Private Companies Spend More on Security than State

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.

Wednesday, April 10, 2013

"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).

According to Daboub, if you take into account other factors such as the recovery of the wounded and the expenses of other institutions involved in this area, such as legal medicine, global investment made because of insecurity in the country amounts to $2.2 billion a year. "This is about 10% of gross domestic product (GDP)," he added.

"The data is part of the diagnosis made within its sector by employers, as part of the XIII National Meeting of Private Enterprise (ENADE 2013) to be held on 29 April," noted an article in Elmundo.com. sv.

"... The main objective of this ENADE XIII will be, after diagnosis, to highlight the positive impact of business activity for the benefit of economic and social development of the country, along with the subsequent effects on improving the quality of life of all Salvadorans. "

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April 2013

The XIII National Private Enterprise Conference 2013 will be held on April 29, and will focus on the role of businesses and the investment climate.

The event will be held at the Sheraton Hotel Presidente from 1:30 pm. The current role of Salvadoran businesses will be discussed as well as prospects for improving the investment climate and socio-economic development of the country.

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President Mauricio Funes is analyzing the possibility of hiring international advisors to fight crime.

The official indicated he will continue working with his Security Cabinet, handling different proposals and ideas.

“During the X National Encounter of the Private Enterprise (ENADE), Funes invited businesses to coordinate efforts with the government to fight organized crime, insecurity and violence, as they hamper productivity”, reported Laprensagrafica.com.

$1.2 Billion: The Cost of Insecurity in El Salvador

January 2010

Costs related to crime in El Salvador top $1.2 billion each year, or 5.4% of the Gross Domestic Product.

The business sector spends $600 million a year hiring private security services, losses for theft reach $300 million, and the state spends an additional $300 million in hospital and emergency costs.

El Salvador: 20% Less Spending on Private Security

May 2009

The private security services sector registered an $18 to $20 million decrease in sales in the last year.

The chairman of the Chamber of Commerce and Industry of El Salvador, Jorge Daboub, indicated in an article in Elsalvador.com that businesses were spending about $600 million a year before the economic crisis.

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