Central America Regional Security Initiative:
Background and Policy Issues for Congress

Peter J. Meyer
Analyst in Latin American Affairs
Clare Ribando Seelke
Specialist in Latin American Affairs
May 7, 2013
Congressional Research Service
7-5700
www.crs.gov
R41731
CRS Report for Congress
Pr
epared for Members and Committees of Congress

Central America Regional Security Initiative: Background and Policy Issues for Congress

Summary
Central America faces significant security challenges. Criminal threats, fragile political and
judicial systems, and social hardships such as poverty and unemployment contribute to
widespread insecurity in the region. Consequently, improving security conditions in these
countries is a difficult, multifaceted endeavor. Because U.S. drug demand contributes to regional
security challenges and the consequences of citizen insecurity in Central America are potentially
far-reaching, the United States is collaborating with countries in the region to implement and
refine security efforts.
Criminal Threats
Well-financed drug trafficking organizations (DTOs), along with transnational gangs and other
criminal groups, threaten to overwhelm Central American governments. Counternarcotics efforts
in Colombia and Mexico have put pressure on DTOs in those countries, leading many to increase
their operations in Central America—a region with fewer resources and weaker institutions with
which to combat drug trafficking and related criminality. Increasing flows of narcotics through
Central America are contributing to rising levels of violence and the corruption of government
officials, both of which are weakening citizens’ support for democracy and the rule of law. DTOs
are also increasingly becoming poly-criminal organizations, raising millions of dollars through
smuggling, extorting, and sometimes kidnapping migrants. Given the transnational character of
criminal organizations and their abilities to exploit ungoverned spaces, some analysts assert that
insecurity in Central America poses a potential threat to the United States.
Social and Political Factors
Throughout Central America, underlying social conditions and structural weaknesses in
governance inhibit efforts to improve security. Persistent poverty, inequality, and unemployment
leave large portions of the population susceptible to crime. Given the limited opportunities other
than emigration available to the expanding youth populations in Central America, young people
are particularly vulnerable. At the same time, underfunded security forces and the failure to fully
implement post-conflict institutional reforms initiated in several countries in the 1990s have left
police, prisons, and judicial systems weak and susceptible to corruption.
Approaches to Central American Security
Central American governments have attempted to improve security conditions in a variety of
ways, and are increasingly experimenting with new policies. Several countries, including
Honduras, have taken more of a hardline approach to organized crime, deploying military forces
to carry out policing functions. The Guatemalan government has also embraced a larger role for
the military in public security, although it has simultaneously called on countries in the region to
consider drug decriminalization and other alternatives. Other Central American governments have
emphasized prevention activities, such as programs that focus on strengthening families of at-risk
youth, while the governments of Belize and El Salvador have supported efforts to broker truces
between criminal gangs. Additionally, Central American nations have sought to improve regional
security cooperation, recognizing the transnational nature of the threats they face.
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Central America Regional Security Initiative: Background and Policy Issues for Congress

U.S. Assistance
To address growing security concerns, the Obama Administration has sought to develop
collaborative partnerships throughout the hemisphere. In Central America, this has taken the form
of the Central America Regional Security Initiative (CARSI), which was originally created in
FY2008 as part of the Mexico-focused counterdrug and anticrime assistance package known as
the Mérida Initiative. CARSI takes a broad approach to the issue of security. In addition to
providing the seven nations of Central America with equipment, training, and technical assistance
to support immediate law enforcement and interdiction operations, CARSI seeks to strengthen the
capacities of governmental institutions to address security challenges and the underlying
conditions that contribute to them. From FY2008-FY2012, Congress appropriated $496.5 million
for Central America through Mérida/CARSI. While CARSI funding for FY2013 is currently
unclear, the Obama Administration has requested $161.5 million for FY2014.
Scope of This Report
This report examines the extent of security problems in Central America, current efforts being
undertaken by Central American governments to address them, and U.S. support for Central
American efforts through the Central America Regional Security Initiative. It also raises potential
policy issues for congressional consideration such as funding levels, human rights concerns, and
how CARSI relates to other U.S. government policies.

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Central America Regional Security Initiative: Background and Policy Issues for Congress

Contents
Introduction ...................................................................................................................................... 1
Background: Scope of the Problem ................................................................................................. 3
Underlying Societal Conditions................................................................................................. 5
Structural Weaknesses in Governance ....................................................................................... 6
Criminal Threats ........................................................................................................................ 7
Drug Trafficking Organizations .......................................................................................... 7
Gangs ................................................................................................................................... 9
Other Criminal Organizations ........................................................................................... 11
Central American Policy Approaches ............................................................................................ 12
Military and Law Enforcement................................................................................................ 13
Prevention ................................................................................................................................ 15
Counterdrug Efforts ................................................................................................................. 16
Regional Cooperation .............................................................................................................. 17
U.S. Policy ..................................................................................................................................... 19
Background on Assistance to Central America ....................................................................... 20
Central America Regional Security Initiative .......................................................................... 21
Formulation ....................................................................................................................... 21
Funding from FY2008-FY2014 ........................................................................................ 22
Programs ........................................................................................................................... 25
Coordination ...................................................................................................................... 28
Implementation.................................................................................................................. 28
Performance Measures ...................................................................................................... 29
Additional Issues for Congressional Consideration ....................................................................... 30
Funding Issues ......................................................................................................................... 30
Human Rights Concerns .......................................................................................................... 31
Relation to Other U.S. Government Policies ........................................................................... 32
Outlook .......................................................................................................................................... 34

Figures
Figure 1. Map of Central America ................................................................................................... 3
Figure 2. Crime Victimization Rates in Mexico and Central America ............................................ 5
Figure 3. Central American Drug Trafficking Routes...................................................................... 8
Figure 4. CARSI Allocations by Country ...................................................................................... 23

Tables
Table 1. Estimated Homicide Rates in Central America and Mexico, 2005-2011 ........................... 4
Table 2. Estimated Cocaine Seizures in 2012, by Country ............................................................ 17
Table 3. Funding for CARSI, FY2008-FY2014 ............................................................................ 22
Table A-1. Central America Development Indicators .................................................................... 36
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Table A-2. Central America Poverty and Inequality Indicators ..................................................... 36

Appendixes
Appendix. Central America Social Indicators ............................................................................... 36

Contacts
Author Contact Information........................................................................................................... 37

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Introduction
The security situation in Central America1 has deteriorated in recent years as gangs, drug
traffickers, and other criminal groups have expanded their activities in the region, contributing to
escalating levels of crime and violence that have alarmed citizens and threaten to overwhelm
governments. Violence is particularly intense in the “northern triangle” countries of El Salvador,
Guatemala, and Honduras, which have some of the highest homicide rates in the world. Citizens
of several Central American nations now rank violence as the top problem facing their countries.2
The World Bank estimates that the overall economic costs of crime and violence average 7.5% of
gross domestic product (GDP) in Central America.3 Moreover, some analysts maintain that the
pervasive lack of security in the region not only threatens Central American governments and
civil society, but presents a potential threat to the United States.4 Given the proximity of Central
America, instability in the region—whether in the form of declining support for democracy as a
result of corrupt governance, drug traffickers acting with impunity as a result of weak state
presence, or increased emigration as a result of economic and physical insecurity—is likely to
affect the United States.
Although some analysts assert that the current situation in Central America presents a greater
threat to regional security than the civil wars of the 1980s,5 policymakers have only recently
begun to offer increased attention and financial support to the region. During the 1980s, the
United States provided Central America with an average of nearly $1.3 billion (constant 2011
U.S. dollars) annually in economic and military assistance to support efforts to combat leftist
political movements.6 U.S. attention to the region declined significantly in the early 1990s,
however, as the civil wars ended and Cold War concerns faded. For much of the subsequent two
decades, the bulk of U.S. security assistance to the hemisphere was concentrated in Colombia and
the other narcotics-producing nations of the Andean region of South America. The United States
provided Central America with some assistance for narcotics interdiction and institutional
capacity building, but the funding levels were comparatively low. This began to change in
FY2008 with the introduction of the Mérida Initiative, a counterdrug and anticrime assistance
program for Mexico and Central America. From FY2008-FY2012, Congress appropriated $496.5
million for the seven nations of Central America through Mérida and its successor initiative for
the region; Congress appropriated more than $1.9 billion in security assistance for Mexico during
the same time period.7

1 For the purposes of this report, “Central America” includes all seven countries of the isthmus: Belize, Costa Rica, El
Salvador, Guatemala, Honduras, Nicaragua, and Panama.
2 Mitchell A. Seligson, Amy Erica Smith, and Elizabeth J. Zechmeister, eds., The Political Culture of Democracy in the
Americas, 2012: Towards Equality of Opportunity
, Vanderbilt University, Latin American Public Opinion Project,
December 10, 2012.
3 This figures does not include data from Belize and Panama. See Rodrigo Serrano-Berthet and Humberto Lopez,
World Bank, Crime and Violence in Central America: A Development Challenge, Washington, D.C., 2011.
4 Bob Killebrew and Jennifer Bernal, Crime Wars: Gangs, Cartels and U.S. National Security, Center for a New
American Security, Washington, DC, September 2010.
5 Steven S. Dudley, Drug Trafficking Organizations in Central America: Transportistas, Mexican Cartels and Maras,
Woodrow Wilson International Center for Scholars Mexico Institute & the University of San Diego Trans-Border
Institute, Working Paper Series on U.S.-Mexico Security Collaboration, May 2010.
6 U.S. Agency for International Development (USAID), U.S. Overseas Loans and Grants: Obligations and Loan
Authorizations, July 1, 1945-September 30, 2011
, http://gbk.eads.usaidallnet.gov/.
7 For information on the Mérida Initiative in Mexico, see CRS Report R41349, U.S.-Mexican Security Cooperation:
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Recognizing that U.S.-backed efforts in Colombia and Mexico have provided incentives for
criminal groups to move into Central America and other areas where they can exploit institutional
weaknesses to continue their operations, the Obama Administration has sought to develop
collaborative security partnerships with countries throughout the hemisphere. As part of this
effort, the Administration re-launched the Central America portion of the Mérida Initiative as the
Central America Regional Security Initiative (CARSI) in FY2010. CARSI takes a broad approach
to the issue of security that goes well beyond the traditional focus on preventing narcotics from
reaching the United States. Ensuring the safety and security of all citizens is one of the four
overarching priorities of current U.S. policy toward Latin America and the Caribbean.8
Accordingly, CARSI not only provides equipment, training, and technical assistance to support
immediate law enforcement and interdiction operations, but also seeks to strengthen the
capacities of governmental institutions to address security challenges and the underlying
conditions that contribute to them. Although Central American countries have expressed
appreciation for the funds provided, they have also asserted that the assistance could better
respond to host country priorities and is insufficient given the scale of the region’s challenges.9
Congress has closely tracked the implementation of the Mérida Initiative/CARSI since its
inception. Five years after Congress first appropriated funding, a number of analysts assert that
extensive long-term U.S. support will be necessary for Central America to successfully overcome
its current security challenges.10 As Congress evaluates budget priorities and debates the form of
U.S. security assistance to the region, it may examine the scope of the security problems in
Central America, the current efforts being undertaken by the governments of Central America to
address these problems, and how the United States has supported those efforts. This report
provides background information about these topics and raises potential policy issues regarding
U.S.-Central America security cooperation—such as funding levels, human rights concerns, and
how CARSI relates to other U.S. government policies—that Congress may opt to consider.

