MEXICO CITY Mexico, bordering the world's wealthiest nation but with 40 percent of its people mired in poverty, is using a major UN conference this week to establish itself as a go-between for the world's rich and poor.

The northern industrial capital of Monterrey will host some 50 heads of state, including U.S. President George W. Bush, and representatives from 100 other countries, gathering to find ways to boost rich nations' funding of programs to help the poor.

The International Conference on Financing for Development, which runs March 18 to 22, comes as Mexico's economy and politics are increasingly bound to the United States, its partner in the North American Free Trade Agreement, or NAFTA, that buys 85 percent of Mexican exports, AFP reported.

Mexico's 2,000 mile (3,200 km) border with the United States lies just 150 miles (250 km) north of Monterrey, the city that is home to many of the nation's largest corporations.

In many ways the city symbolizes modern Mexico pulling away from economically troubled Latin American countries like Argentina and Venezuela and tying its fortunes to its giant northern neighbor.

But Mexico is also home to Chiapas, the southern state with the Zapatista indigenous rebel movement and an economy more closely resembling rural Guatemala. The government estimates 40 percent of Mexico's 100 million people live in poverty.

This dichotomy within Mexico, officials say, makes the country the ideal host for the UN-sponsored meeting that aims to come up with a global agreement on ways to eradicate poverty and bring sustained development to poor nations.

"Mexico is both Chiapas and Monterrey," Foreign Minister Jorge Castaneda told a briefing with reporters last week.

"It's for that reason our sort-of motto is 'Mexico, bridge-country' -- a country that bridges North and South, the rich and the poor, between ideologies, between tradition and modernity," he added.

Close Friends

Bush and Mexican President Vicente Fox enjoy a warm relationship dating to the time when they were both state governors. Mexican officials say that friendship was key to Bush coming to Monterrey, despite ideological differences between Washington and the United Nations on how best to combat Third World poverty.

The Bush administration has said it does not favor boosting aid until it can be verified it is being used more effectively, although on Thursday Bush announced he would offer an extra $5 billion in aid to poor nations that embrace economic and political reforms.

After the close of the meeting, the two leaders will hold talks on bilateral issues ranging from immigration, border security, drug trafficking and trade.

But while the relationship with Washington weighs heavily on Mexico's diplomatic agenda, Mexico is also highlighting its independence from Washington through an increasingly active role on the international stage.

Mexico, which has budgeted some $6.6 million to host the Monterrey meeting, this year took a seat on the 15-nation UN Security Council, a position the government has said it hopes will bring it an increased role in global affairs.

In October, the Baja California Sur Resort of Los Cabos will host the Asia-Pacific Economic Cooperation summit.

"Monterrey is the confirmation of what has been presented as the two main lines of President Fox's foreign policy: the strategic relationship with the United States, and Mexico's new multilateral commitment," Castaneda said.