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Weekly Report - 19 May 2011 (WR-11-20)

MEXICO: The economic consequences of the violence


Torex Gold Resources, a Canadian gold mining company, announced on 16 May that it was restarting its Mexican operations. The news came just as Mexican businessmen tried to put a figure on the economic cost of the war against organised crime. A lot of the costs are indirect: the payment of a ransom to free a businessman who has been kidnapped by gangsters is a direct cost but his (or his heirs') subsequent decisions to invest outside Mexico do not necessarily show up in any statistics.

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