Aug 152016
 

Avid Geo-Mexico readers will know that we included a few paragraphs about the Happy Planet Index in our 2010 book, which we later quoted in this 2013 post, Mexico and the Happy Planet Index.

The latest (2016) Happy Planet Index (HPI), which uses slightly modified criteria, shows that Mexico has risen to 2nd place in the world rankings, behind Costa Rica, but ahead of Colombia, Vanuatu and Vietnam and well ahead of the U.S. (#108) and Canada (#85).

The Happy Planet Index is a compound index that combines four measures:

  • life expectancy
  • well being (life satisfaction)
  • ecological footprint
  • inequality

The HPI looked at data for 140 countries. For life expectancy, Mexico ranked #39, for well being #11, for ecological footprint #77 and for inequality #60.

Global pattern of ecological footprint. Source: HPI report, 2016.

Global pattern of ecological footprint. Source: HPI report, 2016.

The world map for ecological footprint shows the global pattern. The colors show three categories for ecological footprints, those below 1.7, those between 1.7 and 3.5 and those that exceed 3.5, where the numbers are global hectares (gha) per person.

These two sections from the Happy Planet Index country report for Mexico are a useful snapshot of where Mexico stands right now:

What’s working well in Mexico?

In recent years, massive steps have been taken to improve the health of the population of Mexico – notably achieving universal health coverage in 2012, making essential health services available to the entire population.

In 2014, a tax was imposed on sugary drinks with the express aim of tackling of obesity – this despite strong corporate opposition. The tax had already led to a 12% decrease in the consumption of such drinks by the end of the year.

Environmental sustainability is receiving growing political attention, and was included as one of five key pillars in Mexico’s National Development Plan for 2007–12. Mexico was the second country in the world to incorporate long-term climate targets into national legislation, and is taking important steps to conserve its forests and protect its rich biodiversity.

What could be improved?

Significant challenges remain for Mexico: economic inequality is a massive problem with a considerable gap between the richest and poorest – the top 20% of the population earns more than thirteen times as much as the bottom 20% of the population.

Mexico’s poverty rates are particularly high among indigenous people. Amnesty International has  highlighted Mexico’s human rights violations, especially relating to irregular migrants. On top of these issues, the importance of the oil industry to Mexico’s economy complicates its environmental efforts.

Mexico recently reached cross-party agreement on the Pacto por Mexico, a pact of 95 initiatives aiming to tackle some of these issues – an important step for the country’s future.

The HPI attempts to quantify an alternative vision of progress where people strive for happy and healthy lives alongside ecological efficiency in how they use resources. Mexico may have a high happiness index, but (like the rest of the world) it still has an awful long way to go to ensure a sustainable future for our grandchildren.

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Jun 232016
 

At the Mexico-China Forum for Cooperation in Mexico City in May 2016, authorities from China’s Guangdong Province met with Mexican officials and discussed plans to invest in Mexico’s recently-established Special Economic Zones.

special-economic-zones

These zones offer tax benefits and support services to investors in order to generate new sources of employment in southern Mexico (Guerrero, Oaxaca, Chiapas, Michoacán, Veracruz and Tabasco).

Trade between Guangdong Province and Mexico was worth $10.4 billion last year, 25% of the two countries’ total trade. Chinese firms are considering projects related to aerospace, vehicles, electronics and energy, which could add $480 million in foreign direct investment. In support of closer ties between Mexico and China, China Southern Airlines plans direct flights between Guangdong and Mexico starting next year, which would serve business travelers and also boost tourism.

Mexico’s tourism development policies: a model for the world?

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Aug 272015
 

Mexico welcomed a record number of tourist last year: 29.1 million visitors, a 20.5% increase over 2013. The number of tourists is projected to grow 8% this year. Most tourists visiting Mexico come from the U.S., followed by Canada, U.K., Colombia and Brazil. During the first six months of 2015, the average expenditure/tourist was 865 dollars.

