The Costs of Crime and and Violence: Expansion and Update of Estimates for Latin America and the Caribbean

Crime and violence are an obstacle to development in Latin America and the Caribbean, affecting individuals, businesses, and governments. This paper updates previous studies, estimating the direct costs of crime in 22 countries in the region, which amounted to 3.4 percent of GDP in 2022. These costs include the loss of human capital due to homicides, security spending by businesses, and public spending on crime prevention. The study also reviews and summarizes recent literature on indirect costs, such as the effects on economic growth, investment, business productivity, health, and the environment. It also incorporates three additional analyses that explore the impact of crime on tourism, migration, and productivity. Taken together, these findings provide a comprehensive view of the consequences of crime and violence for societies in the region.