Drug cartels are not only involved in trafficking illegal substances but also in infiltrating and manipulating various sectors of the Mexican economy. From agriculture to transportation, cartels have expanded their reach and influence, affecting prices, production, and competition. The economic impact of violence and corruption associated with cartels is estimated at 18.3% of Mexico’s GDP.
This paper examines how drug cartels affect the Mexican economy, focusing on the effects on exports, innovation, and growth. It also discusses the potential solutions and challenges to curb the power of cartels and restore the rule of law.
According to Expansión Politica, it is estimated that in Mexico there are about 175,000 active members of the different drug trafficking cartels. Which makes drug traffickers the fifth largest employer in the country, suggests a study published in Science. Strengthening the strength of the police and military would only result in an increase in the number of casualties, the authors note.
As an illustration, cartels in Mexico concentrate more workforce than companies such as Oxxo, Bimbo, Pemex, Coppel, or Grupo Salinas. And it is just below the number of América Móvil employees.
Source: Expansión Politica
