Mexico: Disruptive Economic Inclusion Background and context
The overall problem is economic inequality, the lack of opportunities for generating income and sustenance in marginalized communities. This is an important problem in Mexico, where  43.6%  of  the  population  lives  in  poverty,and  7.6%live  in  extreme  poverty—of  which  73%  are members of indigenous groups (CONEVAL, 2019); and according to recent estimates as many as 8 million people  will  have  returned  to  poverty  this  year  as  a  result  of  the  COVID  generated economic  recession(CONEVAL, 2021). Economic inclusion will be key in the recovery: 68% of agricultural production units are small  farmers,  and  17.6%  rely  on  subsistence  agricultural  production  for  food  (FAO  2018).  These subsistence-basedfamily farms are characterized by limited access to productive assets (less than a fifth in value than consolidated family farms), very low education (4.9 years average), and almost no access to credit (only about 3% have access to public financing or other forms of credit) (SAGARPA 2012). In addition to agricultural production, economic inclusion aimed at women and community-based projects considers small artisanal production, and the provision of services—of which community-based tourism is especially relevant (CCMSS 2017, CONABIO 2020).

The specificproblem addressed by this project and our overall strategy is the lack of access to resources for economic and income generating disruptive projects in poor and marginalized communities, and the lack ofaccess to markets by those projects. This means three different types of resources:
1)Knowledge and social capital, which we address by fostering participation, the sharing of experiences and technical assistance resources.
2) Productive   assets—including monetary   resources—which   we   address   directly,   by   financing implementation is a subset of projects; and indirectly, by promoting public allocation of resources to projects in marginalized communities.
3) Access to decision-making spaces, whichwe address by enabling direct participation in communities, by women specifically; and by opening up policy dialogue where communities and project leaders can participate, at the local and national level.

The ongoing project, financed by the EU, hasmade resources available to 30 projects in two states directly, and  this  year,  will  foster  public  dialogue  on  what  it  means  to  foster  sustainable,  disruptive  economic inclusion --through  creating  and  engaging  authorities  in  policydialogue  to  promote  public  resource allocation  for  projects  like  these,  and  sort  out  how  technical  assistance  can  be  developed  and  shared. Disruptive  projects  as  understood in  this  context  are  those  that  provide  basic  assets wherenone  exist, that ensure the short-term  subsistence of projects underway though they may yet not be economically viable,that foster the disruption of public subsidy and supply chain capture, and that ensure community participation.

The project alignswell with Novib’s focus on sustainable income generating projects and value chain development, it is key in the current economic downturn, and will make the best of the research we’ve produced  and  the  evidence  we  have  gathered  over  the last  twoyearsaround  what  works  to  make disruptive  economic  inclusion  viable.  It  complements  a  broad  range  of  activities  underway  in  OMX  to foster  economic  justice,  especially  through  policies  that  redistribute  towards  and engage  poor  andmarginalized  communities.  The  project  will open  up  a  space  in  which  economic,  development  and sustainability  policies  are  discussed,  at  the  local  and  national level  in  Mexico,  fostering  community participation and formulating specific policy alternatives.

Project goal
The overall goal of the project is to promote economic inclusion, access to markets and the economic empowerment of women.

Specific objectives
1. To move the public agenda and build coalitions to make public policy alternatives visible andviable. These are policies that (1) facilitate access to public financing, access to diverse productive inputs and technical assistance that make it possible to give viability and sustainability to initiativesthat build inclusive economic alternatives;
(2) facilitate market access for these initiatives; and (3) limit value chain capture and unfair practices.
2. Create  support  networks, develop capacities  and  enable  horizontal  learning processes that foster thelong-termsustainability of initiatives that build inclusive economic alternatives.