The Security Crisis in Mexico and its Impact on Business Management

Abstract

In Mexico, antisocial behavior affects and concerns the population. This behavior has produced a vicious circle involving a high rate of criminality. This, in turn discourages investment, and reduces economic growth, it causes unemployment and increases poverty and economic inequality. Official databases reveal that during the last five years, the number of people murdered by organized criminals has increase to more than sixty thousand. With a population of over 112 million residents, Mexico has 52 million people living in poverty conditions. Seven million young people called "ninis" (ni estudian, ni trabajan) don’t work or study. Business executives have reduced production levels with the purpose of reducing losses and criminal acts. Companies have closed because of antisocial acts and because of a lack of funds. During 2011 over one hundred and sixty thousand companies shut down in Mexico because of organized crime, according to the Employers’ Confederation of the Mexican Republic (Coparmex).

Keywords: Legal Economic

JEL Classification: F52, H56, L25, N6, N86