EWOT Goggles #3 "Can security affect a countries economy?" Week #3

My economics view is about something I have been observing throughout the past year. A lot of people think that security is a factor that does not relate to the economy of a country at all. What do I mean by security? By security I mean the amount of crimes in a country like kidnapping, homicides, robbery and a lot more like drug wars.

Now I'm going to take this to the specific case of Mexico.
People in Mexico thought that the increase of kidnapping, killings, and robbery were not going to affect our economy. In the past years a drug war initiated in my country. This drug war was something that made the security in Mexico drop to the floor. So people were just thinking that the only bad thing that the drug war was making people not to feel safe in their own house. Now I want to connect the factor of security with the economy. Can security affect a countries economy? I ask myself this and I have answer myselpf as well.
Mexico's drug war has gone to far. For example, in mexico when you establish a small business where you have a physical store and you start being successful they will come and charge you for "piso". Piso in English means floor and what this mean is that the drug cartel will analyze the business that are bien successful and they will pay a visit. They will talk to the owner and force him to pay a certain amount of money just because their are being succsefull and they feel they own the floor where they are when actually they are not legally the owners of anything. Now my dad establish a business in 2005, his business has been very successful in the past 2 years. He had to close his office and where his business was physically and do everything from his home in order for the drug lords not to find him and charge him for floor. This floor thing has make thousands of people to close their business because what they charge is so ridiculous that sometimes not even the total net income of the business can make it to pay this or in other cases will leave very few money for the owner that at the end it will not be profitable to have the business. Now what happen next? Foreign investment in Mexico decrease in the past years since people don't feel save to establish business in Mexico or to go and invest in something. Hundreds of cases of Americans getting kidnapped also affected the fact that tourist don't fell safe. So in the past summer the tourism lost a lot of money. Why will somebody go to Mexico if you can get kill so business like hotels, resorts or any other business that depends or tourist when to bankruptcy.
What is happening with Mexico?
The problem that started with just a problem of security end up affecting our economy greatly. To the matter that it might control the destiny of our economy if no thins done.

Can security affect a countries economy?
You can read more about this topic in the links that I attached and answer this question because I already did.

Additional Links


Mexican Economy Shrugs of Drug War
http://www.cnbc.com/id/42603398/Mexican_Economy_Shrugs_Off_Narco_War

Drug War hits Mexican Economy in Crisis
http://www.cnbc.com/id/42603398/Mexican_Economy_Shrugs_Off_Narco_War

Mexico's drug war affects tourism
http://articles.latimes.com/2010/dec/26/travel/la-tr-mexico-20101226

Tourist Kidnappings on the rise in Mexico
http://gogirlfriend.com/travel-news/american-tourist-kidnappings-and-torture-rise-mexico-8300

Kidnappings are out of control in Mexico
http://mexidata.info/id217.html