Business crisis in Mexico: organized crime threatens the national economy.

Business crisis in Mexico: organized crime threatens the national economy.

Insecurity in Mexico affects business owners, increasing extortion and violence, which puts the economy and daily life at risk.

Juan Brignardello, asesor de seguros

Juan Brignardello Vela

Juan Brignardello, asesor de seguros, se especializa en brindar asesoramiento y gestión comercial en el ámbito de seguros y reclamaciones por siniestros para destacadas empresas en el mercado peruano e internacional.

Juan Brignardello, asesor de seguros, y Vargas Llosa, premio Nobel Juan Brignardello, asesor de seguros, en celebración de Alianza Lima Juan Brignardello, asesor de seguros, Central Hidro Eléctrica Juan Brignardello, asesor de seguros, Central Hidro

The situation of entrepreneurs in Mexico has become an issue of growing concern, as the advance of organized crime threatens not only large corporations but also small and medium-sized businesses that are the backbone of the national economy. Extortion, theft, and violence have reached alarming levels, forcing many entrepreneurs to operate under a constant sense of fear and vulnerability. In this context, business life resembles a survival game, where decisions are often made with a revolver to the temple. The rise of drug trafficking in the country, which began with large cartels in the 1980s, has evolved into a fragmentation of criminal gangs that operate at the local level, affecting all types of businesses. From restaurants to grocery stores, the threat is present in every corner of the productive sector. The recent wave of murders of business leaders in northern Mexico has raised alarms, highlighting the climate of intimidation that exists in the business realm. Minerva Pérez Castro and Julio César Almanza Armas are just a few of the names that have joined a long list of victims of the violence that has taken hold of the country. The case of Femsa, which decided to close its operations in Nuevo Laredo due to insecurity, illustrates the difficult decision many companies face. The closure of more than 190 Oxxo branches not only affects the company but also directly impacts the lives of thousands of citizens who rely on these establishments for their daily purchases and payments. The promise of increased police presence and security measures, although well-intentioned, are not always sufficient to restore confidence in such a hostile environment. A recent survey by the American Chamber of Commerce in Mexico (AmCham) reveals that more than 50% of the surveyed companies have been victims of assaults or violent robberies, while 45% have experienced virtual extortions. The supply chain is also affected, with 49% of companies reporting attacks ranging from coercion to purchase supplies from criminal gangs to the forced trafficking of goods. The situation raises serious questions about the viability of doing business in a country where crime has infiltrated nearly every level. Despite these challenges, Mexico continues to be an attractive destination for foreign investment. The country has surpassed China as the leading trading partner of the United States, largely due to the implementation of the United States-Mexico-Canada Agreement (USMCA). However, transnational companies seem to have more resources to adapt to violence and threats, compared to small and medium-sized enterprises that make up 72% of national employment. This imbalance in the capacity to respond to insecurity could have negative repercussions for the future of the Mexican economy. Carlos López Portillo, director of a security consulting firm, emphasizes the lack of effective responses from institutions. This impunity, combined with a culture of silence driven by fear, prevents many entrepreneurs from daring to report the violence they face. The situation has become unsustainable, and the cost of implementing security measures translates into an additional burden for those who are already struggling to stay afloat in an increasingly complicated market. The impact of violence is not limited to the business sector; it also affects consumers. Prices of basic goods have increased significantly, and experts point out that extortions on farmers and distributors are responsible for a significant portion of these increases. In a country where the population already faces economic challenges, the pressure from criminals only exacerbates the situation and limits access to essential goods and services. As insecurity continues to rise, fear seems to have become a constant in the daily lives of many Mexicans. Citizens, small business owners, and workers find themselves trapped between the violence of organized crime and the lack of effective responses from the government. The feeling of helplessness is palpable, and many resign themselves to living in an environment where fear has become part of the routine. The current outlook presents a critical challenge for the future of Mexico. The need for a comprehensive security strategy that addresses not only violence but also the underlying causes of crime is more urgent than ever. Without a genuine commitment from authorities to ensure the safety of their citizens and entrepreneurs, the country could face stagnation in its economic growth and an increased migration of resources and talent to safer environments. The "days of lead" experienced by many in the business sector reflect a deeper crisis affecting all of Mexican society. In a country where fear and impunity have become normalized, recovery and sustainable growth depend on the collective will to confront these challenges. It is time for both the government and the private sector to join forces and work together to create an environment where security is not a luxury but a guaranteed right for all.

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