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.
After three soldiers were killed in Izabal, Guatemalan business sector asks the government to regain control of the territories where criminal groups dominate.
On several occasions, business chambers have denounced that organized crime groups operate in the area from the Polochic Valley to Izabal, thus affecting productive activity in the area.
The state prosecutor has signalled the penetration of drug trafficking organizations in the Panamanian economy and in political institutions.
According to the prosecutor, Ana Belfon, during her first year of work she has perceived an increased penetration of organized crime into the economy and institutions of the Panamanian government.
Guatemalan agricultural employers spend $300 million on private security representing between 12% and 16% of their budgets.
Prensalibre.com reports that "the Chamber of Agriculture (Camagro) reported that during 2013 there was an increase in criminal acts such as kidnappings, threats and extortions against their workers, as well as the theft and destruction of private property ... "
Prosecutors in the interior would rather not know about high-impact cases, and there are judges who do not want to rule on them for fear of reprisals.
Added to this are other problems being faced by prosecutors of the Public Ministry (PM) within the country such as lack of security, space and backlogs.
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 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).
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.
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.
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.
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."
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."
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."
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