The Economic Consequences of Drug Trafficking Violence in Mexico
Abstract:
The levels of violence in Mexico have dramatically increased in the last few years due to structural changes in the drug trafficking business. The increase in the number of drug trafficking organizations (DTOs) fighting over the control of territory and trafficking routes has resulted in a substantial increase in the rates of homicides and other crimes. This study evaluates the economic costs of drug-related violence. We propose electricity consumption as an indicator of the level of municipal economic activity and use two different empirical strategies to test this. To estimate the marginal effect of violence in the rate of homicides (per 100,000 inhabitants) we use an instrumental variable regression created by Mejía, Castillo and Restrepo (2012). For the average municipality, the marginal negative effect of the increase in homicides rates is substantive for earned income and the proportion of business owners, but not for energy consumption. Although negative and statistically significant, the effects are mild for labor participation. We also employ the methodology of synthetic controls to evaluate the effect that inter-narco wars have on local economies. The analysis indicates that the drug wars in those municipalities that saw dramatic increases in violence between 2006 and 2010 significantly reduced their energy consumption in the years after the change occurred, which is interpreted as a significant reduction in GDP per capita for these municipalities.
Speaker Bio:
Gabriela Calderon holds a Ph.D. in Economics from Stanford University. Her research interests include policies that affect gender differences in developing countries, policy evaluation, violence in Latin America and the effect of institutions and governance on the provision of public goods and health/education outcomes. She did her master's degree in economic theory and bachelor's degree in economics at the Instituto Tecnológico Autónomo de México. Currently, in the Program on Poverty and Governance, her research analyzes the way institutions and democracy affect the provision of public goods, and the impact they have on health outcomes like infant mortality trends. She is also studying the effects of government interventions that combat drug-trafficking organizations over violence in Mexico.
Her research has focused on the topics of development, public finance, and the evaluation of public policy programs in Mexico. For example, during the summers of 2009/2010, she conducted a field experiment in Zacatecas, Mexico with Giacomo de Giorgi, an assistant professor from Stanford University, and Jesse Cuhna, a former Stanford student. The main task was to evaluate the impact of financial literacy classes on underprivileged women entrepreneurs in the region. To successfully complete an evaluation in an untreated region, they proposed collaborating with the Mexican NGO CREA on a joint project. They contacted local interviewers, trained them, and identified all women entrepreneurs in the 17 communities, in which we conducted the experiment. Preliminary results suggest that the female entrepreneurs who were randomly assigned to treatment earned higher profits, had larger revenues, and served a greater number of clients. They also found that they were more likely to implement formal accounting techniques.
She has also studied programs that are not randomly assigned as an experiment. For example, she has analyzed the effects of a national policy in Mexico of child care services, called Estancias Infantiles para apoyar a Madres Trabajadoras (EI), using administrative, census and household data. Her empirical research strategy identifies the effects of the program on both the men and women who were eligible for the program. She used time, location and eligibility variation, and considered a major threat to identification of the actual effects: for example, a manufacturer who moves into a municipality at approximately the same time as the EI program and who happens to disproportionately demand the skills of women who were eligible to the program happened to have. To ensure that such scenarios do not affect her results, she chose not triple difference strategy, in which all ineligible people are treated as “controls” for the EI-eligible families. Instead, she employs Synthetic Control Methods, using the same methodology as Abadie and Gardeazabal (2003) and Abadie, Diamond and Hainmueller (2010) to ensure that her control group has the same mix of skills and preferences as the EI-eligible group. She adapted the Synthetic Control Method to analyze repeated cross-sectional household data, which are data that are typically available in developing countries
Encina Ground Floor Conference Room
Gabriela Calderón
Encina Hall
616 Serra Street
Stanford, CA 94305-6055
Gabriela Calderon holds a Ph.D. in Economics from Stanford University. Her research interests include policies that affect gender differences in developing countries, policy evaluation, violence in Latin America and the effect of institutions and governance on the provision of public goods and health/education outcomes. She did her master's degree in economic theory and bachelor's degree in economics at the Instituto Tecnológico Autónomo de México. Currently, in the Program on Poverty and Governance, her research analyzes the way institutions and democracy affect the provision of public goods, and the impact they have on health outcomes like infant mortality trends. She is also studying the effects of government interventions that combat drug-trafficking organizations over violence in Mexico.
