This book explores the economic impact of crime in Latin America and the Caribbean, its economic drivers, and what economic policy can do to combat it. The underlying causes of crime are examined to understand the unique economic contexts that contribute to high rates of crime and violence. By exploring the direct and indirect economic consequences of crime on businesses, communities, and gender dynamics, the volume shows how insecurity hampers development. It presents a tailored approach to policy that begins with the right diagnosis, takes local contexts into account, and draws on international evidence to help policymakers combat crime and foster economic development.This book sets out a framework to transform cycles of violence and unrealized economic potential into virtuous cycles of growth and security. It will be relevant to students, researchers, and policymakers interested in the economics of crime and in the development trajectory of Latin America and the Caribbean.
Luis Cubeddu is Deputy Director at the International Monetary Fund, USA.Raphael Espinoza is Deputy Division Chief at the International Monetary Fund, USA.Niels-Jakob Hansen is a Senior Economist at the International Monetary Fund, USA.
1. The Economics of Violent Crime in Latin America: An Overview.- Part I. The Economic, Institutional and External Drivers of Violent Crime.- 2. Unemployment, Crime, and Trade-Induced Job Loss.- 3. Revisiting the Economic, Institutional and External Drivers of Crime.- Part II. Quantifying the Economic Impact of Violent Crime.- 4. The Costs of Crime and Violence in Latin America and the Caribbean.- 5. Crime’s Dual Burden: Business and Fiscal Costs of Insecurity in Latin America and the Caribbean.- 6. Collateral Damage: New Evidence on the Effect of Homicides on Economic Activity at the Local Level.- Part III. The Human, Social, and Institutional Consequences of Violent Crime.- 7. Organized Crime in Latin America: Causes, Consequences, and Policy Responses.- 8. The Hidden Costs of Violence: How Crime Shapes Women’s Labor Market Outcomes in Latin America.- 9. Looking Beyond Homicide Rates: Organized Crime Dynamics, Institutions and Development in Contemporary Latin America.- Part IV. Policy Responses to Crime.- 10. Criminal Malpractice: Why Cities Can’t Copy Their Way to Security.- 11. Strategies to Reduce Crime.- 12. The Criminal Economy: Tracking the Dirty Money That Fuels Transnational Organized Crime.