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Source: I lived in Mexico for a few years. I don’t think it’s accurate to say Mexican governments are underfunded—they have oil money, from the nationalized oil industry, to the extent that they are extremely chilled out about tax collection. It’s not that they are underfunded, but the criminal gangs (drugs, extortion, etc) are absurdly overfunded. Strong organized crime weakens and delegitimizes the government, which means that weaker, petty crime can also thrive. Like if you are sick with something big, small infections are more likely to opportunistically take advantage of your weak immune system. Aside from organized crime, there is something else that is hard to articulate. It’s hard to explain exactly what it is, but to a large extent it feels like the population at large can’t agree who are the good guys and who are the bad guys, I.e. in many cases they will not unambiguously say that the drug cartels are bad and the government is good. They’re probably right about that, in many cases the two are inextricably enmeshed. It’s a vicious spiral that is hard to break, expectations of crime and corruption lead to more crime and corruption, but in many cases people won’t even agree that the gangsters are unambiguously bad. Sometimes the baddies get lionized to an unhelpful extent, and there are even ballads “narcocorridos” written about their exploits |
Hot take but I blame the early 2000s Drug War for this - not because of the economics of drugs, but because this meant the Mexican govt couldn't co-opt Organized Crime into the political system.
Looking at countries like Taiwan [0], South Korea [1], Japan [2], and Italy [3], when they were at a similar stage as Mexico in the early 2000s (1980s, 1990s, 1970s, 1980s respectively) these countries co-opted Organized Crime into the economic system by cracking down on certain black market industries (eg. Drugs) while allow them to operate in other grey market industries (eg. Construction, Real Estate, Loan Sharking, Commodities, Sex Work) or operate abroad (eg. In VN/PH/TH/Mainland for Asian gangs and South America+Eastern Europe for the Mafia).
Organized crime is morally reprehensible, but Mexico in the 2000s was not in the position to combat them. Co-option would have saved thousands of lives, and given an easier off ramp out of Drug industry into other high value sectors (which cartels have started to break into), which would have allowed them to legitimize or at least have less of an incentive to pursue a de facto insurgency.
[0] - https://journals.openedition.org/chinaperspectives/563
[1] - https://www.refworld.org/docid/45f1476234.html
[2] - https://academic.oup.com/book/37281/chapter-abstract/3308936...
[3] - http://www.inquiriesjournal.com/articles/292/italian-politic...