ALFREDO ESTRELLA/AFP/Getty Images
Mexican soldiers patrol the streets of Apatzingan, in Michoacan State, Mexico, on January 16, 2014. The turmoil in Michoacan has become the biggest security challenge for President Enrique Pena Nieto's 13-month-old administration, undermining his pledge to reduce drug violence.
Mexican President Enrique Peña Nieto says his government will spend nearly $3.5 billion in the state of Michoacán.
That's where violence flared last month as armed vigilante groups rose up to challenge the hold of regional drug cartel forces. Peña Nieto unveiled the plan Tuesday on a visit to the state capital Morelia. The plan includes loans for small businesses, improvements to local ports and roads and funds for education and healthcare.
But it's uncertain if this will translate into meaningful reforms or stem the long-running violence. For more, we're joined by journalist Ioan Grillo, in Mexico City. He's the author of "El Narco: Inside Mexico's Criminal Insurgency."