Can social programs reduce productivity and growth?

Mexico's low growth has become a critical area of concern. In the last decade the average growth rate of per capita GDP was 2.1%; and for the last five years 0.4%. Productivity growth has also been slow. ¹ This lackluster performance has generated a search for explanations. Attention has focused on monopolistic practices in the telecommunications sector; low lending to firms by commercial banks; uncertain supply conditions associated with public energy monopolies; labor market rigidities derived from onerous firing regulations; and low levels of education of the workforce.