For Mexico, Drugs And Crime Erasing Free Trade Gains

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For Mexico, Drugs And Crime Erasing Free Trade Gains
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For Mexico, drugs and crime are erasing free trade gains

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Businesses there are already nervous about AMLO's policies. Very little new investments are being made there. The rich are pulling money out and parking it in U.S. Treasury bonds, preserving their capital. AMLO took over a country ravaged by the drug trade, a trade that grew exponentially after the collapse of Cali and Medellin drug cartels in Colombia. Mexico has been Latin America's drug hub ever since. It's stunted growth and compromised politicians just as it did Colombia throughout the 80s and 90s.Andres Manuel Lopez Obrador has been president for less than a year. The rich are not fans. The poor may be disappointed.

A Volkswagen assembly plant in Puebla, Mexico. Nearly a decade after NAFTA, poverty rates unmoved. Photographer: Susana Gonzalez/BloombergSome 41.9% of Mexicans are living in poverty, though that is down from 44.4%...10 long years ago.Only slightly better results can be seen when measuring for extreme poverty. That number fell to 7.4% of the population, or 9.3 million, down from 11% in 2008.

Mexico already has what Keller calls a"bewildering array of welfare programs". Some estimates put the total at more than 5,000 federal, state and local programs designed to subsidize low income Mexicans.

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