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.
Drug trafficking and gangs are the main factors responsible for intentional murders in the most violent countries in the world: Honduras, Belize, El Salvador and Guatemala.
According to a report by the United Nations Office on Drugs and Crime at the United Nations (UNODC), in 2012 Honduras recorded 90.4 killings per 100,000 inhabitants.
In Belize, the homicide rate is 44.7 per 100 thousand inhabitants, in El Salvador it is 41.2, and in Guatemala is 39.9.
The growth in the supply of housing has led to an increase in demand for electronic security systems.
" ... The residential sector needs physical security (surveillance) , electric fences, alarm systems and camera systems, but not all homes have them. Consumption is focussed on alarm and response systems," said Lilliam Jerez, deputy manager at the company Ultranic Security.
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.
Insecurity in the Central American countries increases the costs of land freight transport; in the last year alone it required an additional $20 million.
Hiring private security guards, patrols and assisted GPS satellite systems are some of the costs that need to be paid in order move goods in Central America.
The cost of a patrol to accompany a trailer from one border to the capital starts from $150, while for a custodian guard you can pay up to $87.
In security, performance is measured in the same way as with pilots: you're only as good as your last landing, your awards or number of years in office are not important.
The most important thing is the results, the visible fruits, compliance with the goals and reduction of personnel's risk exposure.
"... In security, performance is measured in the same way as with pilots: you're only as good as your last landing, your awards or number of years in office are not important.
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.
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.
An open war is going on in Jamaica over the detention of a kingpin drug dealer; this is an example of what may soon happen in Central America.
An article by Joaquín Villalobos in Elpais.com signals Honduras, El Salvador and Guatemala as the countries of the isthmus most affected by drug trafficking, a black market activity which leads to violence and corruption, and may eventually transform a country into a ‘failed state’
High costs related to insecurity and violence place Guatemala at position 124 of 125 when measuring security.
FUNDESA, the foundation for Developing Guatemala, analyzed the World Economic Forum’s Global Enabling Trade Report 2010, in which most of the Latin American countries dropped several positions. Crime and violence was the main contributing factor in most of them, and all of Central America was ranked worse than in the 2009 edition.
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.
An executive from a Costa Rican company with regional operations confirmed that they pay an $80 toll to Guatemalan gangs to ensure safe circulation within that country’s capital city.
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).
"Central America has become the world's most violent region. With the exception of areas of intense political violence, such as the South African region, the Central American countries together have the highest murder rate in the world, found the study, which does not include Irak, due to its state of war.
The need to protect assets and operations from the growing wave of violence and crime is pushing up the costs of security companies.
Costa Rica suffered losses of more than 13 million in the commercial sector due to criminal acts, and it spent $110 million during the same year on private security.
Among the options that companies are considering to diminish or improve the efficiency of expenditures on security, the implementation of technology through surveillance cameras and electronic detection is highlighted.