Development struggle: How organized crime affects Central American progress

By Alfredo Osorio

Development struggle: How organized crime affects Central American progress

The ties that bind Latin Americans together are acknowledged to be love, music, culture, family, and language. Yet these bonds sometimes morph the region into a vortex of violence with Peru, Brazil, Colombia, and Central American countries frequently portrayed in mainstream media as centers of violence, banditry, and drugs.

The United Nations Office on Drugs and Crime reports that the Latin American region continues to experience persistently high levels of violence which is characterized by rising homicide levels, firearm-related crimes, and gender-based violence, particularly against men. Notably, the region is home to eight of the ten countries with the highest homicide rates globally, highlighting the severity of the security challenges it faces.

Certain countries in Central America continue to face serious challenges in relation to violence with nations such as Guatemala and Honduras constantly featuring among the top positions on the list of countries with the highest rates of violence per capita in the world. In 2022, Honduras reported the homicide rate to be 35.1 per 100,000 people.

This number is staggering compared to the global average of 6.1 homicides per 100,000 people. Such levels of violence bring physical and psychological pain to the affected communities and prevent businesses from growing as the governments of these regions spend resources on fighting crimes and enforcing laws.

The high rates of homicide and violence deplete the workforce, disrupt communities, and erode the human capital that is necessary for development. The population and workforce are essential for driving economic growth and fostering long-term resilience.

Socio-economic impact of crime on development

The phenomenon of organized crime therefore has far-reaching socio-economic consequences on the growth of countries in Central America with the stunting of economic growth being one of the major effects.

The World Bank contends that crime robs Latin America’s GDP of 3-4% annually. This economic burden is due to several factors including the cost of security, the loss of property, and the failure to attract potential foreign investors.

Heightened violence as a result of organized crime has also hampered development by creating uncertainty thus preventing the emergence of local entrepreneurs and the inflow of foreign direct investment.

Aside from the economic impact, organized crime adds fuel to ongoing inequalities with the United Nations Development Programme noting that inequality and crime are mutually reinforcing social issues.

In Central America, crime and discrimination can be observed by the way that the highest earners and corporations hire bodyguards and reside within gated communities while the poorest suffer the most due to their inability to escape crime.

The perpetuation of violence leads to a continued cycle of poverty as economically disadvantaged societies are subjected to higher crime rates but have least access to the measures that could improve their lives.

Migration as a response to violence

To escape violence, gangs and the lack of opportunities, the last few years have seen massive waves of migration from the northern region of Central America, specifically from El Salvador, Honduras and Guatemala. In 2020 alone, 1.3 million people from these countries arrived at the US border according to the US Customs and Border Protection. Migration frequently leaves behind broken families leading to social instability and developmental problems being exacerbated even further

Adaptation: Living amidst violence

People who continue to live in these areas often face high crime rates as part of everyday life. Subsequently, constant fear has forced communities to adjust in several ways.

In many metropolitan regions, there is an unwritten curfew whereby people do not venture out after sunset due to the threat of gang activity. Schools in certain areas have changed their hours to avoid the risk of their students being involved in gang confrontations.

The situation is so serious that many local businesses close early while households have resorted to installing sturdy doors, setting up surveillance cameras, or even hiring armed security personnel.

“People live with a constant awareness of risk,” noted sociologist Eduardo Moncada, whose research focuses on violence in Latin America. “It affects how they move around their cities, how they interact with their neighbors, and ultimately how they envision their future”.

Development programs and their challenges

Given the alarming and disheartening situation, various development programs have been implemented to tackle the issues associated with organized crime in Central America.

Education, creating jobs, and establishing the rule of law are some initiatives that have been introduced in countries such as El Salvador and Honduras. For instance, the El Salvador Plan Seguro program aims to curb violence through improved law enforcement, access to social services, and community collaboration to eliminate violence.

Although these programs initially proved effective, their long-term effects have been limited due to the lack of resources and weak will. Other countries in Central America with similar initiatives are believed to have a poor chance of succeeding because of the issues that make fighting against organized crime so complicated. Furthermore, these efforts are sometimes undermined by corruption in the system or by the criminal organizations they seek to control.

While communities are learning to cope with violence as a part of everyday life, long-term solutions that require a great deal of investment in education, economic development, and governance are essential. Experts note that in order to effectively deal with the issue, local governments and the international community will have to establish comprehensive and holistic strategies to deal with the root of organized crime in the area.