Collusion, Bribery, Money Laundering and Violence Related to Drug Trafficking in Mexico

Mexico has been plagued by problems with drug cartels for many years. According to Freedom House 2010 and the US Department of State 2010, the situation has worsened over the past several years with the death toll doubling from 7,700 in 2009 to 15,273 in 2010. The government has deployed over 45,000 military troops to assist in the civilian law enforcement forces. Business executives surveyed by the World Economic Forum Global Competitiveness Report 2010-2011 indicate that security issues, such as high levels of crime, extortion and kidnappings, often related to drug trafficking, are among the most significant problems facing businesses operating in Mexico today. Episodes of violence frequently involve citizens who have reported drug-related crimes, resulting in reluctance and genuine fear on behalf of civilians to report such crimes. Journalists exposing connections between the drug cartels and politics have also been harassed and even killed.

On the political agenda, the fight against narcotics is a special focus area. President Calderon's government has devoted much attention and resources to combating organised crime related to drug trafficking. Global Integrity 2007 reports that, upon his election in 2006, President Calderon said that he would be drug traffickers 'worst enemy'. The Mexican government's strategy has focused on three areas: 1) destroying cultivation fields, 2) stopping the trafficking of narcotics and chemicals used in their production, and 3) combating the organised crime flourishing around drug smuggling. Above the obvious criminal and negative social effects accompanying drug smuggling, the cartels' enormous economic power has fuelled high levels of police corruption. Especially in the Northern States, where cartels smuggle drugs into the US, the police is believed to be on cartels' payroll. An investigation of the police forces of Monterrey actually resulted in the arrest of 141 police officers reportedly working for the Gulf Cartel, which controls smuggling into Texas. The army was deployed to replace corrupt police units by President Calderon in the most affected states, but with mixed results: Freedom House 2009 reports of military personnel caught accepting bribes just a few days after they were deployed. An opinion poll cited by Freedom House 2009 shows that popular support for President Calderon's efforts is fading, not least of all because of scandals like that from 2008 which developed after high-ranking counter-narcotics officers were caught passing sensitive information to cartels.

Mexico collaborates with the US to combat drug smuggling. Among other sources, Global Integrity 2007 reports of drug lords being extradited to the US for prosecution. Shared intelligence and a USD 1.4 billion agreement signed in 2008 to finance counter-narcotics are also part of the cooperation between the two countries. President Calderon, however, has been very outspoken regarding the necessity to work against corruption that plagues US customs control and on the demand side of the problem, i.e. the US government should focus on diminishing the use of narcotics in the US money laundering remains a problem; the Mexican Prosecutor office estimates that between USD 10 and 25 billion in drug money enters Mexico from the US each year. Figures from the US Drug Enforcement Administration range between USD 25 and 30 billion. It is believed that drug money is used to influence the political system, especially at the local level.