Inclusive governance and economic empowerment in the Muxe community of the Isthmus of Tehuantepec region, Oaxaca, Mexico

1 Introduction

Today, institutions are considered fundamental because they involve social groups in efforts to strengthen their economic capacities and identify the structural deficiencies that limit well-being and participation in the development processes of a country, a state, a region, or a community. Social institutions play a fundamental role in fostering community-centered management programs by mobilizing individual capacities, knowledge, and skills within organized frameworks that promote collective action and participatory governance (Heidarzadeh et al., 2025). Development processes are not limited to considering access to natural, social, environmental, and economic resources; rather, they encompass the institutions and power relations that these resources generate. This defines the elements of governance, understood as the process of allocating and regulating resource use within complex socio-ecological systems. Governance is responsible for ensuring equitable conditions for economic development by coordinating interactions among resource systems, users, and institutional arrangements, while accounting for the broader social, economic, political, and ecological contexts that shape sustainability outcomes (Yang et al., 2026; Baker et al., 2021).

The Isthmus of Tehuantepec region has historically been marked by processes of dispossession, territorial reorganization, and disputes over control of strategic resources (Torres-Contreras, 2024). Demands for cultural recognition should not be separated from the material conditions that ultimately determine who makes decisions, who has access to the benefits of development, and who remains on the margins of economic distribution or the political order. The relationship between recognition and political economy should not be merely conceptual, but rather structural, one in which a community can be celebrated as a cultural symbol while simultaneously remaining excluded from redistribution, representation, and the effective capacity for social advocacy (Yamamori, 2012).

The allocation and regulation of resource use create an inequality gap, in which individuals and groups do not enjoy the same benefits. Inclusive governance arises from the need to reduce inequality gaps among vulnerable or excluded groups. Vulnerable or excluded groups, for the most part, are limited to cultural recognition rather than economic representation in development (Killen et al., 2022). The Muxe community of the Isthmus of Tehuantepec, Oaxaca, is recognized as a gender category within the region’s Zapotec culture; this recognition stems from their representation in cultural matters, community activities, and economic endeavors. However, historically, it has been an excluded group because its economic participation is limited solely to presenting a cultural image in these activities and does not provide economic opportunities or benefits that improve its well-being.

From a socioeconomic perspective, the regional context in which the Muxe community is embedded is characterized by high levels of in-work poverty and informal trade. In the first quarter of 2026 alone, 52.7% of the population in Oaxaca was living in in-work poverty, indicating that their income from work is insufficient to purchase the basic food basket. Meanwhile, by the third quarter of 2025, 80.1% of the employed population in Oaxaca worked in the informal sector, and 17.8% were underemployed, indicating a structural limitation in the quality of available employment [Instituto Nacional de Estadística y Geografía (INEGI), 2026]. The conditions mentioned above are particularly relevant to the Muxe community, whose primary economic participation has historically been characterized by artisanal embroidery, weaving, and informal family-based activities, often carried out daily without autonomy over prices, production schedules, or access to formal credit and social protection (Ford et al., 2024).

Although the Muxe community plays a prominent role in the cultural life of the Isthmus of Tehuantepec, this recognition does not translate into equivalent levels of material well-being, political participation, or access to resources. The Muxe experience has been described as a diverse and complex form of social existence in which cultural acceptance, everyday discrimination, and limited economic participation coexist without guaranteeing economic autonomy, much less institutional representation. It is necessary and important to distinguish between the recognition of identity and the actual conditions of inclusion, since the persistence of territorial and gender hierarchies can restrict this group’s ability to participate in the distribution of opportunities and benefits in social development (Yamamori, 2012; Ford et al., 2024).

The sociodemographic context of the Muxe community is shaped by a region transforming due to large-scale infrastructure megaprojects currently being developed on behalf of the Mexican Federal Government. The Isthmus of Tehuantepec is home to approximately twelve indigenous peoples and Afro-Mexican communities, totaling more than half a million inhabitants in the area most affected by the Interoceanic Corridor project. Various studies document that the development of these megaprojects has led to intensified land dispossession, environmental degradation, and the exclusion of indigenous peoples from decision-making, while promoting a model of extractive development and nearshoring. About the Muxe community in Juchitán, it is noted that despite their cultural recognition, they remain largely absent from formal political institutions and economic leadership roles, with their roles concentrated in cultural reproduction, family care, and artisanal production. This underscores that their exclusion cannot be understood in isolation, but rather as part of broader patterns of territorial and political marginalization affecting indigenous and gender-diverse groups in the region (Hofmann, 2024; Ford et al., 2024; García, 2021). As Butler (2000) has pointed out, reducing identity to a purely cultural matter, disconnected from material conditions, can hinder our understanding of the complex forms of exclusion that operate in contexts of territorial reconfiguration and structural inequality.

