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.
Businessmen from Central America and the Dominican Republic ask that ILO Convention 190 not be ratified, arguing that countries already have regulations to deal with violence and harassment in the workplace.
The Federation of Private Entities of Central America, Panama and the Dominican Republic (Fedepricap), through a statement dated August 9, reported that they agreed to request from the governments "...
The bill being discussed in Costa Rica basically seeks to extinguish the assets of organized crime, but there are those who claim that as proposed, it puts at risk the presumption of innocence of individuals.
The extinction of domain is a concept that in practice refers to seizing or confiscating assets linked to criminal activities, and then transferring them in favor of the State.
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."
The United States has renewed its travel alert warning that crimes such as extortion, assault and robbery are common in the country.
From a press release issued by the US State Department:
The Department of State warns U.S. citizens to carefully consider the risks of travel to El Salvador due to the high rates of crime and violence. El Salvador has one of the highest homicide levels in the world and crimes such as extortion, assault and robbery are common. This replaces the Travel Warning for El Salvador dated January 15, 2016.
Insecurity and excessive red tape remain the main obstacles to the growth of exports, which have lost momentum in the last four years.
From the Survey on Business Competitiveness by Fusades:
FUSADES has carried out the "Business Competitiveness Survey" every year since 2011, interviewing more than 430 micro small, medium and large enterprises.The surveys help to statistically demonstrate the challenges and opportunities in improving growth and employment generation, the only institution in the region that makes such an effort.
Projects are becoming more expensive due to the fact that they increasingly include more security measures and in areas such as La Libertad, Soyapango, Ilopango and Apopa, some lots and homes are even losing value.
The wave of violence and insecurity affecting El Salvador is also being felt in the real estate market, especially in areas with high crime rates, such as La Libertad, Soyapango, Ilopango and Apopa, where"... houses may remain unsold for months. Contrary to this, in areas such as Santa Tecla and Santa Elena, buildings are in higher demand and are increasing in value because of their location. "
The most vulnerable to extortion are small and medium enterprises, which employ half of the economically active population.
From the executive summary of a study by Fusades:
In El Salvador, the crime of extortion has become one of the main problems affecting the work and economic activity of enterprises in recent years. Results from the Business Dynamics Survey conducted by FUSADES since 1991, consistently show that micro and small enterprises (MSEs) are more vulnerable to this crime than medium and large ones.
The IMF has indicated political polarization, high crime and outward migration, rising unit labor costs and high logistics costs, barriers to entry and expansion of business, fiscal uncertainty, and limited human capital.
From a statement issued by the IMF:
The IMF staff team visited San Salvador during April 25—May 6 for the 2016 Article IV consultation and held fruitful discussions with the Salvadoran authorities, parliamentarians, business community, academics, and social partners.
In 2014 the economic cost of violence in El Salvador exceeded $4 billion, while the opportunity cost of production and unmade investment was 4.8% of GDP.
From a press release issued by the Research Network at the Central Bank (REDIBACEN):
Today the Research Network at the Central Bank (REDIBACEN) presented the results of the research report entitled "Estimating the Economic Cost of Violence in El Salvador", carried out by the researcher economists Margarita Penate, Kenny de Escobar, Arnulfo Quintanilla and Cesar Alvarado.
In the view of the business sector the implementation of a State of Emergency does not guarantee that the problem of insecurity and the escalation of violence affecting the country will be resolved.
From a statement issued by the National Association of Private Enterprise:
Given the alarming increase in killings and spread of crime throughout the country, the ANEP is joining the call for security of the population and wishes to state:
Five days after announcing the suspension of operations because of insecurity, Industrias La Constancia has announced the resumption of works at the plant.
From a statement issued by Industrias La Constancia:
San Salvador, March 9, 2016. We appreciate the support and understanding of our customers, consumers, suppliers, contractors and friends during the extraordinary situation which forced us to temporarily suspend operations of Agua Cristal.
Businessmen have stated their categorical opposition to statements made by a government official that confuse extortion with the funding of organized crime.
The statements by the Technical Secretary of the Presidency of El Salvador, Roberto Lorenzana, against companies in the country that suffer from extortion caused a strong reaction from the private sector, four days after Industrias La Constancia publicly announced that it was suspending operation of its plants because of increasing insecurity and violence.
The beverage company Industrias La Constancia has temporarily suspended operations for its brand Agua Cristal because of insecurity in the country.
From a statement issued by Industrias La Constancia:
We wish to announce publicly that, due to escalating insecurity affecting communities around the "La Tiendona" Market and in order to ensure the physical integrity of our employees and contractors, we have been forced to temporarily suspend operations for Agua Cristal.
Warnings have been given over increased insecurity, stagnation in the fight against corruption, and little capacity for Government dialogue in the second half of 2015.
The adoption of higher taxes without a dialogue, the consequences for the country of the increase in homicides from 10 to 18 a day in 2015, and stagnation in the fight against corruption, were highlighted in the evaluation made by the Salvadoran Foundation for Economic and Social Development ( Fusades) regarding the legal and institutional framework of the country during the second half of 2015.