1. The Mexican Drug War Alexander Caballero, Jon Kimball, James Stewart and Cole Swain

2. A Look Inside: BBC Documentary

3. Brief History Emergence: Drug cartels have been present since the 1960’s as a result of drug prohibition, but the 1990’s brought forth an increase in Mexican cartel power Sparked by the depletion of cartel groups in Colombia (Most specifically, The Medellín Cartel) Mexican Cartels act as a transition for illicit drugs from Latin America Colombia’s Pablo Escobar was the leader of the chief drug exporter into the U.S. between the 1980’s-1990’s, and when drug enforcement put pressure on the Caribbean, Mexico became a drug trafficking hotspot and the home to many cartels Timeline: 1969: Drugs begin to overflow into the U.S. from Latin America 1985: Cocaine smuggling shifts into Mexico after DEA puts pressure on maritime smugglers coming into Miami 1996: DEA brings down the powerful Cali Cartel, putting Mexican smuggler Osiel Cardenas and Gulf Cartel in control of Texas border 2000: POTUS Bill Clinton gives $1.3 billion to Colombia to fight drug trafficking 2006: Mexican President Felipe Calderon sends tens of thousands of troops to bring down cartels in Mexico, first week of war wage by Caldern brings forth deaths of 62 2008: As Mexico makes progress and begins to take down cartel leaders, a death toll of almost 7,000 is caused by new emerging cartel groups battling each other for control 2009: Mexican government report an additional 9,000 killed in the drug war over the year 2013: A total of 120,000 killed over a 7-year period

4. Statistics and Fast Facts Cartels are incredibly powerful because they have the capital to purchase expensive artillery from United States weapon retailers (there are 6,700 retailers in the U.S. and only 1 retailer in Mexico). This results in a grand total of 70% of the weapons used by cartels coming from the U.S. 90% of the Cocaine in the United States comes through Mexico Cartels bring in between $20-$30 billion dollars in revenues from drug sales in the U.S Mexican drug lord Joaquin “El Chapo” Guzman makes Forbes’ list of billionaires in 2012 and is responsible for 25% of drug movement into the United States Cartel power and affluence should not be understated considering of the 7,000 U.S. agents in the Federal Investigations Agency, 1,500 were collaborating with at least one organized crime group According to the Mexican government, Cartels are responsible for a 1% reduction to Mexico’s overall GDP per year, which is about $120 billion every year

5. Various Cartels ▪ The Sinaloa Cartel ▪ The largest and most powerful drug trafficking organization in the Western hemisphere. ▪ Operate in 17 Mexican states and throughout the US, with connections reaching as far as Australia. ▪ The head of Sinaloa, El Chapo, was arrested in 2014 but the organization continues to thrive because the group operates more as a confederacy than a hierarchical organization. ▪ The Juarez Cartel ▪ Founded in the 1980’s, is one of the oldest surviving drug trafficking organizations in Mexico. ▪ Operates in human trafficking, kidnapping, and extortion, in addition to narcotics. ▪ Currently involved in a war against the Sinaloa in an effort to win back control it has lost. ▪ Los Zetas ▪ Most brutal of all criminal organizations in Mexico and are DEA’s #1 priority. ▪ Founded in 2010 after a split from another cartel in which the Zetas acted as the military arm. ▪ Have diversified operations into child prostitution and oil theft. The Sinaloa Cartel The Juarez Cartel Los Zetas

6. Effect on Economy ▪ Expenditures on private security totalled $8bn USD, about 1% of GDP. ▪ While private security industry is enjoying increased relevance, the crisis is imposing significant financial costs on Mexico. ▪ Growing violence has led to a hostile environment for legitimate businesses who have to worry about extortion and theft. ▪ PeMex, Mexico’s largest petroleum company, estimates it loses $750m USD in oil from its pipelines annually due to cartel theft. ▪ The direct cost of insecurity to the government, businesses, and citizens is estimated to be $65bn USD, or 8% of GDP. ▪ This represents 75% of the total income and sales taxes collected by the Mexican government, 3.5 times the amount of FDI, and is twice the size of Mexico’s oil exports.

7. Influence on the Mexican Public Local Economies: Proceeds from Drug Trafficking are laundered into many region’s economies and infrastructures seeping deep into their social fabric. Example - Culiacán The Drug Trade provides income for some regions, but the chaos and violence it brings are destroying other bordering towns. Public Perception: Many don’t look down on the Drug Trade, but see it as a way to make a living and survive. Youth is influenced by financial incentive and the ability to be “well-kept”. Violence has become customary. Narcocorridos

8. Government Corruption 2008 “Clean Up Operation” Many high ranking officials were arrested for collaboration with cartels, including the Chief of Federal Police. The Murder of Politicians: Cartels aim to weaken local governments by murdering politicians. This violence puts officials at the mercy of the Cartels. It also aligns them with government contracts to further ingrain their influence in local communities. Incentive: Money and Fear

9. A Look Inside: BBC Documentary - 17:30

10. Possible Solutions 1.Eliminate Root Cause of Criminality a.Improve growing poverty and inequality rates b.Absence of sustainable economic opportunities c.Heavy investment in all levels of education 2. Reform the Judicial Process a.Expedite process which is currently slow, unorganized, and unable to deliver justice b.Increase citizen’s confidence in the legal system 3. Professionalize Police Forces a.Unify police forces b.Increase the use of intelligence c.Create inter-agency coordination plans to guarantee coordinated efforts among various security organizations

11. Possible Solutions (Continued) 4. National Security, not Diplomatic Discourse a.Assign the handling of regional security to national organizations and expert institutions 5. Legalization of Marijuana a.Or at least reducing the criminal sanctions on the possession of small amounts of drugs b.Controversial argument - Prohibition creates violence because it drives the market underground. c.Buyers and Sellers cannot resolve their disputes through lawsuits, arbitration, or advertising, so they resort to violence instead.