(...continued)
The Mérida Initiative and Beyond , by Clare Ribando Seelke and Kristin Finklea.
8 The other three overarching priorities are building effective institutions of democratic governance, promoting social
and economic opportunity for everyone, and securing a clean energy future. Testimony of Arturo A. Valenzuela,
Assistant Secretary of State for Western Hemisphere Affairs, U.S. Department of State, before the Senate
Subcommittee on the Western Hemisphere, Peace Corps, and Global Narcotics Affairs, February 17, 2011.
9 CRS interviews with Central American embassy officials, October 27, November 2, 3, and 9, 2010.
10 Karen Hooper, “The Mexican Drug Cartel Threat in Central America,” STRATFOR, November 17, 2011; Testimony
of Dr. Ray Walser before the Senate Caucus on International Narcotics Control, May 25, 2011; Killebrew & Bernal,
September 2010, op. cit.; Diana Villiers Negroponte, “Understanding and Improving Mérida,” Americas Quarterly,
Spring 2010.
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Figure 1. Map of Central America

Source: CRS.
Notes: The “northern triangle” countries (El Salvador, Guatemala, and Honduras) are pictured in orange.
Background: Scope of the Problem
As in neighboring Mexico, the countries of Central America—particularly the northern triangle
countries of El Salvador, Guatemala, and Honduras—are dealing with escalating homicides and
generalized crime committed by drug traffickers, gangs, and other criminal groups. While the
drug trafficking-related violence in Mexico11 has captured U.S. policymakers’ attention, the even
more dire security situation in many Central American countries has received considerably less
focus or financial support from the United States.12 In 2011, the homicide rate per 100,000 people

11 For information on drug trafficking-related violence in Mexico, see CRS Report R41576, Mexico’s Drug Trafficking
Organizations: Source and Scope of the Violence
, by June S. Beittel.
12 From FY2008-FY2012, Congress appropriated more than $1.9 billion in counterdrug and anti-crime assistance to
Mexico under the Mérida Initiative and $496.5 million to Central America through Mérida and CARSI. For historical
information, see CRS Report R40135, Mérida Initiative for Mexico and Central America: Funding and Policy Issues,
by Clare Ribando Seelke; and CRS Report R41215, Latin America and the Caribbean: Illicit Drug Trafficking and U.S.
(continued...)
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in Mexico stood at roughly 23.7, a rate exceeded by that of El Salvador (69.2), Guatemala (38.5),
and Honduras (91.6) (see Table 1).13 Moreover, according to 2012 polling data, even Central
American countries with relatively low homicide rates, such as Costa Rica, have victimization
rates for common crime (a term that includes robbery and assault) on par with Mexico (see
Figure 2). As enforcement efforts in Mexico have intensified, the security challenges facing
Central America, a region with significantly fewer resources and weaker institutions than its
northern neighbor, have multiplied.14
Table 1. Estimated Homicide Rates in Central America and Mexico, 2005-2011
Homicides per 100,000 Inhabitants
Country
2005 2006 2007 2008 2009 2010 2011
Belize
28.8 32.1 33.1 34.4 31.8 41.4
N/A
Costa
Rica 7.8 8.0 8.3 11.3 11.4 11.3 10.0
El
Salvador 62.4 64.7 57.3 51.9 70.6 64.7 69.2
Guatemala 42.0 45.1 43.3 46.0 46.3 41.4 38.5
Honduras 35.1 43.0 45.6 61.3 70.7 82.1 91.6
Nicaragua 13.4 13.1 12.8 13.1 14.0 13.6 12.6
Panama
11.2 11.3 13.3 19.2 23.6 21.6
N/A
Mexico
9.3 9.7 8.1 12.7 17.7 22.7 23.7
Source: U.N. Office on Drugs and Crime (UNODC), “Homicide Statistics 2012.”
Notes: The data for Belize are from U.N. Surveys on Crime Trends and the Operations of Criminal Justice
Systems (CTS) and the Organization of American States (OAS). The data for Costa Rica are from CTS and the
Costa Rican Ministry of Justice. The data for El Salvador are from police statistics and the OAS, The data for
Guatemala are from police statistics and the CTS. The data for Honduras are from police statistics and the
Central American Observatory of Violence (OCAVI). The data for Nicaragua and Panama are self-reported
police statistics. The data for Mexico are from the national statistical office.

(...continued)
Counterdrug Programs, coordinated by Clare Ribando Seelke.
13 U.N. Office on Drugs and Crime (UNODC), “Homicide Statistics 2012,” http://www.unodc.org/unodc/en/data-and-
analysis/homicide.html.
14 Michael Shifter, “Central America’s Security Predicament,” Current History, February 1, 2011.
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Figure 2. Crime Victimization Rates in Mexico and Central America
Percentage of people reporting someone in their household was the victim of a crime in the past year
10.6%
Panama
15.0%
Belize
25.1%
Nicaragua
28.5%
El Salvador
31.9%
Honduras
33.6%
Guatemala
33.7%
Mexico
34.4%
Costa Rica
0.0%
10.0%
20.0%
30.0%
40.0%

Source: CRS presentation of data from Mitchell A. Seligson, Amy Erica Smith, and Elizabeth J. Zechmeister, eds.,
The Political Culture of Democracy in the Americas, 2012: Towards Equality of Opportunity, Vanderbilt University, Latin
American Public Opinion Project, December 10, 2012, p. 145.
Underlying Societal Conditions
The social fabric in many Central American countries has been tattered by persistent poverty,
inequality, and unemployment, with few opportunities available for growing youth populations
aside from emigration, often illegal.15 With the exceptions of Costa Rica and Panama, the
countries of Central America are generally low-income countries with low levels of human
development (see the Appendix). At a global level, UNODC has found that countries with high
levels of income inequality have homicide rates that are four times higher than countries with low
levels of income inequality.16 For the most part, Central American countries are not only
impoverished, but highly unequal societies, with income disparities exacerbated by the social
exclusion of ethnic minorities and gender discrimination. The linkage between inequality and
high crime rates holds true in Central America except for the case of El Salvador, a country with
relatively low inequality but high crime rates.17 Poverty and inequality have been reinforced by

15 According to figures from the U.S. Department of Homeland Security (DHS), El Salvador, Guatemala, and Honduras
follow Mexico as the primary source countries for unauthorized (illegal) immigration to the United States. Michael
Hoefer, Nancy Rytina, and Bryan C. Baker, Estimates of the Unauthorized Immigrant Population Residing in the
United States: January 2010
, DHS Office of Immigration Statistics, February 2011.
16 U.N. Office on Drugs and Crime (UNODC), Global Study on Homicide: Trends, Contexts, Data, 2011, p. 30.
17 U.N. Development Program (UNDP), Informe Sobre Desarrollo Humano Para América Central 2009-2010: Abrir
(continued...)
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the lack of social mobility and persistent unemployment and underemployment in many
countries, conditions which have been exacerbated by the global economic downturn in recent
years. With limited opportunities at home, roughly a quarter of Salvadorans now live abroad,
leading analysts to assert that people have become one of the country’s primary exports.18 El
Salvador, Guatemala, and Honduras, which have large percentages of their populations living in
the United States, have suffered more from the negative effects of emigration (such as family
disintegration and deportations) than other countries.19
With the exceptions of Belize and Costa Rica, Central American countries have also had a long
history of armed conflicts and/or dictatorships. A legacy of conflict and authoritarian rule has
inhibited the development of democratic institutions and respect for the rule of law in many
countries. Protracted armed conflicts also resulted in the widespread proliferation of illicit
firearms in the region, as well as a cultural tendency to resort to violence as a means of settling
disputes.20 Recent research details how illicit networks that smuggled arms and other supplies to
both sides involved in the armed conflict in El Salvador have been converted into transnational
criminal networks that smuggle drugs, people, illicit proceeds, weapons, and other stolen goods.21
In addition, some former combatants in El Salvador and Guatemala have put the skills they
acquired during their countries’ armed conflicts to use in the service of criminal groups, as the
end of civil conflicts there coincided with the emergence of drug trafficking in the region.22
Structural Weaknesses in Governance
In recent years, much has been written about the governance problems that have made many
Central American countries susceptible to the influence of drug traffickers and other criminal
elements and unable to guarantee citizen security, a basic function of any government. To begin
with, many governments do not have operational control over their borders and territories. As an
example, the Mexico-Guatemala border is 600 miles long and has only 11 formal ports of entry.23
This lack of territorial control is partially a result of regional police and military forces being
generally undermanned and/or ill-equipped to establish an effective presence in remote regions or
to challenge well-armed criminal groups.24 Resource constraints in the security sector have

(...continued)
Espacios a la Seguridad Ciudadana y el Desarrollo Humano, October 2009.
18 Sarah Gammage, “Exporting People and Recruiting Remittances: A Development Strategy for El Salvador?” Latin
American Perspectives
, vol. 33, no. 6 (2006).
19 UNDP, October 2009, op. cit.
20 Facultad Latinoamericana de Ciencias Sociales (FLACSO), Armas Pequeñas y Livianas: Amenaza a la Seguridad
Hemisférica
, 2007.
21 Douglas Farah, Organized Crime in El Salvador: the Homegrown and Transnational Dimensions, Woodrow Wilson
Center for Scholars Latin America Program, Working Paper Series on Organized Crime in Central America, February
2011.
22 Ibid.; Hal Brands, Crime, Violence, and the Crisis in Guatemala: A Case Study in the Erosion of the State, Strategic
Studies Institute, May 2010.
23 Embassy of Mexico, Toward a Secure and Prosperous Southern Border, October 2010.
24 In Guatemala, for example, former President Oscar Berger reduced the size and budget of the military by 50% more
than was required by the 1996 Peace Accords (to roughly 15,500 soldiers and 0.33% of GDP). As of 2012, Guatemala
had roughly 15,600 soldiers and a military budget of $7.6 billion (0.42% of GDP). Red de Seguridad y Defensa de
América Latina (RESDAL), Atlas Comparativo de la Defensa en América Latina y Caribe, 2012.
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persisted over time as governments have failed to increase taxes. According to World Bank data,25
tax revenue as a percentage of GDP averaged just 13.7% in Central America in 2011. A lack of
confidence in the underfunded public security forces has led many businesses and wealthy
individuals in the region to turn to private security firms. One recent study estimated that the
number of authorized private security personnel in Central America may exceed 234,000,
dwarfing the total number of police in the region.26
Resource constraints aside, there have also been serious concerns about corruption in the police,
prisons, judicial, and political systems in Central America.27 This corruption has occurred
partially as a result of incomplete institutional reforms implemented after armed conflicts ended
in several countries in the 1990s.28 Criminal groups’ efforts to influence public officials and
elections, particularly at the local level, have also contributed to corruption.29 With crime
victimization rates on the rise and impunity rates averaging roughly 90%,30 people have low
levels of trust in law enforcement, which has in turn increased support for government initiatives
aimed at increasing the role of the military in public security. Survey data have shown that those
who have been victims of crime or who perceive that crime is increasing in their countries
express less support for the political system and the rule of law than other citizens, including less
support for the idea that police should always obey the law.31 In extreme cases, people in some
Central American countries have taken justice into their own hands by carrying out vigilante
killings of those suspected of committing crimes.
Criminal Threats
Drug Trafficking Organizations
Since the mid-1990s, the primary pathway for illegal drugs, including Andean cocaine, entering
the United States has been through Mexico. Nevertheless, as recently as 2007, only a small

