Mexico's Extortion Crisis: Businesses Driven to Close Amid Rising Violence

2025-07-11
Mexico's Extortion Crisis: Businesses Driven to Close Amid Rising Violence
The Associated Press

Mexico City, Mexico – The story of one men's clothing store owner, forced to shutter his business after years of relentless threats, is a stark illustration of a growing crisis gripping Mexico: extortion, or cobro de piso. What began as a simple phone call demanding 10,000 pesos ($500) weekly escalated into a nightmare of intimidation and violence, ultimately leading to the store's closure.

This isn't an isolated incident. Across Mexico, businesses of all sizes – from small street vendors to established retailers – are facing increasing pressure from criminal organizations demanding protection money. The problem has demonstrably worsened in recent years, fueled by the fragmentation of powerful drug cartels into smaller, more agile groups vying for control of territory and lucrative extortion rackets.

The Roots of the Problem: Weak Governance and Impunity

Several factors contribute to the escalating extortion problem. Years of weak governance, corruption within law enforcement, and a pervasive culture of impunity have created an environment where criminals operate with relative freedom. The sheer number of criminal groups, often overlapping in their activities, overwhelms the capacity of authorities to effectively respond.

“The cartels used to focus primarily on drug trafficking,” explains security analyst Ricardo Marquez. “But as the fight for control of drug routes intensified, extortion became a more reliable and less risky source of income. It’s a constant revenue stream, and it’s easier to diversify into – impacting a broader range of businesses.”

Beyond Drug Trafficking: Diversification of Criminal Activities

Extortion is no longer solely a tactic employed by drug cartels. Local gangs, opportunistic criminals, and even corrupt officials are now actively involved in demanding payments from businesses. The targets are diverse, including restaurants, convenience stores, construction sites, and even public transportation services.

The consequences are devastating. Businesses are forced to divert resources away from growth and investment to pay protection money. Many, like the clothing store owner, simply can’t afford it and are forced to close, leading to job losses and economic stagnation. The climate of fear discourages investment and undermines the rule of law.

Government Response and Challenges

The Mexican government has acknowledged the problem and launched initiatives to combat extortion. However, progress has been slow and uneven. Challenges include a lack of trust in law enforcement, insufficient resources, and the deeply entrenched nature of corruption. Efforts to strengthen local police forces, improve intelligence gathering, and prosecute extortion cases are underway, but face significant hurdles.

Furthermore, many victims are reluctant to report extortion attempts to the authorities, fearing retaliation or believing that the police are either unable or unwilling to help. This silence perpetuates the cycle of impunity.

Looking Ahead: A Long and Difficult Road

Addressing Mexico's extortion crisis requires a multifaceted approach. Strengthening the rule of law, tackling corruption, improving public safety, and fostering greater trust between citizens and the government are essential. Supporting small businesses through financial assistance and security measures can also help them withstand the pressure. Ultimately, a long-term commitment to good governance and social development is needed to create a sustainable solution and restore security and economic stability for businesses across Mexico. The closure of that one clothing store serves as a chilling reminder of the urgent need for action.

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