Furthermore, this group has no participation in institutions that determine policies, development programs, and access to resources (Ford et al., 2024). Thus, the Muxe community is confined to serving as a cultural symbol of Zapotec culture. In this context, the question is: Can culturally significant yet economically excluded groups achieve economic empowerment through inclusive governance?

The answer to this question is derived from an analysis of inclusive governance and the economic empowerment of marginalized groups, from a political-economy perspective. In recent years, social research has focused on examining these groups in relation to issues of sexual identity and diversity, an approach grounded in anthropological, symbolic, and cultural dimensions (Lwamba et al., 2022).

However, the analysis is limited in terms of institutional, political, and development issues. This limited analysis of these issues restricts our understanding of the processes and the role that inclusive governance plays in creating economic opportunities for this group. This paper aims to contribute to the analysis of inclusive governance and the economic empowerment of excluded groups from a political economy perspective.

The study of inclusive governance and economic empowerment is important for research on sexual diversity and for current debates on inclusion and development. The objective of this study was to offer insights through an analysis of inclusive governance and economic empowerment in the muxe community of the Isthmus of Tehuantepec, Oaxaca, from a political economy perspective. To this end, a conceptual literature review based on political economy was conducted. A systematic search was performed in databases (Scopus, Web of Science, SciELO, Redalyc, and Google Scholar) using keywords in both Spanish and English—“Muxe,” “third gender,” “Juchitán,” “inclusive governance,” “economic empowerment,” and “political economy”—which were combined with Boolean operators (AND, OR). The inclusion criteria for this search were: (a) peer-reviewed articles, book chapters, or policy documents published between 2023 and 2026; (b) a focus on inclusion, economic participation, or governance in contexts of gender diversity and/or indigenous peoples; (c) availability in Spanish or English. In addition, duplicates were removed, records were screened by title and abstract, and full-text articles were evaluated for conceptual relevance. The selection process adhered to the transparency principles outlined in the PRISMA 2020 statement. No primary qualitative data (interviews, focus groups, participant observation) were collected; therefore, empirical statements about the economic activities of the Muxe community are interpreted as analytical trends derived from the reviewed literature, not as original field findings.

2 Inclusive governance

Governance focuses on the study of government action in areas such as decision-making, planning, and the implementation of development models for countries. From the perspective of contemporary political economy, governance encompasses the study of societies. The study of societies focuses on collective decision-making, the distribution and management of resources, and social participation (Annahar et al., 2023).

Governance in Mexico is a system in which institutions coordinate activities to address social issues, set objectives, and manage resource distribution. The distribution of resources is based on the relationships among various actors—governmental, social, private, and community-based. The aim is to establish relationships among these actors to contribute to development. When studying governance for development, it is approached as an evolving concept that begins with public administration and extends to community-based processes for social participation in the formulation of collective agreements (Arango et al., 2020).

Social participation is the responsibility of institutions; these institutions regulate collective action by establishing norms or rules for collective behavior; furthermore, they determine the scope of social participation in political and economic decisions (Pevnaya, 2024). Political and social participation reduces uncertainty regarding economic performance and territorial development. Thus, from a political economy perspective, institutions in Mexico establish the dynamics of power when agreements are reached, creating neutrality among the interests and values of the groups involved. Institutions are viewed as spaces where social negotiations take place on issues of cooperation, decision-making, and support programs, and where social scope is defined (Reinhart et al., 2025). This scope depends on budgets and operational logistics; consequently, certain groups or issues that are not national priorities are excluded.

Groups and issues that are not considered a national priority are excluded from these approaches. From the perspective of contemporary political economy, inclusion is at the heart of governance analysis. From this perspective, inclusive governance arises from the need to incorporate groups historically excluded from traditional models of government into the decision-making process (Sánchez et al., 2024). Traditional models of government create inequality gaps in economic, environmental, and social issues.