25 Data are available at http://data.worldbank.org/indicator/GC.TAX.TOTL.GD.ZS. No figures were included for
Belize or Panama.
26 Otto Argueta, Private Security in Guatemala: the Pathway to its Proliferation, German Institute of Global Affairs
and Area Studies, September 2010.
27 According to Transparency International’s 2012 Corruption Perceptions Index, citizens in every Central American
country (with the possible exception of Belize, which is not included) perceive high levels of public sector corruption.
On a scale of 0 – 100 (highly corrupt – very clean), each country scored below 50: Honduras (28), Nicaragua (29),
Guatemala (33), Panama (38), El Salvador (38), and Costa Rica (48). For recent examples of corruption, see country
entries in U.S. Department of State, Bureau of International Narcotics and Law Enforcement Affairs, International
Narcotics Control Strategy Report (INCSR)
, March 5, 2013, http://www.state.gov/j/inl/rls/nrcrpt/2013/vol1/index.htm.
28 On police reform, see Washington Office on Latin America (WOLA), Protect and Serve? The Status of Police
Reform in Central America
, June 2009. On the judicial sector, see Due Process of Law Foundation, Evaluation of
Judicial Corruption in Central America and Panama and Mechanisms to Combat It
, 2007.
29 In El Salvador, the Texis Cartel has reportedly developed a broad network of supporters that includes military, police
and judicial officials, as well as local and national politicians. This network has enabled it to dominate cocaine
smuggling through northern El Salvador. In Guatemala, domestic traffickers use their largesse to influence elections
and officials. See: Sergio Arauz, Óscar Martínez, and Efren Lemus, "El Cartel de Texis," El Faro, May 16, 2011, and
International Crisis Group, Guatemala: Drug Trafficking and Violence, October 11, 2011.
30 UNDP, October 2009, op. cit., p. 235.
31 Mitchell A. Seligson and Amy Erica Smith, eds., The Political Culture of Democracy, 2010: Democratic
Consolidation in the Americas in Hard Times
, Vanderbilt University Latin American Public Opinion Project,
December 2010.
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amount of the cocaine that passed through Mexico first transited through Central America. The
use of Central America as a transshipment zone has grown, however, as traffickers have used
overland smuggling, littoral maritime trafficking, and short-distance aerial trafficking rather than
long-range maritime or aerial trafficking to transport cocaine from South America to Mexico.32 In
addition to cocaine, a large but unknown proportion of opiates, as well as foreign-produced
marijuana and methamphetamine, some of which is now locally produced, also flows through the
same pathways (see Figure 3). Currently, more than 80% of the primary flow of cocaine
trafficked to the United States transits Central America.33 This overwhelming use of the Central
America-Mexico corridor as a transit zone represents a major shift in trafficking routes. In the
1980s and early 1990s, drugs primarily transited through the Caribbean into South Florida.
Figure 3. Central American Drug Trafficking Routes

Source: STRATFOR, February 25, 2011, http://www.stratfor.com.
Stepped-up enforcement efforts in Mexico and instability in certain Central American countries
have provided incentives for traffickers to use the region as a transshipment point. For example,
Honduras—which has experienced a political crisis and rampant violence in recent years—has
reportedly become a primary transit point at which cocaine is offloaded from planes and boats
and then repackaged to continue its journey northward.34 In September 2012, President Obama

32 Stephen Meiners, “Central America: An Emerging Role in the Drug Trade,” STRATFOR, March 28, 2009.
33 INCSR, March 2013, op.cit.
34 Mark Stevenson, “Honduras Becomes Western Hemisphere Cocaine Hub,” Associated Press, October 31, 2011;
James Bosworth, Honduras: Organized Crime Gaining Amid Political Crisis, Woodrow Wilson Center for Scholars
(continued...)
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identified every Central American country as a major drug transit country, with Belize and El
Salvador making their second appearance on the “drug majors” list. Costa Rica, Honduras, and
Nicaragua first appeared on the list in 2010.35
In the past, Mexican and Colombian DTOs tended to contract local drug trafficking groups in
Central America, sometimes referred to as transportistas, to transport drugs through that region.
Recently, drug transshipment activities have increasingly been taken over, often after violent
struggles, by Mexican drug traffickers and their affiliates, such as the Sinaloa DTO and Los
Zetas, a rival DTO started by former Mexican military officers who, until recently, served as the
paramilitary wing of the Gulf DTO.36 Mexican DTOs have been most active in Guatemala, where
they are battling each other and family-based Guatemalan DTOs for control over lucrative drug
smuggling routes. Officials have estimated that between 40% and 60% of Guatemalan territory
may be under the effective control of drug traffickers.37 Mexican DTOs have also begun to pay
transportistas and gangs who distribute drugs or serve as enforcers (or hit men) in product, which
has increased drug consumption in many countries and sparked disputes between local groups
over control of domestic drug markets.38 The DTOs, particularly Los Zetas, have also taken
control of many migrant smuggling routes originating in Central America, enacting harsh
penalties on those who fail to work for them or pay them quotas.39
Gangs40
In recent years, Central American governments, the media, and some analysts have attributed,
sometimes erroneously, a significant proportion of violent crime in the region to transnational
youth gangs, or maras, many of which have ties to the United States. The major gangs operating
in Central America with ties to the United States are the “18th Street” gang (also known as M-18)
and its main rival, the Mara Salvatrucha (MS-13).41 The 18th Street gang was formed by Mexican
youth in the Rampart section of Los Angeles in the 1960s who were not accepted into existing

(...continued)
Latin America Program, Working Paper Series on Organized Crime in Central America, February 2011.
35 Beginning in 1986 (P.L. 99-570), Congress introduced an annual procedure to withhold certain types of bilateral
foreign assistance, not including counternarcotics assistance, to major drug-producing and major drug transit countries
worldwide, commonly termed the “drug majors.” The President is required annually to issue a presidential
determination to identify which countries are to be included in the list of drug majors for the following fiscal year. For
FY2013, President Barack Obama identified 22 drug majors, including Belize, Costa Rica, El Salvador, Guatemala,
Honduras, Nicaragua, and Panama. The drug majors are then evaluated on the basis of their effort to combat drugs and
cooperate with the U.S. government on drug policy issues. The President must accordingly “certify” to Congress that
drug majors have either “cooperated fully” or have “failed demonstrably” in U.S. and international counternarcotics
efforts. President Obama certified all Central American countries on the list. Barack Obama, Presidential
Determination No. 2011-16, “Memorandum to the Secretary of State: Major Drug Transit or Major Illicit Drug
Producing Countries for Fiscal Year 2013,” September 14, 2012.
36 Dudley, May 2010, op. cit.
37 The lower estimate is cited in Brands, May 2010, op. cit. The upper estimate is from “Drug Traffickers Have
Stranglehold on Guatemala Says Top Prosecutor,” El País, February 23, 2011.
38 Dudley, May 2010, op. cit.
39 Tim Johnson, “Violent Mexican Drug Gang, Zetas, Taking Control of Migrant Smuggling,” McClatchy Newspapers,
August 12, 2011.
40 For background, see CRS Report RL34112, Gangs in Central America, by Clare Ribando Seelke.
41 For the history and evolution of these gangs, see Tom Diaz, No Boundaries: Transnational Latino Gangs and
American Law Enforcement
, Ann Arbor, M.I.: University of Michigan Press, 2009.
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Hispanic gangs. MS-13 was created during the 1980s by Salvadorans in Los Angeles who had
fled the country’s civil conflict. Both gangs later expanded their operations to Central America.
This process accelerated after the United States began deporting illegal immigrants, many with
criminal convictions, back to the region after the passage of the Illegal Immigrant Reform and
Immigrant Responsibility Act (IIRIRA) of 1996.42
Estimates of the overall number of gang members in Central America vary widely, with a top
State Department official recently estimating that there may be 85,000 MS-13 and 18th Street
gang members in the northern triangle countries (El Salvador, Guatemala, and Honduras).43 The
U.N. Office on Drugs and Crime (UNODC) recently estimated total MS-13 and M-18
membership in Guatemala, El Salvador, and Honduras at a more modest 54,000. According to
UNODC, in 2012 there were roughly 20,000 gang members in El Salvador, 12,000 in Honduras,
and 22,000 in Guatemala. El Salvador has the highest concentration of gang members, with 323
for every 100,000 citizens, double the level of Guatemala and Honduras.44 In comparison, in
2007, UNODC cited country membership totals of 10,500 in El Salvador, 36,000 in Honduras,
and 14,000 in Guatemala.45
Nicaragua has a significant number of gang members, but does not have large numbers of MS-13
or M-18 members, perhaps due to the fact that Nicaragua has had a much lower deportation rate
from the United States than the “northern triangle” countries.46 Costa Rica, Panama, and Belize
also have local gangs. There are some MS-13 members present in the Costa Rican border regions,
as well as increasing numbers of MS-13 members in Belize.47
MS-13 and M-18 began as loosely structured street gangs, but there is evidence that both gangs
have expanded geographically, become more organized, and expanded the range of their criminal
activities. As happened in the United States, gang leaders in Central America have used prisons to
recruit new members and to increase the discipline and cohesion among their existing ranks. By
2008, Salvadoran police had found evidence suggesting that some MS-13 leaders jailed in El
Salvador were ordering retaliatory assassinations of individuals in Northern Virginia, as well as
designing plans to unify their clicas (cliques) with those in the United States.48
Central American officials have blamed gangs for a large percentage of homicides committed in
recent years, particularly in El Salvador and Honduras, but some analysts assert that those claims
may be exaggerated.49 The actual percentage of homicides that can be attributed to gangs in

42 IRIRA expanded the categories of illegal immigrants subject to deportation and made it more difficult for immigrants
to get relief from removal.
43 U.S. Department of State, “Gangs, Youth, and Drugs – Breaking the Cycle of Violence,” Remarks by William R.
Brownfield, Assistant Secretary, Bureau of International Narcotics and Law Enforcement Affairs, at the Institute of the
Americas, press release, October 1, 2012. Hereinafter Brownfield, 2012.
44 U.N. Office on Drugs and Crime (UNODC), Transnational Organized Crime in Central America and the Caribbean:
a Threat Assessment
, September 2012, p. 29. Hereinafter: UNODC, 2012.
45 UNODC, Crime and Development in Central America: Caught in the Crossfire, May 2007, p. 60. Hereinafter:
UNODC, 2007.
46 Rodgers et al., 2009.
47 CRS interview with official from the National Gang Unit of U.S. Immigration and Customs Enforcement (ICE),
January 2, 2013.
48 U.S. Department of State, Bureau of International Narcotics and Law Enforcement Affairs, Regional Gang Initiative:
Assessments and Plan of Action
, July 1, 2008.
49 UNODC, Crime and Development in Central America: Caught in the Crossfire, May 2007.
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Central America remains controversial, but analysts agree that the gangs have increasingly
become involved in extortion, kidnapping, human trafficking, and drug, auto, and weapons
smuggling. Gangs have extorted millions of dollars from residents, bus drivers, and businesses in
cities throughout the region. Failure to pay often results in harassment or violence. The Federal
Bureau of Investigation (FBI) has also documented increasing numbers of cases of extortion
schemes carried out by gangs in El Salvador against Salvadorans in the United States.50
Some studies maintain that ties between Central American gangs and organized criminal groups
have increased, while others downplay the connection. Regional and U.S. authorities have
confirmed increasing gang involvement in drug trafficking, although mostly on a local level. MS-
13 members are reportedly being contracted on an ad hoc basis by Mexico’s warring DTOs to
carry out revenge killings. Some analysts assert that the relationship between DTOs and gangs
appears to be most developed in El Salvador and, to a lesser extent, in Honduras, with few DTO-
gang connections in Costa Rica, Guatemala, Nicaragua, or Panama.51
Other Criminal Organizations
Much less information is publicly available about what analysts have termed “other criminal
organizations” than about drug trafficking organizations or gangs operating in the region.
Criminal organizations included in this catchall category may be involved in a wide variety of
illicit activities, including, but not limited to, arms trafficking, alien smuggling, human
trafficking, and money laundering. Some organizations specialize in one type of crime, such as
human trafficking, while other enterprises engage in a range of criminal activities. Although most
of the income-generating activities of these criminal organizations are illicit, some groups receive
revenue through ties to legitimate businesses as well.
Some criminal enterprises active in Central America focus only on a certain neighborhood, city,
or perhaps region in one country, while others, often referred to as “organized crime,”52 possess
the capital, manpower, and networks required to run sophisticated enterprises and to penetrate
state institutions at high levels. The more organized criminal groups in Central America include
both domestically based and transnational groups. In Guatemala, for example, much has been
written on the ongoing influence and illicit activities of domestic criminal organizations, often
referred to as “hidden powers,” whose membership includes members of the country’s political
and economic elite, including current and former politicians and military officials.53 While the
dominant transnational criminal organization may vary from country to country, certain
transnational criminal groups appear to be active throughout the region.

