Cartels vs. State: The Power Struggle in Mexico w/ Samo Burja

Erik Torenberg and Samo Burja discuss the complex relationship between Mexican drug cartels and the country's political system. Samo explains how cartels operate not as insurgencies but as business entities with deep connections to Mexican elites. The discussion covers the economic impact of drug trafficking, how legalization affects cartel operations, and comparisons with other countries' experiences, and explore potential solutions for Mexico's development and the geopolitical implications for U.S.-Mexico relations. Make sure to subscribe to Samo Burja's Bismarck Brief and the Live Players podcast to read analyses and briefs like this one: Bismarck Brief: https://brief.bismarckanalysis.com/ Live Players: https://link.chtbl.com/liveplayers — 📰 Be notified early when Turpentine's drops new publication: https://www.turpentine.co/exclusiveaccess  🙏 Help shape our show by taking our quick listener survey at https://bit.ly/TurpentinePulse  -- SPONSOR: NETSUITE | SHOPIFY | INCOGNI | SQUAD Over 41,000 businesses trust NetSuite by Oracle, the #1 cloud ERP, to future-proof their operations. Whether you're earning millions or hundreds of millions, NetSuite empowers you to tackle challenges and seize opportunities. Download the free CFO's guide to AI and machine learning at https://netsuite.com/zen. Shopify is the world's leading e-commerce platform, offering a market-leading checkout system Shoppay and exclusive AI apps. Nobody does selling better than Shopify. Get a $1 per month trial at https://shopify.com/momentofzen. Take your personal data back with Incogni! Use code MOMENT at the link below and get 60% off an annual plan: https://incogni.com/moment Head to Squad to access global engineering without the headache and at a fraction of the cost: head to https://choosesquad.com/ and mention “Turpentine” to skip the waitlist. -- RECOMMENDATION FOR THIS PODCAST: “Mexico’s Drug Cartels Are Not Competitors to the State” https://brief.bismarckanalysis.com/p/mexicos-drug-cartels-are-not-competitors -- X / TWITTER: @SamoBurja @eriktorenberg @turpentinemedia -- HIGHLIGHTS OF THE DISCUSSION: Cartels' Political Integration: Mexican cartels operate not as insurgencies against the state but as partners with government officials, creating a corrupt patronage system. Economic Impact: While drug trafficking represents a small percentage of Mexico's economy (0.3% of labor force), it provides significant corrupt revenue for political elites. Evolution of Cartel Operations: Following marijuana legalization in the U.S., cartels shifted from agriculture (growing marijuana/heroin) to chemistry (producing synthetic drugs like fentanyl). Border Security Concerns: The porous U.S.-Mexico border currently poses limited direct national security threats but could become problematic during escalating tensions with China or Russia. Development Challenges: Mexico's extractive elites and corrupt political economy hinder genuine industrialization and development. Potential Solutions: Successfully industrializing Mexico would require defeating extractive elites and eliminating corruption sources, potentially with U.S. or Chinese investment. Future Outlook: Latin American countries like Mexico might eventually become more peaceful as populations age, similar to countries like Portugal or Greece.