Her research has focused on the topics of development, public finance, and the evaluation of public policy programs in Mexico. For example, during the summers of 2009/2010, she conducted a field experiment in Zacatecas, Mexico with Giacomo de Giorgi, an assistant professor from Stanford University, and Jesse Cuhna, a former Stanford student. The main task was to evaluate the impact of financial literacy classes on underprivileged women entrepreneurs in the region. To successfully complete an evaluation in an untreated region, they proposed collaborating with the Mexican NGO CREA on a joint project. They contacted local interviewers, trained them, and identified all women entrepreneurs in the 17 communities, in which we conducted the experiment. Preliminary results suggest that the female entrepreneurs who were randomly assigned to treatment earned higher profits, had larger revenues, and served a greater number of clients. They also found that they were more likely to implement formal accounting techniques.
She has also studied programs that are not randomly assigned as an experiment. For example, she has analyzed the effects of a national policy in Mexico of child care services, called Estancias Infantiles para apoyar a Madres Trabajadoras (EI), using administrative, census and household data. Her empirical research strategy identifies the effects of the program on both the men and women who were eligible for the program. She used time, location and eligibility variation, and considered a major threat to identification of the actual effects: for example, a manufacturer who moves into a municipality at approximately the same time as the EI program and who happens to disproportionately demand the skills of women who were eligible to the program happened to have. To ensure that such scenarios do not affect her results, she chose not triple difference strategy, in which all ineligible people are treated as “controls” for the EI-eligible families. Instead, she employs Synthetic Control Methods, using the same methodology as Abadie and Gardeazabal (2003) and Abadie, Diamond and Hainmueller (2010) to ensure that her control group has the same mix of skills and preferences as the EI-eligible group. She adapted the Synthetic Control Method to analyze repeated cross-sectional household data, which are data that are typically available in developing countries
Minority Rights in the Transitioning Arab World
Processes of democratic transition in today’s Arab world carry with them both challenges and opportunities for minorities. While emerging social and political spaces may offer minorities better opportunities for political participation and social inclusion, minority rights are not always given enough importance in current processes of democratic transition, as is the case in Egypt. Furthermore, in places undergoing conflict, like Syria, threats facing minorities as a result of escalating sectarianism undermine prospects of democratic transition and reconciliation. The aim of this workshop is to help further understand how the political participation and social inclusion of minorities during Arab democratic transitions can be strengthened, with invited speakers covering cautionary tales offered by the Lebanese and Iraqi experiences, and the current challenges faced in Egypt and Syria.
1:00pm-1:15pm: Introduction
1:15pm-2:45pm: Panel 1, Lessons from Lebanon and Iraq, featuring Firas Maksad (Lebanon Renaissance Foundation), Marina Ottaway (Woodrow Wilson Center), and Omar Shakir (Stanford University). Chair: Lina Khatib (Stanford University)
2:45pm-3:00pm Break
3:00pm-4:30pm: Panel 2, Focus on Egypt and Syria, featuring Joel Beinin (Stanford University), Laure Guirguis (University of Montreal), and Laila Alodaat (Syria Justice and Accountability Center). Chair: Jawad Nabulsi (Nebny Foundation, Egypt)
4:30pm-5:00pm General Discussion
The workshop is co-sponsored by the Stanford Initiative for Religious and Ethnic Understanding and Coexistence, supported by the President's Fund, the Center for the Comparative Study of Race and Ethnicity, the Religious Studies Department, and the Taube Center for Jewish Studies.