50 U.S. Department of State, Bureau of International Narcotics and Law Enforcement Affairs, Regional Gang Initiative:
Progress Status Report – CY2010
, February 8, 2010.
51 Dudley, May 2010, op. cit.
52 The definition of what constitutes “organized criminal organizations” varies significantly from country to country.
For example, the Mexican government refers to DTOs as organized crime, whereas the U.S. government has
historically considered drug trafficking and organized crime as distinct for programmatic purposes. Similarly, the
Salvadoran government considers gangs as transnational organized crime, while the Nicaraguan government seems to
view gangs as a local problem to be addressed primarily by youth crime prevention programs. For a discussion of the
various definitions of organized crime in the United States, see CRS Report R41547, Organized Crime: An Evolving
Challenge for U.S. Law Enforcement
, by Jerome P. Bjelopera and Kristin Finklea; and CRS Report R40525, Organized
Crime in the United States: Trends and Issues for Congress
, by Kristin Finklea.
53 See, for example, Susan C. Peacock and Adriana Beltrán, Hidden Powers in Post-Conflict Guatemala, WOLA,
September 2003; Brands, May 2010, op. cit.
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Central American Policy Approaches54
Confronting the increasing threat posed by both transnational and domestic criminal
organizations has become a central concern of governments throughout Central America. Until
recently, governments in the northern triangle countries of Central America have tended to adopt
more aggressive law enforcement approaches than the other Central American countries. Those
policies have included deploying military forces to help police perform public security functions
and enacting tough anti-gang laws (in El Salvador and Honduras), which led to large roundups of
suspected gang members. In general, such policies have been put in place in reaction to rising
violence, rather than formulated as part of proactive, forward-looking strategies to strengthen
citizen security. They failed to stave off rising crime rates in the region and have had several
negative unintended consequences, including severe prison overcrowding. As a result, experts
have urged governments to adopt more holistic approaches.55
In recent years, Central American governments have begun to implement divergent approaches to
countering crime and drug trafficking. The Honduran government has repeatedly extended an
emergency decree that grants military personnel broad policing powers, and President Porfirio
Lobo has suggested making the military’s role in internal security permanent.56 Guatemalan
President Otto Pérez Molina, a retired general, has also backed increased military involvement in
efforts against organized crime,57 though he has simultaneously called on the countries of the
region to consider drug decriminalization and other alternative policies.58 In Belize and El
Salvador, the governments have supported efforts to broker truces between warring criminal
gangs, the source of a significant percentage of violent crime. While Belize’s truce, which began
in September 2011, has begun to break down, the truce in El Salvador, launched in March 2012,
thus far has apparently been successful at reducing homicides.59
Just as broad-based anti-crime efforts in particular countries need to be intensified, so too do
regional security efforts. The Central American Integration System (SICA)60 revised its proposal
for a regional security plan for Central America and presented it to the United States and other
international donors at a conference held in Guatemala in June 2011. SICA is now focusing

54 For more on individual nations’ public security strategies, see CRS Report RS21655, El Salvador: Political and
Economic Conditions and U.S. Relations
, by Clare Ribando Seelke, CRS Report R42580, Guatemala: Political,
Security, and Socio-Economic Conditions and U.S. Relations
, by Maureen Taft-Morales, and CRS Report RL34027,
Honduras-U.S. Relations, by Peter J. Meyer.
55 Holistic approaches to addressing gang-related violence may include prevention programs for at-risk youth,
interventions to encourage youth to leave gangs, and the creation of municipal alliances against crime and violence.
56 “Honduras: Lobo Leans Towards a Permanent Military-Security Role,” Latin American Regional Report: Caribbean
& Central America
, April 2012.
57 CNN Wire Staff, "Guatemala's President Calls on Troops to 'Neutralize' Organized Crime," CNN.com, January 16,
2012.
58 Otto Pérez Molina, “We Have to Find New Solutions to Latin America’s Drugs Nightmare,” Guardian, April 7,
2012.
59 Edward Fox, “Is Belize's Gang Truce Breaking Down?,” InSight: Organized Crime in the Americas, May 4, 2012;
“FEATURE-El Salvador's Gang Truce Cuts Murder Rate,” Reuters, July 15, 2012.
60 The Central American Integration System (SICA), a regional organization with a Secretariat in El Salvador, is
composed of the governments of Belize, Costa Rica, El Salvador, Guatemala, Honduras, and Panama. The Security
Commission was created in 1995 to develop and carry out regional security efforts.
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regional efforts on implementing eight key projects under the four broad pillars of the strategy
(see “Regional ” below).61
Military and Law Enforcement
Following the end of armed conflicts and dictatorships in Central America in the 1990s, most
countries made significant progress in subordinating military forces to civilian control and in
reducing the size of military budgets and personnel. They made less progress, however, in
defining proper military-police roles and relationships, particularly as they relate to dealing with
threats to public security.62 Despite, or perhaps because of, that lack of definition, El Salvador,
Guatemala, and Honduras have deployed thousands of troops to help their often underpaid and
poorly equipped police forces carry out public security functions, without clearly defining when
those deployments might end. In Guatemala, military officials maintain that fewer than 10% of
the country’s soldiers perform traditional military functions.63 In El Salvador, some 8,000 troops
are involved in border security efforts, joint patrols with police in high-crime areas, and prison
security.64 Salvadoran President Mauricio Funes appointed his former defense minister, a retired
general, to head the ministry that oversees the national police. Since December 2011, the
Honduran government has granted the military broad powers to carry out police functions.65 This
trend has led many human rights groups to raise concerns about the “re-militarization” of some
Central American countries and to predict an increase in human rights abuses committed by
military personnel in the region who are ill-trained to perform police work (as has occurred in
Mexico).66 Evidence also indicates that military involvement in public security functions has not
reduced crime rates significantly.
In the early 2000s, governments in the northern triangle countries also adopted mano dura
(strong-handed) anti-gang policies in response to popular demands and media pressure for them
to “do something” about an escalation in gang-related crime. Mano dura approaches typically
involve incarcerating large numbers of youth (often those with visible tattoos) for illicit
association, and increasing sentences for gang membership and gang-related crimes. Early public
reactions to the tough anti-gang reforms enacted in El Salvador and Honduras were extremely
positive, supported by media coverage demonizing the activities of tattooed youth gang members,
but the long-term effects of the policies on gangs and crime have been largely disappointing.
Most youth arrested under mano dura provisions were subsequently released for lack of evidence
that they committed any crime. Some youth who were wrongly arrested for gang involvement
were recruited into the gang life while in prison. Moreover, in response to mano dura policies,
gangs have changed their behavior to avoid detection. The Salvadoran government’s recent
support for efforts to broker a truce between gangs could signal a new approach toward gangs in

61 SICA, Dirección General de Seguridad Democrática de la Secretaría General, Boletin Informativo, July 2012,
available at http://www.sica.int/index_en.aspx?Idm=2&IdmStyle=2.
62 Richard L. Millett and Orlando J. Perez, “New Threats and Old Dilemmas: Central America’s Armed Forces in the
21st Century,” Journal of Political and Military Sociology, vol. 33, no. 1 (Summer 2005).
63 CRS interview with Guatemalan military official, January 20, 2011.
64 CRS interview with Salvadoran military official, January 17, 2011.
65 “Gobierno de Honduras Extiende Facultades Policiales a Militares por 90 Días Más,” El Heraldo (Honduras), June
26, 2012.
66 See, for example, relevant sections of George Withers, Lucila Santos, and Adam Isaacson, Preach What you
Practice: the Separation of Military and Police Roles in the Americas
, WOLA, November 2010.
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the region that other nations may seek to replicate if proven successful (see the text box, “The
Salvadoran Gang Truce”).
The Salvadoran Gang Truce
While retired General David Munguía Payés endorsed a hard-line approach to combating gangs when President Funes
appointed him as El Salvador’s minister of public security in late 2011, he has since lent support to a Catholic bishop’s
efforts to broker a truce between the MS-13 and M-18 gangs. He has backed the creation of an elite anti-gang unit
within the national police and a special judicial system to speed up cases involving gangs and other delinquents.67 At
the same time, Munguía Payés agreed to transfer high-ranking gang leaders to less secure prisons in early March 2012
in order to facilitate negotiations for a truce between the gangs. Since the prison transfers took place, homicides in El
Salvador have dramatically declined (from an average of roughly 12 per day to five per day). Gang leaders have
pledged not to forcibly recruit children into their ranks, turned in weapons, and offered to engage in broader
negotiations that could potential y result in a permanent truce.68
While many – including the Secretary General of the Organization of American States (OAS) – have praised the
truce,69 others have expressed skepticism, maintaining that disappearances have increased and extortions have
continued since it took effect.70 Skeptics also maintain that recognizing the gangs as legitimate political actors and
continuing to accede to their demands carries enormous risks for the government. For example, should the
negotiations col apse, the gangs could emerge more powerful and organized than ever after having taken advantage of
months of less restrictive prison conditions.71
Aggressive roundups of criminal suspects have overwhelmed prisons in Central America, which
are in desperate need of reform. Prison conditions in the region are generally harsh, with severe
overcrowding, inadequate sanitation, and staffing shortages. In recent years, facilities that were
already teeming with inmates have been filled beyond their capacities with thousands of
suspected gang members, many of whom have yet to be convicted of any crimes.
In addition to prison reform, large-scale institutional reforms to improve the investigative
capacity of police and the conviction rates secured by public prosecutors’ offices are still needed
in many Central American countries. Such reforms have generally not been undertaken, however,
because of limited funding and political will to do so. The U.S. government has advised
governments to employ “intelligence-led policing” and has called on legislatures in the region to
give police and prosecutors new tools to help them build successful cases, including the ability to
use wiretaps to gather evidence.72 Some countries are also in the process of implementing laws
that would enable assets seized from criminal organizations to fund law enforcement entities.
Improving trust, information-sharing, and coordination between police and prosecutors is another
important component of the reform process. Building that trust will require proper recruiting,
vetting, and training of police and prosecutors, as well as robust systems of internal and external
controls in both institutions to detect and punish corruption.73 Recognizing the challenging nature

67 Fernando do Dios, “Análisis: Qué Esperar de la Nueva Política de Seguridad,” Contrapunto, February 12, 2012.
68 WOLA, El Salvador's Gang Truce: In Spite of Uncertainty, an Opportunity to Strengthen Prevention Efforts, July
17, 2012.
69 Eric Sabo, “Gang Truce Spurs Bond Rally as El Salvador’s Murders Drop 70%,” Bloomberg, July 23, 2012.
70 Douglas Farah, The Transformation of El Salvador’s Gangs into Political Actors, Center for Strategic &
International Studies, June 21, 2012.
71 Ibid.
72 U.S. Department of State, Bureau of International Narcotics and Law Enforcement Affairs, International Narcotics
Control Strategy Report (INCSR)
, March 2011.
73 For detailed information on the status of police reform in Central America and additional reforms that need to be
undertaken in the region, see WOLA, Protect and Serve? The Status of Police Reform in Central America, June 2009,
http://www.wola.org/publications/protect_and_serve_the_status_of_police_reform_in_central_america.
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of institutional reform, some countries have turned to outside help (see the text box, “The
International Commission Against Impunity in Guatemala: A Regional Model?,”).
The International Commission Against Impunity in Guatemala:
A Regional Model?
In August 2007, the Guatemalan Congress ratified an agreement with the United Nations to establish a commission to
support Guatemalan institutions in the identification, investigation, and prosecution of illegal security groups and
clandestine organizations, some of which have been tied, directly or indirectly, to the Guatemalan state. Inaugurated
in January 2008, the International Commission against Impunity in Guatemala (CICIG) is a unique hybrid body that
operates completely within the Guatemalan legal system, includes168 international and local staff,74 and is funded
entirely through international donations. In addition to assisting in investigative and prosecutorial actions, CICIG
undertakes efforts to build capacity within justice sector institutions and recommends public policies and institutional
reforms. CICIG’s mandate, which was originally for two years, has been extended three times and is now scheduled
to end in September 2015.
In its five years of operation, CICIG has produced considerable results. At least 70 individuals have received criminal
sentences stemming from Commission-supported investigations.75 CICIG has also helped prevent a number of
individuals with significant ties to corruption and/or organized crime from being appointed to senior positions in the
Guatemalan state, such as the attorney general’s office and the supreme court.76 Moreover, the Guatemalan
government has approved a number of CICIG-recommended legislative reforms, including anticorruption and asset
forfeiture measures. Some proponents of CICIG argue that perhaps its greatest achievement has been to
demonstrate to the public that Guatemala’s high impunity rates are not inevitable, and the criminal justice system can
be made to work, even against powerful individuals who have long been considered “untouchable.”77 Nevertheless,
many analysts maintain that CICIG must do more to build technical capacity within Guatemalan institutions, and that
success or failure will ultimately depend on the actions of the Guatemalan government and society.78
Given the success of CICIG, other countries in the region—including Belize, El Salvador, and Honduras—have
indicated interest in setting up similar entities or a regional commission to combat organized crime. Although most
analysts agree that other Central American countries would benefit from technical assistance in conducting
investigations and prosecutions, there is disagreement concerning what form of assistance would be most beneficial.
Some have suggested that a regional commission would be best, given the regional nature of organized crime.79
Others argue that separate commissions may be more useful since security conditions and institutional capacity vary
between the countries.80 It may be difficult to establish commissions of any form, however, as countries would need
to look to international donors for funding, and many citizens and legislators are opposed to ceding sovereignty to
international bodies.
Prevention
In the past few years, Central American leaders, including those from the northern triangle
countries, appear to have moved, at least on a rhetorical level, toward more comprehensive
approaches to dealing with gangs and crime. In mid-December 2007, then-Salvadoran President
Tony Saca opened a summit of the Central America Integration System (SICA) by stating that the

