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Abstract
Persistent crime in Central America, including the Dominican Republic (CAPDR), presents one of the biggest challenges to economic development and surpasses unemployment as the most important issue in most countries in the region (Figure 6.1). The Northern Triangle countries—Honduras, El Salvador, and Guatemala—account for 4½ percent of world homicides outside of war, but only ½ percent of the world’s population. Aside from human and social costs, crime also distorts economic incentives. Northern Triangle and Dominican firms consistently cite crime and theft as among the five biggest problems for doing business (World Economic Forum 2017). The World Bank (2011) puts losses associated with crime in the Northern Triangle at about 10 percent of annual GDP. Crime tends to disproportionately impact poorer individuals who are unable to protect themselves, and so exacerbates inequality (Davoodi and others 2002).
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