HomeNewsBriefInsecurity Shuts Down Businesses in Guerrero, Mexico
BRIEF

Insecurity Shuts Down Businesses in Guerrero, Mexico

MEXICO / 28 JUN 2015 BY SAM TABORY EN

Fears of insecurity in Mexico's Guerrero state are reportedly pushing businesses both large and small to shut down or relocate, highlighting the deep economic toll that organized crime is taking in the region. 

More than 300 businesses in Guerrero -- specifically in its hardest hit cities of Chilpancingo and Iguala -- have reportedly been forced to close indefinitely or relocate elsewhere. Leaders of local business associations in these two cities indicated that the closures and displacements are affecting a wide range of businesses, from large auto companies like Volvo and Volkswagen, to locally owned jewelers, restaurants, pharmacies, and gas stations.

Coca-Cola FEMSA explained that its recent decision to close down a factory in Guerrero was because of security threats posed by organized crime, in addition to concerns generated by political unrest. The recent kidnapping of a Pepsico-Sabritas executive -- who was travelling in the northern part of the state -- is one example of the kind of threats faced by larger companies operating in the area. 

InSight Crime Analysis 

News of the economic toll of Guerrero's insecurity comes on the heels of deadly political violence that hit the state particularly hard in the lead-up to elections this past June. However, alarms about the increasing level of violence in Guerrero state have been sounding for some time. Since the disappearance of 43 students from the region in September 2014, dozens of mass graves have been discovered in the state and increasingly violent turf wars between rival gangs have been reported. 

SEE ALSO:  Mexico News and Profiles

The government has tried to champion Mexico as an appealing place for increased foreign investment, and this has prompted intensified efforts to improve security in the important oil-producing regions of Tamaulipas and Veracruz. Yet amid the security gains that President Peña Nieto has touted as of late, it is clear that Guerrero remains the dark spot in the national conversation about "the new Mexico." 

share icon icon icon

Was this content helpful?

We want to sustain Latin America’s largest organized crime database, but in order to do so, we need resources.

DONATE

What are your thoughts? Click here to send InSight Crime your comments.

We encourage readers to copy and distribute our work for non-commercial purposes, with attribution to InSight Crime in the byline and links to the original at both the top and bottom of the article. Check the Creative Commons website for more details of how to share our work, and please send us an email if you use an article.

Tags

Was this content helpful?

We want to sustain Latin America’s largest organized crime database, but in order to do so, we need resources.

DONATE

Related Content

MEXICO / 2 SEP 2011

A new study tracks Mexico's growing disenchantment with President Calderon's organized crime strategy, and increasing willingness to accept U.S. intervention…

BELTRAN LEYVA ORG / 17 JUN 2016

Heavily armed men reportedly descended on the hometown of "El Chapo," ransacking his mother's home, killing several residents and displacing…

LA FAMILIA MICHOACANA / 22 MAY 2014

Recent arrests of alleged kidnappers in Guerrero and arms traffickers in the State of Mexico both lead back to the…

About InSight Crime

THE ORGANIZATION

Guatemala Social Insecurity Investigation Makes Front Page News

10 DEC 2021

InSight Crime’s latest investigation into a case of corruption within Guatemala's social security agency linked to the deaths of patients with kidney disease made waves in…

THE ORGANIZATION

Venezuela El Dorado Investigation Makes Headlines

3 DEC 2021

InSight Crime's investigation into the trafficking of illegal gold in Venezuela's Amazon region generated impact on both social media and in the press. Besides being republished and mentioned by several…

THE ORGANIZATION

Gender and Investigative Techniques Focus of Workshops

26 NOV 2021

On November 23-24, InSight Crime conducted a workshop called “How to Cover Organized Crime: Investigation Techniques and A Focus on Gender.” The session convened reporters and investigators from a dozen…

THE ORGANIZATION

InSight Crime Names Two New Board Members

19 NOV 2021

In recent weeks, InSight Crime added two new members to its board. Joy Olson is the former executive director of the Washington Office on Latin America…

THE ORGANIZATION

Senate Commission in Paraguay Cites InSight Crime

12 NOV 2021

InSight Crime’s reporting and investigations often reach the desks of diplomats, security officials and politicians. The latest example occurred in late October during a commission of Paraguay's Senate that tackled…