The study finds that there was a 7.4% improvement in Mexico’s peace scores in the last two years, driven by decreases in organized crime, violent crime, and weapons crime. However, over the past 10 years Mexico experienced a marked increase in direct violence, with peace declining by 27%. A key factor was the 37% increase in the homicide rate since 2007.
The 2013 MPI presents comparisons between the states and the regions of Mexico, and finds that the states with the highest levels of peace are: Campeche, Queretaro, Hidalgo, Yucatan and Baja California Sur while the five least peaceful states are: Morelos, Guerrero, Sinaloa, Chihuahua, and Quintana Roo.
Analysis of federal funding to state police (Fondo de Aportaciones para la Seguridad Publica) finds that increases in police funding are related to crime reporting rates, with increased funding improving the public’s relationship with the police.
The direct cost of violence to the Mexican economy is 3.8% of GDP, while the indirect costs amount to 12% for a total 2.49 trillion pesos (15.8% of GDP). Under optimal conditions, if there was no violence in Mexico, the economy would have the potential to improve by up to 27%. This figure includes direct and indirect costs and the additional flow-on economic activity that would eventuate from new money being added to the economy. The study highlights that if all the states of Mexico were as peaceful as Campeche, the most peaceful state in the country, Mexico would reap an economic benefit of 2.26 trillion pesos.
The most peaceful Mexican states in 2003 experienced the strongest economic performance in 2012. Over the past 10 years, these states’ GDP increased by 9% versus 4% in the least peaceful states.
Steve Killelea, Founder and Executive Chairman of IEP said:
“Compared to other countries with a similar level of conflict and development, Mexico has the greatest potential to increase its peace on account of the strength of the structures, attitudes and institutions that sustain peace in the long term.” He added that: “This research aims to provide the evidence base and data for a broader policy debate about how to reduce violence in Mexico”.
Mexico’s standing in regards to positive peace is encouraging: the country has a strong business environment, performs well on measures of human development, and ranks better than world averages on education.