Mexico is the top international destination for U.S. tourists and according to U.S. Commerce Department data, visits to Mexico by U.S. tourists rose 24% in 2014 to a record 25.9 million, despite U.S. travel warnings relating to parts of the country. Figures from the Mexican side of the border suggest a more modest, though still substantial, increase of 11.8% in U.S. tourists entering the country. The differences in the figures reflect slight differences in definitions and methodology.

Just how did Mexico achieve its tourism success? The answer appears to be a combination of its fortuitous proximity to the USA allied with some smart policy decisions. This helps to explain why the Organisation for Economic Cooperation and Development (OECD) has chosen Mexico as the basis for developing a transferable model to demonstrate the potential of tourism in international development. The in-depth study, to be published next year, will focus on the economic and political aspects of international tourism.

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An update on the Human Development Index in Mexico

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Mar 192015
 

The latest United National Development Program (UNDP) report about the Human Development Index (HDI) in Mexico gives scores and ranks for each state. The full report, in Spanish, entitled “Índice de Desarrollo Humano para las entidades federativas, México 2015: Avance continuo, diferencias persistentes“, is readily available online, and is based on data up to and including 2012.

The HDI is a compound index based on several aspects of three major criteria: health, education and income.

HDI improved between 2008 and 2012 in all states except Baja California Sur. The greatest percentage increases in HDI were in Puebla (where HDI rose 3.7%), Chiapas (3.6%) and Campeche (3.6%). HDI in Baja California Sur fell 0.8%, mainly due to a lower score for education.

HDI in Mexico, with comparison countries for each state

HDI in Mexico, with comparison countries for each state. Click map to enlarge.

The pattern of HDI in Mexico, by state, is shown on the map. The highest HDI values in 2012 were for the Federal District with a score of 0.830, Nuevo León (0.790) and Sonora (0.779). At the other end of the spectrum, Chiapas had the lowest HDI (0.667), below Guerrero (0.679) and Oaxaca (0.681).

As noted previously on Geo-Mexico, the north-south divide in Mexico persists. In general, northern states, together with the Yucatán Peninsula states (Campeche, Yucatán and Quintana Roo) all have HDI values considered “medium” or higher, while southern Mexico (plus some other states, including Zacatecas, Guanajuato, Michoacán and Veracruz) all have “low” values.

The map includes international comparisons. For example, Oaxaca, one of most deprived states in Mexico, had a level of HDI in 2012 comparable to that of Botswana in Africa, even though that nation’s HDI is actually 38 positions below that of Mexico in the world rankings.

The report highlights the extent of disparities by calculating the number of years it will take each state, at the rates of change experienced from 2008 to 2012 to reach the HDI level of Mexico City. Interestingly, while it will apparently take Chihuahua 200 years to reach the HDI level of Mexico City, it will take Chiapas only 20 years to reach the same point.

The main conclusion that can be drawn is that the overall quality of life continues to improve in Mexico though not at equal rates throughout  the country. Disparities persist and current patterns of public spending have failed to make significant inroads into diminishing these disparities. The UN report considers it a priority to close the development gaps in Mexico, especially in the two southern states of Chiapas and Oaxaca.

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Mar 122015
 

If you really want to learn more about Mexico’s economy and have a few hours to spare, then the free, open, online video course entitled Mexico’s Economy: Current Prospects and History by MRUniversity is the place to go. The lead instructor is Dr. Robin Grier of the University of Oklahoma. In a series of 51 short videos, she provides an outstanding analysis of Mexico’s economic history and current economic issues.

The course summary reads:

Is Mexico the most dynamic economy in Latin America?  After some tough times in the 1980s and 90s, Mexico has emerged as one of the economic leaders of the region.  Where does it stand among other emerging markets and what are its prospects for the future? In this four-week course, we will study the modern Mexican economy, some of the unique elements of development in a one-party, authoritarian regime, and some of the challenges the country faced in getting to this point.

No prior knowledge of economics (or of Mexico’s geography) is needed to follow the clear and concise min-lectures given by Dr. Grier, though many of her main lines of inquiry will be more than familiar to readers of Geo-Mexico.

