The Economic Burden of Impunity: How Mexico’s Violence and Lack of Justice Affect Its Economy

Web Editor

November 4, 2025

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Introduction

The current administration of Claudia Sheinbaum in Mexico City has been reluctant to explicitly attribute responsibility for the ongoing violence and impunity to President Andrés Manuel López Obrador. Without acknowledging his role, there’s no way to correct the narrative surrounding these issues.

The Carlos Manzo Assassination: A Catalyst for Concern

The high-impact assassination of Uruapan’s mayor, Carlos Manzo, during Felipe Calderón’s six-year term has resurfaced public indignation over organized crime and impunity in Mexico. This event has drawn attention to the widespread criminal activities and how impunity operates with legal protection.

Beyond Political Implications

While concerns about violence and impunity may seem to revolve around popularity or electoral preferences, they also have significant economic consequences. The Mexican government attributes the decline in economic activity to trade policy issues stemming from Donald Trump’s tariffs. However, private analysts consulted by the Bank of Mexico identify internal factors as primary obstacles to growth, including public safety concerns, lack of the rule of law, corruption, political uncertainty, and impunity.

External Risks and Pressures

Moreover, both tariffs from Donald Trump and his unpredictable actions pose additional challenges. A group of 200 influential US business leaders, part of the Business Roundtable association, have identified risks ranging from judicial reform contrarmeasures to operational aspects of the USMCA (United States-Mexico-Canada Agreement).

Violence as a Dominant Narrative

The recent high-profile assassination of Carlos Manzo has once again put Mexico’s violence in the spotlight, prompting the Trump administration to reportedly plan military and intelligence operations within Mexico against designated drug trafficking organizations. This legal coverage allows Trump to act against perceived terrorist threats in other territories.

Shifting Strategies, Unchanged Rhetoric

There is undoubtedly a change in Mexico’s strategy to confront certain criminal groups, but the lopezobradorista rhetoric of addressing root causes and blaming Felipe Calderón for all acts of violence persists. The message from Mexico’s most valuable US businesses, analysts consulted by the Bank of Mexico, and ordinary citizens remains consistent: without the rule of law, there can be no economic stability and growth.

Implications of Insecurity and Impunity

Insecurity and impunity, exemplified by crimes like the one in Uruapan, are not just social deterrents but systemic risks that increase the cost of opportunity for both businesses and families.

Building a Secure Future

The true task for the current administration is to construct certainty for the future rather than defending or attacking past narratives.

Key Questions and Answers

  • What is the main issue discussed in this article? The economic burden of impunity and violence in Mexico, and how these factors affect the country’s economic growth.
  • Who is responsible for the ongoing violence and impunity in Mexico, according to critics? Critics, including private analysts consulted by the Bank of Mexico, attribute responsibility to President Andrés Manuel López Obrador.
  • What are the internal factors identified by private analysts as obstacles to Mexico’s economic growth? These factors include public safety concerns, lack of the rule of law, corruption, political uncertainty, and impunity.
  • How do external factors, like US tariffs and Trump’s actions, impact Mexico’s economy? Both tariffs from Donald Trump and his unpredictable actions pose additional challenges to Mexico’s economic growth.
  • What message do Mexican and US businesses, along with ordinary citizens, convey regarding the rule of law and economic stability? They emphasize that without the rule of law, there can be no economic stability and growth.
  • What are the systemic risks associated with insecurity and impunity in Mexico? Insecurity and impunity increase the cost of opportunity for both businesses and families, acting as systemic risks.
  • What is the primary task for the current Mexican administration? To construct certainty for the future rather than defending or attacking past narratives.