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.
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:
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.
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.
Diagram showing the people and companies identified by actions related to money laundering, according to the U.S. Department of the Treasury´s Office of Foreign Assets Control.
It has been announced that deposits up to $9,200 (L200,000) per person will be returned, and then payments to employees, depositors and others, noting that "... there are sufficient resources to address them all."
The cause is the inclusion of the institution in the list of the U.S Office of Foreign Assets Control, and the freezing of its assets abroad.
Insecurity and lack of effective government actions explain the perception of the business sector regarding the investment climate in the country, which has fallen to the lowest level since 1999.
From the Report on the Legal and Institutional Situation first half of 2015 by the Salvadoran Foundation for Development:
The chain of fast foodrestaurants Hooters has announced the temporary closure of its branch in San Salvador due to the climate of insecurity and violence in the country.
President Sanchez Ceren has passed a Special Law Against Crime Extortion, which aims to improve the fight against the unfortunate practice which primarily affects the business sector.
From a statement issued by the presidency of El Salvador:
The president, Salvador Sanchez Ceren, has sanctioned Legislative Decree No. 953 containing the Special Law Against CrimeExtortion, proposed by the government to streamline the prosecution of this crime.
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