This report addresses the actions that Mexico City Government is currently implementing. At present Mexico's Capital City Government is new since it is the first time that its mayor or chief executive is directly elected by voters. By the same token, investment as well as operational costs for public goods and services have to be locally financed; public debt has to be approved by the national deputies chamber; the federal government has reduced its financial support, and current government term is limited to three years (1997-2000). Mexico City has also been facing some challenges during the last decade: overpopulation and high urban density, congestion, air pollution and high crime rates. The altitude and topography of the Mexico City valley contribute to less efficient combustion, trapping toxic emissions generated from the tailpipes of more than three million cars, taxicabs, trucks, minibuses and buses running in the city. However, in this context, there have been some opportunities to formulate new policies for urban transportation. This paper focuses on some specific actions such as implementation of alternative fuels, decentralization of duties from the Mexico City Central Government into local jurisdictions and creation of the Mexico City Urban Transportation Institute.
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