Added to the factors already deteriorating competitiveness in the export sector are increased thefts of merchandise on the country's roads and infiltration of drug trafficking in exports.
The National Chamber of Cargo Carriers (Canatrac) reports that attacks on trucks on roads in the country have increased since 2012.They state "... on average 12 assaults used to be committed per year, however the figure has risen to 20 in recent years'."
The unprecedented increase in violence in Costa Rica, once an oasis of peace in the region, is another sign of the failure of the traditional methods of fighting drugs.
EDITORIAL
More powerful than the Central American states, drug trafficking is on the rise not only in terms of an increased supply of drugs in the countries in the region, but through its permeation of institutions using the power of money and generating a growing culture of violence that is making Central America´s lack of a death penalty seem risible. Yes it does exist, but the worst part about it is that it is not institutionalized justice systems that implement it, but the mob bosses, pointing out -to ever younger executioners- the people who should be executed.
At the same time as maintaining strong cooperation ties with the United States in the fight against drug trafficking, Nicaragua is carrying out naval exercises with the Russian Navy.
An article on Actualidad.rt.com reports that "... Russia and Nicaragua carried out these joint exercises in the Caribbean Sea in recent days in order to help combat illicit trafficking of drugs and put an end to the use of Central America as a main transit corridor.
Drug trafficking and gangs are the main factors responsible for intentional murders in the most violent countries in the world: Honduras, Belize, El Salvador and Guatemala.
According to a report by the United Nations Office on Drugs and Crime at the United Nations (UNODC), in 2012 Honduras recorded 90.4 killings per 100,000 inhabitants.
In Belize, the homicide rate is 44.7 per 100 thousand inhabitants, in El Salvador it is 41.2, and in Guatemala is 39.9.
In only one year, seizures of cocaine have doubled, totaling over 15 tons with a U.S. market value of $2 billion.
Costa Rica, the Central American country noted for its economic development, its institutions, and social peace, is part of the land corridor where there is an increase in the operations of Mexican and Colombian cartels to transport drugs to the United States, the largest consumer of drugs in the world.
Leaders of business associations in the region have indicated that governmental arbitrariness is interfering in Central America’s development.
A statement from the Federation of Chambers of Commerce of Central America (FECAMCO) reads:
Business organizations in the region which make up the Federation of Chambers of Commerce of Central America (FECAMCO) when meeting in Miami, Florida, USA, expressed their "great concern" about the institutional crisis in El Salvador, which they described as an "assault on the rule of law."
Crime and violence associated with drug trafficking brings with it overwhelming economic costs, estimated at about 8% of GDP.
In this illegal activity, that in the 90's was centered in the Caribbean but has migrated to Central America, cartels move about 300 tons of cocaine to North America, valued at $38 billion.
According to the National Civil Police, between 2008 and 2011 40,000 murders were committed in the country, of which a high percentage are related to drug trafficking.
Private companies will participate in monitoring the results of the plan.
Following Colombia’s example, where monitoring by the private business sector was instrumental in implementing the security measures proposed by the government, businessmen from El Salvador will monitor the security plan and the tax on large amounts of capital.
The methods used to finance the government's ambitious plan to combat insecurity is the private sector’s main concern, because to apply the tax on large capital (assets over $500 thousand) a significant portion of the country’s business could be affected .
Widespread corruption, institutional weakness, disputes between countries, and resistance to more taxes, are jeopardizing the chances of success of the plan and its 22 projects.
A summit held in Guatemala, where for the first time since 1856 Central American countries agreed to fight together, culminated in joint action plans to combat drug trafficking.
From El Salvador, the US president offered the funds for regional security projects.
Regarding distribution of funds, the president said Central American countries will be the ones deciding how to invest the funds according to their particular needs.
Laprensagrafica.com reported statements from Barack Obama, "It will be a program designed and led by Central American governments in the region ...
The lack of government capacity and economic power disadvantage compared to the drug industry, has lead to an increase in violence and corruption.
"Using systematic violence and corruption, intimidation and extortion of public officials, the wealthy and powerful criminal groups have been able to weaken police and judicial systems. They often use violence to threaten or punish anonymous complainants.
New regulations in El Salvador to tackle gang violence foster the development of regional measures to control and proscribe local gangs.
In order to prevent gang members from fleeing the country to avoid jail, especially to Guatemala and Honduras, these countries has activated extra security measures at their borders.
President Funes asked Guatemala and Honduras to join the fight against organized crime, which has been growing as drugs cartels associate with local gangs.
Central American Nations should say "NO, THANKS", if results from said "aid" are going to be similar to what's going on in Mexico.
The inclusion of Costa Rica in the U.S. Government's list of the countries most affected by illegal drug trafficking confirmed what Costa Ricans already knew: Drug Trafficking has become a very serious issue.
Costa Rica now joins Guatemala, Honduras, Nicaragua and Panama, who are also included in the list.
Guatemala’s weak institutions have been unable to contain drug traffickers, causing marked erosion in the authority and legitimacy of the state.
In numerous Latin American countries, organized crime and violence are corroding governance and imperiling democratic legitimacy. This phenomenon is most severe in Guatemala, which is currently experiencing a full-blown crisis of the democratic state.
Do these countries have a real chance of stopping drug trafficking, in the context of economies like Guatemala's where the value of the drug economy is double the country's GDP?
In 2007, just 1% of all South American cocaine sold in the USA passed through the region. Now the figure is between 60% and 90%.
While Mexico is the country that makes international headlines for its daily panorama of death and corruption caused by drug traffickers, other nearby countries are also severely affected by the violence. In Honduras 15 people are killed every day from a population of only 7 million.