THE UNREGULATED AND THREATENING GROWTH OF PRIVATE
SECURITY IN LATIN AMERICA AND THE CARIBBEAN
Adam Blackwell 1
Secretary for Multidimensional Security
Organization of American States
June 2015
Latin America and the Caribbean has recently seen impressive social and economic
gains. Yet, despite a growing middle class and narrowing poverty gap, insecurity
remains the number one concern of the region’s citizens, with perceptions of insecurity at
their highest since 2006 (LAPOP, 2014, p. 161) ( The World Bank, 2012). This
insecurity, sparked by rising crime rates and coupled with ineffective law enforcement,
has led to an exponential growth and demand for private security, with increasing levels
in every country of the region in the last decade (Dammert, 2008, p. 2). The formal
private security industry is projected to be worth $244 billion globally by 2016, $30
billion of which accounts for Latin America. While the annual worldwide growth rate is
around 7 percent, in Latin America it is 9 percent (UNODC, 2014, p. 2) (New York
Times, 2014). It is estimated that nearly 4 million citizens throughout Latin America and
the Caribbean work in the private security sector, suggesting private security is a
commodity in high demand (Dammert, 2008, p. 3) (UN, 2013, p. 6).
Central America in particular is part of this explosive growth, with private security
guards outnumbering police in every country except El Salvador (UNODC, 2012, p. 71).
In Honduras, private security guards outnumber police by nearly 5 to 1, with the vast
majority unregistered and illegal (UN, 2013, p. 7). The vast numbers of Private Security
Companies (PSCs), and their use –in some cases- of higher caliber and higher tech
weapons not only threatens the authority of police but, in some cases, has shifted the
monopoly of legitimate violence out of the state’s hands (OAS, 2012, p. 73). The
problem, however, does not lay in the presence of private security but rather in the
absence of effective regulations and controls by the state. The scope and scale of private
security growth throughout Latin America and the Caribbean is therefore paralleled by
the limited state capacity to monitor the training, hiring and actions of such actors.
The growth and dangers associated with unbridled and unregulated private security forces
has not gone unnoticed by the international community. The Montreux Document came
into being in 2008 and highlights good practices and obligations, such as respecting
international humanitarian law, protecting human rights and ensuring criminal
accountability, for private military and security companies (ICRC and FDFA, 2008, p.
31, 33-35).
1
This is one in a series of papers written for the Wilson Center by Adam Blackwell, Secretary for
Multidimensional Security of the Organization of American States
Another Swiss sponsored initiative is The International Code of Conduct for Private
Security Service Providers (ICoC), which aims to clarify international standards and
improve oversight and accountability in relation to PSCs. The ICoC not only establishes
principles related to the actions of such firms, it also targets the proper management of
such companies, including how they hire personnel and manage weapons (ICoC, 2015).
While such international agreements are important steps in regulating PSCs, the difficulty
lies in the fact that they are neither legally binding nor accepted by all states. Also, the
implementation of the principles and guidelines are not always effectively carried out by
individual states. At the national level, many countries have no laws providing a legal
framework for PSCs, and the countries that have passed laws to regulate the industry lack
the mechanisms to effectively apply and enforce the laws (Dammert, 2008, p. 3).
The majority of private security guards are poorly trained, in both conflict resolution and
the safe handling of firearms, are under paid, and lack the insurance benefits entitled to
people working in such sectors. The latter of these makes them increasingly susceptible
to bribery and to committing crimes themselves (Dammert, 2008, p. 2). While the entire
region is plagued by these issues, the specific case of Honduras offers insight into the
truly troubling aspect of rampant and unregulated growth of private security forces within
a country.
Honduras currently has no mechanisms or information systems in place to control or
monitor PSCs and their personnel. There are also no information systems that would
provide citizens accurate knowledge on authorized as well as unauthorized companies
and where and how they operate (OAS, 2012, p. 138-139). The absence of any
coordination between private security firms and the National Police in regards to firearm
authorization as well as proper training in their use also highlights the dangerous
situation. The Report of the (UN) Working Group on the use of mercenaries as a means
of violating human rights and impeding the exercise of the right of peoples to selfdetermination: Mission to Honduras in 2013 acknowledged that Honduras’s, “existing
legal and regulatory framework falls short of international standards and its
implementation is hampered by the lack of institutional capacity of the authorities
responsible for regulating PSCs” (UN, 2013, p. 2). Moreover, domestic law has yet to be
amended to align with the international conventions the country has signed, and
international recommendations have yet to be implemented.
As seen in Honduras, many states fall short in regulating private security firms and this,
coupled with weak law enforcement and high rates of insecurity and crime, has resulted
in private security companies becoming powerful entities operating outside the states
control and often with impunity (UN, 2013, p. 2). According to The Montreux Document,
PSCs must respect national law as well as international humanitarian and human rights
law. This, however, must be reinforced, monitored and regulated by the state. Given this
current weakness throughout Latin America and the Caribbean steps must be taken to
curb the growth of unregulated private security.
Regulatory legal frameworks need to be established that outline the responsibilities of
both governments and the industry. Specifically, laws and regulations must be
strengthened concerning the licensing of PSCs, and the state’s institutional capacity must
be improved to administer licensing while monitoring already licensed companies (UN,
2013, p. 2). Social protection for workers in the sector must be expanded while entry
requirements and training guidelines must be introduced in coordination with national
police and/or armed forces; including ongoing evaluation and certification (OAS, 2012,
p. 49). Citizens and businesses must also be adequately informed about the services
provided by private security firms, how they can act, the weapons they carry as well as
whether their firm is authorized or has been sanctioned and, if so, for what (OAS, 2012,
p. 49). Finally, the capacity of the police and court to effectively investigate and, if
necessary, prosecute crimes carried out by private security personnel needs to be affirmed
in order to prevent impunity and the perpetuation of crime and violence through the
actions of those hired to prevent it.
References
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