LATIN AMERICA ADVISOR

LATIN AMERICA ADVISOR

A daily publication Of the dialogue

August 3, 2023

Why Has Ecuador Been Facing a Surge in Violence?

A riot last month left 31 people dead at the Guayas 1 prison in Ecuador. Police displayed weapons and ammunition seized from inside the prison. // Photo: @PoliciaEcuador via X.

Q

A

Daniela Chacón Arias, executive director at Fundación TANDEM, and former Quito vice mayor and city council member: “Over the last decade, Ecuador’s role in the drug trafficking and organized crime market has changed. It began as a transit point for drugs produced in Colombia; however, it now plays a strategic role in the cocaine value chain. The interdependence between the proximity of illicit crops and production laboratories along the southern border of Colombia, the presence of laboratories on the Ecuadorean border, weak controls of state institutions on the border and Ecuadorean coast, as well as dollarization and low banking penetration that facilitate illicit activities and money laundering are some of the main factors driving this change. In recent years, major Latin American and European drug trafficking cartels have settled in Ecuador and operate through local criminal groups that fight for control of the lucrative business. Despite being a global problem…”

Top News

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Police raids in three states in Brazil have left at least 45 people dead in the past week. Most recently, 10 people were killed Wednesday in a raid in a Rio de Janeiro slum.
Remittances to Mexico Rise to $30.24 Billion in Year’s First Half
Mexico’s level of remittances grew nearly 10 percent in the first half of the year to $30.24 billion, a record high for the period.
Brazilian Central Bank Cuts Key Rate by Half Point
Brazil’s central bank, led by Roberto Campos Neto, on Wednesday cut its key interest rate by a larger-than-expected 50 basis points. The move came amid an improving inflation outlook. // File Photo: Brazilian Government.

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The Inter-American Dialogue publishes the Latin America Advisor every business day for a distinguished membership of informed corporate leaders, scholars, and government officials invested in Latin America’s development and future. The Advisor‘s highly regarded Q&A section covers questions submitted by subscribers themselves. Commentators regularly include heads of state, business leaders, diplomats, economists, analysts, and thought leaders from around the world. Many of the world’s largest and fastest-growing companies subscribe to the Advisor. To subscribe, click here. For terms and conditions, click here. For more information, contact Gene Kuleta, editor of the Advisor, at gkuleta@thedialogue.org.

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Devry Boughner Vorwerk
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Joyce Chang
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Ernesto Revilla
Head of Latin American Economics, Citi

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President,
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