two years ago we were confronted with a union blockade entering the city of Santa Clara del Cobre it was the teachers union they had cut down some trees and used them for the blockade. The Federales were there but not interfering. Two days later there must have been some sort of settlement, the blockade was removed but the Federales were still there stopping vehicles as a check point. People of the town loss lots of business it hurt more I imagine than it helped.
Third World? Probably not the cities. Unless you start looking at the barrios outside of some cities like Mexico City where squatters live or exist. Homes in rural areas that have no running water living on dirt floors. Not everywhere in Mexico but in enough places for me to consider it.
On a separate note: just purchased a new car today that said 20% of its parts are from Mexico and assembled in Hermosillo.