The Mercury News has a great article about how the drug cartels of Mexico have morphed into a full blown Organized Crime Syndicates including Oil Smuggling, Human Trafficking, DVD Pirating, Kidnapping, and Extortion Rackets.
Mexico by allowing Organized Crime Syndicates to influence every level of society have essentially lost the war against the drug cartels. They have gained ground at every level of government, and business.
While the President of Mexico claims his country is not a failed state, he can't even control the violence in the prisons, and the extortion that a businessman faces in a small town. He can not control the border, he can not control the violence at the borders, and he can not control the corruption of the governor of his own home State of Michoacan.
The United States of Mexico, as it stands now is a failed state, run and controlled by crime syndicates.
"Shopkeepers in this pine-covered mountain region easily recite the list of "protection" fees they pay to La Familia drug cartel to stay in business: 100 pesos a month for a stall in a street market, 30,000 pesos for an auto dealership or construction-supply firm.
First offense for nonpayment: a severe beating. Those who keep ignoring the fees—or try to charge their own—may pay with their lives.
"Every day you can see the people they have beaten up being taken to the IMSS," said auto mechanic Jesus Hernandez, motioning to the government-run hospital a few doors from his repair shop.
Mexican drug cartels have morphed into full-scale mafias, running extortion and protection rackets and trafficking everything from people to pirated DVDs. As once-lucrative cocaine profits have fallen and U.S. and Mexican authorities crack down on all drug trafficking to the U.S., gangs are branching into new ventures—some easier and more profitable than drugs." Via Mercury News