Samo Burja, Mexico’s Drug Cartels Are Not Competitors to the State, Bismarck Brief, May 8. 2024.
As of early 2024, despite the incarceration of leading cartel figures such as Joaquín "El Chapo" Guzmán Loera, the organization he headed, the Sinaloa Cartel, remains the dominant cartel in Mexico and is also an increasingly powerful force in drug networks across the world. Its main competitor is the Jalisco New Generation Cartel (CJNG) and the two often engage in violent competition, alongside smaller cartels like the Gulf Cartel, the Juarez Cartel, the La Familia cartel, and many more local criminal organizations. In 2017, Americans consumed $153 billion worth of banned narcotics.4 The cartels satisfy a large fraction of this demand. There are no precise estimates of cartel revenues and profits, but it is likely that annual revenues are in the low tens of billions of dollars and profits total several billion after the costs of business, including bribes. The cartels also generate revenue from other criminal activities like human trafficking, extortion, and even illegal logging.
Around the world, such criminal activities have shown to be lucrative enough and resilient enough to state persecution to fund rebellions that could topple governments. For example, the Marxist FARC guerillas in Colombia, as well as multiple generations of Taliban rebels in Afghanistan—first fighting the Soviets, then the U.S.—were funded in this way. Because of the drug war, ongoing violence, and continued influence of cartels in Mexican society, Mexico has sometimes been described as a failed state and some U.S. politicians, such as former President Donald Trump and Republican Senator Tom Cotton, have even called for taking unilateral military action against the cartels, as was done against ISIS, the short-lived Islamist statelet in Iraq and Syria.5
But Mexico’s cartels are not ideologically or politically-motivated groups making the jump to crime to fund their activities. They are rather amorphous criminal groups motivated by profit-seeking, usually relying on familial and regional ties. From a business perspective, it is preferable to collaborate with the government when possible, rather than invite anarchy. Since, through bribery, the cartels represent an important source of revenue for Mexico’s elites, this interest is mutual.
As a result, the cartels are far more like junior partners to corrupt government officials rather than an independent and competing force of their own, though their allegiances have ebbed and flowed from the state level to the federal level—Mexico is a federation of united states—and seemingly back over the last sixty years. This makes Mexico’s cartels clients of the Mexican state, not its competitors, and, in turn, Mexico’s status as a client of the U.S. explains why the cartels continue to flourish and why there is unlikely to be any U.S. intervention in the near future.
And: "The drug trade is powerful in Mexico not because of its size, but because of its liquidity, anonymity, and informality, which makes it easy to enrich particular individuals."
There's much more at the link.
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