Miami Herald
Organized crime is no longer a problem restricted to specific countries or regions—it is a transnational threat weakening economies, communities and governments across Latin America and the Caribbean (LAC). A new study by economists at the Interamerican Development Bank (IDB) estimates that the region loses an estimated 3.4% of its Gross Domestic Product (GDP) to crime every day. The GDP is a key indicator of a country’s economic health. That loss is the equivalent of nearly four-fifths of public education spending or 12 times R & D investment.
Almost half of the region’s homicides are tied to organized criminal networks, which exploit weaknesses in institutions, local economies, and illicit markets. Vulnerable populations bear the brunt of its impact, trapped in cycles of violence with fewer chances for a better life. The impact is widespread: 54% of households in LAC report the presence of local criminal groups, and between 20% and 50% of residents identify organized crime as the greatest threat to their safety.
The private sector also faces significant costs, including reduced productivity, increased spending on security—estimated at 1.6% of the region’s GDP—lower investment, and business closures. But as we have seen time and again, organized criminal activity doesn’t stay on just one side of the border; it exploits economic and social links, capitalizes on institutional gaps and vulnerable population to reach over borders. That is why what happens in one country matters to the rest of hemisphere and why a transnational response is required.
A shared challenge, a joint solution That is where the Regional Alliance for Security, Justice and Development, spearheaded by the IDB comes in. Set to be launched at the Regional Security and Justice Summit in Bridgetown, Barbados, on Dec. 11–12, it provides a unified response, fostering dialogue and joint action among governments, multilateral organizations, the private sector and civil society. The participation of more than 40 authorities from 18 countries from Latin America and the Caribbean in the launch highlights the strong need for and commitment to this initiative and its goals. The Alliance pioneers a holistic approach to crime, aiming to integrate the efforts of intelligence agencies, police forces, social ministries, and financial regulators. This comprehensive framework is essential for addressing the root causes of organized crime and dismantling its structures across economic, social, and security dimensions.
Its strategic priorities, shaped by the collaborative insights and experiences of participating countries, focus on the most urgent needs to address organized crime and its effects: 1. Protecting vulnerable populations: By targeting at-risk communities, the Alliance seeks to prevent the recruitment of youth and marginalized individuals by criminal networks. Initiatives include programs like community violence interrupters and exit strategies from organized crime. 2. Strengthening security and justice institutions: The Alliance supports evidence-based policing strategies, modern investigative tools, and collaborative efforts to bolster accountability and effectiveness. 3. Curbing illicit financial flows: Through financial intelligence, cross-border collaboration, and tighter regulations, the Alliance works to limit the resources that sustain criminal networks. These pillars represent a roadmap for measurable progress, built on shared efforts and action. A regional leadership steering group—comprising Barbados, Argentina, Costa Rica, Chile, Brazil, and Paraguay —ensures efforts are well-coordinated, effective, and relevant for the region. Ecuador will hold the first presidency, signaling a strong commitment to regional leadership.
The Alliance draws on the experience, knowledge, lending programs and technical expertise of multiple organizations and multilateral development banks (MDBs), including the Inter-American Development Bank (IDB). As the technical secretariat of the Alliance, the IDB plays a key role in planning, coordinating, and mobilizing resources to strengthen institutional capacities, foster regional knowledge-sharing, and ensure the effectiveness of long-term policies through reviews and improvements. Turning commitment into action We know that declarations of intent are insufficient; progress demands tangible results. Close to 20 participating countries are already exchanging best practices and piloting programs to address organized crime. The Alliance represents a unified response to one of the region’s greatest challenges. Every step to curb violence and strengthen institutions brings LAC closer to a safer, more just, and prosperous future of the Americas.
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