History of Drug Trafficking in Mexico

Mexican drug production began in the 1930s with opium from the opium poppy, cultivated primarily by Chinese immigrants

It was supported by the U.S. who needed opiates to treat those wounded in WWII

By the 1960s the increased production and trafficking of drugs alarmed the U.S. government

In 1969 Nixon started Operation Interception, which detained vehicles at the Mexican border. This led to decreased tourism, which Mexico relied on for tourist dollars. The U.S. government started pressuring Mexican authorities to staunch the flow of drugs across the border

Mexico felt blamed for a problem, which they claimed originated in the U.S.

In the 1980s during hard economic times, Mexico's drug trade flourished and violence associated with drug producers began to rise

NAFTA

NAFTA, the North American Free Trade Association was enacted in 1994. NAFTA led to deregulation of industries in Mexico, the U.S., and Canada. 

Tariffs in Mexico were almost completely removed, which was believed to remove trade barriers and encourage growth and investment. 

NAFTA is an example of a neoliberal policy, which goals involve the lowest amount of regulation, in order to achieve "free trade"

According to proponents: free trade leads to new markets and economic growth; as well as a trickle down system, where increased wealth at the top eventually reaches workers at the bottom

According to opponents of neoliberalism: deregulation leads to a "race to the bottom" where worker conditions deteriorate and environmental pollution and degradation; as well as wealth inequity and disparity

While opinions differ on the effects of neoliberal policies, most people agree that NAFTA has failed in many respects.

NAFTA's Unequal Benefits

As one can see from these graphs, Mexico's GDP has increased dramatically since NAFTA was enacted. However, at the same time, the period immediately after NAFTA saw a spike in poverty rates in Mexico. NAFTA's seems to have been no benefit to the poor in Mexico, with rates hovering around the 50% mark since the 1980s.

Many people argue that neoliberal policies, which lower wages and deteriorate working conditions are balanced by the "trickle down effect." This implies that increased profits for the upper class will create more jobs for the lower classes and increase national spending. 

However, not everyone believes the trickle down model works and consider it to widen class divides:

Poverty in Mexico

There are 120 million people in Mexico | While sources and definitions differ—approximately 50 million Mexicans live in poverty

20% of Mexicans live in food poverty

which means they are unable to afford the hypothetical “commodity basket” which is a convenient but outdated and unrealistic tool for measuring poverty rates.

107 inhabitants live in asset poverty, which means their income does not support their needs for education, health, housing, closing, and public transit

(http://www.elespectador.com/noticias/elmundo/articulo151464-mexico-supera-los-50-millones-de-pobres-segun-informe-gubernamental)

Worker Conditions

Worker conditions in Mexico are notoriously bad. Millions of Mexicans scrape by on meager incomes and have seriously limited rights. Workers across all industries often do not have social security, healthcare, or other benefits. Their employment is often in precarious situations. 

One thing not shown the graph below, are the millions of Mexicans that are underemployed and those that must work overtime to support themselves. 

One can imagine the widespread disenchantment with the neoliberal model and the constant financial struggle faced by millions of Mexicans.

The economic problems in Mexico meant that the 19 cartels (by 1989) started to be welcomed for the influx of dollars and the jobs they offered. The risk involved in drug production and narco trafficking translate to high payoffs, which for many are enough incentive to become involved. 

The U.S. Stance

The Reagan Administration led a crusade against drugs. They cited moral issues and involved children in the fight against drugs. Nancy Reagan's "Just Say No" campaign targeted children and schools and stressed the importance of keeping American children out of contact with drugs.

More recently, the drug trade has been linked to issues of natural security. The prevalence of smugglers has been inextricably linked to issues of terrorism. In the mind of the public, if the border cannot be secured from the drug trade, then other individuals with other nefarious purposes could find their way in. 