Oksenberg Conference Room
Screening of "Very Young Girls"
Very Young Girls is an exposé of the commercial sexual exploitation of girls in New York City as they are sold on the streets by pimps and treated as adult criminals by police. The filme follows barely adolescent girls in real time documenting their struggles and triumphs as they seek to exit the commercial sex industry.
The screening of Very Young Girls will be followed by a casual discussion with Dr. Helen Stacy, Senior Fellow at FSI, on Domestic Sex Trafficking
Law School Lounge
Is the Party Over? The Obsolescence of Authoritarian Growth in Singapore and Malaysia
In Singapore the People’s Action Party has held power continuously since 1959, having won 13 more or less constrained legislative elections in a row over more than half a century. In Malaysia the Alliance Party and its heir, the National Front, have done nearly as well, racking up a dozen such victories over the same 54-year stretch. These records of unbroken incumbency were built by combining rapid economic growth with varying degrees and types of political manipulation, cooptation, and control.
In both countries, as living standards improved, most people were content to live their lives quietly and to leave politics to the ruling elite. In the last decade, however, quiescence has given way to questioning, apathy to activism, due to policy missteps by the ruling parties, the rise of credible opposition candidates, increasing economic inequality, and the internet-driven expansion of venues for dissent.
As the ground appears to shift beneath them, how are the rulers responding? Will their top-down politics survive? How (un)persuasive have official warnings against chaotically liberal democracy become? Are ethno-religious and even national identities at stake? Are comforting but slanted historical narratives being rethought? And how principled or opportunistic are the agents of would-be bottom-up change?
Sudhir Thomas Vadaketh is the author most recently of Floating on a Malayan Breeze: Travels in Malaysia and Singapore (2012) and The End of Identity? (2012). Before joining The Economist Group in Singapore in 2006 he was a policy analyst on foreign investment for the government of Dubai. He has written for many publications, including The Economist, ViewsWire, and The Straits Times, and been widely interviewed by the BBC and other media. He earned a master’s degree in public policy from the Kennedy School (Harvard, 2005) after receiving bachelor degrees in Southeast Asian studies and business administration (UC-Berkeley, 2002). His service in the Singapore Armed Forces in the late 1990s took him to Thailand, Taiwan, and Australia.
Daniel and Nancy Okimoto Conference Room
Round table with Internet Freedom Fellows
The Internet Freedom Fellows program brings human rights activists from across the globe to Geneva, Washington, and Silicon Valley to meet with fellow activists, U.S. and international government leaders, and members of civil society and the private sector engaged in technology and human rights. A key goal of the program is to share experiences and lessons learned on the importance of a free Internet to the promotion of freedom of expression and freedom of assembly as fundamental human rights. As a part of the Silicon Valey tour, the six fellows for this year will stop at Stanford for a round table discussion.
The fellows will present their work pertaining to internet freedom and challenges they face, that we will have a chance to discuss. The event is free and open to the public.
You can find more information about the fellowship program at:
The internet freedom fellows for this year are:
Mac-Jordan Disu-Degadjor
@MacJordaN
A co-founder and executive of the sole blogging association in Ghana, Blogging Ghana, Mr. Disu-Degadjor promotes the freedom of expression through blogs and social media both on and off-line. Starting in 2009, Mac-Jordan and other young Ghanaians organized 18 BarCamps across Ghana, providing aspiring Ghanaian bloggers with technical help and networking opportunities. These conferences are designed to inspire youth to get on-line wherever and however they can.
On several occasions, Mac-Jordan has presented on the need to use blogs and other social media to amplify youth voices. In 2009, Global Voices appointed him as their aggregator for Ghana, and Dr. Dorothy Gordon, the Director-General of Ghana's Advanced Information Technology Institute, stated that he was a critical and necessary voice for the advancement of the nation.
