries like Estonia and Malaysia, Mexico has the potential to become a digital powerhouse. Our estimates show that if Mexico attains a "good" or "very good" digital maturity rating, it could see a 7 to 15% boost in GDP by 2025. This growth will come from increased productivity, employment, and the creation of new digital businesses and industries.

The Path to Digital Transformation

Becoming a digitally-enabled country is no small feat, but it's not impossible either. Mexico needs to invest more in ICTs and increase public and private spending by at least 5%. The Mexican government must also align its ambitions with those of higher-performing countries and create a supportive environment for digital innovation. As the second-largest economy in Latin America, Mexico has a unique opportunity to set the standards for a digitally-enabled government and lead the region into the future.

Conclusion

Mexico's digital transformation journey is just beginning, but it's already making impressive strides. With the right investments and support, the country could see a significant boost in productivity, economic growth, and GDP. Mexico has the potential to become a digital leader in Latin America and set the standard for a digitally-enabled government. By increasing ICT spending, aligning its ambitions with higher-performing countries, and creating a supportive environment for digital innovation, Mexico has the chance to lead the region into a digitally-powered future.

Mexico's digital transformation has the power to unlock new possibilities for its citizens and businesses. It's time for the government and private sector to take action and seize this opportunity for growth and progress. Mexico is on the cusp of digital transformation, and the future is waiting.