Last month, in a small Mexican village, farmers brutally killed suspected drug cartel members who were extorting them for protection money. This incident brought attention to Mexico’s significant problem with extortion. Despite a reduction in murders, extortion has increased since President Andres Manuel Lopez Obrador took office in 2018, posing a major risk to the country’s economy.
Critics argue that Lopez Obrador’s strategy of reducing direct confrontation with gangs has allowed them to expand their influence and prey on businesses. With the rise of extortion, it has become a corrosive fallout of the security strategy implemented by the president. Falko Ernst, a senior analyst at the International Crisis Group, stated that burgeoning extortion has become a significant issue due to the security strategy.
Lopez Obrador denies that his approach has led to increased impunity but acknowledged that Mexico must address the problem of extortion. Registered victims of extortion have increased nearly 60% from 6,895 in 2018 to 10,971 in 2023, even though homicides have fallen by 12% during the same period, based on official data. Businesses that refuse to pay extortion demands are often threatened with violence against themselves, their relatives, or workers, or with the destruction of their property.
Under the banner of “abrazos, no balazos” (‘hugs not bullets’), Lopez Obrador argues that violence cannot be solved with more violence. Instead, he believes that improving living standards through welfare spending and better wages will help address chronic poverty and inequality, which are contributing factors to crime. The issue of security is a significant concern for voters as the presidential election approaches to succeed Lopez Obrador.
Critics of the current administration, even those close to Lopez Obrador’s chosen successor, former Mexico City Mayor Claudia Sheinbaum, believe that criminals have become more emboldened during his presidency. Sheinbaum has defended the administration but has also pledged “zero impunity” and highlighted her own record on security in Mexico City, where murders fell more sharply.
According to Ernst, the current policy under Lopez Obrador has indirectly signaled to criminal organizations that they have the freedom to act as long as they do not disrupt the official narrative that “things are getting better.” Most cases of extortion are not reported due to fear of retaliation. A study by a Mexican Senate think tank revealed that Mexico suffers around 13,000 acts of extortion daily.
The culture of impunity has led cartels to engage in a wide range of “extractivist” activities that impact basic food supplies, posing a threat to economic stability. Business owners in Mexico have reported being targeted by organized crime, leading to regular payments to stay operational in some areas. Similarly, companies have chosen to cease operations in specific states rather than comply with extortion demands.
Simultaneously, Lopez Obrador has shifted public infrastructure and traditionally civilian offices to military control, raising concerns about the politicization and possible diversion of focus of the armed forces from their core responsibilities. Carlos Heredia, a political analyst at Mexico’s CIDE think tank, noted that there has been a deep regression in the assertion of the state’s authority, leading to frustration among the people.
The Army did not respond to a request for comment.
(Reporting by Dave Graham; Additional reporting by Lizbeth Diaz; Editing by Alistair Bell)