Michael Anti
@mranti
Michael Anti was a computer programmer before turning to journalism in 2001. He is a longstanding advocate for a freer internet in China, noting that social media is the force that may ultimately challenge the political foundation of the country. Mr. Anti believes that the internet will facilitate a new conception of civic participation, inspiring the Chinese to see freedom of speech as a fundamental right. Microsoft MSN was forced to delete his award winning blog under pressure from the Chinese government, causing a media uproar in 2005. He has been an advocate of Virtual Private Networks for Chinese citizens, stating that those who don’t use them are “second-class citizens in the world of the internet.” Mr. Anti is known for his prolific career as a journalist, his 2012 Ted Talk, and his commitment to a freer China.
Edetaen Ojo
@EdetOjo; @MRA_ Nigeria
Edetaen Ojo is the director of The Media Rights Agenda, an organization that promotes excellence and professionalism in journalism. He spearheaded and orchestrated the movement that led the Nigerian legislature to pass the Freedom of Information Act, which empowers journalists to seek and access information from government establishments.
Mr. Ojo holds over twenty years of experience promoting and defending internet freedom as part of the broader right to freedom of expression, through monitoring transgressions and limitations on freedom and human rights online. His involvement in international human rights includes positions on the advisory group for the BBC World Service Trust-led Africa Media Development Initiative (AMDI) and the Task Force of the UN Economic Commission for Africa (UNECA). Mr. Ojo also serves as Convenor (Chair) of the International Freedom of Expression Exchange (IFEX), a global network of organizations with its secretariat in Toronto, Canada.
Grigory Okhotin
@okhotin; @OvdInfo
Grigory Okhotin is a prominent journalist and human rights activist in Russia. Previously the director of the news site Inosmi.RU, Mr. Okhotin resigned in protest of the censorship imposed upon public media in Russia. After his resignation, Mr. Okhotin began writing publically about censorship and human rights violations in Russia.
After experiencing detainment himself, Mr. Okhotin co-founded the portal ovdinfo.org to provide a public forum for sharing information about Russian citizens detained while exercising their right to freedom of assembly. Mr. Okhotin’s website is unique in that it provides real-time detailed information about those who have been detained, and features mini-interviews in which activists describe the manner of their arrest and the conditions of their confinement. According to Mr. Okhotin, “That helps us to understand what happens behind closed doors.”
Usamah Mohamed
@simsimt
Usamah Mohamed is a computer programmer and human rights activist, who currently owns and operates an IT business in Khartoum. During the recent wave of anti-government demonstrations in Sudan, Mr. Mohamed organized peaceful demonstrations from the Twitter page he supervises and supplied international media with fresh pictures and news on demonstrations across the country. The government took several steps to halt Mr. Mohamed’s work, including subjecting him to a period of detention. Undeterred, Mr. Mohamed continues to use social media to promote human rights in Sudan. The U.S. Embassy follows his blog daily, considering it an important source of news and opinions about Sudan. In April 2012, Usamah was chosen to be a part of the Sudan Social Media Team to meet with the U.S. Department of State’s special representative to Muslim communities, Farah Pandith.
Mr. Mohamed currently trains activists to use online tools effectively and efficiently. This includes training on blogging, bypassing online censorship, using circumvention tools, digital and online security, citizen journalism, effective audio and video recording, and live-tweeting for the coverage of events such as protests, sit-ins, and forums.
Bronwen Robertson
Bronwen Robertson is the Director of Operations for a London based NGO called Small Media. While in Iran working on a PhD in music, Ms. Robertson became interested in working for the rights of repressed Iranians, especially homosexuals. In Iran, Ms. Roberson spearheaded a research project and report entitled “LGBT Republic of Iran: An Online Reality?” The report, published in May of this year, led to a number of projects that connect Farsi speaking communities worldwide. One such project is a website called Degarvajeh, which gives online support to the LGBT community by providing general information and the proper Farsi vocabulary to discuss LGBT issues in a non-derogatory fashion.
Through Small Media, Ms. Robertson works to counter Iran’s efforts to block websites and censor information. Small Media spends much of its time working on creating new and innovative ways to make the internet safe and useful for Iranians. The group holds numerous online training sessions in personal online security, citizen journalism, and general information. They also report on related issues such as cultural censorship in Iran, Iranian women sports, and struggles faced by Iranian Bloggers. Recently, the group held an awareness raising workshop to demonstrate the challenges faced by Iranians using the internet under oppression.
