How Costa Rica Became Entangled in the Drug Trade

Q24N — Costa Rica was one of the first countries in the world to disband its military after the civil war ended in 1948, when José Figueres Ferrer abolished the army and focused defense funding on education and health during his three presidential terms.

Despite the growing insecurity throughout Central America and military coups that plagued Latin America in the 20th century, Costa Rica’s lack of an army spared it from such political instability and helped it earn the distinction of being the longest-standing democracy in the region. However, this historically safe country without an army now faces challenges as drug trafficking permeates various levels of society.

According to the U.S. State Department’s latest International Narcotics Control Strategy Report (INCSR), published in March 2023, Costa Rica’s geographic location plays a critical role in drug trafficking.

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This non-militarized country in the heart of Central America has an extensive maritime area with access to both the Pacific and Atlantic Oceans. Given this, it has become one of the main transit points for drugs traveling from South America to the United States and Europe.

Drug traffickers were forced to use Central America as a transit point and storage facility during the early months of the COVID-19 pandemic, InSight Crime reported. This contributed to a surge in drug trafficking as mobility gradually resumed, it added.

Criminal organizations have worked to consolidate their operations in Costa Rica by making the country a major transshipment point. For example, cocaine and fentanyl are exported from the port of Moín in the province of Limón directly to Rotterdam in the Netherlands, Sheerness in the UK and Antwerp in Belgium.

These ports are also important destinations for Costa Rican fruits such as pineapples and bananas. In 2018, Spanish authorities discovered 67 kilograms of cocaine hidden in hollowed-out pineapples from Costa Rica. Existing legal trade flows make it easier to move illicit goods along the same routes.

Costa Rica’s domestic drug consumption has also increased, leading to a growing local drug market. Both the increase in domestic consumption and the country’s growth as a transshipment point have been responsible for a notable increase in violence.

Foreign criminal organizations seize power in Costa Rica

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In Costa Rica, a battle has broken out between rival criminal organizations, marked by a series of reprisals in the form of murders, torture and robberies. This escalation of violence has led to a 40% increase in Costa Rica’s homicide rate, which in 2023 reached a record high of 17.2 homicides per 100,000 people. Criminal organizations from Colombia, Mexico and even Italy have found fertile ground to sow new relationships and expand their operations in the country.

When looking at the murder data, the disproportionately high number of young victims — including minors — is particularly troubling. One of the contributing factors, the romanticization of narco culture, is a growing problem not only in Costa Rica but throughout the Americas.

Combined with limited economic opportunities, this romanticization has created fertile ground for foreign criminal organizations to recruit young people in Costa Rica.

Criminal activity related to drug trafficking is becoming increasingly embedded in Costa Rican society, and local authorities have been caught unprepared. Areas such as Chacarita in Puntarenas Province and El Tortuguero in Limón Province have become notorious for gruesome murders, with victims often shot more than 20 times.

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The involvement of young people in these criminal activities extends beyond gang work, as young people also form a significant portion of the clientele for drug use.

This reality has led to high schools becoming breeding grounds for both drug sales and drug use, something that was virtually unknown in Costa Rica a decade ago.
Rapid strengthening of local currency raises questions

Meanwhile, the colón, Costa Rica’s local currency, has appreciated over the past two years.

While Costa Rica’s economy has grown post-pandemic, the significant appreciation of the colón against the dollar — 25% in 18 months — has raised questions about how much of that strengthening is due solely to legitimate businesses.

Members of the National Council for Supervision of the Financial System (CONASSIF), including Sylvia Saborío, have raised questions about whether drug dollars could strengthen the currency.

Costa Rica’s central bank acknowledges that 48% of incoming foreign currency comes from unidentifiable sources due to existing regulations, El País reported. However, it also insists that there is no evidence that illicit funds are involved in the currency market. It has recently implemented new reforms to help track where the dollars are coming from, but these efforts are just the beginning.

According to President Rodrigo Chaves, the significant inflow of foreign currency reflects the economic success of his government and can be attributed to factors such as the recovery of the tourism sector after the pandemic and increased foreign investment and exports.
Government response

How to combat drug trafficking has become a point of contention in various branches of Costa Rica’s government. President Chaves claims that the current insecurity crisis stems from the shortcomings of previous administrations. Chaves has proposed new security measures, but these have encountered obstacles from both the judiciary and the legislature.

Article first published on May 16, 2024 on Linkedin by SouthernPulse.com

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