Geographical Indications (GI) have been used in several countries, mainly in Europe, as tools to promote territorial development. These tools have been adopted in Latin American countries without serious reflection on their scope, limits, and advantages. One of the most relevant elements therein corresponds to the way in which these assets participate in value chains, whether short or long, which has important implications for governance, benefit distribution, geographic organization of value accumulation processes, among others. With that in mind, we identify the two most relevant Mexican GIs—namely Designation of Origin Tequila (DOT) and Designation of Origin Mezcal (DOM)—to analyze how their value chains have been constructed and their impact on territorial development. We conclude that GIs tend to adopt large value chains to satisfy long-distance demand, but they can have negative territorial effects if institutions are not strong enough to appropriately incorporate territorial stakeholders’ demands.
Valorization of territories with diverse cultures and heritage has multiplied in recent years. This study analyzes the case of colored heirloom corn in Tlaxcala, Mexico, as a potential public good associated with the region’s biocultural heritage. The analysis conducted herein relies on a wide range of literature from relevant theory, including Geographical Indications, Global Value Chains, Community-Based Entrepreneurship, Public Goods, and Sustainable Development, in order to employ case study methodology. We leverage a novel approach to analyze the heirloom corn chain and its publicness. This chain reveals its status as a potential public good that clearly influences biocultural heritage, which has been preserved by several generations. To preserve colored heirloom corn in Tlaxcala, Mexico, a development strategy is needed that links actors and resources, involves the public sector, and furthers expansion of the private sector.
Historically, the banking system has been critical to the development of economies by addressing funds efficiently—from customer savings and investors to the productive activities of people and companies, financing consumer goods and current expenses, housing, infrastructure projects and providing liquidity to the market. However, it must be transformed to respond to emerging demands in society for better financial products and services with a positive impact on living conditions and well-being. To achieve this, banks must create economic value—that is to say, banks should create profits in a sustained manner—in order to also create social value and thus generate shared value. The purpose of this study was twofold. The first aim was to identify the main factors that contributed to the majority of Mexican banking profits in the period from 2003 to 2021; the second aim of the study was to provide an innovative metric of banking performance. Using supervised machine learning algorithms and Principal Component Analysis, two prediction models were tested, and two banking performance indices were defined. The findings show that Random Forest is a reliable profit prediction model with a lower mean absolute error between the predicted yearly profit and losses and the actual data. There are no significant ranking position differences between the two performance indices. The first performance index obtained is novel due to its simplicity, since it is built on the basis of five values associated with commercial banking activity. In Mexico, no similar studies have been published. The indicator most widely used by regulators worldwide is the CAMELS index, which is a weighted average of the capital adequacy level, asset quality, management capacity, profitability, liquidity, and sensitivity to market risk. Its scale of 1 to 5 is useful for identifying the robustness and solvency of a bank, but not necessarily its capacity to generate profits. This approach might encourage banks to remain aware of their potential to create shared value and to develop competitive strategies to increase benefits for stakeholders.
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