Competing with the Cartels: How Mexico's Government Can Reduce Organized Crime's Economic Grip on its People

摘要

Mexican drug trafficking organizations (DTOs) are now able to challenge the Mexican nation-state for dominance. Although the DTOs currently only demonstrate the desire to consolidate and expand their narcotics business, the opportunity exists for them to effectively control large areas of Mexico. And while the Mexican government is contesting the problem with the deployment of additional security forces, it has yet to make lasting progress. Today, the U.S. Government contemplates action to assist Mexico, but continues to struggle with the proper approach. An objective evaluation of the problem shows that the fundamental issues are economic; the conflict is being driven by the supply and demand of the U.S. drug market. Thus, an understanding of the Mexican economy and its socioeconomic impact is critical to devising an economic means to support the conflict's resolution. This paper identifies the economic situation that exists in Mexico, explains how economic and socioeconomic problems are inhibiting legal economic opportunity, and explains what economic policy and assistance options exist to address those problems. The paper challenges the notion that reinforcing Mexico's security efforts will lead to a sustainable solution. Finally, the paper draws conclusions and recommends as to what the Mexican government should do to increase participation in the legal economy and reduce the DTOs' grip on the economy.