$1.2 Billion: The Cost of Insecurity in El Salvador

©image: Sean

The business sector spends $600 million a year hiring private security services, losses for theft reach $300 million, and the state spends an additional $300 million in hospital and emergency costs.

Jorge Daboub, president of the Commerce and Industry Chamber, told Laprensagrafica.com that the real cost is even higher, as "it is impossible to add extortion to the figures, as most business owners are afraid to denounce them for fear of being punished by criminals".

Source: laprensagrafica.com

More on this topic

El Salvador Spends Over $2 Billion per Year on Security

July 2010

The statistic includes public and private spending and represents 10.8% of the country's GDP.

Jorge Daboub, president of the El Salvador Chamber of Commerce and Industry, indicated that in the case of private companies the annual cost of security is more than $640 million.

El Salvador: 20% Less Spending on Private Security

May 2009

The private security services sector registered an $18 to $20 million decrease in sales in the last year.

The chairman of the Chamber of Commerce and Industry of El Salvador, Jorge Daboub, indicated in an article in Elsalvador.com that businesses were spending about $600 million a year before the economic crisis.

Another Tax to Pay: Extortion

September 2011

In El Salvador, where the cost of insecurity is equivalent to 12% of GDP, extortion is the main obstacle to economic development.

Crime affecting the country stops economic development and investment, according to the technical secretary of the Presidency, Alex Segovia.

Costa Rica: Growth in Private Security Spending

June 2011

Firms spent $174 million in security for their businesses in 2009, however in 2010 the expenditure amounted to $190 million.

A study by the Costa Rican Chamber of Commerce reveals that 42% of those surveyed said they had been a victim of violence.

"... We are convinced that the government has not fulfilled its part, ...