Analyzing Political Corruption and its Effects on the Mexican Economy
Gyadisha Sulvaran
Palm Beach State College
Macroeconomics
Warren Smith
4th of April 2014 Abstract For macroeconomics, we were given an assignment to examine and analyze the causes of the business cycle in foreign economies. We were divided into groups of 6 and were given the instructions to randomly select a continent. Our continent was North America. We had to choose between Canada and Mexico. The reason why we decided to choose Mexico is because of its economy trade with the US, their migration flow, the interesting influence on oil prices worldwide and the impact that the drug cartels have on Mexican politicians. Mexico is known for being one of the world’s most corrupt nations but somehow they still manage to have one of the best industrializing economies in Latin America. The causes for a country’s business cycle can be either endogenous or exogenous. Throughout this paper, the internal problem of political corruption will be analyzed and discussed in order to determine Mexico’s economic stage.
Introduction Between 175 countries, Mexico is ranked as the 103rd most corrupt nation worldwide. Corruption has become the cancer of Mexico. Organized crimes and corruption are linked with each other and cannot operate without one another. There are witnesses who have seen state police pick up cocaine shipments and delivering them personally to the cartels. This linkage between cartels and the
The corruption in the government, one of the main problems in the majority of countries in the world, causing death, poverty and impunity in the life of the persons. People think that government corruption is just buying votes to win the elections, but this is just a little part of the corruption. The corruption of the government has been present for a long time ago, covering a great variety of problems in the society, like the stealing the money from the people, alliances with the narco, using the power just a favor of the politicians, increasing the prices of food, fuel and public services just to make more money. The people do not have the necessary services to survive and if the services are available they are expensive. In some parts of the world the government is colluding with the delinquency, in the case of Mexico, the government is colluded with the narco. The corruption in Mexico has permeated several segments of society like political, economic, and social. Also it has greatly affected the country’s legitimacy, transparency, accountability, and effectiveness; knowing the majority of the people of
The Mexican Government should conclude obsolete programs and devote those resources to drug cartels. The Mexican Government spends unnecessary millions of dollars paying for local police departments that do not combat the trafficking of drugs. Local authorities are afraid of confronting the drug cartels. “We can just watch how they transport the drug from the Silverado to the Ram, crossing from Sinaloa to Chihuahua, We know who they are but we do not dare to oppose them, it’s a death sentence” (Soto). Alberto Soto stated that the local police department has been corrupted or threatened, “They do not care about their jobs but they fear for their families”.
The United States agency of drugs have discovered that for all of the illegal drugs consumed in the nation has been transported by the Mexican cartels. “U.S. federal officials say that the mexican cartels operate in dozens of U.S. cities and analysts say they are moving to consolidate their control of the entire supply chain of illegals drugs”(Schwartz, 1). The government of the United States have been conducting the investigation to now if the cartels are north. Many big cities today have a piece of the cartel organization working there and also producing drugs to distribute within the city. According to the investigation done by the DEA and U.N officials “Mexican cartels have established command - and - control centers to orchestrate cocaine shipments by sea and air along the still wild caribbean coast with the help of local authorities”(Booth, 2). All though that the cartel are moving to the United States they are still leaving command center in mexico to conduct shipments by ground or any other shipments overseas. The cartel is able to transport such quantities of drugs with help of the local authorities and other corrupt government officials.
Mexico has a long history of cartels the deaths, drugs and weapon trafficking is in all time high increasing year by year. “Mexico's gangs have flourished since the late 19th century, mostly in the north due to their proximity to towns along the U.S.-Mexico border. But it was the American appetite for cocaine in the 1970s that gave Mexican drug cartels immense power to manufacture and transport drugs across the border. Early Mexican gangs were primarily situated in border towns where prostitution, drug use, bootlegging and extortion flourished” (Wagner). They keep themselves armed and ready with gun supplies shipped from the U.S, taking control of the drug trades. The violence is spilling so out of control that
The following publication is rife with manipulation and corruption of Mexico 's highest regarded political positions and jurisdictions. Former Mexican President Miguel de la Madrid Hurtado officially declared drug trafficking a national security threat in early 1988. The United Nations estimate that 70% of the drugs flowing into the United States comes directly from Mexican drug trafficking cartels. Mexican cartels rely heavily on bribes and corruption as a means to infiltrate the Mexican political system. To the Mexican cartels, bribes and corruption is viewed as nothing more than, "the cost of doing business". A study by the National Autonomous University in Mexico City found that
Mexican Drug Cartels have been a problem for many years. The cartels are an organized crime organization and they don’t just deal drugs; they commit murders too. The Cartels origins are traced back to the Columbian Cali and Medellin mega-cartels who were responsible for the majority of drug trafficking into the United States. Crime has existed for many years but it surfaced more when Pablo Escobar was popular. Pablo Escobar was one the main transporters for cocaine throughout Mexico and the United States coming straight out of Columbia. Law enforcement tried to stop the drug trade but Escobar formed a relationship with Mexico-based traffickers who smuggled drugs into the United States. Miguel Angel Felix Gallardo also known as “The Godfather” of the cartels. Seeing how he established the Guadalajara Cartel, which is recognized as the first Mexican Cartel, and were the first to link up with Escobar and started the transportation of cocaine
At first, Mexican drug cartels were structured just like family owned businesses. There would be a family member who was the main drug lord and cousins and uncles of the family would be the body guards and drug dealers. After the Institutional Revolutionary Party (PRI) lost their power within the Mexican government the structure of drug cartels became much more complex. A hierarchical diffusion is seen within the drug cartel system because the drugs spread from one important drug lord to another, and we generally see this happening in the urban part of Mexico, more than in the rural areas. A corporate structure began forming as hierarchies began developing under drug lords and more people got involved. Professor Guillermo Trejo of Notre Dame 's Kellogg Institute claims that once the PRI lost their power there was a rapid increase in violence. This is because of Mexico’s former President, Felipe Calderón, who politically associates with the National Action Party (PAN). In 2006 President Calderón declared war on the drug cartels. This milestone triggered a huge change within Mexico’s international relations, government, and culture.