74 According to CICIG, 65 (about 39%) of the officials are Guatemalan; International Commission against Impunity in
Guatemala (CICIG), Report on the Fifth Year of Activities, September 11, 2012.
75 Ibid.
76 International Crisis Group, Learning to Walk Without a Crutch: An Assessment of the International Commission
Against Impunity in Guatemala
, Latin America Report Nº36, May 31, 2011.
77 Morris Panner and Adriana Beltrán, “Battling Organized Crime in Guatemala,” Americas Quarterly, Fall 2010.
78 International Crisis Group, May 2011, op.cit.; Daniel Pacheco, “Guatemala Must Fight Impunity from Within:
CICIG Director,” Insight: Organized Crime in the Americas, June 1, 2012.
79 CRS interview with analysts at the Fundación Salvadoreña para el Desarrollo Económico y Social (FUSADES),
January 18, 2011.
80 CRS interview with CICIG official, January 20, 2011.
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gang problem had shown the importance of coordinated anti-crime efforts, with the most
important element of those efforts being prevention. All of the Central American countries have
created institutional bodies to design and coordinate crime prevention strategies and have units
within their national police forces engaged in prevention efforts. Some governments, with support
from the U.N. Development Program (UNDP) and other donors, have also begun to encourage
municipalities to develop crime prevention plans. In general, however, government-sponsored
prevention programs have tended, with some exceptions (such as Nicaragua’s national youth
crime prevention strategy), to be small-scale, ad hoc, and underfunded. Governments have been
even less involved in sponsoring rehabilitation programs for individuals seeking to leave gangs,
with most reintegration programs funded by church groups or nongovernmental organizations
(NGOs).
Central American government officials have generally cited budgetary limitations and competing
concerns as major factors limiting their ability to implement more extensive prevention and
rehabilitation programs. This may be changing, however, as the Funes government in El Salvador
has increased funding for prevention programs and sought international assistance to fund the
types of large-scale reinsertion programs that experts say will be necessary for the
aforementioned gang truce to be successful. Experts have long argued that it is important for
governments to offer educational and job opportunities to youth who are willing to leave gangs
before they are tempted to join more sophisticated criminal organizations. It is also critical, they
argue, for intervention efforts to focus on strengthening families of at-risk youth.81
Counterdrug Efforts
Despite having limited technology and relatively small interdiction budgets, many countries have
markedly increased their seizures of drugs and illicit funds over the past few years, with Panama
showing especially high seizure rates. In 2012, Costa Rica, Guatemala, Honduras, Nicaragua, and
Panama seized more cocaine than Mexico (see Table 2). Although large quantities of cocaine do
not tend to flow through El Salvador, and the country has registered only small cocaine seizures
in recent years, Salvadoran police officials seized over $2 million in currency and property related
to illicit activities in 2012.82
Even with these increasing seizure rates, however, obstacles to more effective counterdrug efforts
are numerous and have not changed significantly over time.83 Some of those obstacles include a
lack of funding and equipment for security forces engaged in interdiction efforts, an inability to
sustain programs started with U.S. assistance, limited political support in some countries, and
corruption.84 For example, Costa Rica, which has no military, reported in 2011 that it had only

81 Bernardo Kliksberg, Mitos y Realidades Sobre la Criminalidad en America Latina (Guatemala City: F & G Editores,
2007).
82 INCSR, March 2013, op. cit.
83 A 1994 report by what was then known as the U.S. General Accounting Office found that “although all of the Central
American countries have drug control efforts underway, no country possesses the technical, financial or human
resources necessary to run an efficient drug interdiction program ... [and that] corruption also limits the effectiveness of
Central American governments’ narcotics control efforts.” U.S. General Accounting Office, Interdiction Efforts in
Central America Have Had Little Impact on the Flow of Drugs
, GAO/NSIAD- 94-233, August 1994,
http://www.fas.org/irp/gao/nsi94233.htm.
84 U.S. Government Accountability Office (GAO), Cooperation with Many Major Drug Transit Countries Has
Improved, but Better Performance Reporting and Sustainability Plans Are Needed, GAO-08-784, July 2008,
http://www.gao.gov/new.items/d08784.pdf.
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three boats with no nighttime navigation capacity to patrol its coastline, and no helicopters,
radars, or planes for police engaged in interdiction efforts.85 In Guatemala, corruption among
high-level officials has exacerbated the country’s resource constraints and limited political will.
Table 2. Estimated Cocaine Seizures in 2012, by Country
(in metric tons)
Costa
El
Belize
Rica
Salvador Guatemala Honduras Nicaragua Panama Mexico
0.1 14.7 0.3 4.7 22.0 9.3 30.8 3.0
Source: U.S. Department of State, Bureau of International Narcotics and Law Enforcement Affairs, International
Narcotics Control Strategy Report (INCSR)
, March 5, 2013.
Regional Cooperation
Some analysts maintain that the increasing threat posed by transnational organized crime has led
to greater security cooperation among Central American countries; others disagree, maintaining
that many obstacles to regional efforts remain.86 While most governments appear to agree on a
theoretical level that they need to work together on security issues and to approach donors jointly,
they continue to differ among themselves as to the biggest threats facing the region and the best
ways to combat those threats. The need to cooperate on shared security challenges has also
sometimes been overshadowed by unrelated disputes among the countries, including the recent
Costa Rica-Nicaragua border dispute. Even when the will to collaborate as a region has existed,
political instability in particular countries, such as the June 2009 ouster of the president of
Honduras, has inhibited regional efforts.
Central American governments have demonstrated differing levels of political will to address
crime and tackle corruption, and varying degrees of willingness to collaborate with the United
States, a major donor in the region. For example, according to a recent UNDP report, the Central
American governments together spent a total of almost $4 billion on security and justice in 2010,
a 60% increase in total spending since 2006.87 That aggregate figure masks significant variance
among the countries in terms of the amount of funding budgeted for criminal justice and law
enforcement ministries. While funds dedicated to police and public security have increased
significantly in Costa Rica, Honduras, and Panama, the other countries have posted more
moderate increases in security spending. Varying degrees of cooperation exist between Central
American governments and the U.S. government. For example, although cooperation continues
between the Drug Enforcement Administration (DEA) and the Nicaraguan Navy on interdiction,
the Nicaraguan government has disbanded the vetted anti-drug police unit trained by the DEA.88
Central American leaders and officials have regularly met over the past few years, often
accompanied by their U.S. and Mexican counterparts, to discuss ways to better coordinate

85 CRS correspondence with Embassy of Costa Rica official, March 3, 2011.
86 “Central America: Prospects for a new U.S.-Backed Regional Scheme,” Latin American Security and Strategic
Review
, February 2011.
87 UNDP, Información Sobre el Gasto Público de Seguridad y Justicia en Centroamérica 2006-2010, Versión
Preliminar, June 2011, http://www.pnud.org.gt/data/publicacion/informe_gastopublico.pdf.
88 INCSR, March 2011, op.cit.
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security efforts and information sharing on gang members and other criminal groups. Most of the
regional security meetings have been organized by the Security Commission of SICA. The
leaders of the SICA member states and the president-elect of Mexico began developing a regional
security strategy in October 2006, which was subsequently adopted at a summit held in August
2007.89 The strategy identified eight threats to regional security, including organized crime, drug
trafficking, deportees with criminal records, gangs, homicide, small arms trafficking, terrorism,
and corruption. In 2008, SICA estimated that the costs to implement its regional security plan
could exceed $953 million.90
Until recently, most regional security cooperation has occurred on a declarative, rather than an
operational, level. International donors (including the United States) have formed a Group of
Friends of Central America91 that has worked with the Central American governments and SICA
to revise the aforementioned security plan. The scope of SICA’s proposed plan was modified to
focus only on efforts in Central America (not Mexico), to prioritize fewer initiatives, and to
address new security threats that have emerged in the last few years. SICA convened a donors’
conference in Guatemala City on June 22-23, 2011, at which donors pledged roughly $1.1 billion
in new funding for specific projects and ongoing support for the Central American Security
Strategy (CASS).92 The new aid pledged at the donor’s conference is in addition to roughly $1.7
billion in committed or dispersed funds that donors provided between January 2009 and June
2011.93
Since the June 2011 conference, donors have been working with SICA to identify funding and
begin implementing eight priority projects developed under four broad categories: (1) combating
crime; (2) institutional strengthening; (3) violence prevention; and (4) rehabilitation and
penitentiaries. As of June 2012, at least two institutional strengthening projects for police and
judicial institutions funded by the European Union and Spain had begun to be implemented.94
Some observers have questioned whether SICA has the institutional capacity to manage projects
across the Central American region.95

