Financial Crime World

Chile’s Growing Concern with Financial Crime Undermines Progressiveness

Shocking Election Results Reflect Fears of Violent Crime

Santiago, Chile - The recent election results in Chile have sent shockwaves through the country, as right-wing candidates dominated the vote for delegates to write a new constitution. While inflation and missteps by President Gabriel Boric’s government were significant factors, fear of violent crime played a major role in the outcome.

A Staggering Surge in Homicides

Chile’s homicide rate has doubled over the past decade, with a staggering 33% increase in 2022 alone. This alarming surge has shocked a nation that once prided itself on being one of Latin America’s safest countries. Chile is not alone; other previously peaceful nations in the region have also seen crime rise to the top of the political agenda.

Causes of the Surge

  • Growing presence of international organized crime groups
  • Changing flows of narcotics
  • Country’s reputation for safety and openness, making it an attractive hub for smugglers
  • Easy trade agreements with 65 countries, allowing drugs to be hidden among legitimate shipments

The Chilean Government’s Response

The Chilean government has acknowledged the issue and increased security spending by 4.4% in the 2023 budget. However, experts say the country lacks the necessary equipment, intelligence capabilities, and legal framework to effectively combat organized crime.

Consequences of Inaction

  • Politicians from across the spectrum are hammering away at the issue
  • Party of José Antonio Kast, an ultra-conservative who lost in the 2021 presidential election runoff, emerged as the big winner in Sunday’s voting
  • Increased support for authoritarian leaders promising miracle solutions
  • In neighboring Ecuador, President Guillermo Lasso is on the verge of impeachment due to a similar surge in murders and gang violence
  • In Uruguay, the conservative president struggles to tame a homicide rate that has tripled compared to Argentina

Common Thread: Insatiable Appetite for Drugs

Experts say the insatiable appetite for drugs in traditional consumer markets like Europe and the U.S., as well as increasingly within the region itself, is a common thread among the countries experiencing surges in violent crime. Latin America is producing more cocaine than ever before, with a knock-on effect throughout the region.

A Warning from Experts

Unless Chile’s democratically-minded politicians can work together to address the problem, the country’s future may resemble its past in ways that are destructive.

About the Author

Winter is a seasoned analyst of Latin American politics and editor-in-chief of Americas Quarterly.