Friday, October 29, 2010

Blood Marijuana

This week was particularly bloody as organized criminal groups massacred people in Tijuana, Ciudad Juarez and Tepic. These are the same groups who import drugs into the US and, consequently, are funded by US drug consumers. Let me repeat that, they are funded by US drug consumers.

Currently, there is a debate over what percentage of drug trafficking revenue comes from marijuana. Some say it is as high as 60% others counter that it is closer to 25%. Both of those numbers, however, are significant.

For those that use marijuana, learn where it comes from. Better yet, get to know your grower. Buy local. Do what you can to make sure the herb you smoke does not come from across the border. If you don't, you are complicit in the atrocities committed by the narco-trafficking groups. Just like blood diamonds that come from West Africa, there is blood marijuana.

Cocaine, heroine, and methamphetamine account for the remainder of the drug revenue. Unfortunately, I don't believe an appeal to users of these drugs would do much good.



* On a related note I watched a video the other day of a discussion put on by the Council on Foreign Relations about Mexico's problem with organized crime. It's wonkish but also contains an informative and spirited debate. I recommend it for anyone interested in learning about proposed solutions to this problem.

Thursday, October 28, 2010

Mexican Leaders in Denial

Mexico's Secretary of Treasury, Ernesto Cordero, said this week corruption in Mexico does not affect foreign investment. I was astonished to read this but it reinforces my perception that most of Mexico's top leaders are in willful denial.

Now, it's difficult to say how many dollars, euros, or yuan would flow to Mexico if corruption was not on the rise but it is clear that corruption raises the cost of doing business and, perhaps more importantly, creates uncertainty about costs. Any wise business owner is going to take this into account when deciding where to put their money. Between two similar opportunities, investors will take the one with the fewest unknowns.

Mr Cordero's announcement comes on the heels of a similarly obtuse statement he made three weeks ago. He said violence from organized crime hasn't had an affect on economic growth.

So the disastrous drop in tourism has no connection to the reports of violence that potential travelers are watching on the news, huh?

Mexico faces many challenges including organized crime, a stark divide between rich and poor, and system of government that structurally resists change. To effectively confront these problems, the first thing Mexican leaders need to be is forthright. Otherwise the high-levels of cynicism amongst the public will continue and nothing will improve.

Monday, October 25, 2010

Back in Mexico!

I'll be updating this blog again with my thoughts about anything in Mexico from economy to sports to simple particularities and eccentricities of the people. To kick things off, I'll start with a quick perception about food vendors on the street.

It's hard to find a better lunch deal than tacos for 3 pesos(25 cents) or sopes for 6 pesos and, for me, finding a cheap and hearty meal is akin to Warren Buffett finding his next million dollar investment.

But here's the interesting part. Every taco vendor I've encountered has been a guy while every sope vendor was a woman. I can't see any inherent reason for this other than it being cultural. Tacos and sopes are not that different. Nevertheless, it's an incredibly stark contrast.

I'll post more if I gain any insight into this.