89 A copy of that version of the strategy is available at http://www.state.gov/p/wha/rls/93586.htm.
90 SICA General Secretariat, Fifth Meeting of the Working Group for Drafting Proposals to Finance Central American
Security, May 13-14, 2008.
91 The Group of Friends of Central America originally included Canada, Spain, the United States, the European
Commission, the Inter-American Development Bank (IDB), the Organization of American States (OAS), the United
Nations, and the World Bank.
92 In addition to the aforementioned donors, Colombia, Finland, Germany, Israel, Italy, Japan, South Korea, Mexico,
and Norway signed on to a joint statement in support of the new Central American Security Strategy. See U.S.
Department of State, “Joint Press Statement of Support for the Central American Security Strategy,” press release, June
21, 2011, and “Central America Gets More Than Expected to Spend on its Public Security Strategy,” Latin American
Security and Strategic Review
, June 2011.
93 Inter-American Development Bank (IDB) and Washington Office on Latin America (WOLA), Mapeo de las
Intervenciones de Seguridad Ciudadana en Centroamérica Financiadas por la Cooperación Internacional
, June 2011.
94 SICA, Secretaría General, Estado de Situación del Financiamiento Cuantificado de los Primeros 8 Proyectos para
Poner en Marcha la Estrategia de Seguridad de Centroamérica
, July 2012.
95 “Central America: Region Hails ‘Historic’ Security Summit; Doubts Persist,” Latin American Weekly Report, June
30, 2011.
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U.S. Policy
U.S. security policy in the Western Hemisphere has changed considerably in recent years. In the
aftermath of the Cold War, preventing narcotics from reaching the United States became the
primary focus of U.S. security efforts in the hemisphere. In an attempt to reduce the supply of
illicit drugs, the bulk of U.S. security assistance was concentrated in Colombia and the other
cocaine-producing nations of the Andean region of South America. The United States provided
some support for counternarcotics and other security efforts elsewhere in the hemisphere—
including a major interdiction effort in Central America in the early 1990s—but the funding
levels were comparatively low. Although U.S.-led efforts have contributed to temporary successes
in particular countries or sub-regions, they have done little to change the overall availability of
illicit drugs in the United States, as traffickers have altered their cultivation patterns, production
techniques, and trafficking routes and methods in order to avoid detection. These mixed results,
along with rising levels of crime and violence throughout the hemisphere, have led policymakers
to move toward a more comprehensive approach to security issues.96
While largely maintaining previous narcotics supply reduction efforts, U.S. policy now places
increased emphasis on coordinating efforts throughout the hemisphere and strengthening the
capacities of partner governments. The Obama Administration, which has made ensuring the
safety and security of all citizens one of the four overarching priorities of U.S. policy in Latin
America, has sought to develop collaborative partnerships with countries throughout the
hemisphere.97 These partnerships have taken the form of bilateral security cooperation with
countries like Colombia and Mexico, as well as regional programs such as the Caribbean Basin
Security Initiative (CBSI) and the Central America Regional Security Initiative (CARSI).
According to the State Department, activities supported through these partnerships are designed
to be complementary and are developed in coordination with one another, drawing on lessons
learned from past U.S. initiatives. In addition to providing equipment, training, and technical
assistance to support immediate law enforcement and interdiction operations, these partnerships
seek to strengthen the capacities of governmental institutions to address security challenges and
the underlying economic and social conditions that contribute to them.98
Despite these changes in emphasis, a number of leaders in the region have questioned the
effectiveness of U.S. counternarcotics policies. In 2011, a commission of prominent world
leaders—including former presidents of Brazil, Colombia, and Mexico—concluded that U.S.
counternarcotics policies “have clearly failed to effectively curtail supply or consumption.” The
commission suggested that supply reduction and incarceration strategies are futile and that
government resources would be better spent on demand and harm reduction efforts.99 Likewise,
several current Latin American presidents expressed frustration with U.S.-backed policies in the
lead up to the April 2012 Summit of the Americas. The leaders attending the summit called on the

96 For more information on the evolution of U.S. policies, see CRS Report R41215, Latin America and the Caribbean:
Illicit Drug Trafficking and U.S. Counterdrug Programs
, coordinated by Clare Ribando Seelke. For information on
interdiction efforts in Central America in the early 1990s, see GAO, August 1994, op. cit.
97 Valenzuela testimony, February 2011, op. cit.
98 U.S. Department of State, “Hemispheric Security—An Integrated U.S. Government Approach,” January 25, 2011.
99 Global Commission on Drug Policy, War on Drugs: Report of the Global Commission on Drug Policy, June 2011,
http://www.globalcommissionondrugs.org/Report.
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OAS to analyze the results of current policies and explore new approaches that may be more
effective.100
Background on Assistance to Central America
Given the proximity of Central America, the United States has long been concerned about
potential security threats from the region and has provided Central American nations with
assistance to counter those threats. During the Cold War, the United States viewed links between
the Soviet Union and leftist and nationalist political movements in Central America as a potential
threat to U.S. strategic interests. To prevent Soviet allies from establishing political or military
footholds in the region, the United States heavily supported anti-communist forces, including the
Salvadoran government in its battle against the leftist insurgency of the Farabundo Martí National
Liberation Front (FMLN), and the contra forces seeking to overthrow the leftist government of
the Sandinista National Liberation Front (FSLN) in Nicaragua.101 Between 1979, when the
Sandinistas seized power in Nicaragua, and 1992, when peace accords were signed to end the
civil war in El Salvador, U.S. economic and military assistance to Central America averaged over
$1.2 billion (constant 2011 U.S. dollars) annually.102
Following the dissolution of the Soviet Union and the end of the civil wars in the region, U.S.
assistance to Central American nations declined substantially. Between FY1993 and FY2007,
U.S. economic and military assistance to Central America averaged $420 million (constant 2011
U.S. dollars) annually, roughly a third of what had been provided in the previous 14 years.103
Likewise, the majority of the assistance provided was directed toward economic and political
development, as the United States sought to encourage the spread of free-market economic
policies and the consolidation of democratic governance. Of the security-related assistance that
the United States has provided to the region since the end of the Cold War, a substantial portion
has been dedicated to U.S. Agency for International Development (USAID) rule of law programs,
which have provided support for justice sector reforms in several Central American nations since
the 1980s.104 In El Salvador—where institutional reforms have perhaps been the most extensive—
USAID has supported the establishment of informal justice centers that provide community-level
mediation and dispute resolution, and the transformation of the judicial process from a written,
inquisitorial system to an oral, accusatorial system, among other efforts. Although reforms such
as these have strengthened the rule of law in El Salvador and other Central American nations,
progress has been uneven and many justice sector institutions remain relatively weak, as noted
above.105

100 OAS document, CA-VI/DP-1/2, Statement by the President of the Republic, Juan Manuel Santos Calderon,
Following the Close of the Sixth Summit of the Americas
, April 15, 2012.
101 U.S. Congress, Joint Economic Committee, The Caribbean Basin: Economic and Security Issues, committee print,
Central America: Continuing U.S. Concerns, study paper prepared by Nina M. Serafino of the Congressional Research
Service, 102nd Cong., 2nd sess., January 1993, S.Prt. 102-110 (Washington: GPO, 1993), pp. 173-178.
102 Assistance peaked in 1985 at $2.4 billion (constant 2011 U.S. dollars). U.S. Overseas Loans and Grants, op. cit.
103 Ibid.
104 USAID initiated rule of law programs in El Salvador in 1984, in Costa Rica and Honduras in 1985, in Guatemala in
1986, and Panama in 1992. U.S. Agency for International Development (USAID), Bureau for Democracy, Conflict,
and Humanitarian Assistance, Office of Democracy and Governance, Achievements in Building and Maintaining the
Rule of Law
, Occasional Papers Series, November 2002.
105 Ibid.
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Central America Regional Security Initiative
Formulation
The impetus for increased U.S.-Central American cooperation on security issues stemmed from a
trip by then-President George W. Bush to Central America and Mexico in March 2007. Concerns
over an increase in narcotics flows and the rapid escalation of crime and violence in the region
reportedly dominated the President’s conversations with his counterparts, as well as follow-on
consultations between U.S., Central American, and Mexican officials. To capitalize on the
emergence of a cohesive security dialogue among the seven nations of Central America and the
Mexican government’s willingness to address the issues of drug trafficking and organized crime,
the Bush Administration began to develop the framework for a new regional security partnership.
In October 2007, the Bush Administration requested funding for a security assistance package
designed to support Mexico and the countries of Central America in their fight against organized
crime, to improve communication among the various law enforcement agencies, and to support
the institutional reforms necessary to ensure the long-term enforcement of the rule of law and
protection of civil and human rights.106 This security assistance package was originally known as
the Mérida Initiative, named after the location in Mexico where President Bush had met with
President Calderón. The Central America portion of Mérida was split into a separate Central
America Regional Security Initiative (CARSI) in FY2010. Officials from nearly every Central
American nation maintain that the region was not sufficiently involved in the formulation of
Mérida/CARSI, and that the initiative could be more responsive to host government priorities.107
As currently formulated, CARSI provides equipment, training, and technical assistance to build
the capacity of Central American institutions to counter criminal threats. In addition, CARSI
supports community-based programs designed to address underlying economic and social
conditions that leave communities vulnerable to those threats. The five primary goals of CARSI
are to:
1. create safe streets for the citizens of the region;
2. disrupt the movement of criminals and contraband within and among the nations
of Central America;
3. support the development of strong, capable, and accountable Central American
governments;
4. establish effective state presence and security in communities at risk; and
5. foster enhanced levels of coordination and cooperation among the nations of the
region and other international partners to combat security threats.108

106 Testimony of Thomas A. Shannon Jr., Assistant Secretary of State for Western Hemisphere Affairs, and David T.
Johnson, Assistant Secretary of State for International Narcotics and Law Enforcement Affairs, U.S. Department of
State, before the House Committee on Foreign Affairs, November 14, 2007.
107 CRS interviews with Central American embassy officials, October 27, November 2, 3, and 9, 2010.
108 U.S. Department of State, Bureau of Western Hemisphere Affairs, “The Central America Regional Security
Initiative: Enhanced Levels of Cooperation and Coordination,” Fact Sheet, January 17, 2012.
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Funding from FY2008-FY2014109
From FY2008-FY2012, Congress appropriated $496.5 million for the countries of Central
America under what was formerly known as the Mérida Initiative-Central America and is now
known as CARSI. While CARSI funding for FY2013 is currently unclear as a result of the
delayed approval of a full year appropriations bill and the budget sequestration process, the
Obama Administration has requested $161.5 million to be provided through CARSI in FY2014
(see Table 3 below).
Table 3. Funding for CARSI, FY2008-FY2014
($ in millions)
FY2008
FY2009
FY2010
FY2011
FY2012
FY2013
FY2014
Account
(Actual)
(Actual)
(Actual)a
(Actual)
(Actual)
(Request)b (Request)
ESF
25.0 18.0 23.0 30.0 50.0 47.5 61.5
INCLE
24.8 70.0 65.0 71.5 85.0 60.0 100.0
NADR
6.2
— — — — — —
FMF
4.0 17.0 7.0 — — — —
Total
60.0 105.0 95.0 101.5 135.0 107.5 161.5
Sources: U.S. Department of State, Fiscal Year 2012 Congressional Spending Plan: Central America Regional Security
Initiative
, June 19, 2012; Congressional Budget Justification for Foreign Operations, Fiscal Year 2013, April 3, 2012; and
Executive Budget Summary: Function 150 and Other International Programs, Fiscal Year 2014, April 10, 2013.
Notes: ESF = Economic Support Fund; INCLE = International Narcotics Control and Law Enforcement; NADR
= Nonproliferation, Anti-Terrorism, De-mining and Related Programs; and FMF = Foreign Military Financing.
a. In the 2010 Consolidated Appropriations Act (P.L. 111-117), Congress appropriated “up to” $83 mil ion for
the countries of Central America “only to combat drug trafficking and related violence and organized crime,
and for judicial reform, institution building, anti-corruption, rule of law activities, and maritime security.”
After consultations with Congress, the Department of State allocated an additional $12 million in ESF from
funds appropriated to its Western Hemisphere Regional account to crime and violence prevention
programs administered by USAID, bringing total FY2010 CARSI funding to $95 million.
b. Since Congress did not adopt a full year appropriations bill for FY2013 until March 2013, and foreign
operations funding is subject to budget sequestration, it is currently unclear how much funding will be
al ocated to CARSI in FY2013.
According to a recent report by the U.S. Government Accountability Office (GAO), a slight
majority of the resources Congress has appropriated for CARSI have been allocated to the
northern triangle nations of El Salvador, Guatemala, and Honduras. From FY2008-FY2011, about
23% of CARSI funding was allocated to Guatemala, 17% was allocated to El Salvador, and 13%
was allocated to Honduras. In comparison, about 10% was allocated to Panama, 6% to Costa
Rica, and 4% to Belize and Nicaragua. Nearly a quarter of CARSI funding appropriated in the
first four years of the program was allocated to regional programs that benefit multiple countries
(see Figure 4 below).110

