Wednesday, February 8, 2012

THE COST OF CRIME

Thursday, July 1, 2010, 23:24
This news item was posted in Hard Hitting category and has 0 Comments so far.

Does the Prime Minister understand what the real cost of Crime is? The other day I sat and watched a programme hosted by the Belize Chamber of Commerce and Industry (BCCI) through which they tried to educate the public on the cost of crime. Obviously the BCCI tried very hard to focus on how crime has increased the cost of doing business and the negative effect this has had on the growth of business activity and on economic growth.

The programme was interesting as it indeed highlighted how this issue has impacted the ability of business persons to continue in their businesses. Speaking to the local business community makes you realize that indeed the issue of crime is one that is, along with an already floundering economy, going to stagnate development.

Governance 101 teaches you that the most basic function of government is the protection of its citizens. Does the Prime Minister and his Cabinet understand that the cost of crime goes well beyond the tragic human toll; that indeed it’s a significant detriment to economic growth?

Crime constrains growth in two ways: by imposing direct and indirect costs on businesses it reduces profits, deters investment and increases business failures. And, the perception of high levels of uncontrolled violent crime restricts work and leisure activities, restrains investment and reduces tourism.

The cost of crime both to our communities and our overall economic system is simply staggering. Because of the increase in criminal activity the country will have to pay for the extra boots on the street (Operation Jaguar) which increases government expenditure and in effect will levy a “crime tax” on Belizeans; that is a reduction in the quality of life due to crime.

Government will now have to or should increase expenditure on the criminal justice system and this, along with costly private measures to protect people and businesses against crime, is indeed unacceptable for a country where 43% of its population is poor.

It is widely accepted that non-pecuniary costs also figure prominently in the burden of crime to the Belizean society. While “street crime,” particularly violent crimes, is disproportionately concentrated among our nation’s poorest residents, the costs of crime are much more evenly distributed than victimization statistics would suggest. Available research indicates that crime imposes large costs on middle-class families through increased taxes, private measures to reduce the risk of victimization and the fear and anxiety associated with the risk of victimization to one’s self and loved ones.

It is my hope that the Government understands that the prevention of crime is not only essential for our personal safety but is critical for a vibrant economy.

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