CRIME AND PROSPERITY: A LATIN AMERICAN PARADOX

Abstract

This paper argues that the current crime wave in Latin America has unique characteristics linked to social, political, and economic processes that have contributed to the expansion of crime. It focuses on aspects that have strongly influenced this increase in crime and remain understudied. It argues, first, that crime is a regional problem that affects all countries in the region; secondly, that crime has become a “profitable business” associated with the expansion of illicit markets; and, thirdly, that there are two types of crime growth and it is necessary to understand their inner dynamics (equilibria) to distinguish between low-level crime and out-of-control crime. The paper offers hypotheses to explain why the de-terrent capacity of states is moderate in the former and collapses in the latter.