Avatar of admin


Drug Money: Obama's Reckless $1 Billion Payout to Central America

February 18, 2015 in Economics

By Juan Carlos Hidalgo

Juan Carlos Hidalgo

Last week, the New York Times editorialized in favor of the Obama administration’s proposal to give three Central American countries—Guatemala, El Salvador and Honduras—$1 billion in extra aid to help them fight poverty and crime. In a previous op-ed outlining the plan, Vice President Joe Biden even suggested that there is no reason why this program could not usher in “the next great success story of the Western Hemisphere.”

These Central American countries suffer from some of the most acute economic and security challenges in the Americas, some of which Washington has played a significant role in causing. Throwing money to governments with serious institutional flaws won’t solve these problems—and may exacerbate them.

Let’s begin with the security challenges. According to the United Nations’ 2013 Global Study on Homicide, Honduras, El Salvador and Guatemala ranked first, fourth and fifth, respectively, in the number of homicides per 100,000 inhabitants. Neighboring Belize was third. Central America’s Northern Triangle is the most violent region in the word. The authorities in these countries claim that most of these homicides are committed by youth gangs known as maras. The dramatic collapse in El Salvador’s murder rate after its rival maras reached a truce in March 2012, and its subsequent spike as the ceasefire crumbled, seems to confirm the official claims.

Throwing money to governments with serious institutional flaws won’t solve these problems—and may exacerbate them.”

These gangs pose one of the most complex social problems in the Western Hemisphere. In the last decade, successive administrations in the region announced tough law and order approaches called mano dura, to no avail. Even the decision of El Salvador’s previous president, Mauricio Funes, to use the army to patrol the streets seems to have backfired: there are reports that the maras actually infiltrated the army and are getting their weapons from its arsenal.

A different approach sees the gangs as the children of poverty, and suggests that, instead of fighting them with guns, Central American governments should thwart their power by building schools, creating jobs and offering community programs in sports, arts and so on. While it is true that poverty plays a role in the proliferation of the maras, it’s difficult to see it as the leading cause. After all, Nicaragua suffers from even higher poverty levels than Guatemala, El Salvador and Honduras—in addition to having gone through a civil war in the 1980s—and yet has not fallen victim to …read more

Source: OP-EDS

Leave a reply

You must be logged in to post a comment.