The Impact of Drug War on Mexican Firms
Since the 20th century, Mexico has grappled with cases of drugs and drug trafficking. Many developing countries are faced with incidents of urban violence arising from drug trafficking. This violence presents a challenge on firms, workers and the conducting of business thus introducing an economic distortion to different regions in Mexico. The war on drugs has been taken up by the government in many various forms. The Governments participation in the drug wars has been though investigation, arresting and prosecution of drug lords.
The Mexican government intervention in the fight against drugs help boosts good confidence in the business around areas considered to be the territories of drug lords such as the Michoacan state. Mexico’s president’ Lopez Obrador, promised to bring an end to the drug war and offer a true reconciliation. President Obrador suggested the war on drugs should be done by better paid, and better-trained police officers and no the military. The government also intervenes in the drug war through the deployment of military personnel. President Obrador suggested that the government’s policies on drug laws should be changed to ensure that nonviolent drug offenders are pardoned. Government’s participation has led to the arrest and prosecution of notorious drug lords such as El Chapo and El Nacho.
In conclusion, it is crucial for the government to intervene in the drug war which helps reduce drug-related violence. A reduction in drug-related violence will provide an enabling environment to several businesses. However, government intervention on drug control involves the coordination of different state agencies across the states. The approach on drug war should be done considering the effect on the business environment and restoration of investor confidence in Mexico.