INSUBCONTINENT EXCLUSIVE:
report.The organization highlights that crime and corruption are hindering new investments, job creation, and overall economic growth in the
country.The impact of crime varies significantly across different states in Mexico
Direct costs include losses from theft and extortion, as well as increased security expenses for businesses.Indirect costs stem from the
perception of crime and subsequent decision-making based on these perceptions
(Photo Internet reproduction)The burden of insecurity is not evenly distributed throughout Mexico
Southern states are particularly affected, limiting their ability to close the economic gap with more prosperous regions.Small and
medium-sized enterprises (SMEs) bear a disproportionate burden
The damage caused by violence is four to six times greater for these businesses compared to larger companies
Safety concerns, particularly during commutes, can force women to leave their jobs or prevent them from seeking employment altogether.IMF
Recommendations for MexicoThe IMF recommends strengthening governance and addressing corruption and crime as key policy priorities.They
suggest that Mexico would benefit from updating its political priorities to address the risks and potential macroeconomic impact of
financial crimes and organized crime.The report notes that impunity for reported crimes facilitates the operation of organized crime
Additionally, the perception of corruption among police officers discourages crime reporting and hinders law enforcement efforts.The IMF
emphasizes that insecurity and violence deter investment and economic growth
participation requires further study
However, it is clear that insecurity has become a significant cost factor
Women are more likely to leave their jobs due to worsening working conditions and increased risks.Data from the National Occupation and
However, this figure is statistically insignificant.The IMF notes that insecurity is not unique to Mexico but has gained importance
throughout Latin America and the Caribbean.In a separate report, they explain that foreign direct investment flows are lower than
remittances due to poor governance and insecurity in the region.Paradoxically, the increase in remittances correlates with deteriorating
security, as it generates migration to other countries.The IMF experts emphasize that improving governance is associated with higher FDI
flows, while crime is linked to increased emigration and a consistent rise in remittances to the country of origin.
