According to the World Bank report, written in 2001, "in today's globally integrated economy of Mexico, it is difficult to argue for the continued existence of institutions, such as INFONAVIT." The report further claimed that the first best option would "close INFONAVIT." In the same year, Victor Borras, and a new management team took control of the new government at INFONAVIT Vicente Fox's PAN. In 2005, the Fund issued 376,444 mortgage and a half times the number of issued INFONAVIT in 2000. During the same period of expansion INFONAVIT were reduced its defaulted loan rate from 21.7 per cent in 2000 to 6.6 percent in 2005 and increased its capacity from 51 loans per worker to 98 per employee through outsourcing and modernization and streamline operations, launched new Vivienda Economy (affordable housing) programs focus on the majority of its members, who earned less than four times the minimum wage (TMW); helped push the emerging area of housing, increased real income funds retired from 2 percent to 3.5 percent a year, and produced about $ 4.5 billion in mortgage-backed bonds. The case can be used for teaching the state of innovation, privatization, strategic management, and the public provision of financial services. It is also useful for courses in international development or international housing. This raises the question of the proper role of government in financial services and the role of outsourcing and privatization can play in promoting the efficiency and effectiveness of public services, especially when the government is a major buyer on the market relatively small suppliers. HKS Case Number 1878.0 `" Hide
by Pauline Campos, Marco Lopez, Guy Stuart 43 pages. Publication Date: April 24, 2007. Prod. #: HKS101-PDF-ENG
Related Case Solutions & Analyses:
WorldSpace Satellite Digital Radio Service
Toivonen Paper in the U.S.: Human Resource Implications of Foreign Corporate Ownership
Place Your Bet on Internet Gaming
Wipro Technologies Europe (B)
Novo Nordisk (A): Global Coordination
Daikin Industries
Planning and control: capacity, inventory, supply chain at Nike
The Path to Prescription: Closing the Gap between the Promise and the Reality of Big Data
Remanufacturing: The Next Great Opportunity for Boosting U.S. Productivity
3D Printing at Imaginarium: If You Think It, We Can Build It
