The Political Economy Review 2017

trade’ has destroyed ‘infant industries’ in developing nations and has ‘choked demand’ leading to a decrease in growth thus furthering inequality 12 . The explosion in free trade over the past 50-100 years has led to a developed society that is driven by the desire to develop the best technology in order to sell to the consumer. While the motives may be suspect there can be no denial of the progress that has been made. The freedom of movement of labour in the EU, the low tariffs imposed by the WTO and deregulation has led to industries flourishing and has helped lift a lot of people out of poverty. However free trade and globalisation in general has created an extremely unequal society. While it can be argued that just because the wealth gap hasn’t closed between the rich and the poor, it doesn’t mean the poor have necessarily got poorer, it can also be said that labour in developing nations has been treated horrendously and as a result not only have people suffered on a micro level, but whole economies have too. According to the CIA there are 35 countries, out of 198, that have a GDP/capita of less than $3,000 compared to $129,700 in Qatar and $102,000 in Luxembourg. However, on balance, free trade has done more good than harm by spreading technological and economic developments as well as democratic ideals and freedom across the planet.



The Effects of the Drugs Trade on the Mexican Economy

The drug trade has been a problem all over the world for a number of years, but recently in Mexico, the war on drugs has become more important than ever. The drug trade plays a great part in the Mexican economy with cartels holding swathes of power in Mexican society. Not only is the government looking at the black market of the drugs trade and the social effects that it has on citizens, but also- and more worryingly- the violence that comes along with it. Homicide rates rose an astronomical 7.6% in 2015, and have continued to rise ever since. Originally, the drug gangs were not really a problem to the country as governments had let the cartels do as they pleased, but when President Felipe Calderón took office in December 2006, he launched a total war against them. He thought the cartels held too much power and posed a threat to the country. But his aggressive stance didn’t sit well with the cartels and brought previously unseen levels of violence to the nation. This violence, more often than not due to rival gangs, not only terrifies the locals but it also discourages immigration and encourages Mexicans to emigrate in order to achieve a better quality of life. This is particularly problematic for the economy as many highly skilled workers and students seeking higher education move abroad in order to find a better job and life,

12 The Guardian (2010) ‘We lost sight of fairness in the false promise of wealth’


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