Drug money and drug cartel as tools for stimulating mexicos economy

Explore the latest strategic trends, research and analysis The toll of violence in Mexico is usually counted in terms of the human and emotional cost, but as organised crime groups get rich on the suffering of others, the financial damage to the economy is also considerable. According to the latest Mexico Peace Indexthe total economic impact of violence in Mexico in was 2. Yet these figures actually represent an improvement onas a result of a decrease in violent crimes other than homicide.

Drug money and drug cartel as tools for stimulating mexicos economy

This is a health problem, not a criminal problem. The level of violence and slaughter is similar to conventional warfare. In just six years, 70, people have been killed, but some estimate the number is a staggeringArmed with military grade weapons including grenade launchers, the drug gangs are an equal match for Mexican soldiers and police.

Drug cartel sicarios assassinsthe military, and police have committed atrocities and violated human rights countless times. Dismembered body parts are left on streets and found decomposing in barrels of acid. Dead bodies with mouths duct taped shut hang from busy commuter bridges.

Women are raped and murdered with impunity, and journalists who expose law enforcement corruption are kidnapped and killed. The drug war takes no prisoners.

Drug money and drug cartel as tools for stimulating mexicos economy

This bloody war, ostensibly to rid the country of illegal drugs and drug trafficking, has been a grisly failure. Mexico continues to be a major exporter of heroin and marijuana and a central transshipment point for cocaine from Andean South America bound for the United States.

Drugs cross the heavily fortified US-Mexican border far more easily than do migrants seeking work in the United States. The power of the drug cartels to kill, corrupt, and elude capture has grown exponentially as have their profits.

For six years as the death toll climbed and drugs flowed unimpeded through the country, El Presidente insisted that the war was being won. Kennedy School of Government in Cambridge.

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It is on the other side of the border, thousands of miles away in Washington, DC and Langley, Virginia where the senior partners call the shots. For almost a century, American politicians and federal antidrug agencies have dictated drug policy to their neighbor.

Coercing Mexico to enforce total drug prohibition has been a central and enduring source of tension between the two countries. The border between Mexico and the United States spans six Mexican states and four US states, and has over twenty commercial railroad crossings.

There are forty-five Mexico-US crossings with ports of entry. According to the Migration Information Source, in, passengers and 12, trucks crossed the border every day. Border city twinnings—municipalities connected by one or more legal border crossings—dot the nearly two-thousand mile border. Two rivers, the Rio Bravo and the Colorado, and two deserts, the Sonoran and the Chihuahuan, straddle both countries.

The drug war passes through this porous and dangerous, remote and urban geography. Nature has always conspired to defeat attempts to eliminate trafficking between the two countries. It is a mathematical impossibility.

The United States has never respected Mexican sovereignty and the right to self-determination. American armies invaded Mexico in and conquered half of its national territory.

Then inthe US invaded again. Since the s, the United States has intervened covertly and overtly to enforce drug prohibition south of the border.

Prohibitionist drug policies have transformed Mexico into a major cultivator, exporter, and transshipment point for illicit drugs that supply the US market. History of prohibition Up until the early s, the use of opium, cocaine, marijuana and alcohol were legal in the United States and could be purchased at pharmacies and stores.

A steady series of laws passed in the United States made all drug use illegal. The Opium Exclusion Act barred the importation of opium for smoking.

Initially, the law applied only to the opium processed for smoking that was favored by Chinese immigrants in San Francisco. Inthe Harrison Act was passed prohibiting all non-medicinal use of opium, morphine, and cocaine, effectively outlawing the use of medicinal morphine that white, middle-class women used in products like Mrs.

The Marijuana Tax Act of made marijuana use illegal. Millions ignored the new vice laws, and black markets were quickly created to supply people with alcohol, heroin, cocaine, and marijuana.

Prohibition caused initial shortages that had the effect of dramatically boosting drug prices.The nature of the CDC business allows money launderers the opportunity to move drug dollars that are in Mexico into CDCs and ultimately into the US banking system.

The illegal drug trade or drug trafficking is a global black market dedicated to the cultivation, manufacture, distribution and sale of drugs that are subject to drug prohibition laws.

From spas to banks, Mexico economy rides on drugs | Reuters

Most jurisdictions prohibit trade, except under license, of many types of drugs through the use of drug prohibition laws. Since Mexican President Felipe Calderon took office in September , there have been well over an estimated 13, drug-related killings in the country.

The killings are tied to Mexican drug cartels, which supply vast amounts of marijuana, methamphetamines, and cocaine primarily to U.S. markets. Samuel Blackstone, “The amount of money Mexican drug cartels spend on bribes is staggering,” Business Insider International, June 15, Peter Andreas, “The political economy of narco-corruption in Mexico,” Current History, 97, May 18,  · There are many economic problems that the drug cartels bring upon Mexico, but in many ways, Mexico’s economy is also very dependent on the money that the drug cartels bring in.

It can be argued that the drug cartels help keep the banks in Mexico afloat. When we ask if drug cartels help the economy, maybe we picture El Chapo claiming tax returns. This, of course, doesn’t happen. Like other people have already mentioned, money laudring is a thing, it’s the reason why businesses with no customers misteriously stay open for years.

This is how much violence costs Mexico's economy | World Economic Forum