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Mexico's Cartels and the Economics of Cocaine

rpexplorer Wrote: Jan 06, 2013 8:01 AM

Reality is that it (drugs) are a product that is in demand and it will find a way to reach those who want it. The dollars spent to interdict were always doomed to failure in the same manner as prohibition was a failure. Today's attitude, laws, and help system recognize this failure with alcohol which removes it from the black market model and its associated violence. Because of the money involved, there is much interest in government to keep status quo and it is specifically money and power that keeps it illegal.

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Mexico's Cartels and the Economics of Cocaine

At Stratfor, we follow Mexico's criminal cartels closely. In fact, we are currently finishing our 2013 cartel forecast, which will be released later this month. As we analyze the Mexican cartels, we recognize that to understand their actions and the interactions between them, we need to acknowledge that at their core they are businesses and not politically motivated militant organizations. This means that although violence between and within the cartels grabs much of the spotlight, a careful analysis of the cartels must look beyond the violence to the business factors that drive their interests -- and their bankrolls.

There are several distinct business factors that have a...