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Mexico’s drug violence is bad for business

The drug violence that continues to sweep across Mexico isn’t only damaging citizen confidence in the country’s government and public security. It also is taking a toll on Mexico’s economy, according to Treasury Secretary Agustin Carstens.

The Mexican government estimates that the violence has slowed economic growth by more than 1%.

Increased safety concerns have meant that companies and businesses spend 5% to 10% more on security services. This has hurt domestic competition and sales, according to Carstens, as well as having a negative affect on national development generally.

Last week was another bloody one for Mexico — on Thursday, 12 headless bodies turned up in the normally quiet southern state of the Yucatan.  Five bodies — four of them decapitated — were found earlier in the week in Tijuana. All the deaths are thought to have been drug-war related.

The ongoing drug wars and rising levels of crime and kidnappings in Mexico prompted thousands across the country to march over the weekend, expressing their anger and demanding action.

Carstens also announced that the security budget for 2009 will increase substantially, speaking to the newspaper Reforma.

Click here for more on the drug trade across Latin America.

For our special report on Mexico’s drug problems, go to our Mexico Under Siege page.

— Deborah Bonello in Mexico City

This blog post was written for La Plaza.

NYT: How the drug war impacts civilians

The drug war in Mexico has become pretty much a daily assignment here in the country – news of headless bodies turning up in the Yucatan and mass shootings in Chuihuaha tend to dominate the headlines. Combined with the huge crime wave and rising kidnappings, the country probably has one of the worst reputations abroad.

The New York Times has a great piece online today about how just regular citizens are reacting to the drug war.

“We all live in fear now,” he said. “Any of us could be taken or killed. I try to wear nothing and do nothing that attracts attention. I wear T-shirts and a hat. I have no jewelry. I don’t want to stand out.”

In modern Mexico, a new way of cautious thinking is setting in. A Hummer pulls beside one’s vehicle at an intersection? Better keep looking straight ahead. Or better yet, many recommend, do not stop at red lights at all.

Click here to read the full piece.

For nearly daily coverage of the drug violence in Mexico, stay tuned to the Los Angeles Times Mexico Under Siege page and the NYT’s Drug trafficking in Mexico topics page.

Photos: Peace march in Mexico

A girl wielded a photo of Monica Alejandrina, who was kidnapped in 2004, during this Saturday’s march for peace across Mexico.

Thousands of protesters of all social classes hit the streets of cities across the country, expressing their anger and indignation at rising levels of kidnappings and crime across Mexico.

Click here for the video dispatch from the march.