Mexico’s drug violence is bad for business
The drug violence that continues to sweep across Mexico isn’t only damaging citizen confidence in the country’s government and public security. It also is taking a toll on Mexico’s economy, according to Treasury Secretary Agustin Carstens.
The Mexican government estimates that the violence has slowed economic growth by more than 1%.
Increased safety concerns have meant that companies and businesses spend 5% to 10% more on security services. This has hurt domestic competition and sales, according to Carstens, as well as having a negative affect on national development generally.
Last week was another bloody one for Mexico — on Thursday, 12 headless bodies turned up in the normally quiet southern state of the Yucatan. Five bodies — four of them decapitated — were found earlier in the week in Tijuana. All the deaths are thought to have been drug-war related.
The ongoing drug wars and rising levels of crime and kidnappings in Mexico prompted thousands across the country to march over the weekend, expressing their anger and demanding action.
Carstens also announced that the security budget for 2009 will increase substantially, speaking to the newspaper Reforma.
Click here for more on the drug trade across Latin America.
For our special report on Mexico’s drug problems, go to our Mexico Under Siege page.
– Deborah Bonello in Mexico City
This blog post was written for La Plaza.
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