109 This section partially draws from CRS Report R40135, Mérida Initiative for Mexico and Central America: Funding
and Policy Issues
, by Clare Ribando Seelke.
110 U.S. Government Accountability Office (GAO), Status of Funding for the Central America Regional Security
Initiative
, GAO-13-295R, January 30, 2013, http://www.gao.gov/assets/660/651675.pdf.
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Figure 4. CARSI Allocations by Country
(Al Funding from FY2008-FY2011)
Belize, 4.3%
Costa Rica,
6.3%
Regional, 23.1%
El Salvador,
16.8%
Panama, 10.4%
Guatemala,
Honduras,
22.5%
12.8%
Nicaragua,
3.9%

Source: CRS analysis of data from U.S. Government Accountability Office (GAO), Status of Funding for the
Central America Regional Security Initiative
, GAO-13-295R, January 30, 2013.
FY2008 Appropriations
When announcing the Mérida Initiative, the Bush Administration originally requested $50 million
for the countries of Central America. All of the funds were requested in the International
Narcotics Control and Law Enforcement (INCLE) account, and were designated to be used for
public security and law enforcement programs. Members of Congress, some of whom expressed
considerable disappointment that they were not consulted as the plan was being formulated,111
dedicated additional funds to Central America and broadened the focus of the initiative.
Through the FY2008 Supplemental Appropriations Act (P.L. 110-252), Congress appropriated
$60 million for Central America and divided the funds among the following accounts: INCLE;
Economic Support Fund (ESF); Nonproliferation, Anti-Terrorism, De-mining and Related
Programs (NADR); and Foreign Military Financing (FMF). Congress allotted $25 million in ESF
funds for the creation of an Economic and Social Development Fund for Central America, $20
million of which was to be administered by USAID and $5 million of which was to be
administered by the State Department to support educational and cultural exchange programs.
Congress also allotted $1 million to support the International Commission against Impunity in
Guatemala (CICIG).112 The act required the State Department to withhold 15% of the INCLE and
FMF assistance appropriated for the countries of Central America until the Secretary of State
could report that the Central American governments were taking steps to improve respect for

111 U.S. Congress, House Committee on Foreign Affairs, The Merida Initiative: Assessing Plans to Step Up Our
Security Cooperation with Mexico and Central America
, 110th Cong., 1st sess., November 14, 2007, Serial No. 110-135
(Washington: GPO, 2008).
112 For more information on CICIG, see the text box titled “The International Commission Against Impunity in
Guatemala: A Regional Model?” above.
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human rights, such as creating police complaints commissions, reforming their judiciaries, and
investigating and prosecuting military and police forces that had been credibly alleged to have
committed human rights violations.
FY2009 Appropriations
In the FY2009 Omnibus Appropriations Act (P.L. 111-8), Congress provided $105 million in
funding for Central America. It required that at least $35 million of the funds appropriated for the
region be used to support judicial reform, institution building, anti-corruption, and rule of law
activities. The explanatory statement to the act directed that $70 million of the funds for the
region be provided through the INCLE account, that $15 million of the FMF funds support
maritime security programs, and that $12 million in ESF support USAID’s Economic and Social
Development Fund for Central America. The FY2009 funds were subject to the same human
rights conditions as the funds provided through the FY2008 supplemental.
FY2010 Appropriations
In the FY2010 Consolidated Appropriations Act (P.L. 111-117), Congress appropriated “up to”
$83 million for the countries of Central America “to combat drug trafficking and related violence
and organized crime, and for judicial reform, institution building, anti-corruption, rule of law
activities, and maritime security.” After consultations with Congress, the Department of State
allocated an additional $12 million in ESF from funds appropriated to its Western Hemisphere
Regional account to crime and violence prevention programs administered by USAID, bringing
total FY2010 CARSI funding to $95 million.
The conference report to the act (H.Rept. 111-366) split Central America funding from the Mérida
Initiative and placed it under a new Central America Regional Security Initiative (CARSI). The
Obama Administration embraced the change as a way to focus more attention on the situation in
Central America and U.S. efforts in the region. In addition to subjecting CARSI funds to the same
human rights conditions as previous years, the conference report to the act directed the Secretary
of State to submit a report within 90 days of enactment detailing regional threats or problems to
be addressed in the region, as well as realistic goals for U.S. efforts and actions planned to
achieve them.
FY2011 Appropriations
After a series of continuing resolutions, the FY2011 Department of Defense and Full-Year
Continuing Appropriations Act (P.L. 112-10) was signed into law on April 15, 2011. The
legislation had no accompanying report and did not designate a funding level for CARSI. It did,
however, direct the Obama Administration to report back to Congress within 30 days on its
proposed allocations of the appropriated funds. After consultations with Congress, the
Department of State allocated $101.5 million for CARSI in FY2011.113 The funds were subject to
the same human rights conditions as previous years.

113 U.S. Department of State, Congressional Notification for the Central America Regional Security Initiative, August
11, 2011 (Hereinafter, FY2011 CARSI CN, August 2011.)
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FY2012 Appropriations
President Obama signed the Consolidated Appropriations Act of 2012 (P.L. 112-74) into law on
December 23, 2011. Although the legislation did not designate a funding level for CARSI, the
accompanying report (H.Rept. 112-331) noted the conferees’ support for the Obama
Administration’s budget request, which was $100 million. The report also directed the Secretary
of State to submit a spending plan for CARSI noting “activities that were conducted with prior
year appropriations, achievements associated with the expenditure of such funds, and activities
that will be funded in fiscal year 2012, including goals to be met.” The State Department
submitted the FY2012 CARSI spending plan to Congress in June 2012. According to the
spending plan, CARSI funding for FY2012 was increased to $135 million.114
Neither the legislation nor the accompanying report included the human rights provisions from
previous years that required the Department of State to withhold a portion of CARSI funding
until certain conditions were met. The legislation did include a new Honduras-specific provision,
however, that required the Department of State to withhold 20% of the funds for Honduran
military and police forces until the Secretary of State could report that the Honduran government
was (1) implementing policies to protect freedom of expression and association, and due process
of law; and (2) investigating and prosecuting military and police personnel who are credibly
alleged to have violated human rights. The provision did not apply to assistance intended to
promote transparency, anti-corruption, and the rule of law within the military and police forces.
FY2013 Appropriations
Although the appropriations committees in both houses of Congress reported out their respective
versions of the annual Department of State, Foreign Operations, and Related Programs
Appropriations Act (H.R. 5857 and S. 3241) in May 2012, Congress delayed floor consideration
of FY2013 appropriations bills until after the November 2012 elections. In September 2012,
Congress enacted a six-month continuing resolution (P.L. 112-175) to maintain funding into the
new fiscal year. Prior to the expiration of that stopgap measure, Congress approved new
legislation on March 21, signed by the President on March 26, 2013 (P.L. 113-6), to fund federal
programs through the end of FY2013. Under P.L. 113-6, most State-Foreign Operations accounts
are funded at the same level as in FY2012. These accounts are subject to the budget sequestration
process that is currently in effect, however, which may significantly reduce the actual funding
levels that are made available to agencies. Given uncertainty regarding how sequestration will be
applied to particular programs, it is currently unclear how much funding will be provided through
CARSI in FY2013. P.L. 113-6 does not include any CARSI-specific conditions but maintains the
human rights conditions on security assistance for Honduras that were originally enacted in
FY2012.
Programs
Through CARSI, the United States funds a variety of activities designed to support U.S. and
Central American security objectives. U.S. agencies provide partner nations with equipment,
technical assistance, and training to improve narcotics interdiction and disrupt criminal networks

114 U.S. Department of State, Fiscal Year 2012 Congressional Spending Plan: Central America Regional Security
Initiative
, June 19, 2012 (Hereinafter FY2012 CARSI Spending Plan, June 2012).
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that operate in the region, as well as in the United States. CARSI-funded activities also provide
support for Central American law enforcement and justice sector institutions, identifying
deficiencies and building their capacities to ensure the safety and security of the citizens of the
region. In addition, CARSI supports prevention efforts that seek to reduce drug demand and
provide at-risk youth with educational, vocational, and recreational opportunities. Many of the
activities funded by CARSI build on previous security efforts in the region. U.S. officials assert
that although CARSI allows the United States to set up pilot programs that demonstrate
potentially successful approaches to improving security conditions, it is up to Central American
nations themselves to sustain successful programs and apply the lessons learned nationwide.115
Narcotics Interdiction and Law Enforcement Support
Some U.S. assistance provided through CARSI provides Central American nations with
equipment and related maintenance, technical support, and training to support narcotics
interdiction and other law enforcement operations. In addition to the provision and refurbishment
of aircraft, boats, and other vehicles, CARSI provides communications, border inspection, and
security force equipment such as radios, computers, X-ray cargo scanners, narcotics identification
kits, weapons, ballistic vests, and night-vision goggles. Although the types of equipment and
training vary according to the capabilities and needs of each Central American nation, in general,
the assistance is designed to extend the reach of the region’s security forces and enable countries
to better control their national territories. For example, an aviation support program is providing
Guatemala with helicopters116 that enable security forces to rapidly reach areas of the country that
would otherwise be too difficult or dangerous to access, thereby limiting sanctuaries for DTOs.
The program was launched in FY2009 and is expected to last through FY2013, at which point the
Guatemalan government is supposed to become responsible for sustaining it.117
U.S. assistance provided through CARSI also supports specialized law enforcement units that are
vetted by, and work with, U.S. personnel to investigate and disrupt the operations of transnational
gangs and trafficking networks. FBI-led Transnational Anti-Gang (TAG) units, which were first
created in El Salvador in 2007, have now expanded into Guatemala and Honduras with CARSI
support. According to the FBI, intelligence collected by the Salvadoran TAG unit has been used
to convict criminals in both El Salvador and the United States.118 DEA, ICE, and the Department
of State’s Bureau of International Narcotics and Law Enforcement Affairs (INL) also have vetted
unit programs throughout Central America. Among other activities, they conduct complex
investigations into money laundering; bulk cash smuggling; and the trafficking of narcotics,
firearms, and persons.119 Although these units have produced some notable successes,120 they are
small and difficult to maintain given the broader context of corruption within many Central
American law enforcement institutions. In El Salvador, for example, the DEA-vetted unit was

115 CRS interview with State Department official at the U.S. Embassy in Guatemala, January 19, 2011.
116 These helicopters were moved to Honduras for 90 days from April-July 2012 to support an air interdiction effort
known as Operation Anvil. For more information, see CRS Report RL34027, Honduras-U.S. Relations, by Peter J.
Meyer.
117 U.S. Department of State, FY 2010 Spending Plan for the Central America Regional Security Initiative (CARSI),
July 29, 2010 (Hereinafter FY2010 CARSI Spending Plan, July 2010); FY2011 CARSI CN, August 2011, op.cit.
118 CRS interview with FBI attaché at the U.S. embassy in El Salvador, January 18, 2011.
119 FY 2010 CARSI Spending Plan, July 2010, op. cit; FY2011 CARSI CN, August 2011, op.cit.
120 For examples, see Charlie Savage, Randal C. Archibold, and Ginger Thompson, “D.E.A. Squads Extend Reach of
Drug War,” New York Times, November 7, 2011.
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reduced from 22 members to 8 at one point after polygraph tests demonstrated that nearly two-
thirds of the officers were no longer suitable for the unit.121
Institutional Capacity Building
In addition to immediate support for law enforcement efforts, CARSI provides funding to identify
deficiencies and build long-term capacity within law enforcement and justice sector institutions.
INL and USAID community-policing programs are designed to build local confidence in police
forces by converting them into more community-based, service-oriented organizations.122 One
such program, the Villa Nueva model precinct in Guatemala, is being replicated with CARSI
funding as a result of its success in establishing popular trust and reducing violence.123 To
improve the investigative capacity of Central American nations, CARSI has supported
assessments of forensic laboratories, the establishment of wiretapping centers, the implementation
of ATF’s Electronic Trace Submission (eTrace) System to track firearms, and the expansion of the
FBI’s Central America Fingerprint Exchange (CAFE), which assists partner nations in developing
fingerprint and biometric capabilities.
CARSI also seeks to reduce impunity by improving the efficiency and effectiveness of Central
American judicial systems. U.S. agencies provide training and technical assistance designed to
enhance prosecutorial capabilities, improve the management of courts, and facilitate coordination
between justice sector entities. Moreover, they provide training and technical assistance to
improve police academies and prison management, which repeatedly have been identified as
major weaknesses throughout the region.124
Prevention
Beyond providing support for law enforcement and institutional capacity-building efforts, CARSI
funds a variety of prevention programs designed to address underlying conditions that leave
communities vulnerable to crime and violence. USAID asserts that Central American youth often
see few alternatives to gangs and other criminal organizations as a result of the social and
economic exclusion that stems from dysfunctional families, high levels of unemployment,
minimal access to basic services, ineffective government institutions, and insufficient access to
educational and economic opportunities. Through its management of most CARSI funds
appropriated through the ESF account, USAID supports prevention programs designed to address
these issues by providing educational, recreational, and vocational opportunities for at-risk
youth.125
Although projects vary by country, nearly all are community-based and municipally led as a
result of lessons learned through previous efforts in the region.126 In El Salvador, for example,
USAID’s Community-Based Crime and Violence Prevention Project works in municipalities to

