The insecurity people experience in several regions of Mexico undoubtedly has a price.
Large foreign companies interested in gaining access to the world's biggest market, the American market, surely see in Mexico an option to install their plants and factories but before they do they analyze the pros and cons of this decision, and it is here that crime rates become an obstacle for the arrival of millionaire investments.
Inhabitants of quarters and neighborhoods where crime runs rampant have been forced to pay for security measures such as video surveillance systems, better lighting or security personnel.
Shops and businesses victims of criminal groups dedicated to extortion have to compensate for these additional expenses with an increase in their products or services; however, often enough security expenses are so high the only option is closure. Thus, the community loses an option to acquire these products and faces two choices: find another supplier regardless of the distance or give up the products entirely.
For banks, insecurity also has consequences. One of the operations of banking institutions is to measure the risks of a given country and charge extra for them, depending on their evaluation. That is, if there are fewer risks, fewer fees are charged.
During the interview published today by EL UNIVERSAL, the CEO of Grupo Financiero Banorte (Banorte Financial Group) states that security in all areas of everyday life will make banking services cheaper.
Yet insecurity doesn't only impact product costs and services, or the expenses of a family – it also affects people's behavior.
There are cities in some states that have lost their nightlife. Populations remain in their houses past 20:00 hours due to the high crime rates registered in their communities. Restaurants, bars, and theaters close early as they fear being hit by criminal groups. Their incomes, thus, are reduced.
The cost of insecurity is high and it is reflected in the national economy. Crime has become a dam for development. Several voices from many an area have said that the solution lies in an effective law enforcement, or as they define it, a rule of law. How much time will have to go by before Mexico gets there? Authorities at all levels have a great debt towards society.
am