Crime Affects Salvadoran Economy

The costs generated by crime are equivalent to 11% of gross domestic product (GDP).

Friday, May 27, 2011

According to a recent World Bank report, crime and violence have an impact on economic growth not only in terms of loss of wages but it also affects the investment climate and diverts scarce government resources to strengthen the application of justice rather than promoting economic activity."

An article in Laprensagrafica.com notes: "The impact is serious. According to the World Bank, if El Salvador managed to lower is homicide rate, which currently stands at 70 per 100,000 population, by at least 10%, - this would not only help to improve the quality of life of the population in terms of security, but would also boost annual economic growth by an additional to 1%. "



More on this topic

How Much Does the Region Lose in Crime?

January 2020

Because of factors such as business closures and lack of opportunities, it is estimated that criminal activity costs Honduras and El Salvador 16% of GDP, and in the case of Guatemala, its losses could amount to 7% of its production.

In Central America, the human costs of crime remain one of the highest in the world.

Criminal Violence and Corruption Curbs Business

June 2013

The phenomenon affects much of Latin America, whose countries spend on average 8% of their GDP on security costs.

That was the conclusion reached during the forum "Connecting businesses as partners for prosperity with security in the Americas", organized by the Organization of American States (OAS) and the private sector, under the framework of the Guatemala Investment Summit.

Private Companies Spend More on Security than State

April 2013

In El Salvador, the state budget allocated to security is $500 million a year, while the total amount invested by private enterprises for self-protection is $600 million.

"The combined budgets (National Civil Police, the Attorney General's Office and the Armed Forces of El Salvador) total about $500 million and the private sector invests over $600 million annually on security issues," said Jorge Daboub, president of the National Association of Private Enterprise (ANEP).

Crime and Violence: A Staggering Toll on Central American Development

April 2011

Growing crime and violence in Central America not only have an immediate human and social toll, they also pose a tremendous threat to development potential in the region.

Today, it is estimated that these sources of instability may decrease regional Gross Domestic Product (GDP) by 8 percent, once health, institutional, private security, and material expenses are accounted for.

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