Inclusive governance in Mexico seeks to ensure that all sectors and groups of the population have equal opportunities for political participation and decision-making that affect or benefit their well-being (Organization for Economic Cooperation and Development, 2020). From a political economy perspective, inclusive governance ensures that political, administrative, and social actors distribute resources equitably and generate opportunities and benefits. This takes place in formal settings where participation is a strategy for equity; however, these settings do not guarantee inclusion without the participation of all social groups. Inclusive governance is responsible for strengthening the participation of all social groups through multilevel governance and decentralization, thereby increasing institutional capacity (Herrera, 2025).

Institutional capacity depends on the coordination established with social groups. Institutions need to identify all social groups within a given territory. Following this, participatory processes are initiated. Participatory processes within inclusive governance contribute to institutional legitimacy, ensuring that public decisions result in sustainable and equitable development. From a political economy perspective, inclusive governance promotes social justice and strengthens the participation of excluded groups (Özden, 2023).

The inclusion of social groups broadens development through participatory and representative decision-making processes. In this sense, inclusive governance is important for fostering horizontal relationships, social cohesion, and community self-management. Models of inclusive, sustainable development emerged in the 1990s, grounded in the capabilities approach. The capabilities approach understands development as the process of expanding opportunities and freedoms for excluded groups. This approach holds that institutions create the conditions for expanding social groups’ participation (Ndlovu and Msimanga, 2023). Thus, political economy views inclusive governance as the institutional mechanism established in Mexico to eliminate inequalities in areas where social participation is limited.

The presence of vulnerable and marginalized groups characterizes areas with limited social participation. These groups are limited to cultural recognition, without any guarantee of their participation in social, economic, and political matters. The cultural recognition they possess is used as a symbolic value of the territory without addressing their economic needs (Pinheiro and Almeida, 2023). Through inclusive governance, these groups are guided toward economic empowerment to create equitable and inclusive societies.

3 Economic empowerment

Economic empowerment focuses on the study of power relations generated within organizational structures. These structures create inclusive societies. From a political economy perspective, this concept examines economic income, decision-making capacity, and the autonomy of groups to participate in development processes (Tayyba and Awan, 2025). Human development is the type of development that examines the freedoms of societies. Furthermore, it emphasizes poverty and exclusion—issues addressed through the lens of economic deprivation, limited access to opportunities, and social, political, and economic participation. Economic empowerment refers to people’s ability to use available resources and generate tangible benefits for their well-being (Ishfaq et al., 2022).

Economic empowerment examines the relationship among a community or group’s available resources, intrapersonal capacity, and the resulting benefits. Available resources refer to material, human, and social conditions. Intrapersonal capacities involve the use and optimization of resources, as well as the definition and scope of objectives. The benefit refers to the results derived from the aforementioned interaction. In this sense, economic empowerment is defined as the ability of individuals to take on an active role and exercise control over decision-making by developing skills and knowledge to generate strategies that improve their living conditions (Malta, 2023).

Active participation refers to the ability to make decisions and to engage socially in public affairs. This ability is limited when public policies and power structures are not inclusive, since meaningful participation depends not only on formal mechanisms but also on institutional design, open leadership, and the integration of community practices into administrative culture. In Mexico, economic inequality is reflected in issues related to access to financing, education, employment, and entrepreneurship, which limits the ability of vulnerable groups to participate in processes that affect their well-being. Economic empowerment aims to create opportunities for participation in economic processes, fostering conditions in which excluded groups can exercise autonomy, influence decisions, and generate sustainable benefits for their communities (Mariani et al., 2025). Economic inclusion is achieved through policies that promote inclusive access. These policies must identify structural barriers and, based on them, develop programs that promote equal conditions for vulnerable and excluded groups.

The contemporary political economy approach assumes that economic empowerment stems from autonomy and the creation of sustainable livelihoods. Autonomy refers to independence in decision-making and the freedom to act in pursuit of goals or interests. Autonomy is the process that encompasses the actual ability to control resources and make choices. Sustainable livelihoods are those that guarantee the subsistence and well-being of an individual or a group (Ouyang, 2025). Economic empowerment, as approached from the perspective of political economy, focuses on the study of access to work, one’s own income, productive resources, and the generation of development opportunities.

