Politics of Oaxaca

For Oaxaca, the economic development perspectives are optimistic and sustained on triggering strategic sectors for regional economy, such as renewable energies, infrastructure and logistics. An economic policy of sustainable development is focused on sectors that have been an axis of local economics, such as small enterprises, tourism, crafts and commerce, but has also substantially advanced on the impulse and development of projects with further reach, such as wind power, biofuels, logistic services and forestry. The mezcal production has registered a significant advance in its capacity during the last years, after installing a processing plant in Tlacolula de Matamoros, with an investment close o 600 million pesos and targeted to produce four million liters every year. This volume is intended for exporting to Europe, mainly Spain. For the national mezcal industry, Oaxaca’s production represents 66.6% of Mexico’s total production. San Juan Bautista Tuxtepec started operating the first ethanol producing plant in the country, based on sugar cane, it was granted an investment of over 400 million pesos and its initial production capacity is 250 thousand liters per day, making use of 5,000 hectares of sugar cane fields. This project creates 2,700 jobs at sugar cane harvesting. One of the projects with greatest priority and impact on the entity’s economy, especially at the Isthmus, is the wind power project. The first three wind power parks have been installed which will jointly produce 356 megawatts, representing 89% of the entity’s total energy demand with an investment of 6,374 million pesos, plus 2,235 million destined to reinforce the transmission lines for channeling this energy into the national network. The territorial reserve of Antonio Dovali Jaime Refinery of PEMEX, located in Salina Cruz, has new investments on land and its port tends to prepare its expansion for providing supplies and services to the oil industry. Other industrial branches, such as forestry and agriculture, have an important presence in the entity, such is the case of the lumber-furniture industry promoting the competitiveness of forestry companies in the productive chain of Sierra Sur region, specifically in the municipality of San Miguel Suchixtepec, consolidating furniture enterprises. The Papaloapan region is outstanding in the agricultural industry for processing tropical fruits and preserves, as well as the mole canning industry of Valles Centrales. The industry of strategic investments is constituted by the development of information technologies, with a three-way investment of over 34 million pesos in three innovative projected geared towards the development of intelligent systems in fiscal and accounting issues for small and medium companies. Source: Gobierno del Estado de Oaxaca

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