Yes, the war on drugs is a major factor in Mexico's problems. But even if the drug issue went away, Mexico would still have problems. One primary problem is the number of people living in poverty; in Mexico 52,000,000 of the 113,000,000 Mexicans live in poverty.
There are several reasons for Mexico's problems. One is the power of major corporations; they have been able to suppress competition and feed off the poor via high prices. Another is how the federal government spends its money; it supports the trade unions, political parties and state governments and does not have much fiscal control as to how the money is spent. And the feds don't collect much tax revenue; in Latin America only Guatemala collect a lower percentage of taxes. Corruption is also a factor; Mexico ranks 10th of 12 countries re corruption.
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