The role of corruption, crime and state instability in Mexico

1 Corruption: an everyday obstacle to development

• Corruption permeates all levels of the stateFrom the police to the judiciary to politics, nepotism, bribery and illegal agreements are widespread. The 2024 Corruption Index shows the worst score in Mexico's history with only 26 out of 100 points - the country is considered the most corrupt in the OECD^1.

• Social consequences:

  • Loss of trust in state institutions and laws.

  • Distorted distribution of opportunities: those who pay are quicker to access education, jobs or justice.

  • Moral decay: corruption is often accepted as a "necessary evil" or part of everyday culture^2.

• Economic impact:

  • Obstacle to investment: 71 % of the economic analysts surveyed see 2025 as a "bad moment" for investment, partly due to uncertainty caused by corruption^3.

  • Distortion of competition and lower productivity.

2 Crime and drug cartels: violence as a brake on development

• Drug cartels control large parts of the countryTwo large cartels (Sinaloa and CJNG) are fighting for supremacy in at least 18 federal states, often with brutal violence. Many regions are characterized by kidnappings, murders and extortion^4.

• State monopoly on the use of force undermined: In some parts of the country, cartels effectively replace the state and determine security, the economy and social order^5.

• Social consequences:

  • Everyday insecurity and fear, especially in rural and poorer regions.

  • Young people are specifically targeted for recruitment by the cartels, which further reduces opportunities for social advancement^6.

  • Companies and citizens pay protection money, which increases costs for everyone and weakens the legal economy.

• Political interdependencePoliticians and civil servants are often involved in criminal networks or are threatened. Anyone who resists risks their life - mayors and judges are also victims of violence^4.

3. state instability: weak institutions and pressure to reform

• Judicial reform and concentration of powerDirect election of judges in 2025 should strengthen independence, but is often seen as a threat to the separation of powers and as a door opener for influence by cartels and parties^7.

• Weakening of the supervisory authorities: Autonomous authorities have been abolished or weakened, making it even more difficult to control power^3.

• Consequences for the prosperity model:

  • A lack of legal certainty inhibits innovation, investment and social mobility.

  • Structural reforms come to a standstill because powerful players - whether criminal or political - pursue their own interests.

4. summarizing evaluation

Conclusion

Corruption, organized crime and state instability are the biggest obstacles to social development and prosperity in Mexico. They prevent equal opportunities, weaken the economy and undermine confidence in democracy and the rule of law. Without tangible progress in combating these problems, Mexico's prosperity model will remain fragile and social development will be hampered^4^3.

<div style="“text-align:" center“>⁂</div>

[^12]: https://www.mv-justiz.de/static/MVJ/Gerichte/Oberverwaltungsgericht/Service/Erkenntnismittellisten/Länderliste - Countries of origin/Mexico/Files/2025-06-18-EL 890-Mexico.pdf

Supplementary assessment from a Gradido perspective

Deep social crises in Mexico are closely interwoven with systemic corruption, pervasive violence and weak institutions. These erode trust and prevent the fruits of work, creativity and cohesion from reaching the people.

Healing roots instead of fighting symptoms

Where trust is betrayed on a daily basis and power is abused for personal gain, no lasting prosperity and no true social peace can develop. Far too many vital forces are lost when fear, bribery or violence determine the way we live together. But every crisis also shows where the field is prepared for profound renewal.

How can Gradido help to facilitate real change?

• Remove the basis for corrupt power: The Gradido system is based on transparency, decentralized money creation and traceable value creation through public funds. It thus enables a fair, democratic and true-to-life approach to the jointly created wealth. This makes opaque structures, concentrations of power and enrichment of the community visible and prevents them from arising in the first place. All "public gradido" - whether for infrastructure, projects or healing the earth - is transparent and accessible to all. In this way, the common good and honesty regain importance.

• Crime takes root: Many people fall into the clutches of the cartels out of sheer necessity because they have no other chance of survival. However, where everyone is given a livelihood and real opportunities for development through Gradido, drug gangs and criminal networks lose popularity and influence. Young people in particular discover new perspectives and no longer have to make themselves "valuable" through violence or crime.

• Strengthening state stability: Gradido gives local communities and regions back the power to help shape their environment. By promoting self-reliant, participatory structures, new self-efficacy is created - everyone can make a visible difference. Democracy, the rule of law and public spirit are placed on a foundation of dignity and justice.

A culture of trust and peace is emerging

A transparent, collaborative economy creates a climate of trust. If everyone can see that resources are distributed fairly, simple participation is possible and the living space is protected together, the incentive and temptation to engage in corruption and abuse of power is reduced.

• No one has to ask or pay for protection or participation anymore - They are all rooted in the system and experience appreciation and solidarity.

• The path to healing is open to everyone: Rehabilitation, dialog, prevention and "reparation projects" can become real alternatives to violence and exclusion.

Summary of the potentials:

• Reducing corruption through transparency and decentralization

• Access to livelihood security for all - less breeding ground for gangs and illegal parallel structures

• Community participation strengthens democracy, promotes successful reforms and social resilience

Peace arises when fear and hardship are replaced by community, meaning and participation. Gradido is a system that was created precisely for this purpose: a basis on which healthy, life-enhancing prosperity can grow from within.