Should Mexico’s Crime Wave Discourage Investment?

8 September 2008

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It has been well documented that Mexico’s violent war on drugs that has claimed thousands of lives. According to the Houston Chronicle, there have been 5,000 gang related deaths in Mexico in the past 21 months since President Calderon started his “crackdown” on drug gangs. Some of the stories of the police battling the drug gangs sound as if they are from a western movie. A recent kidnapping and killing of the son of a wealthy merchant family, helped inspire an estimated 200,000 people to march against crime in Mexico City in August. President Felipe Calderon, in an attempt to reduce violent crime has ordered 30,000 soldiers and paramilitary police into high crime areas like the Chihuahua state south of Texas, but violent crime rates have continued to rise.

War on Drugs
The level of the gang related violence has spiked since President Calderon made it a priority to fight the proliferation of drugs in Mexico. According to the US State Department, US citizens are generally not targeted, although innocent bystanders are at risk from being caught in the crossfire, especially in high crime border towns. “The wave of violence has been aimed primarily at members of drug-trafficking organizations, criminal justice officials, and journalists” (State Department).

Kidnapping
Overall, there is an elevated risk of kidnapping in Mexico. According to the Seattle Times, there have been 438 abductions reported in Mexico in 2007 and a whole industry has emerged that include consultants that specialize in negotiating with kidnappers, insurance policies, private body guards, and bulletproofed cars. There is even a company that offers to implant tracking systems under your skin.

The US Department of State warns of the high crime rates in Mexico, specifically in Mexico City, Tijuana, Ciudad Juarez, Nuevo Laredo, Monterrey, Acapulco, and the state of Sinaloa. Other areas have “lower, but still serious, levels of crime” which is largely attributed to the low apprehension and conviction rates in Mexico. “Local police forces suffer from a lack of funds and training, and the judicial system is weak, overworked, and inefficient” according to the Department of State. They recommend that you always stay alert of your surroundings and go out with a buddy especially at night. Victims of crime are almost always unaccompanied.

Safety should be taken seriously in Mexico, however you need not have an irrational level of fear. The high levels of violence are largely concentrated in areas that have a high level of drug trafficking such as border states and Sinaloa. These high crime areas do not reflect the situation in Mexico as a whole, and popular destinations paint a drastically different picture. As long as you follow the recommendations of the State Department and find a good community, your chances of being a victim of crime is greatly reduced.