IDB-led initiative tackles organized crime in Latin America, Caribbean

A new initiative backed by the Inter-American Development Bank is addressing an issue rarely prioritized by multilateral development banks: security and organized crime. The Alliance for Security, Justice and Development launched a few weeks ago, bringing together 18 member countries from Latin America and the Caribbean that are concerned about the high costs of security and aim to tackle organized crime as part of their development efforts. IDB estimates that crime costs the region an average of 3.4% of its gross domestic product — an economic burden that is far from insignificant. Organized crime accounts for half of homicides across the Latin America and Caribbean region, and “has no national frontiers, goes beyond national borders,” said IDB President Ilan Goldfajn in a press conference. He emphasized that a regional initiative is essential to effectively address this pervasive issue. The alliance will focus on three pillars: Protecting vulnerable populations, strengthening security and justice institutions, and reducing illicit markets and financial flows. Argentina, Barbados, Belize, Brazil, Chile, Costa Rica, the Dominican Republic, Ecuador, Guatemala, Guyana, Honduras, Jamaica, Panama, Paraguay, Peru, Suriname, the Bahamas, and Uruguay are all part of the alliance. There were notable nations such as Colombia and Mexico — both grappling with significant organized crime challenges — that were absent at the launch. When asked about this, Goldfajn said that IDB has spoken with Mexican and Colombian officials and that their participation is “just a matter of timing and authorization.” With Colombia that proved true and the nation joined the alliance shortly after the launch. While IDB has maintained a security unit for decades, its role is being elevated as part of IDB’s reforms and organizational changes and to align with member countries’ priorities. IDB anticipates a pipeline of about $1 billion of security-related projects for 2025. These efforts will focus on strengthening institutions, supporting social programs, and facilitating regional initiatives. Planned projects include those in Ecuador, Chile, and Uruguay, but Goldfajn said the initiative will also tackle regional projects, such as sharing criminal records across countries. IDB also aims to mobilize additional funding and support from other funders and institutions within the alliance. What will these projects look like? In October, IDB approved a $150 million loan and a $5 million grant to Ecuador to combat organized crime. The funding will be used to improve criminal investigations and security capabilities. This marked IDB’s first investment in a program specifically targeting organized crime with a mix of preventative measures and institutional strengthening. With the new alliance in place, similar investments are expected to follow. IDB also plans to help build networks, bring together partners, and build knowledge about the best solutions. Update, Jan. 10, 2025: This article has been updated to reflect that Colombia joined the alliance after its launch.