The Drug War in Mexico

In 2006, Mexican President Felipe Calderón with U.S. support launched a crackdown against drug traffickers and producers. This was in an attempt to make Mexico more attractive to investors as well as staunch the violence against civilians and law enforcement. The crackdown did little to better Mexico's image as the drug war situation deteriorated quickly:

• Corrupt police were easily bought as they have relatively low salaries 
• Cartels have splintered under new leadership and rivalries have intensified 
• Attacks on cartels have involved serious human rights abuses, such as torture 
• Civilian murders are commonplace and many officials and celebrities have been kidnapped and killed by Cartels

As one can see from this graph homicides increased dramatically following Calderón's crackdown:

Map of Prominent Drug Cartels

American Guns Fueling Mexican Violence

In 1993 U.S. gun retailers depended on Mexican markets for 37% of their sales. That number rose to 47 in 2012

Mexican attempts to seize illegal firearms at the border are largely ineffective, with the majority of the guns slipping past border authorities

Since 2006 120,000 people have been killed in Mexico, the majority with firearms

• the majority of these deaths are committed by drug related cartels
• the majority of the weapons used from sourced illegally from the U.S.

Gun laws are extremely strict in Mexico and there is only one licensed gun retailer in the entire country compared with the 50,000 in the U.S. The current situation has U.S. retailers profiting from the militarized drug war.

Response to the Drug War

In 2007 The United States designated 1.4 billion dollars to Latin American with the majority of that money going to stop organized crime in Mexico and reduce the demand for drugs.

At the same time, autodefensas groups of self-defense civilian groups have emerged. These primarily rural groups are filling the gap where police have failed. They have armed themselves and become strong opponents of the drug cartels.

Policy Options

Considering the current situation in Mexico, there are several courses of action, which would reduce the intense violence, decrease power of the cartels, increase jobs and revenue, and decrease the demand for drugs. 

Firstly, increasing the legality of drugs will decrease their cost, by decreasing the risk involved.

If drug production becomes legal, then police will have no need to crack down, which means that producers will have no need to fight back.

Legality means that production can be taken over by licensed businesses, which in turn can hire employees. This could also translate to huge profits from tax.

Focusing efforts on health services rather than criminal issues has been successful in Australia and Portugal. This would also lead to fewer incarcerations for drug related offenses. 

U.S. gun laws should be strengthened and enforced. Recent high-profile shooting, such as the Sandy Hook tragedy have helped changed societal views on gun control, but NRA lobbying and gun rights advocates remain strong. Even if no changes are made to U.S. laws, border enforcement has a duty to keep American guns out of cartel hands, otherwise, the U.S. should be implicated for the thousands of dead Mexican civilians.

Legalizing drugs in the United States would further lessen the problems of the drug war. Profits from the narco-industry in the U.S. are valued at 140 billion. Legalization means less judicial cases and incarcerations, lower transmission rates for intravenous users, less violent crime from organized groups, less corruption, and fewer people using drugs problematically.

While greater availability is associated with greater use, it is clear that the drug war, as it currently stands, is not working. Rather, it has fueled the development of the largest illicit commodity market and resulted in countless tragedies in Mexico. 

Works Cited

• Mexico's Latest Poverty Stats

http://www.wilsoncenter.org/article/mexico%E2%80%99s-latest-poverty-stats

• The Way of the Gun

http://catcher.sandiego.edu/items/peacestudies/way_of_the_gun.pdf

• Treatment of Workers in Mexico

http://www.slabwatchdog.com/impact/treatment/

• Ronald Reagan on Drugs

http://www.ontheissues.org/celeb/Ronald_Reagan_Drugs.htm

• Mexico's Drug War

http://www.cfr.org/mexico/mexicos-drug-war/p13689#p0

• Benefits of Drug Legalization May Outweigh Increase in Number of Drug Users

http://www.allgov.com/news/us-and-the-world/benefits-of-drug-legalization-may-outweigh-increase-in-number-of-drug-users-130526?news=850122

• Rochlin, James. Redefining Mexican "Security," Society, State, and Region Under NAFTA. Lynne Rienner Publishers. Boulder, CO. 1997.

• Vulliamy, Ed. Amexica. Farrar Straus and Giroux. New York. 2010.