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."
Growing crime and violence in Central America not only have an immediate human and social toll, they also pose a tremendous threat to development potential in the region.
Today, it is estimated that these sources of instability may decrease regional Gross Domestic Product (GDP) by 8 percent, once health, institutional, private security, and material expenses are accounted for.
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."
El Salvador is not an easy country to govern, but despite all the difficulties faced during his presidential term, Mauricio Funes has the support of 79% of the population.
That makes him the most popular president in Latin America and this despite the fact El Salvador has the highest murder rate in the world and despite the fact its economy shrank 3.6% during the global economic crisis.
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.
Central American Nations should say "NO, THANKS", if results from said "aid" are going to be similar to what's going on in Mexico.
The inclusion of Costa Rica in the U.S. Government's list of the countries most affected by illegal drug trafficking confirmed what Costa Ricans already knew: Drug Trafficking has become a very serious issue.
Costa Rica now joins Guatemala, Honduras, Nicaragua and Panama, who are also included in the list. From Central America, only Belize and El Salvador are still out, but probably will be included soon.
Do these countries have a real chance of stopping drug trafficking, in the context of economies like Guatemala's where the value of the drug economy is double the country's GDP?
In 2007, just 1% of all South American cocaine sold in the USA passed through the region. Now the figure is between 60% and 90%.
While Mexico is the country that makes international headlines for its daily panorama of death and corruption caused by drug traffickers, other nearby countries are also severely affected by the violence. In Honduras 15 people are killed every day from a population of only 7 million.
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.
The statistic includes public and private spending and represents 10.8% of the country's GDP.
Jorge Daboub, president of the El Salvador Chamber of Commerce and Industry, indicated that in the case of private companies the annual cost of security is more than $640 million.
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.
The Executive has asked Congress to approve an $80 million loan from the World Bank to finance municipal projects.
Projects to be developed in the country’s 262 municipalities include sewers and drinkable water works, rural electricity, sanitary and educational infrastructure, facilities to fight crime and road works.
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.
The region spends over $6.5 billion each year to fight insecurity and violence.
Central America is the world's most violent region, with an average murder rate of 33 homicides per 100.000 inhabitants, stated a report by the United Nations Development Programme (UNDP).
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