Organized crime and violence are emerging as major barriers to development across Latin America and the Caribbean, the World Bank warned in its latest Latin America and the Caribbean Economic Review (LACER).
The report, titled Organized Crime and Violence in Latin America and the Caribbean, paints a sobering picture of the region’s economic and social health. Projected growth rates — 2.1% in 2025 and 2.4% in 2026 — are among the lowest globally, making the region the slowest-growing worldwide. The World Bank points to rampant organized crime as a key factor holding the region back.
Victimization rates in Latin America and the Caribbean are currently three times the global average, and homicide rates stand at an alarming eight times higher. The report highlights that the growing demand for illegal goods, restructured criminal networks following government crackdowns, and the aftershocks of the COVID-19 pandemic have all contributed to the expansion of organized crime, especially in areas where government presence is weak.
“Organized crime is rapidly proliferating across the region, transcending domestic borders and becoming a pervasive threat. This is no longer an isolated issue; it demands a regional and global dialogue to elevate solutions and mobilize our collective expertise and resources,” said Carlos Felipe Jaramillo, World Bank Vice President for Latin America and the Caribbean.
Beyond public safety concerns, organized crime is directly undermining economic development. High insecurity and property rights uncertainty drive up business costs and choke competitiveness. The diversion of resources toward security, at the expense of essential services like health and education, also deepens fiscal pressures for already indebted countries.
“Fighting organized crime is not merely a law enforcement issue; it’s a development priority,” said William Maloney, World Bank Chief Economist for the region. “It undermines governance, distorts investment, and exacerbates inequality. We must address this issue head-on to prevent it from becoming a permanent drag on growth.”
To counter these challenges, the report recommends a multi-pronged strategy. Strengthening police forces, reforming prison systems, and bolstering judicial processes are critical to restoring state authority. Economic policies that create jobs and educational opportunities for young people are also seen as key to raising the opportunity cost of crime and reducing criminal recruitment.
Finally, the report underscores the need for better data. Without regular, comparable surveys on crime and victimization, governments are hamstrung in designing effective policies.
