Mexico is rapidly approaching failed-state status. Very large swaths of the country no longer have a functioning government, just cartels.
Mexico has terrible problems but it is far from a failed state.
The time you describe was the worst time for cartel violence and it is much calmer now.
https://www.nytimes.com/2018/01/07/world/americas/mexico-state-corruption.html
It sounds a lot like local patches of plutocracy to me.Considering that they have politicians and legislators in their pocket, yes.
https://www.thenation.com/article/oswaldo-zavala-interview-m...
bad policy isn't the same as support
Now, those are something scary. I wouldn't dare to go to school in the US with how insecure they are. How can people study in those places?