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Crime Inhibiting Caribbean Growth And Investment, Says World Bank
by Amanda Banks, Tax-News.com, London

08 May 2007

According to a new World Bank report, high rates of crime in the Caribbean are not only threatening human welfare, and impeding social development, but also impacting business, impeding investment and ultimately undermining the region's economic growth.

The report, published last week by the World Bank and the United Nations Office on Drugs and Crime (UNODC), said that in many countries, as crime increases, access to financing declines; spending on formal and informal security measures increases; and worker productivity declines.

Estimates suggest that reducing the homicide rate in the Caribbean by one third from its current level could more than double the region’s rate of per capita economic growth.

According to the report ‘Crime, Violence and Development: Trends, Costs and Policy Options in the Caribbean,’ murder rates in the Caribbean are higher than in any other region of the world, and assault rates are significantly above the world average. Narcotics trafficking is at the core of these high rates. The report says that narcotics trafficking diverts criminal justice resources from other important activities, increases and embeds violence, undermines social cohesion and contributes to the widespread availability of firearms in the region.

“The report clearly shows that crime and violence are development issues. Donors and OECD countries need to work together with Caribbean countries to reduce the current levels in the region,” said Caroline Anstey, World Bank Director for the Caribbean. “Some of the factors that make the Caribbean most vulnerable to crime and violence, mainly the drug trade and trafficking of weapons, require a response that transcends national and even regional boundaries.”

"Although there is no one 'ideal' approach for crime and violence prevention, interventions such as slum-upgrading projects, youth development initiatives and criminal justice system reform can contribute to reducing crime and violence,” added Francis Maertens, UNODC Director, Division for Policy Analysis and Public Affairs.

Among its recommendations, the report argues that in general, there is an over-reliance on the criminal justice system to reduce crime in the region, although it acknowledged that some types of crime — such as organized crime, drug and firearms trafficking — are generally impervious to prevention initiatives. According to the report, urgent priorities for improving the criminal justice system in the region include: the development of management information systems, tracking of justice system performance; monitoring of reform programs and increased accountability to citizens.

The report also noted that many of the issues facing the Caribbean require a coordinated regional and international response. Demand for drugs emanates from Europe and the United States; deportees are sent back to the region from the United States, the United Kingdom, and Canada; and many weapons that are trafficked are brought from the United States.

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