Police corruption continues to exist in Mexico and largely influenced by the Mexican Cartels. (Lopez-M.G.A, 2000, P.79) contends that the militarization of Mexico City’s police force is confirmation of ‘changing and uneasy relationship between civilians and the military.’ It is apparent that anyplace the Mexican drugs cartels enclose the largest impact; they would in all likelihood own the local law enforcements, in fact, over a timeframe ‘police forces had become woven into the cartels’ (Ainslie.C.R, 2013, P.35). The president of Mexico Fox noted that police officers earn a salary of ‘$600 a month’s but are offered bribes in the thousands’, furthermore, he states that ‘1,100 police officers’ were fired from their jobs for corruption. (Congress,
Mexico is the eleventh most populated country in the world with a $2.2 trillion economy (CIA, 2017). It is also an extremely popular tourist destination for Americans and Europeans alike. Moreover, its people have had the highest average annual hours worked in the world every year for the last three years (OECD, 2017). Despite this, their unemployment rate is estimated to be 3.6% and their underemployment at 25% (CIA, 2017). I am going to expand on this country’s issues with corruption, organized crime, violence, the economy, and how I assess their future will affects us here in the United States.
Human and Drug trafficking are huge global problems and it affects millions or people, even if they do not know about it. Mexico’s drug and human trafficking are huge issues, and people tend to different methods in how the problems should be solved. However, the main reason in why these two things are such an issue is all because of money. They both bring in major profits and “benefits” into Mexico and those in charge of this industry, it also brings in revenue into the United States for those that a part of these two cartels. Both the Drug Cartel and those in power of the Human Trafficking concerns, keep this things going because of the politicians that are placed into power of their regions. Many people keep saying that they should fix what is happening; however the problem is much more difficult than that.
Mexico is an intriguing global economy, being one of the largest economies of the globe, yet also the host of a large portion of poor people; in the country for instance, which has given the world the richest man alive (Carlos Selim), 51.3 per cent of the population live below the poverty line (Central Intelligence Agency, 2012). IN order to better understand the Mexican economy, it is useful to look at it through two distinctive lenses, namely the savings rate through the Solow model and the business cycles.
The extent of drug cartel’s economic dependency on U.S. and other foreign buyers shields individual empires from oppression and the threat of rival groups. As the percent of cocaine being transported into the US raises from 77 percent to more than 90 percent, drug cartels are becoming stronger and more widespread (Lee n. pag.). With the rapidly escalating number of U.S. cocaine sales, Mexican mafias profit immensely. These cash profits fund all cartel activities including the
The government has made some gains, but at a heavy price. A total of 34,612 people have died in drug-related killings in Mexico in the first four years (Siddique). Most of these killing are between cartel rivals fighting for the control of territories. There are five cartels operating in Mexico: the Sinaloa, the Gulf, Juarez, Tijuana, the Zetas. The major cartels are the Gulf, Sinaloa and Juarez (Cook 21). Many of these cartels have joined together forming powerful alliances known as the “Federation” (Cook 17). The cartels work together, but they remain independent organizations.
According to James Painter in his BBC News article “Latin America faces year of change”, Latin America suffers from social violence, kidnapping, drug trafficking, child pornography, lack of women’s rights, and little accountability over the region’s law makers and authorities which can lead to government corruption (para. 12). Government corruption can be defined as political power used by government leaders for private gain and to maintain their power as a government official. Most of the times these corrupt politicians in Latin America say they are accomplishing apprehension of criminals to the best of their abilities when, in reality, they commit the same multitude of crimes. Politicians are able to maintain their power as a result of
Stressed out? Depressed? Put that coffee down and stop looking anywhere else the perfect escape is right next door. Next door? What do you mean next door? My next door neighbor is a sixty-eight year old stoner. How could she possibly help me? Oh wait that is my neighbor haha but in all honesty I meant our next door neighbor. None other than the beautiful country of Mexico. Filled with beautiful beaches, luxury hotels, and a bunch of doped out naked spring breakers wait what? Mexico is actually on the top 50 list of most dangerous countries. It is actually number 24. The United States on the other hand, is number 61.(AtlasandBoots.com) Could this be caused by the infamous drug war? Or could it just be