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Essay On Drug Trafficking In Mexico

1297 Words6 Pages

Mexico is under siege and the drug industry is constantly flourishing. The drug war is in a dark phase and has been for decades now and consequently which crop up problems in the Mexican government. The subject of drug trafficking in Mexico is vulnerable and most likely brings negative things to mind due to the violence it brings along. The drug trade and massive corruption have enabled the cartels to connect themselves to the Mexican state like bedbugs, slowly criminalising it. To understand the quantitative impacts of drug-trafficking it is essential to describe the scope of the industry. This essay will attempt to discuss the current situation of drug industry, and analyse the economic impact consequently along with the benefits and negatives …show more content…

Besides the fact that the drug traffic industry promotes violence and public demand for drugs, it also causes several other financial dilemmas. Corruption and bribing is widespread in Mexico include prominent people, such as lawyers, banks, judges, law enforcement and politicians. According to Wachovia Bank they admitted in 2010 that they had processed $378 billion of currency exchanges in Mexico – which is equal to one third of the country’s GDP . Bribing tactics are well known in the Mexican drug industry and widely used in Mexico and the U.S. and it is a significant factor in order for cartels to have success. Corruption is also a significant risk for foreign companies in Mexico and it leads to investment losses from other countries which reduces national income and development of the private sector. Mexican cartel leaders are known for bribing high level politicians along with Mexican and American banks, which makes it more difficult in winning the drug war for the government. Winning the drug war against the cartels would mean an end to a higher annual percentage growth rate of GDP and a large number of employments. The Harvard paper states that if the Mexican government fought the drug cartels the economic losses would be 12.3% of the total Mexican GDP

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