This book explores the economic impact of crime in Latin America and the Caribbean, its economic drivers, and what economic policy can do to combat it. The underlying causes of crime are examined to understand the unique economic contexts that contribute to high rates of crime and violence. By exploring the direct and indirect economic consequences of crime on businesses, communities, and gender dynamics, the volume shows how insecurity hampers development. It presents a tailored approach to policy that begins with the right diagnosis, takes local contexts into account, and draws on international evidence to help policymakers combat crime and foster economic development.

This book sets out a framework to transform cycles of violence and unrealized economic potential into virtuous cycles of growth and security. It will be relevant to students, researchers, and policymakers interested in the economics of crime and in the development trajectory of Latin America and the Caribbean.

Luis Cubeddu is Deputy Director at the International Monetary Fund, USA.

Raphael Espinoza is Deputy Division Chief at the International Monetary Fund, USA.

Niels-Jakob Hansen is a Senior Economist at the International Monetary Fund, USA.