The international organization points out that this affects the southern states the most and limits their possibilities of closing the gap with more prosperous regions.

Crime, insecurity and corruption are limiting new investments, job creation and growth in Mexico, the International Monetary Fund (IMF) warned: “The Mexican economy is paying the price for insecurity.”

The economic cost and perception of crime vary substantially across states. In addition, crime can entail direct costs, such as losses from robbery and extortion, business expenditures on security, and indirect costs that may reflect perceptions of crime and decisions based on this sentiment.

This is the view of the organization's experts, in the conclusions of the annual visit made by the IMF's expert mission to Mexico, in accordance with Article IV of the Constitutive Agreement. The visit took place in the first half of October. It included meetings with Secretaries of the Cabinet of President Claudia Sheinbaum and high-level officials, as well as experts.

The burden of this scourge is not evenly distributed. It hits the southern states hardest and limits their ability to close the gap with more prosperous regions.

For SMEs, damages from violence are four to six times greater than for large companies. Small companies incur expenses that are probably much lower than those spent by larger companies, they noted.

In the case of women, insecurity is a factor that affects their participation in the labour market. Sometimes it is a factor that forces them to leave a job, for example, if there is a perception of danger in their journeys from home to work or vice versa.

PUBLIC POLICIES

In the IMF's policy recommendations, they suggest “strengthening governance, addressing corruption and crime... “Mexico would benefit from updating its policy priorities in proportion to the identified risks and the potential macroeconomic impact of financial crime and organized crime.”

In a first assessment of the price that, they admit, the Mexican economy is paying for the increase in crime, they explained that impunity for reported crimes facilitates the operation of organized crime and that the perception of corruption among police officers inhibits the filing of complaints and the fight against crime.

They stressed that circumstances associated with insecurity and violence inhibit investment and discourage economic growth. Particularly if they operate in a territory where there is a presence of gangs, the damage caused by crime is considerably greater.

WORKING WOMEN AFFECTED BY CRIME

They stressed that living in a climate of increasing violence creates limitations for women's participation in the labour market. For many women, insecurity is a factor that prevents them from entering or pressures them to leave.

This relationship between violence and women's lack of participation in the labour market needs to be studied in more detail and in greater depth. What is a fact is that violence and insecurity have become a significant cost. They explain: "Women are more likely to leave their jobs due to worsening working conditions and increased risks," they explain.

Based on data from the National Survey of Occupation and Employment, it was found that an increase in homicides of workers has led to a lower demand for men to fill positions and a slight increase of 0.4% in the placement of women in the labour market. This proportion is said to be statistically insignificant.

They added that women tend to leave work more frequently due to factors such as changes in working conditions, increased risk and unhealthiness of their environment or the desire for higher income. This suggests “an increase in job separations closely related to the adjustments women make in response to altered working conditions resulting from increased violence.”

INSECURITY, A REGIONAL ISSUE

The circumstances related to insecurity and violence in Mexico are not an isolated event. It is something that has gained importance in Latin America and the Caribbean.

In another document released by the IMF, the Economic Outlook for the Western Hemisphere, they explained that the flows of Foreign Direct Investment are lower than those of remittances due to the poor governance and insecurity that prevails in the countries of the region. Paradoxically, the increase in remittances is correlated with the deterioration of security, to the extent that it generates migration to other countries.

The IMF experts emphasized that “improving governance is associated with higher FDI flows; while crime is associated with greater emigration and a consistent increase in remittances to the country of origin.”