Mexico is not a relatively peaceful country on a worldwide scale, according to the Institute for Economics & Peace (IEP). And it has deteriorated over the past five years.

The institute released its annual Global Peace Index 2014 this week, and it puts Mexico at 138 out of 162 countries. Iceland, Denmark and Austria top the list as the most peaceful countries; at the bottom are Syria, Afghanistan and South Sudan.

In its summary of the situation in Mexico, the report attributes the deterioration to the escalation in drug-related violence since 2007, and says it shows no signs of abating. Mexico scores well in terms of militarization and external conflict (military expenditures were just 0.6% of GDP in 2013, compared to Colombia’s 3.4%).

But internal conflict which increased significantly when military operations were launched against the drug cartels in 2006.

Murder rates rose to 21.5% in 2012 according to the United Nations, nearly three times higher than five years before. However, it bears noting that the murder rate remains lower than that of Brazil, Colombia and Venezuela.

The IPE says inefficiency and corruption among police forces led to the use of the military in attempting to bring the cartels under control. Corruption, it says, is problematic and has shown little improvement. On the 2013 Corruption Perceptions Index Mexico ranks 106th out of 177 countries and is the worst performer in Latin America with the exception of Venezuela.

“Weak institutional underpinnings” are seen as the main impediment to improving the security situation; collaboration is difficult among the fragmented police forces, although this might change through the announced creation of a new federal force.

Mexico also scores high in terms of the cost of “violence containment.” This spending is defined as economic activity related to the consequences or prevention of violence where the violence is directed against people or property.

Thirteen dimensions are assessed in estimating these costs, such as the number of deaths, level of violent crime, numer of homicides, number of internal security offers and police, economic cost to the economy and others.

Mexico is in 25th place on this scale, with North Korea, Syria and Afghanistan at the top of the list, with an annual expenditure of $172.7 billion, or 9.4% of GDP.

By comparison the United States spends somewhat more and is in 18th place, with costs that represent 10.2% of GDP. Peru is #78 spending $15.47 million, or 4.5% of GDP.

Bhutan has the lowest violence containment costs, spending only $30 million, or less than one per cent of GDP. Iceland and Laos are close behind.

North Korea has the highest cost at $10.2 billion, or 26.5% of GDP, and is followed by Syria and Afghanistan.