• Total prison population: 154,765 prisoners
• Crime trend: Crime is rising

Crime rates

Northern Mexico is a major center for narcotics shipments to the US. Antidrugs police are specifically accused of collusion by the US; police corruption is a perennial issue. Guns are rife and minor incidents may end in shootings.

• Annual defense budget: $5.32bn

MEXICAN ARMED FORCES

• Army: No main battle tanks (144,000 personnel)
• Navy: 3 destroyers, 8 frigates, and 109 patrol boats (37,000 personnel)
• Air force: 107 combat aircraft (8 F-5E, 2 F-5F, 70 PC-7, 17 AT-33) (11,770 personnel)
• Nuclear capability: None

The military has, on the whole, avoided direct interference in politics and has no ambitions beyond the country's borders. The army mainly defends internal security; border control is handled by the police. The military is now closely involved in antinarcotics efforts. Most arms procurement is from the US.

The Zapatista rebellion in Chiapas in 1994 elicited a brutal response from the army, acting on PRI orders. The increasing militarization of the small state over the next six years hindered the peace process and led to a proliferation of paramilitaries, with the tacit blessing of the local PRI, who were blamed by human rights groups for the massacre of Amerindians. The PAN government has withdrawn some forces from key areas.

• Gross National Product (GNP): $597bn

Score card

• World GNP ranking: 9th
• GNP per capita: $5920
• Balance of payments: –$9.25bn
• Inflation: 4.6%
• Unemployment: 2%

Exports

Imports

Economic performance indicator

Strengths

Global oil producer, with substantial reserves. Extensive mineral resources. Strong foreign direct investment. Diversification of exports. NAFTA membership. Low overheads.

Weaknesses

Debt burden. Vulnerable currency. Corruption. Affected by US slowdown. Oil price fluctuations. Weak tax system.

Profile

While in power, the PRI effectively ran the economy. The debt crisis of the 1980s, however, forced privatizations. The 1994 peso crisis needed a US-led $20 billion international bailout and resulted in a severe slump. The Zedillo government launched tough reforms, but a global loss of confidence in emerging markets affected growth. Tighter fiscal management was rewarded by 2000, when investor confidence improved. The Fox government's tight fiscal and monetary stance won approval from the IMF and major credit agencies. Social relief pledges, however, went unfulfilled as the export-led economy echoed the slowdown in the US from 2001. Proposals to extend sales tax to medicines and food, and talk of encouraging investment in the energy sector met stiff public opposition in 2003.