Reasons why you shoudn't do business in Mexico City

The main is reason is simple to grasp: corruption. After all, bribing local officials has a visible cost for business. And you will have to pay through your nose for things you never considered even in your wildest dreams. Starting with "uso de suelo," (the permit that will allow you to establish an office) taxes, contributions and fines will start piling up until their cost becomes unbearable for your investment. Corrupt politicians have a way of multiplying red tape until grifting is the only way you have to make things work.  

Yet, there are a lot of other invisible costs that stem from corruption. Take, for one example, the army of street vendors and panhandlers that clout this city. They are everywhere, as they have now expanded into business districts like Santa Fe, the once thriving Houston-like zone where avant-garde buildings used to rise as mushrooms. And authorities will look the other way as long they receive their cut.

In another example, in Mexico City it is considered perfectly normal for a protest or political rally to block a main avenue, as long as it is organized by a powerful union or a party allied with the city major. A group of sixty or less persons, marching at a sluggish pace, can block traffic for up to eleven hours. And this is an everyday occurrence, just ask any resident.  

You will also have to take into account the frequent failures of electrical supply and other services that occur in Mexico City. This is mainly due to the fact that corrupt unions promote the hiring of well connected slobs. In fact, the "contratos colectivos" of most state run enterprises clearly state that unionized workers have the right to "inherit" their jobs to whomever they wish. So, you should not be surprised if a technician working on the electrical grid has zero knowledge on electrical grids or if the desk clerk that you have to deal with can barely read.  Moreover, disgruntled workers set up a sabotage campaign against the local electrical power supply company in 2011-2012.

And you should never look for local medium to high level human resources, as the young people of this city are routinely initiated in the corrupt ways of their elders in the local universities. In fact, people from other parts of Mexico, like the industrial city of Monterrey, look the so called "chilangos" with nothing but suspicion and contempt.