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. El Salvador, Guatemala, and Honduras—referred to as the Northern Triangle— account for about four-and-a-half percent of homicides worldwide despite only having about one-half-percent of the world's population.
A report by InSight Crime highlights the homicide rate registered in Costa Rica in 2017, which was 12.1 per 100,000 inhabitants, the highest number in its history.
The report indicates that Costa Rica is a country that has traditionally been considered "peaceful," and in respect to the escalation of the homicide rate, an increase that local authorities attribute to organized crime, the report indicates that "... lack of retrospective and a vague methodology is weakening the authorities' attempts to attribute blame to organized crime."
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.
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.
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.
At the summit of the Central American Integration System, authorities agreed to relaunch the regional integration process, centering it on combating crime and violence.
The first chapter of the Action Plan signed by Central American presidents is called “Democratic Security” and foresees meetings among all the sectors related to security and defense in the region for the second half of 2010, as well as obtaining the necessary human, financial and technological resources to develop a security strategy in Central America.
Paying for armed custody, satellite tracking and “tolls” to armed gangs are some of the additional costs that must be paid when transporting goods in Central America.
Some transportation companies state that $14.000 must be paid each year in security related costs for a single truck carrying goods within the Central American region.
An executive from a Costa Rican company with regional operations confirmed that they pay an $80 toll to Guatemalan gangs to ensure safe circulation within that country’s capital city.
Organized crime, especially the one related to drug trafficking, recruits its members in young, marginalized populations.
Antonio María Costa, executive director of the United Nations Office on Drugs and Crime (UNODC), stated that “Central America is very vulnerable to organized crime, due to a series of factors which include underdevelopment, large flow of guns and a young population”.
Cvil insecurity is a big challenge to human development in Central America, but this challenge comes with a solution.
No strong-arm tactics, but no soft touch either. Remedies for the heightened levels of insecurity in the region involve the application of "smart authority" within the context of respect for democracy and adherence to the rule of law, according to the Report on Human Development in Central America 2009-2010, Opening spaces for citizen security and human development. The release of the report was presided over by Mauricio Funes, the president of El Salvador, together with Rebeca Grynspan, Director of UNDP’s Regional Bureau for Latin America and the Caribbean; Jessica Faieta, the United Nations Resident Coordinator and Resident Representative of UNDP for El Salvador; Juan Daniel Alemán, the Secretary General of the Central American Integration System (CAIS); and Hernando Gómez Buendía, the general coordinator of the Report.