AS/COA co-hosted a panel at the James A. Baker III Institute for Public Policy at Rice University, discussing fragile judicial systems, high rates of inequality, and unemployment as obstacles to enforcing security policy in Central America.
Speakers:
Eduardo Stein Barillas, Former Vice President, Republic of Guatemala
Virginia Trujillo, Director, Communications and External Relations, AES El Salvador
Thomas W. Ward, Associate Professor of Anthropology, University of Southern California
Christopher Sabatini, Senior Director of Policy, AS/COA (Moderator)
Summary
Drug trafficking and criminal networks represent significant security challenges throughout Central America. Regional stakeholders have worked to improve security conditions, but a lack of trust among government officials, the private sector, and civil society along with fragile judicial systems, high rates of inequality, and unemployment pose obstacles to creating and enforcing policy. Americas Society and Council of the Americas and the Latin America Initiative of the James A. Baker III Institute for Public Policy at Rice University hosted a public panel discussion on the current challenges and opportunities for improving security in Central America.
Transnational Criminal Organizations
Central America has been involved in the drug trade for decades. In the past, its role was limited to being a transit point between producing countries in the Andean region and consumers in the United States and Western Europe. Over the past five years, it has become a key player in the transportation and housing of narcotics, transforming the region into what former Guatemalan Vice President Eduardo Stein calls “a huge service warehouse of illegality.”
Criminal organizations facilitate the spread of drug trafficking, insecurity, and violence in the region. Chief among these groups is the Mara Salvatrucha gang, known as MS or MS-13. MS originated in Los Angeles, but through migration and deportation of gang members back to Central America the criminal network spread to countries like Guatemala, El Salvador, and Nicaragua.
University of Southern California’s Thomas W. Ward, whose field research on active MS gang members in the United States dates began to 1993, explained that the gang life attracts young people who feel socially or economically marginalized, have a fatalistic outlook on life, and suffered family dislocation and abandonment. With its high rates of poverty, unemployment, and migration, Central America has become a focal point of MS activities. In addition to narcotics trafficking, criminal organizations like MS participate in a host of other illicit activities, ranging from money laundering to extortion. Their mere presence corrupts legal public and private institutions and makes communities economically dependent on the cartels. Weak institutions, along with high levels of inequality and corruption make tackling these organizations and the insecurity they create difficult.
The impact of these gangs in Central America is palpable. Today, Honduras claims the highest murder rate in the region: 86 homicides per 100,000 individuals, compared to 16 for Mexico and 5 for the United States. And while Panama has mostly stayed out of the drug trade, between 2006 and 2010, homicides doubled; it now has the fastest-growing murder rate in the hemisphere. Stein argued that Central America cannot solve its security problem alone; it will need the cooperation, funds, and expertise of producing and consumer countries, as well as the private sector.
The Role of the Private Sector
In addition to threatening citizen security, criminal organizations also pose serious challenges for private companies with operations in the region. AES, a global power company with a strong presence in Latin America, controls of 80 percent of the energy market in El Salvador and owns 300,000 kilometers of the country’s power lines. The company has grappled with security issues in the region for years, but as Virginia Trujillo explained, AES’ investment in infrastructure means it cannot pack up and relocate its operations to another country at the first sign of danger.
AES has become a leader of private-sector involvement in security issues by launching two initiatives in the country. The first is a public-private partnership with the OAS Trust for the Americas program and the Millennium Challenge Corporation that began in 2000 and aims to increase access to electricity in the poorest areas of San Salvador. For AES, electricity allows for innovation and new business and educational opportunities for marginalized communities, including those susceptible to gang activity. The second program, POETA Youth, is a development initiative in Central and South America that provides technical training for young people in the skills AES requires of its employees. The program provides a model for formal labor market integration that can be replicated throughout the region, especially in countries like Honduras where unemployment remains high and 75 percent of small businesses are informal.
Stakeholder Solutions
Stein put forth several policy recommendations to address the complex issue of Central American insecurity:
Central American law enforcement, with the cooperation of the U.S. financial system, must monitor the flows of ill-gotten gains to get to the source of criminal organizations.
Governments in the region must partner to confront corruption with standardized, anti-corruption legislation.
Public-sector institutions must be modernized to adapt to new security challenges, starting with the police and the justice system.
Central America must abandon the false assumption that military personnel need to play an active role in security in lieu of the police because they are less susceptible to corruption. In fact, military forces are just as corruptible as their police counterparts, but have less experience with and sensitivity to community engagement operations.
What is the U.S. Role?
AS/COA’s Christopher Sabatini noted that the Obama administration has accepted more responsibility for the U.S. consumption of narcotics, but that has not translated into large-scale interventions like Plan Colombia or the Merida Initiative, or even promises of future action. The United States can do more to control the cross-border sale of illegal of arms to Mexican cartels, which often make their way into Central America. The United States also needs to change its approach to domestic drug use, switching the focus from criminalization to rehabilitation.
The United States fell short of producing any strong commitments to tackling security in the region during the Summit of the Americas. Stein believes this is because the still-fragile economy is dominating the minds of U.S. voters heading into the November election. The drug war and Central America overall are simply not high enough priorities to warrant tough new policies.