Development in Mexico is based on the creation of plans and programs that address economic challenges; however, this approach is limited in regions and communities where access to economic opportunities is not inclusive (Peña, 2023). In this regard, the study of economic empowerment includes participation in productive activities and in spaces of economic leadership. Participation in productive activities should not be limited to physical labor; it must generate a monetary benefit. Economic leadership arises from entrepreneurship, self-determination, and income generation; collaborative development generates sustainable economic initiatives (Perilla-Ruiz et al., 2022).

Economic initiatives become sustainable when individual capabilities, sociocultural factors, and territorial factors come together to create economic solutions rooted in community contexts. Community contexts arise from social cohesion, accumulated and transferred knowledge, and people’s sense of belonging to a social group (Fan, 2025).

Economic empowerment in community contexts underscores the importance of participation in leadership spaces. These spaces emerge from people’s economy or solidarity economy; these terms give rise to organizational initiatives that provide groups with economic autonomy and foster access to productive and economic resources that improve people’s well-being. In this sense, economic empowerment is not limited to a single aspect; it involves a comprehensive approach that encompasses economic income, recognition, participation, and capacity building (Kurniawan et al., 2023). When viewed comprehensively, economic empowerment enables groups to generate sustainable income and foster social participation, thereby promoting inclusive development.

4 Inclusive governance as a factor in the economic empowerment of the Muxe community

The Muxe community in the Isthmus of Tehuantepec region is considered a socially distinct group. In this region, this group is viewed as a social and cultural expression. The Muxe community has built its history on its own identity, becoming a symbol of sexual diversity within Zapotec culture. This group’s identity does not fall within the binary categories of man or woman (Toscano et al., 2024). The group’s sexual diversity differs from the traditional binary framework; it is characterized by a masculine physical appearance and defined by its own distinct feminine presence. The Muxe community wears the region’s traditional attire (traje de tehuana) as a distinctive mark of their identity, serving as an expression of gender.

Gender expression within this group is linked to linguistic, cultural, familial, religious, and social factors. This leads to recognition within the Zapotec culture of the Isthmus region. This recognition stems from participation in the region’s social, economic, and cultural life. However, this participation does not contribute to the well-being of the Muxe community (Stephen, 2002).

The processes of globalization and social movements focused on sexual diversity have brought this group into the spotlight. Visibility in this context is examined through categories such as gender, cultural hybridization, and identity, and through studies with anthropological, historical, and cultural perspectives (Russell et al., 2023; Di Matteo, 2024). These studies reaffirm the importance of the Muxe community as a historical and cultural expression of the region and highlight this group as a dynamic construct with ties to tradition, territory, and cultural diversity amid social transformations. However, neither the visibility of these issues nor the cultural significance of the Muxe community has guaranteed their inclusion. In political and economic matters, the Muxe community is considered an excluded group.

This current context, in which exclusion is being addressed, is relevant to the development of the Interoceanic Corridor of the Isthmus of Tehuantepec (CIIT), a megaproject promoted by the Federal Government of Mexico that aims to transform the region’s territorial, economic, and political dynamics. Studies document that the CIIT has intensified processes of land dispossession, environmental degradation, and the exclusion of Indigenous peoples from decision-making, while promoting an extractive development model focused on nearby relocation and large-scale infrastructure. In this context, the Muxe community faces double marginalization: first, it remains excluded from formal political institutions and positions of economic leadership; and second, it is affected by a development model that prioritizes strategic resources and foreign investment over the participation of Indigenous groups and gender diversity in the distribution of opportunities and benefits. In light of the above, an analysis of inclusive governance and economic empowerment cannot be separated from the material conditions generated by the CIIT, as the megaproject reshapes power relations, access to resources, and institutional capacity to include historically excluded groups in development processes.

The study of inclusive governance and the economic empowerment of the Muxe community goes beyond the scope of research on gender, social, and cultural issues. Furthermore, it advocates for the inclusion of these groups in development processes. Inclusive governance, through institutions, fosters coordination among the state, the private sector, and civil society. This coordination can lead the Muxe community toward sustainable mechanisms for participation (Aldaz and Romero, 2024).