CISAC Conference Room
Summer Course Intensive - Honorable Fatu Bensouda
The Program on Human Rights at the Center on Democracy, Development, and the Rule of Law, together with Stanford Summer Session are proud to offer a special session on human rights June 25 - July 25, 2012. The new course entitled, New Global Human Rights presents the question of human rights from an interdisciplinary perspective, taking into account the 21st century context, which requires that both state and non-state actors are included in the movement for rights for all. The course will examine emerging trends in international human rights with an analysis of new categories of human rights victims, actors, and technologies. Other related courses will be offered to allow students to build a summer schedule that allows them to engage in the academic study of human rights in a truly transformative way.
Keynote speaker: Honorable Fatu Bensouda, Chief Prosecutor of the International Criminal Court (ICC).
ICC Speaker Series- The International Criminal Court: The Next Decade
Richard Steinberg is Professor of Law at UCLA and the Director of the Sanela Diana Jenkins Human Rights Project. In addition to his UCLA appointment, Professor Steinberg is currently a Visiting Scholar at the Stanford Department of Political Science.
Professor Steinberg has written over forty articles on international law. His most recent books are Assessing the Legacy of the ICTY (forthcoming 2010, Martinus Nijhoff), International Institutions (co-edited, 2009, SAGE), International Law and International Relations (co-edited, 2007, Cambridge University Press), and The Evolution of the Trade Regime: Economics, Law, and Politics of the GATT/WTO (co-authored, 2006, Princeton University Press).
Helen Stacy is Senior Fellow at the Freeman Spogli Institute for International Studies (FSI) and Director of the Program on Human Rights at CDDRL
As a scholar of international and comparative law, legal philosophy, and human rights, Helen Stacy has produced works analyzing the efficacy of regional courts in promoting human rights, differences in the legal systems of neighboring countries, and the impact of postmodernism on legal thinking. Her recent scholarship has focused on how international and regional human rights courts can improve human rights standards while also honoring social, cultural, and religious values.
Bechtel Conference Center
ICC Speaker Series- Shamila Batohi
Ms. Shamila Batohi is Senior Legal Advisor to the Prosecutor at the ICC, and former Director of Public Prosecutions in KwaZulu Natal, South Africa. In 1995, Ms. Batohi was part of a multi-disciplinary team mandated by President Mandela to investigate hit squad activities in the police during the apartheid years. As head of the Directorate of Special Operations, the unit that is better known as the ‘Scorpions’, Batohi was tasked with investigating serious organized crime. Famously, in 2000, Batohi was appointed to lead evidence in the King Commission hearings to investigate cricket match-fixing allegations involving Hansie Cronje.
Bechtel Conference Center
ICC Speaker Series- William Pace
Mr. William R. Pace has served as the Convenor of the Coalition for an International Criminal Court since its founding in 1995. He is the Executive Director of the World Federalist Movement-Institute for Global Policy (WFM-IGP) and is a co-founder and steering committee member of the International Coalition for the Responsibility to Protect. He has been engaged in international justice, rule of law, environmental law, and human rights for the past 30 years. He previously served as the Secretary-General of the Hague Appeal for Peace, the Director of the Center for the Development of International Law, and the Director of Section Relations of the Concerts for Human Rights Foundation at Amnesty International, among other positions. He is the President of the Board of the Center for United Nations Reform Education and an Advisory Board member of the One Earth Foundation, as well as the co-founder of the NGO Steering Committee for the United Nations Commission on Sustainable Development and the NGO Working Group on the United Nations Security Council. He is the recipient of the William J. Butler Human Rights Medal from the Urban Morgan Institute for Human Rights and currently serves as an Ashoka Foundation Fellow. Mr. Pace has authored numerous articles and reports on international justice, international affairs and UN issues, multilateral treaty processes, and civil society participation in international decision-making.
Bechtel Conference Center