As the recent outbreaks of violence in the Tierra Caliente region of Mexico's state of Michoacan subside, the government is turning its attention to ongoing improvement in the state. The success of this effort will be a significant test for the new administration of President Enrique Peña Nieto, and he is dispatching some of his closest strategists to the trouble zone.

"The third [power group in Michoacan] is the most powerful: a young and preppy group of federal-government employees sent in by President Enrique Peña Nieto to retake control of Michoacán after tension between Knights Templars and vigilantes threatened to spin out of control," The Economist reports.

"Many of this third group served under Mr Peña when he was governor of the state of Mexico in 2005-11. They have known each other for years and banter like friends at a tennis club. Their insertion into Michoacán reflects a wider trend in Mexican politics: the resurrection of an old but effective style of presidential rule."

Heading up the effort is Commissioner Alfredo Castillo, who has already made an unsteady alliance with the local vigilante groups and has reasserted government control over the area. With the shooting silenced in the areas affected by the recent battles between the Knights Templar and the "autodefensas," Castillo's thoughts are beginning to turn to the long-term strategy he plans to employ to remove the problem from the area altogether, or at least weaken as much as possible.

The president has also promised a $3.4 billion government investment into the infrastructure of the state, providing needed jobs and economic incentives for the region. But that is only one half of the economic equation for battling the cartel. The other part involves targeting the cartel's revenue stream directly.

"The next part of the government's plan is to stop extortion, which is the main earner for the (Knights Templar cartel) -- their drug trafficking, mainly in marijuana and cocaine, has been largely crushed by rival cartels operating in neighboring states," reports Patricia Rey Mallén of the International Business Times. "By ensuring the cooperation of local official and business owners, Castillo hopes to suffocate the gang's finances and ensure that government funds, which have been ineffective in fighting crime and often and ended up in the criminals' hands, are put to good use."