On a cold March night in Bogotá, around three o’clock in the morning, the quiet routine of a popular butcher shop was brutally interrupted. Two men on motorcycles parked nearby came out and opened fire inside the establishment. The 58-year-old owner died at the scene. Six employees were also injured. The attack is an extreme example of the devastating effects of extortion, a crime that is growing at an alarming rate in Latin America.
The Growth of Extortion in Latin America
Extortion is one of the major problems facing many Latin American countries, surpassing even drug trafficking in terms of local impact. In Colombia, extortion cases have increased by 300% in recent years. Countries like Guatemala and Honduras have also started facing this serious problem. The growing presence of criminal gangs and changes in the dynamics of drug trafficking, particularly after the recent drop in cocaine prices, have contributed to the worsening situation.
Notícias Caracol reports that extortion has risen 200% in Bogota’s Kennedy neighborhood this year alone. In Bosa, another popular area of the city, the increase was 328%. Total growth for Bogotá in 2024 shows 90%, and crime spreads to quieter areas like Teusaquillo and La Soledad.
Economic and social impact
Extortion is a serious threat to local economies, especially micro and small business owners who are already in vulnerable situations. Many business owners are forced to pay large sums to ensure “protection” from gangs, which perpetuates poverty and harms economic growth.
In Bogotá, it is common to attack businesses with explosives and shoot shutters as a precaution. Some incidents like the attack on the butcher shop were caught on security cameras. Blackmail also led to the kidnapping of merchants who refused to pay, as Kennedy Kolan testified, unwilling to reveal his identity for fear of reprisals. “A small black business needs 40 million Colombian pesos, about 10,000 euros,” the merchant reported.
Extortion and business protection
Extortion also has a chilling effect on business. Many entrepreneurs postpone or cancel expansion plans to avoid attracting mob attention. “I wanted to remodel my business to improve its image, but I postponed everything. I decided not to invest anymore, so that the business would not be known to these groups”, laments the blacksmith from Kennedy. According to Ramon, the head of the neighborhood’s traders association, “the direct penalty for success is extortion. “
Also, extortion causes displacement. Many entrepreneurs close or sell their businesses, causing employees to suffer, even if they are not directly involved in the company’s finances. Cuautémoc Rivera, president of the National Alliance of Small Business Owners (ANPEC) in Mexico, told El Confidencial that extortion “penalizes work and imposes an additional burden on the manufacturing sector.”
Influence of cartels and criminal groups
The phenomenon of extortion is associated with a change in the dynamics of organized crime. In Mexico, for example, extortion increased by 26% per year between 2018 and 2023, while other crimes such as robbery and kidnapping decreased. This situation reflects a similar pattern observed in Colombia and Venezuela. In Mexico, cartels and smaller companies, often operating independently of larger groups, extort money, often using phone calls, often from inside prisons.
Arturo Hernandez, an extortionist from a middle-class area of Mexico City, describes the experience: “It freezes your blood.” He announced that the “rights to the ground” charge had reached the Zócalo neighborhood, the heart of the country, and noted persistent fears of attacks. “If this escalates, I doubt whether I will be able to continue with my plans as an entrepreneur,” he said.
Imitation effect and role of authorities
Extortion has grown more than 400% in countries like Peru and Ecuador in the past two years, with the Trent de Aragua, a transnational gang that originated in Venezuela, blamed for part of the increase. Local gangs often follow successful extortion models in other countries.
Also, corruption within the authorities is a significant problem. Many businessmen and inspectors, police and judges often collude with extortionists, which discourages complaints. However, in some areas such as Kennedy and Bogotá, the implementation of local security programs in conjunction with special police units has shown positive results.
Activities and Challenges
In El Salvador, Nayeb Bugel’s government announced a state of emergency in 2022 that reduced extortion by 57% by eliminating criminal gangs. However, this model has been criticized for human rights violations and is difficult to replicate in countries with different criminal dynamics.
Extortion continues to be a serious problem affecting security and economic development in Latin America, creating a desperate situation for many entrepreneurs and local communities. In an ever-evolving situation, authorities and society face the challenge of countering this growing threat and restoring security and stability in affected areas.
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