Michoacan is located on the central-occidental part of the Mexican Republic, on the Pacific Ocean’s shore. To the north, Michoacan neighbors with the states of Jalisco and Guanajuato, to the northeast with the state of Queretaro, to the east it is next to the State of Mexico, to the south and southeast it neighbors with Guerrero, and finally to the southwest with Colima.

Michoacan is one of the states with the greatest generation of electrical energy in the country, thanks to its 13 hydroelectric plants and distributors of the energy they generate, on the Lerma and Balsas rivers, which represent 15 percent of national production approximately.

There are five industrial parks that are located in the municipalities of Zacapu, Morelia, Zamora, Lazaro Cardenas and Contepec.

Today, Michoacan is one of the most important international producers of avocados besides being between the first places of the production of mango, strawberry, lemon, banana, wheat and rice to name a few commodities. The main objective in agriculture is to create growth of these products by giving them added value by supporting businesses that process these products.

Strategies to bring investments
The Governor of Michoacan, Lazaro Cardenas Batel, has made very clear that most investments come from the private sector. Because of this fact, economic politics is directed towards giving facilities to all businessmen that want to invest in Michoacan. Without a doubt, the strategy is to take advantage of the productive vocation of each region. Even though opportunities are open for all productive sectors, the main focus is the areas where productive chains can be forged as the result of the relationship between dependencies and institutions that promote attraction of investments.

To achieve such goals is not going to be easy, but the way is being opened. The incentive program for investments is one of the most aggressive in the country. Composed from donations or exchanges of land properties of the Federal or State Government, the plan has Mexican Congress authorization for special tariffs for investments in industrial parks with discounts of up to 100 percent for business starting investments on a time span of no more than a year and operation commencement of no more than 18 months. Also, there is support for infrastructure to build industrial facilities out of tourist or agricultural zones as well as out of industrial parks. There are also exceptions of payment for worker education, with a minimum wage payment for the beneficiaries.

Without leaving the better regulatory program outside, for each investor interested in coming to Michoacan, the Secretary of Economic Development of the State of Michoacan will assign an executive to provide a cost analysis to the investor.

The commercial balance of the state is positive. Still, exports are concentrated on activities very specific such as steel, fertilizes, and the agricultural sector, which provides the 19 percent of the GNP of these areas.

The main destinies of exports from Michoacan are the United States with 54 percent, Europe 19.21 percent, South America 13.72 percent and Central America 8.09 percent. Foreign direct investment of the productive sector is composed of the following: Manufacturer industry 61.3 percent, services 29.5 percent, transportation and communication 6.0 percent and other sectors compose 3.2 percent.

The support for the private sector is given by strengthening product quality, and so in the beginning of 2003, the projected opening of the Center for the Competitiveness and Quality of Products from Michoacan will help achieve the quality aim. This way, small and medium businesses will receive support with consulting programs, courses, and searching for market niches.

Since Lazaro Cardenas Batel took office, he and the leaders of the varied sectors of the population, have been dedicated in consolidating a government that would become a national example, and whose mission would be based on plurality and efficiency. The government should also be modern and a promoter of society participation, guarantee the respect of law and generate sustainable development.