Financial Crime World

Trinidad and Tobago’s Economy Haunted by Financial Crime: Report

A Staggering $5 Billion Lost Annually

A recent report by the Institute for Economics and Peace (IEP) reveals that Trinidad and Tobago loses a staggering US$5 billion to financial crime each year. This alarming figure, as reported in the 2024 Global Peace Index (GPI), highlights the devastating impact of financial crime on the economy.

The Devastating Impact of Financial Crime

The report measures the economic disruption caused by violence and fear of violence, revealing that the direct costs of crime are substantial. These include:

  • Property damage
  • Physical injury
  • Psychological trauma
  • Immediate consequences for victims, perpetrators, and public systems such as healthcare, justice, and public safety

Fear of violence also plays a significant role in altering economic behavior, with individuals reducing their inclination to invest and consume due to concerns about personal safety. This, in turn, results in lost productivity, as people become hesitant to engage in economic activities.

The Need for Stronger Data and Alternative Solutions

The report highlights the need for strong datasets that study the sociology and economics of crime in Trinidad and Tobago. It also emphasizes the importance of redirecting resources away from incarceration and towards more productive alternatives.

Prime Minister’s Concerns

Prime Minister Dr Keith Rowley has previously expressed concerns about the high cost of fighting crime, suggesting that resources could be better utilized to improve other public services. However, despite this acknowledgment, the country’s criminal profile remains a pressing issue.

Accountability for Criminality and Violence

According to Dr Rowley, accountability for the problem of criminality and violence lies not only with government but also with individuals, schools, prisons, courts, and parliaments. Despite efforts to address the issue through legislative, budgetary, and social approaches, Trinidad and Tobago continues to struggle with financial crime.

Grim Picture: Country Ranks 87th on Peace Index

The IEP report paints a grim picture, with Trinidad and Tobago ranking 87th out of 163 countries on its peace index. The findings are likely to be met with frustration by citizens who continue to experience the daily realities of violent crime firsthand.