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Thursday, February 16, 2012

Turning Point? Mexico’s Drug War

Stratfor just posted an interesting assessment on 15Feb12 that identified what they consider a possible turning point in Mexico’s drug war.

 

Excerpt:

Mexican criminal organizations can overcome their weakness in the cocaine market by investing the money they have earned (billions of dollars, according to the most conservative estimates) into the control of other markets. Ultimately, cocaine is impossible for the Mexicans to control because the coca plant can only grow in sufficient quantity in the foothills of the Andes. It would be prohibitively expensive for the Mexicans to take over control of coca cultivation and cocaine production there. Mexican criminal organizations are increasing their presence in the heroin market, but while they can grow poppies in Mexico and produce black-tar heroin, Afghanistan still controls a dominant share of the white heroin market -- around 90 percent.

What Mexicans can control is the methamphetamine market. What we are seeing in Mexico right now -- unprecedented amounts of the seized drug -- is reminiscent of what we saw over the past century in the infancy of the illegal liquor, gambling, heroin and cocaine markets: an organized criminal group industrializing production in or control of a loosely organized industry and using that control to set prices and increase its power. Again, while illegal methamphetamine has been produced in the United States for decades, regulatory pressure and law enforcement efforts have kept it at a small scale; seizures are typically measured in pounds or kilograms and producers are on the run.

 

Read the full article:  Meth in Mexico: A Turning Point in the Drug War?

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