Drug Wars Hinder Juarez Economy

The recent economic woes in Juarez perpetuated by the Mexican drug wars is addressed in the BBC article Border city of Juarez pays price of Mexico drugs war. Up to 100,000 people and 5,000 shops have been forced out of the city of Juarez since the escalation of the drug war in 2006. President Felipe Calderon announced for "the creation of a task force to draw up a new economic plan for the city." With 45% of the GDP of Chihuahua produced by the city of Juarez, and more than "300 maquiladoras - the factories that reassemble imported material and then export the finished product, mainly to the US - in and around the city", it is easy to see how pertinent of an economic threat the drug war can pose, especially when coupled with the impact of a retarding American economy.

As if financial issues were not enough for business owners, Juarez is also notorious for cases of extortion. Head of Juarez's local chamber of commerce, Daniel Murguia, claims that business owners have to succumb to this threat because "there is no institution that helps them."

This article is relevant to our comparative government class because it addresses the deteriorating civic culture in Juarez because of the economic woes. With a lower standard of living induced by the recession and violence and the constant threat of extortion, citizens not only feel unsafe but as well begin to question the means of authority of the government. It will be interesting to see how Calderon will be able to address the citizens discontent with his new economic agenda.