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How Extortion Is Holding Back Mexico's Small Businesses

July 24, 2019

Mexican economist Luis de la Calle has a name for one of the challenges facing his country’s small businesses: extortionomics.

It’s not just a threat from organized crime or corrupt public officials: Red tape, regulations and a baffling fiscal system amount to a prohibitive tax on small and growing businesses, De la Calle told AQ.

“As soon as small businesses start to become successful, they are subjected to extortion and that creates a vicious cycle that obliges them to stay small,” De la Calle said.

It's a challenge President Andrés Manuel...

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