Financial Crime World

Ecuador’s Battle Against Organized Crime: A Nation on the Brink

The State of Exception

In recent months, Ecuador has found itself in the grip of a growing crisis. With organized crime and gang violence on the rise, President Daniel Noboa has declared a state of exception to combat the issue. This extraordinary measure grants the government the power to take drastic action against criminal activity, but it raises concerns about transparency and accountability.

The Rise of Organized Crime

Ecuador’s prisons have become hotbeds for organized crime, with gangs controlling large swaths of territory and using luxury villas, firearms, and cell phones. The country has seen a surge in the number of smaller groups emerging after the decline of Los Choneros, which were once the dominant force in the region. These newer groups are innovative and well-armed, making them difficult to combat.

Key Points:

  • Innovative and Well-Armed: Smaller groups have emerged in the wake of Los Choneros’ decline.
  • Luxury Villas and Firearms: Gangs use luxury villas as hideouts and possess firearms and cell phones.
  • Arms Trafficking: Ecuador is experiencing a drastic rise in weapons trafficking.

The Consequences of Inaction

The government’s response to the crisis has been mixed, with some successes but also concerns about transparency and accountability. While President Noboa claims a 41% reduction in homicides, there is no data to back up this claim. In reality, the number of homicides has increased, with over 1,200 deaths reported in the first three months of 2024.

Key Points:

  • Lack of Transparency: The government’s approach has been criticized for its lack of transparency and accountability.
  • Mixed Results: While some progress has been made, the actual number of homicides has increased.
  • Shift in Tactics: Gangs are now engaging in extortion and kidnapping.

A Long-Term Plan is Needed

Ecuador needs more than a temporary security strategy; it requires a long-term plan to rebuild its institutions, promote prosperity, and work with partners in North America and beyond. If the country fails to meet these challenges, it may revert to a scenario worse than the status quo ante.

Recommendations:

  • Long-Term Plan: Develop a comprehensive plan to address the root causes of organized crime.
  • Institutional Rebuilding: Focus on rebuilding institutions and promoting prosperity.
  • International Cooperation: Work with partners in North America and beyond to combat transnational crime.