Mexico’s Drug War Has Hurt The Economy Just Like It Has Hurt People

5/3/2016 The Huffington Post Canada 

drug_war_02The Mexican drug war has killed as many as 160,000 people.

But there’s an economic cost to drug violence, too. And though it’s dropped over the past five years, it’s still an immense one.

The “Mexico Peace Index,” released by the Institute for Economics and Peace (IEP), calculates the economic impact of violence in Mexico at around C$154 billion (2.12 trillion pesos) in 2015.

That figure is equivalent to 19 per cent of Mexico’s Gross Domestic Product (GDP) — though it is down 38 per cent from 2011, when drug-fueled violence was at its height, and the cost of violence was calculated at C$213 billion (2.92 trillion pesos).

The IEP calculated these numbers by estimating the cost of crimes such as homicide, violent crime such as assault and robbery, as well as organized crime, and violence containment by the government.

It then included “direct costs” such as medical treatment; “indirect costs” such as lost productivity; and the “multiplier effect,” which describes “flow-on effects” of violence on an economy.

Read more… 


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