There is lots of interesting material in these videos. For example, a short lecture under “Social Issues” entitled “Is There A Height Premium in Mexico?” looks at the evidence that taller people in Mexico earn more and have better economic opportunities than shorter Mexicans, before concluding that “each centimeter of height above the average is equivalent to 2% higher wages”. (Note: This video is a great follow-up to our April 2013 post, How tall is the average Mexican?)

The full list of videos in Mexico’s Economy: Current Prospects and History is

  • 1 An Overview of the Mexican Economy
    • Achievements
    • Challenges & prospects for reform
  • 2 Colonial Legacies: Obstacles to Growth after Independence
    • A reversal of fortune
    • Colonial Transportation Part I
    • Colonial Transportation Part II
    • Political Instability After Independence
    • The Economic Effects of the War of Independence
    • Transportation & Infrastructure in the 19th century
    • Slow Financial Development in Early Mexico
    • Law and Economic Development in Early Mexico
  • 3 Development Strategies
    • State-led development: an overview from 1917-1982
    • Commodity Driven Growth before the 1930s
    • Turning Inward: Industrial Policy after the Great Depression
    • Labor Unions and the PRI until democratization
    • What is a maquiladora?    An overview of Pemex
    • The problems of Pemex
    • Pemex’s poor performance
  • 4 Social Issues
    • Fertility and Demographic Change in Mexico
    • Is There A Height Premium in Mexico?
    • Conditional Cash Transfers
    • Migration and its Wage Effects in the US
    • Migration and Remittances
    • Economics of the Drug War
    • Finance, Law & Trust (Mexico)
    • Education Quality in Mexico
    • Education Inequality in Mexico
    • Why is Teaching Quality so Low?
  • 5 Land & Agriculture
    • Land Reform in an Authoritarian State
    • The Economic Life of the Tortilla
    • A Tomato Border Crossing
    • Watermelon Scale Economies
  • 6 The Debt Crisis of the 1980s
    • External Factors of the Debt Crisis
    • Domestic Factors of the Debt Crisis
    • Resolving the Debt Crisis
  • 7 The State Retreats: Reform in the 1980s & 1990s
    • External Factors Behind Reform
    • Privatization Part I: The state loosens its grip
    • Privatization Part 1a: Charges of Cronyism and Corruption
    • Privatization 2: Dealing with the Opposition
    • Privatization 3: Results
  • 8 The Peso Crisis
    • The Mexican Miracle? The Lead-Up to the Tequila Crisis
    • Tequila crisis
  • 9 NAFTA & the Mexican Economy
    • An Introduction to NAFTA
    • The effects of NAFTA on the Mexican economy
    • NAFTA and Mexican Agriculture
    • FDI & NAFTA
  • 10 Modern Mexico
    • Mexico & the Brics
    • Is Mexico the new China?
    • La Reconquista: Mexican direct investment in the US
    • Mexico as an open economy
    • Mexico and the 2008 Global Financial Crisis

The course is an outstanding resource for teachers and students of geography and economics, and worthy of wide use in a range of high-school A-level and IB courses as well as college and university programs.

Oct 202014
 

Which of Mexico’s states have the fastest growing economies? The map below, based on INEGI data, shows each state’s percentage change in GDP for the three year period from 31 March 2011 to 31 March 2014.

Change in GDP by state, 2011-2014. Data: INEGI. Credit: Geo-Mexico

Change in GDP by state, 2011-2014. Data: INEGI. Credit: Geo-Mexico

Only one state – Campeche – registered “negative growth” over the period. In Campeche, production from the oil fields that have long been a mainstay of the local economy has been gradually declining.

Besides Campeche, six states grew far slower than the average for Mexico: Durango, Veracruz, Tabasco, Chiapas and Guerrero. Not entirely coincidentally, several of these states are among the poorest in the nation, so their failure to grow as quickly as the average leaves them further behind, increasing the economic inequalities that plague Mexico’s development.

At the other end of the spectrum, the economic growth of six states – Sonora, Chihuahua, Aguascalientes, Guanajuato, Michoacán and Querétaro – easily outpaced the average for the country. Sonora, Chihuahua, Guanjuato, Querétaro, and to a lesser extent Aguascalientes, all benefited from foreign direct investments and new industries, such as those involved in  the vehicle manufacturing and aeronautical sectors.