Institutions are responsible for creating mechanisms for the participation of excluded groups. The participation of the Muxe community in the decision-making process is not limited to symbolic representation; it involves their inclusion in policies, programs, and actions aimed at their well-being (Latupeirissa et al., 2025). However, belonging to the Muxe community within the context of sexual diversity creates limitations stemming from structural discrimination.

From a political economy perspective, development processes lack inclusive structures regarding third-gender issues. Development processes are geared toward nationally prioritized groups, among which the Muxe community is not included; therefore, it is a discriminated-against group. This discrimination is neither individual nor gender-based; rather, it is a systemic imbalance (Mbowane et al., 2025). Inclusive governance proposes participation as a strategy for transforming living conditions. Living conditions change when there are processes of autonomy, decision-making capacity, and access to productive resources and opportunities—issues that fall under the umbrella of economic empowerment (Serrano, 2023).

The economic empowerment of the Muxe community is not only measured by income generated or labor market participation, but also by this group’s autonomy, decision-making capacity, and participation in productive spheres (Villafuerte-Pezo et al., 2022). The sources of information consulted covered and included the economic participation of the Muxe community, which is concentrated in embroidery, weaving, and the artisanal trade in traditional clothing; however, the literature also highlights examples of independent entrepreneurship, professional engagement, and community participation, which precludes the generalization that the entire community lacks autonomy or is subordinate to workshops run by women without direct qualitative evidence.

In this context, the relationship between inclusive governance and economic empowerment is crucial for the Muxe community, as it involves issues of political, social, and economic participation. It also provides autonomy and decision-making capacity, which, if applied, can lead to the well-being of this group and its sustainable inclusion in development processes (Ford et al., 2024). This relationship highlights a point of tension between the cultural significance currently held by the Muxe community and its economic exclusion. Cultural significance leads to social recognition but does not guarantee inclusion in terms of access to resources, funding, opportunities, and decision-making.

The political economy approach to these issues explains the existing inequalities within this group. Currently, organizational structures in this region are influenced by power relations that prioritize women’s political and economic participation; however, when it comes to sexual diversity, the third gender (the Muxe community) is not included. Therefore, inclusive governance must not only promote the participation of this group but must also, as a starting point, propose structures that guarantee the political, social, and economic participation of the Muxe community.

5 Conclusion

In conclusion, we can say that the Muxe community holds indisputable cultural significance within Zapotec society on the Isthmus of Tehuantepec; however, this symbolic centrality has not translated into effective inclusion in development processes. Current institutional structures have not allowed for the incorporation of the third gender into conditions of political, social, and economic participation, leading to gaps in the design of public policies, development programs, access to financing, autonomy, and the exercise of leadership.

Consequently, inclusive governance and economic empowerment must be understood not only as normative principles but rather as institutional mechanisms to expand citizenship, redistribute opportunities, and reduce structural inequalities. Within this framework, the proposal is not limited to economic growth but rather emphasizes the creation of structures that seek to strengthen individual well-being, as well as much more equitable power relations among all groups. The presentation of this opinion acknowledges that the exclusion of muxes is rooted in a broader framework of coloniality, territorial inequality, and the political economy of dispossession (exemplified by megaprojects such as the CIIT) which leads to the conception of inclusive governance not as an isolated measure, but as part of a territorial strategy that articulates demands for indigenous, gender, and distributive justice.

In this regard, the aim is to shift the traditional analysis of the Muxe community toward a political economy approach that allows for a critical examination of its material and political exclusion, as well as to lay the groundwork for pathways to inclusion based on autonomy, leadership, and effective access to resources. At the same time, the proposal recognizes that Muxe exclusion is embedded in a broader matrix of coloniality, territorial inequality, and the political economy of dispossession, which leads to conceiving of inclusive governance not as an isolated measure, but rather as part of a territorial strategy that articulates indigenous, gender, and distributive justice demands.

The viability of such proposals depends on institutions moving beyond symbolic recognition to the creation of concrete mechanisms for participation, funding, and decision-making, so that the Muxe community can exercise leadership, manage resources, and define its own social development priorities.

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Footnotes

Edited by: Narcisa Medranda Morales, Universidad Politecnica Salesiana—Sede Quito, Ecuador

Reviewed by: Nancy Testón Franco, Autonomous University of the State of Hidalgo, Mexico

Leydi Diana Morales Díaz, Autonomous University of the State of Hidalgo, Mexico