World Bank statistics show that every day, about $1.3 billion are paid in bribes related to state contracts.
The figures were mentioned by Michael Kramer, a consultant at the entity, who is taking part in the forum "Preventing and combating corruption and collusion in public procurements", taking place in Panama.
An ECLAC study has revealed that companies in Guatemala and El Salvador pay the highest costs because of organized crime in Latin America.
According to data from the Global Competitiveness Index 2012-13, analyzed by the Economic Commission for Latin America and the Caribbean (ECLAC), in its report on safety in the logistics sector in the region, Guatemala has a score of 1.86, on a scale of 1 to 7, regarding the influence of crime and violence in operating costs of enterprises, where 1 is "very much" and 7 means "nothing".
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.
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.
The global total for money laundering is between 2% and 5% of global GDP, "because illegal proceeds can be transferred easily and instantly from one jurisdiction to another."
In his discussion in an article in Americaeconomia.com, David Santa Cruz describes not only how money from criminal activities has permeated ALL of the economies of the world, but also how national development strategies in many states are adapting to the phenomenon.
Criminal activities in Central America cause a loss of $900 million for regional trade, said the Federation of the Chambers of Commerce of Central America.
In El Salvador, $600 million was lost due to armed robberies, and in Honduras, the figure is $150 million a year, reported merchants from the isthmus .
While other Central American countries are preparing taxes to combat insecurity, Nicaragua declares that it is not an appropriate option.
The president of Guatemala, Alvaro Colom, proposed to his peers in the isthmus region the creation of specific tax to combat organized crime and the violence it generates.
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 emphasis is to work with a regional focus and Central American countries must help shape and design how the money should be spent."
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. Witnesses in drug-related cases often risk their life and those of their family members. Unless we break the vicious circle of smuggling and corruption, international drug control will never fully succeed."
Central American businesses demand from governments clear mechanisms to combat insecurity in the region.
The president of the Federation of Private Entities of Central America, Panama and Dominican Republic (FEDEPRICAP), Carlos Amador, said, "Central America is threatened by drug trafficking, gangs and transnational organized crime and to help combat these problems there is an need for a united isthmus."
The tourism sector is one of the most sensitive regarding security, so taking care of it is a priority.
The crime and violence problem in Central America permeates Central American Travel Market 2010, encouraging initiatives such as regional approval of specialized police forces dedicated to the protection of tourism.
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.
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