The case of Michoacán is something of an anomaly, since that state’s economy is still heavily dependent on primary products such as avocados and iron ore. The positive growth in that state may prove to be mainly due to its negative growth in the preceding three years (2008-2011), which meant that it started the three year period shown on the map at an unusually low level. Perhaps more importantly, given the state’s recent political upheavals and gang-related violence, it is highly unlikely that Michoacán will continue to grow anywhere as quickly over the next three years.

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Update on Mexico and the UN Millennium Development Goals (MDGs)

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Dec 302013
 

More than 190 countries signed up to the 2015 UN Millennium Development Goals (MDGs), agreed in 2000. There are 8 major goals:

  1. eradicate extreme poverty and hunger
  2. achieve universal primary education
  3. promote gender equality and empower women
  4. reduce child mortality
  5. improve maternal health
  6. combat HIV/AIDS, malaria and other diseases
  7. ensure environmental sustainability
  8. develop a global partnership for development

millenium-development-goalsMexico is well on its way to meeting most of the eight goals, according to the technical committee established to monitor the country’s progress. The technical committee includes representatives from various government departments, as well as INEGI (the National Geography and Statistics Institute) and CONAPO (the National Population Council).

The committee reports that Mexico has already met the targets for 38 (74.5%) of the 51 quantitative indicators used to assess progress towards the 8 goals, and is continuing work towards meeting the remaining targets by 2015 (the deadline for the Millennium Development Goals).

Satisfactory or good progress is being made on 5 of the remaining 13 indicators; all five are expected to be met sometime in 2015.  Progress on the other 8 indicators has been slower than needed, and it now seems highly unlikely that goal 7 (environmental sustainability) can possibly be met.

Specific targets that Mexico has not yet reached and where progress has either stagnated, or deterioration has occurred, include:

  • Decrease in mortality rate per 100,000 inhabitants due to HIV/AIDS  (part of goal 6)
  • Total carbon dioxide emissions (part of goal 7)
  • Proportion of total water resources already in use (part of goal 7)
  • Percentage of inhabitants with private dwellings using charcoal or wood for cooking (part of goal 7)

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Are Aztec chinampas a good model for food production and agro-development?

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Oct 072013
 

There is no doubt that Mexico’s indigenous farmers developed numerous ways to ensure successful harvests. The details varied from one region to another, but among the techniques employed were:

  • the mitigation of erosion by building earth banks and check dams in gullies
  • polyculture, recognizing that this minimized the risks inherent in monoculture.
  • the terracing of steep slopes to channel water where it was most needed.

In addition, some indigenous groups, including the Aztec in central Mexico, took advantage of their expertise in water management to develop highly productive systems of farming in wetlands. The chinampas (or so-called ‘floating gardens’) in the Valley of Mexico are the prime example of this water management skill, though similar systems were also used in the coastal marshes along the Gulf coast.

On the other hand, the later introduction of large-scale commercial farming methods has often led to deleterious impacts on the countryside and the long term sustainability of such methods is questionable.

In seeking to help Mexico’s rural areas, some development experts have suggested re-adopting Aztec methods, especially their method of building chinampas to farm wetlands. The invention of chinampas as a highly productive form of intensive wetland cultivation was, historically, one of the greatest ever agricultural advances in the Americas. Among other things, it allowed settlements to thrive in areas where rain (and therefore rain-fed food production) was markedly seasonal.

Among attempts to re-introduce ancient methods, one which stands out occurred in the 1970s and 1980s, when INIREB (Instituto Nacional de Investigaciones sobre Recursos Bióticos), based in Xalapa (Veracruz) employed chinamperos from the Valley of Mexico to build experimental chinampa-like fields in Veracruz and Tabasco . These projects are briefly described in Andrew Sluyter’s fascinating book Colonialism and Landscape, Postcolonial theory and applications (Rowman and Littlefield, 2002), the main basis for this summary.

