Failed State

A failed state is one in which the central government has lost control over significant areas of the country and the state is unable to function. It seems that the Mexican government has lost control of the northern tier of Mexico to drug-smuggling organizations, which have significantly greater power in that region than government forces. Moreover, the ability of the central government to assert its will against these organizations has weakened to the point that decisions made by the state against the cartels are not being implemented or are being implemented in a way that would guarantee failure. Mexico seems to be a failed state.

The core problem is the high consumption of narcotics by the United States. This means that extraordinary profits can be made by moving narcotics from the Mexican border into the United States. There is little cooperation between the competing producers resulting in open warfare in northern Mexico.

The heartland of Mexico is to the south, far from the sparsely populated region of the raging drug battle. The Mexican government largely stays uninvolved; indeed, the amount of money pouring into Mexico is stunning. This money is washed and surfaces as investments in legitimate enterprises throughout Mexico and beyond.