By Phil Williams and Sandra Quincoses
The economic and political environments in Latin America have been advantageous for local, regional, and transnational threat networks. Specifically, technology, increased international trade and economic interdependence, heightened interest in natural resources for profit, synthetic drug production, economic disparities, corruption, impunity, and unstable political conditions have led to a complex web of opportunities that requires new, progressive ways to address criminal activities. The creativity of threat networks along with their entrepreneurial strategies have resulted in increasing power and influence. Despite efforts by the United States and some governments in Latin America to combat these networks, the everchanging global environment has worked in their favor. Indeed, some countries in Central and South America are in danger of transforming into what Jorge Chabat described as “criminally possessed states.” Furthermore, gangs in Central America, especially in Honduras where MS-13 has become more closely linked to drug trafficking, have reduced local extortion, become more aware of their nascent political power and have even engaged in rudimentary social welfare provision. Another major trend identified in this report is the strategic diversification of trafficking routes, activities, and markets. For instance, licitly established transpacific trade between East Asia and Latin America has been exploited by criminal groups involved in wildlife and drug trafficking. This, along with other activities such as illegal logging and mining, have undermined licit trade. Moreover, criminal groups have also conducted cyber-attacks against government agencies to obtain false documentation to illegally conduct logging activities in protected areas of Brazil’s Amazon rainforest. Such activities illustrate the growing relationship between technology, illicit behavior, and criminal groups’ diverse capabilities. An emerging nexus between state and non-state threat networks is also identified as a key trend in the region. Notable links between criminal groups and malign state actors such as Cuba, Venezuela, and Nicaragua are publicly known with indigenous and under-resourced communities violently confronting illicit organizations that sometimes have the tacit support of government authorities and agencies. Moreover, external state actors’ investments and economic interests in highly corrupt and unstable political environments pave the way for impunity, which enables threat networks to operate without inhibition. The most explicit example pertains to the Revolutionary Armed Forces of Colombia (Fuerzas Armadas Revolucionarias de Colombia—FARC)-linked mining operations in Venezuela. Undoubtedly, trends are becoming increasingly complex now that activities have reached a global scale. This is also evident in illicit financial flows into, through, and out of the region. In terms of money laundering, tried and tested methods still seem to be favored, although it is likely that new opportunities, such as those provided by digital currencies, will be increasingly exploited in the future. The paper concludes that, in spite of adverse trends, it is important to avoid worst-case analysis. It also suggests, however, that many of the problems in the region stem fundamentally from poor governance—and that taking steps to deal with this should be a priority.
Miami: Florida International University, Jack D. Gordon Institute for Public Policy, 2019. 45p.