Google Earth image of camellones chontales

Google Earth image of camellones chontales

The most ambitious project was a later federally-organized one in Tabasco, where 65 massive platforms (camellones), each about 30 meters wide and from 100 to 300 meters long, were built in the swampy Chontalpa wetlands. The project, known as camellones chontales was backed by the local Chontal community though it was not directly involved in the construction phase. Because of the scale of the project, large mechanical dredgers were used to build the platforms, rather than relying on laborious and slower hand labor.

After construction, the Chontal community began farming the platforms, but initial results were very disappointing. Things improved with time, especially when the Chontal took full control of the project. From their perspective, the project meant that more members of the community now had land that could be farmed, and they shifted the emphasis away from the “vegetable market production” favored by officials towards growing corn (maize), beans and bananas for local household consumption, improving local food availability.

Recent press reports, such as this 2-minute Youtube clip (Spanish), claim that many parts of the camellones chantales have now been abandoned, owing to insufficient investment in maintenance.

Why did the project fail initially?

This is one of the key questions connected to this example. Sluyter refers to two articles written by Mac Chapin (from Cultural Survival, an organization that champions the rights of native peoples). Chapin argues that the projects, and their assumptions, were fundamentally flawed. For example, the use of dredges to construct the platforms turned the soil profile upside down, bringing infertile clay towards the top and sending nutrient-rich layers downwards, beneath the reach of plant roots. In turn, this meant that organic matter and fertilizers had to be added to the land in order for good crop yields. Because of the dredging, the canal floor between the platforms was very irregular, making it much more difficult for the Chontal to fish using drag nets. Many of the crops planted were “exotic” and production was market-oriented rather than subsistence or locally-oriented. Chapin was particularly critical of the lack of suitable transport routes for sending produce to distant markets. In addition, chemicals were needed because of the proliferation of insects in these lowland wetlands. (Insects are rarely a problem at the higher altitudes of central Mexico).

Chapin concluded that this development project was just one more in a long line of failures where an outside model was introduced into a new area without sufficient prior research or local involvement in the planning stages. Sluyter agrees with this conclusion, pointing out that there is no evidence that these Tabasco wetlands ever had any form of chinampa farming, even in pre-Columbian times, perhaps because they have “a much greater annual fluctuation in water level than those in Campeche and Veracruz”.

Want to read more?

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Exclusive: Quintana Roo cacao megaproject collapses

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Aug 302013
 

Following our critique of the Maya Biosana chocolate megaproject (Maya Biosana or Maya Bio-Insana? Chocolate megaproject in Quintana Roo),  a project which claimed it would plant four million cacao plants in four years, we have received additional information about developments in the Los Divorciados ejido where the project is based.

According to an insider, the project has now completely abandoned its plans for a massive cacao plantation. Jim Walsh, the former CEO of Maya Biosana, left the project in December 2012. Maya Biosana is now being managed by a Mexican firm AMSA (Agroindustrias Unidas de México, S.A. de CV) which is trying to convert the land into a profit-making venture producing corn and other grains.

Prior to the demise of the cacao megaproject, the organizers of Maya Biosana had released a short documentary detailing the project, and lauding its successful transformation of “a dwindling Mayan town” into a “now blossoming entrepreneurial city growing cacao fields and supporting their local community.” The film’s blurb claims that since the video was filmed, “the town has expanded and grown two-fold.”

According to recent visitors to Los Divorciados (the ejido in question—see map), this could not be further from the truth. They report that in summer 2013, the Maya Biosana project, which had started out by employing around 200 people, now had 40 workers at most. One member of the group that visited Maya Biosana estimates, “based on the number of motorcyles parked there when we were there”, that the real workforce at Maya Biosana may be even smaller, perhaps 20-25.

Google Earth image of southern Quintana Roo

Google Earth image of southern Quintana Roo

The 13-minute documentary, “Maya Biosana – The Rebirth of Mexican Cacao, A short documentary,” can still be seen (as of August 2013) via this link on the Intentional Chocolate blog. However, note that many of the images included in the video are most definitely NOT from the Maya Biosana area, or even from Quintana Roo.

