BOGOTÁ – Many Latin American countries have made impressive gains in building state capacity and strengthening democracy in recent decades. And yet criminal networks – entrenched relationships between legal and illegal agents engaged in organized criminal activities – continue to play a large role in these countries’ formal and informal economies and political institutions, rending the social fabric and threatening further progress.
Criminal networks distort the most important sources of change: globalization, technology, open markets, regional cooperation, and democracy. In a context of weak institutions, persistent inequalities, and high levels of marginalization and exclusion, new growth opportunities for organized crime have emerged. Latin America has more (formal) democracy, higher foreign-trade turnover, a larger middle class, and more advanced technology than it had 20 years ago. It also has more organized crime.