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Edition: U.S. Article Comments (1) Email Print Reprints Read More U.S. billionaires pledge to give away wealth 8:17am EST WikiLeaks supporters vow to step up cyber attacks | 8:46am EST Special Report: STD fears sparked case against WikiLeaks boss 07 Dec 2010 A Minute With: Angelina Jolie, femme fatale and busy Mom 9:35am EST WikiLeaks backers hit MasterCard and Visa in cyberstrike | 08 Dec 2010 Discussed 157 Obama unveils tax deal with Republicans 79 WikiLeaks founder Assange arrested in Britain 66 Australia blames U.S. over WikiLeaks, founder held in UK Watched Bejeweled bra exposed in NY Thu, Oct 21 2010 Row over vote orgasm video Fri, Nov 19 2010 Playboy opens Mexican casino Sun, Dec 5 2010 Businesses seek refuge from drug war in Mexico City Tweet This Share on LinkedIn Share on Facebook By Mica Rosenberg and Anahi Rama MEXICO CITY (Reuters) - Mexico City, known for its high crime rates and kidnappings, is becoming a safe haven for small businesses fleeing even worse drug violence raging elsewhere in the country, especially near the... Factbox FACTBOX-Key political risks to watch in Mexico Wed, Dec 1 2010 Related News Youth orchestra a ray of hope in Mexico drug war Mon, Dec 6 2010 Mexico fears losing areas to drug cartels: WikiLeaks Thu, Dec 2 2010 Correction: Mexican troops find 18 bodies near U.S. border Tue, Nov 30 2010 Four years on, drug war bleeds Mexican heartland Mon, Nov 29 2010 Related Topics U.S. » World » Mexico » By Mica Rosenberg and Anahi Rama MEXICO CITY | Thu Dec 9, 2010 10:15am EST MEXICO CITY (Reuters) - Mexico City, known for its high crime rates and kidnappings, is becoming a safe haven for small businesses fleeing even worse drug violence raging elsewhere in the country, especially near the U.S. border. But even as the sprawling metropolis of 20 million people escapes the grizzliest drug murders and daytime shootouts, traffickers are moving into the city's outskirts and threatening to encroach on the capital's relative calm. Homicide rates within city limits have dropped as murders in some northern states, where drug cartels battle over lucrative smuggling routes to the United States, more than doubled since 2007. "Ten years ago everyone wanted to leave Mexico City because of the crime, no one would have believed it would become one of the safest places in the country," said Eduardo Gallo, head of the citizens group Mexicans United Against Crime. Mexico City's comparative safety is a bright spot in President Felipe Calderon's army-backed drug war, launched soon after he took office in late 2006. Some 5,000 business owners fled to Mexico City recently from states near the U.S.-Mexico border, said Juan de Dios Barba, head of the city's business association Coparmex. Most were restaurants, shops or professional offices, which have less overhead to move than bigger companies, although larger investors have also fled the northern border regions. "Many were threatened or are struggling to find clients because a lot of people are leaving the north. They come here looking for a better economic situation," Barba said. Residents in lawless Ciudad Juarez, across the border from El Paso, Texas, scared by soaring murder rates have abandoned more than 32,000 homes, a recent study showed. Shop owners who cannot migrate to the United States are often choosing the capital, Barba said. Mexico City authorities say they are avoiding the worst cartel violence overtaking places like the once quiet northern industrial city of Monterrey by installing thousands of surveillance cameras to monitor city streets and subways. Near the city's central square, at one of several new command centers, more than 100 police scan 24-hour video feeds on banks of computer screens to track criminals. VIOLENCE MOVING CLOSER Mexico's tradition of centralized government, entrenched since pre-colonial times when the Aztecs ran their empire from the capital, may also be cushioning Mexico City more than rural areas where the state is almost absent and corruption is rife. "The federal police are based here, the army is based here, the navy is based here," Mexico City Attorney General Miguel Angel Mancera told Reuters. "We have enough forces in the city to make it difficult for (drug cartels) to operate." The shift could help Mexico City, the country's commercial hub, recover from a downturn after the global financial crisis and an outbreak of swine flu last year hit the local economy. A turnaround for the city, burdened by an international reputation for kidnappings, assaults and robberies, is also a boost for Mayor Marcelo Ebrard, a 2012 presidential hopeful. 1 2 Next U.S. World Mexico We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language, all capital letters or appear to be spam, and we review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. Comments (1) finneganG wrote: Mexico City is the “green zone” now? Dec 09, 2010 10:33am EST -- Report as abuse See All Comments » Add Your Comment Social Stream (What's this?) © Copyright 2010 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Reader Feedback Mobile Newsletters RSS Podcasts Widgets Your View Analyst Research Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts Venture Capital Journal International Financing Review Project Finance International PEhub.com PE Week FindLaw Reuters on Facebook Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. 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