The film’s badly-written blurb claims that it, “follows Maya Biosana, as it repositions Mexico as the largest organic cocoa producer in the world and bringing the sacred plant back to it’s birth home. Improving the quality of life in Mexico with it’s vision of collaboration, co-creation and intention by providing the local and surrounding communities with a new model of business utilizing their own proprietary Well Being index as the marker of change.”

According to the Intentional Chocolate blog, “The film won the best short Award in 2012 at the Awareness Festival”, a claim it has also proved impossible to verify.

The original Maya Biosana is no more, but will the new management of this area by AMSA prove to be any better for the local ejidatarios than the original megaproject fiasco? We certainly hope so, but only time will tell.

In the interim, we received an e-mail  a few weeks ago about a new megaproject underway in Avila Camacho, the next village to Los Divorciados (see map). Apparently, this megaproject is for plantations of exotic trees, which involves deforesting the jungle, extracting the wood, and planting a total of 6000 hectares with White Teak (Gmelina arborea, Spanish common name melina), a tropical hardwood, at the rate of 1000 hectares a year. So far, about 50 hectares have already been planted.  The correspondent writes that they “stole the land of the Mayan people, cheating about the pay of rent: the rent is $45US for a hectare for a year. They are destroying the jungle  and extracting the wood.” We have been unable to get independent verification of these claims as yet, but will continue attempting to do so.

Initially, some equipment from Maya Biosana was utilized on the Avila Camacho project, and our correspondent  claims that it is the same Mexican-associated company that is responsible, though we have not yet been able to confirm this.  According to a second source, the CEO of this project is Fernando Gonzalez, a “very good friend of Jim Walsh”, the former CEO of Maya Biosana, but there is no longer any direct connection between the two projects.

There may have been recent “developments” in this part of Mexico, but they certainly do not yet constitute any form of sustainable development.

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How does Mexico score on the Social Progress Index?

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May 302013
 

The Social Progress Index measures the extent to which countries provide for the social and environmental needs of their citizens. It is a compound index, based on  52 indicators in the areas of Basic Human Needs, Foundations of Wellbeing, and Opportunity that show relative performance in order to elevate the quality of discussion on national priorities and to guide social investment decisions.

Social progress is the capacity of a society to meet the basic human needs of its citizens, establish the building blocks that allow citizens and communities to enhance and sustain the quality of their lives, and create the conditions for all individuals to reach their full potential.

The model used to develop the index is based on asking three key questions that help define social progress:

  1. Does a country provide for its people’s most essential needs? (Basic Human Needs)
  2. Are the building blocks in place for individuals and communities to enhance and sustain wellbeing? (Foundations of Wellbeing)
  3. Is there opportunity for all individuals to reach their full potential? (Opportunity)

In this inaugural Social Progress Index, each of these dimensions is disaggregated into four components, each measured by between two and six specific indicators. Each indicator has been tested for internal validity and geographic availability:

Criteria used to compile Social Progress Index

Criteria used to compile Social Progress Index. Click image to enlarge.

For example the Personal Rights component of Opportunity is comprised of 5 separate variables:

How does Mexico score on the Social Progress Index?

Of issues covered by the Basic Human Needs Dimension, Mexico does best in areas including Nutrition and Basic Medical Care and has the greatest opportunity to improve human wellbeing by focusing more on Personal Safety. Of issues covered by the Foundations of Wellbeing Dimension, Mexico excels at providing building blocks for people’s lives such as Health and Wellness but would benefit from greater investment in Access to Information and Communications. Of issues covered by the Opportunity Dimension, Mexico outperforms in providing opportunities for people to improve their position in society and scores highly in Personal Rights yet falls short in Access to Higher Education.

This is how Mexico’s performance stacks up in comparison to the other 49 countries in the survey:

  • Social Progress Index: score 49.7 = rank 25th
  • Basic Human Needs: 49.3 (29th)
  • Foundations of Wellbeing: 50.8 (23rd)
  • Opportunity: 49.1 (25th)

This post is based on a press release from the Social Progress Imperative. For more information about the methodology behind the Social Progress Index, please refer to the inaugural report.

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