Decriminalizing Drugs in the U.S. May Help Mexican National Security

In a recent Wall Street Journal OpEd by the former presidents of Mexico, Brazil, and Columbia, “The War On Drugs Is A Failure,” the core conclusion – as also expressed by the Latin American Commission on Drugs and Democracy recently in Rio de Janeiro – is that the “alarming power of the drug cartels is leading to a criminalization of politics and a politicization of crime. And the corruption of the judicial and political system is undermining the foundations of democracy in several Latin American countries.”

These concerns are evident in the rising violence among drug gangs in Mexico. In fact, 2008’s death tolls in the Mexican narcotics war were double those of 2007. The Los Angeles Times notes grimly that the body count since President Felipe Calderon declared war on drugs exceeds that of the entire U.S. conflict in Iraq.

The knock-on effects of these figures to the Mexican economy are found most profoundly in the crisis the violence has unleashed in the country’s tourism industry. According to Mexico’s National Tourist Confederation, international tourism dropped 55% from 2000-2007, and the State Secretariat of Tourism Promotion reports that foreign tourist flow dropped from 515,771 during the first five months of 2007 to 401,753 during the same measured period in 2008.

But the decline in Mexican tourism is just a piece of the economic problems facing the troubled state. The collapse of global oil prices and falling oil production in the country are presenting Mexico with a very stark reality. Seeking Alpha’s Jim Kingsdale writes, “Roughly 40% of the Mexican federal budget is financed by oil exports from the state-owned PEMEX oil company. But production is falling rapidly, has been doing so for a couple of years, and promises to continue falling even faster after 2010.”

If the war on drugs throughout Latin America is a failure, would a U.S. legislative shift to decriminalize drugs in America reverse the remarkable instability that Mexico is experiencing?

The investments in Marijuana prohibition alone are quite notable – the Marijuana Policy Project in Washington, DC estimates the costs to the U.S. government at $14 billion annually. Mexico is currently deploying thousands of military units and police officers to fight the increasingly sophisticated and well-funded drug lords – at a long-term cost to the federal government that is yet to be determined.

Marijuana is an indisputable cash crop, and Mexican agricultural production is one of the largest in the world. Mexico is the number one grower of onions, avocados, lemons, and limes. The climate produces a rich soil and a humidity that is ideal for broad-scale marijuana production. If the United States was to decriminalize marijuana, Mexico – already a key trading partner with the U.S. – would benefit significantly.

Allen St. Pierre, Executive Director at The National Organization for the Reform of Marijuana Laws, is optimistic.

“Public support for replacing the illicit marijuana market with a legally regulated, controlled market similar to alcohol, complete with age restrictions and quality controls, continues to grow, and appears to have achieved majority support on the West Coast – where many voters are already familiar with the state-licensed use and, in some cases, sale of medical cannabis,” he said. “As voters and legislators continue to look for alternative ways to raise tax revenue for public services and reduce law enforcement costs in this troubled economy, we expect the public’s support for taxing and regulating cannabis to continue to grow – not just on the West Coast, but nationwide.”