Post date: May 04, 2013 8:58:6 PM
U.S. President Barack Obama underlines the importance of security in creating a strong economy while addressing regional business leaders at a summit in Costa Rica.
SAN JOSE, COSTA RICA (MAY 4, 2013) (RESTRICTED POOL) - U.S. President Barack Obama on Saturday (May 4) told Central American business leaders that a strong economy cannot be achieved without personal security.
Obama's comments came just weeks after the World Bank warned that rising violence from drug cartels and street gangs in Central America is costing the region up to 8 percent of gross domestic product and could hit future growth."Security is important, it is very hard to create a strong economy when people are personally feeling insecure ... We shouldn't lose sight of the critical importance of trade and commerce and business to the prospects both for Costa Rica, the United States and the entire hemisphere," said Obama, in his last address before returning to the United States.
Honduras, Guatemala and El Salvador suffer from some of the highest murder rates in the Western Hemisphere and the risks are growing as Mexican drug cartels increasingly set up shop in their poorer southern neighbours where institutions are weak.
Analysts believe drug cartels are the driving factor behind rising violence in the region, which also grapples with widespread youth street gangs that extort businesses and pay off corrupt officials.
The atmosphere of insecurity could harm the investment climate in the region and divert already scarce government resources to crime reduction efforts and away from spending to boost economy activity.
Central America is still recovering from decades of civil war and has deep inequalities between the rich and poor.