Lining Up For Further Intensification In Drug Battle

In recent weeks, Mexico has seen a brutal escalation of drug cartel-related violence. Not only has inter-cartel violence intensified, six senior security officials, including the highest ranking officer in the country responsible for overseeing most counter-narcotics operations, have been assassinated as the cartels widen their targets from lower-ranking local to senior federal officials. The death toll in the first five months of 2008 is around 1,300 people, and we are concerned that Mexico is on course this year to exceed 2007's figure of around 2,700. While factored in to BMI's proprietary political risk ratings, the risks are currently to the downside.

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