The Natural Disaster Fund (Foundation) has been a trend in recent days due to the damage caused by heavy rains in regions of central and eastern Mexico. The topic has been much discussed, since Many people claim that if they remain active, there would be greater support for those affected.
What was Fonden and how did it operate?
Fonden was a financial instrument of the Government of Mexico created in 1996 to address the effects caused by natural disasters that exceeded the response capacity of states or federal agencies, as explained by the Ministry of the Interior in a document published on its website in 2016. Its main function was to support the care and reconstruction of damage to public infrastructure and housing of low-income families affected by natural phenomena.
This mechanism was part of the National Civil Protection System and operated under specific rules that “They guaranteed co-responsibility and transparency between the three levels of government.” Its purpose was “supplement local resources when the magnitude of the disaster made an immediate response with state or municipal funds impossible.”
Some of the phenomena that Fonden supported were geological ones, such as earthquakes, volcanic eruptions, avalanches, tidal waves and landslides; hydrometeorological, such as hurricanes, torrential rains, droughts, floods or tornadoes; and others like forest fires. Once declared the disasterthe Fonden It allocated resources to rebuild homes, roads, hospitals, schools and other essential public services.
Fonden’s objective was clear: address natural disasters whose magnitude exceeds the financial capacity of the affected entities. At the time, it was considered an important tool to guarantee a rapid response to emergencies and prevent affected communities from being left without government support.
Why did the Fonden disappear?
In 2021, the Congress of the Union approved the elimination of Fonden along with 108 other public trusts, amid the austerity policy implemented by then-president Andrés Manuel López Obrador, who came to power in 2018. The official argument was that the fund presented opacity, duplication of functions and alleged mismanagement.
Since the Fonden became extinct, the resources destined to respond to natural disasters depend directly on the Ministry of Finance and Public Credit (SHCP)which authorizes them case by case after damage assessments carried out by Civil Protection.
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