121 CRS interview with DEA attaché at the U.S. embassy in El Salvador, January 18, 2011.
122 CRS interview with USAID officials in El Salvador, January 18, 2011.
123 CRS interviews with Villa Nueva model precinct officers, January 19, 2011.
124 FY 2010 CARSI Spending Plan, July 2010, op. cit.; FY2011 CARSI CN, August 2011, op.cit.; FY2012 CARSI
Spending Plan
, June 2012, op.cit.
125 Ibid.
126 CRS interview with USAID officials in El Salvador, January 18, 2011.
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strengthen the capacities of local governments, civil society organizations, community leaders,
and youth to address the problems of crime and violence. Prevention councils in each
municipality analyze problems within the community and develop prevention plans to address
those problems through activities ranging from vocational training to social entrepreneurship
projects.127 Region-wide, CARSI funds have been used to establish at least 65 community
outreach centers that provide employment resources and other opportunities for at-risk youth.128
USAID has expanded the reach of its CARSI efforts in many countries by supplementing the
funds provided through the initiative with funds appropriated for bilateral assistance.129
Coordination
A number of U.S. and partner nation agencies are involved in developing, supporting, and
implementing CARSI activities. The U.S. agencies involved include the Departments of State,
Defense, and Treasury; Immigration and Customs Enforcement (ICE); Customs and Border
Protection (CBP); the U.S. Coast Guard; the Federal Bureau of Investigation (FBI); the Drug
Enforcement Administration (DEA); the Bureau of Alcohol, Tobacco, Firearms and Explosives
(ATF); the Office of Overseas Prosecutorial Development, Assistance and Training (OPDAT);
and the U.S. Agency for International Development (USAID).130 CARSI working groups within
U.S. embassies include representatives of the relevant agencies present at each post and serve as
the formal mechanism for interagency coordination in the field.131
The U.S.-SICA dialogue serves as the forum for regional coordination, while bilateral
coordination varies by country. Coordination is particularly close in Honduras, where a bilateral
CARSI task force, co-chaired by the U.S. Ambassador and President Lobo, convenes quarterly to
oversee and direct joint security efforts.132 Coordination with some of the other Central American
nations, however, is less robust. In Nicaragua, for example, the United States works closely with
the Nicaraguan Navy but has limited contact with many other sectors of the government.133
Implementation
Congress has tracked the implementation of CARSI since its creation, and some Members have
expressed concerns about the pace at which funds appropriated for the initiative are being
provided to Central American nations.134 The GAO has released three studies that have examined

127 U.S. Agency for International Development (USAID), “Community-Based Crime and Violence Prevention Project,”
News Bulletin, October 2010.
128 Gabriela Chojkier, “Ask the Expert: Enrique Roig, Coordinator for Central America Regional Security Initiative
(CARSI) at USAID, USAID Impact Blog, May 31, 2012.
129 U.S. Agency for International Development (USAID), “Central America Regional Security Initiative (CARSI),”
Fact Sheet, June 17, 2010; CRS interview with USAID officials in El Salvador, January 18, 2011.
130 U.S. Department of State, “The Central America Regional Security Initiative,” January 25, 2011.
131 U.S. Government Accountability Office (GAO), Mérida Initiative: The United States Has Provided
Counternarcotics and Anticrime Support but Needs Better Performance Measures
, GAO-10-837, July 2010,
http://www.gao.gov/products/GAO-10-837.
132 INCSR, March 2011, op. cit.
133 INCSR, March 2013, op. cit.
134 U.S. Congress, House Committee on Foreign Affairs, Subcommittee on the Western Hemisphere, Assessing the
Merida Initiative: A Report from the Government Accountability Office (GAO)
, Hearing, 111th Cong., 2nd sess., July 21,
2010, Serial No. 111-109 (Washington: GPO, 2010).
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the status of funds appropriated for CARSI. The most recent report, issued in January 2013, found
that $97 million, or slightly less than 28% of the funds appropriated from FY2008-FY2011, had
been committed135 or disbursed (i.e., agencies had made payments for goods or services) as of
September 30, 2011. An additional $202 million, or 58% of the funds appropriated from FY2008-
FY2011, had been obligated (i.e. agencies had entered into contracts or submitted purchase orders
for goods or services) as of the same date.136
According to the GAO, a number of challenges have slowed the agencies charged with
implementing the initiative. These include insufficient staff to administer programs, the time-
consuming U.S. government procurement process, and legislative withholding requirements that
prevent some funds from being released until certain reporting requirements are met.137 The need
to negotiate agreements with seven different countries has also proved challenging. Changes in
governments and top-level officials have required U.S. officials to restart negotiations and delay
program implementation.138 In Honduras, which has had the lowest level of allocated funds
disbursed, the June 2009 ouster of President Manuel Zelaya led the United States to suspend
assistance to the country as well as most governmental contacts until the inauguration of a new
president in February 2010.139
U.S. agencies have tried to alleviate the delays in several ways. Some posts in Central America
reprogrammed existing bilateral assistance funds in order to initiate CARSI activities while
waiting for CARSI funds to become available.140 Likewise, the Department of State sought to
address staffing issues by creating new INL positions in the region and setting up enhanced
procurement support in Colombia.141
Performance Measures
To measure the effects of CARSI, USAID is overseeing an impact evaluation of its crime
prevention programs. The evaluation, conducted by Vanderbilt University’s Latin American
Public Opinion Project (LAPOP), consists of five elements: (1) community surveys; (2) reviews
of demographic data; (3) focus groups; (4) interviews with stakeholders; and (5) community
observations. LAPOP will measure these citizen security indicators every 18 months, both in
treatment communities where USAID crime prevention programs are in place and in control
communities where no activities have been implemented. By tracking perception changes over
time, USAID hopes to identify successful crime prevention programs and why they succeed so
that resources can be dedicated to the most effective programs and best practices can be replicated
throughout the region.142 According to USAID's Assistant Administrator for Latin America and

135 The Defense Security Cooperation Agency, which is responsible for tracking FMF funding, reportedly does not
track disbursements. “Committed funds” represent obligations that have been committed for expenditure. They may or
may not have been disbursed.
136 GAO, January 2013, op.cit.
137 For more information on withholding requirements, see “Funding from FY2008-FY2014” above and “Human
Rights Concerns” below.
138 GAO, July 2010, op.cit.
139 INCSR, March 2011, op. cit.
140 GAO, July 2010, op. cit.
141 CRS interview with State Department official, February 25, 2011.
142 GAO, July 2010, op. cit.; USAID CARSI Fact Sheet, June 2010, op. cit.
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the Caribbean, Mark Feierstein, initial reports from El Salvador suggest that crime rates are
falling in USAID’s treatment communities while rising in the comparable control communities.143
CARSI programs other than USAID’s crime prevention programs are generally measured in
terms of outputs, such as the number of people trained or the amount of equipment delivered. The
GAO asserts that these types of measures limit the U.S. government’s ability to assess the
performance of CARSI programs since they do not measure the impact of the training or
equipment, or if it has been successfully employed.144
Additional Issues for Congressional Consideration
Funding Issues
As Congress evaluates budget priorities and how to best utilize scarce resources, it is likely to
consider the form of U.S. security assistance to Central America. When the Mérida Initiative was
first announced, some Members of Congress questioned why the Bush Administration’s budget
request included only $50 million for Central America, as compared to $500 million for
Mexico.145 Then-Assistant Secretary of State for Western Hemisphere Affairs Thomas Shannon
noted that it was an initial request and that the Administration hoped that it could work with
Central American nations to build a larger program over time.146 Although annual U.S. assistance
provided to the region through Mérida/CARSI has generally been more than double the initial
Bush Administration request, Central American leaders and some Members of Congress assert
that the resources being provided are insufficient given the challenges facing the region.147 Many
analysts note that CARSI, at its current funding level, is unlikely to alter outcomes given the
relatively weak positions from which most Central American nations are starting.148 At the same
time, some U.S. officials maintain that the region must move away from the mind-set that the
United States is the fundamental solution to every problem, and that current CARSI funding
demonstrates that the United States is committed to working in partnership with the region to
address security challenges.149
When debating future funding levels, Congress may consider the political will of Central
American nations. Some analysts assert that even if the United States were to greatly increase the
amount of assistance it provides through CARSI, it would do little good as long as Central
American leaders lack the political will to tackle long-standing issues such as incomplete

143 Remarks during a briefing about U.S. citizen security and counternarcotics efforts in Central America, June 15,
2012.
144 GAO, July 2010, op.cit.
145 U.S. Congress, House Committee on Foreign Affairs, The Merida Initiative: Assessing Plans to Step Up Our
Security Cooperation with Mexico and Central America
, 110th Cong., 1st sess., November 14, 2007, Serial No. 110-135
(Washington: GPO, 2008).
146 Shannon testimony, November 2007, op. cit.
147 U.S. Congress, Senate Committee on Foreign Relations, Subcommittee on Western Hemisphere, Peace Corps and
Global Narcotics Affairs, U.S. Policy Towards Latin America, 112th Cong., 1st sess., February 17, 2011; Mary Beth
Sheridan, “Central American leaders plead for more U.S. anti-drug help,” Washington Post, September 30, 2010.
148 Dudley, May 2010, op. cit.; Kevin Casas-Zamora, “Paying Attention to Central America’s Drug Trafficking Crisis,”
Brookings Institution, November 1, 2010.
149 CRS interview with State Department official in El Salvador, January 18, 2011.
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institutional reforms, precarious tax bases, and the lack of opportunities for young people.150
Without greater commitment from partner countries to undertake necessary reforms and sustain
current efforts, CARSI programs could meet the same end as previous U.S.-backed
counternarcotics programs in the region, which simply faded away once U.S. assistance
declined.151 In an attempt to partially address these issues, the Obama Administration has created
a competitive “Challenge Grants” program that awards additional resources to countries that
exhibit the political will to develop high-quality strategies to address their security challenges,
provide host nation funding, and commit to sustaining their efforts.152
Another funding issue Congress may consider is resource coordination, both within the U.S.
government and between the U.S. government and other international donors. In FY2012, Central
American countries received $135 million through CARSI. Several countries in the region also
received significant amounts of bilateral assistance from USAID and the State Department as
well as security aid from the Department of Defense. While some U.S. embassies in Central
America appear to be closely coordinating these various sources of assistance so that the activities
receiving funding serve complementary purposes,153 it is unclear whether this is true throughout
the region.
Even if there is close coordination among U.S. agencies, U.S. assistance accounts for only a
portion of the total security assistance being provided to the region. According to a recent study,
international donors committed a combined $1.7 billion in grants and loans to Central America
for citizen security efforts between January 2009 and June 2011. Looking only at projects already
being implemented, the United States accounted for approximately $378 million (28%) of the
$1.3 billion provided by the international community. The study reveals a lack of coordination
among the various donors' efforts, and indicates that, in some cases, donors fund programs that
duplicate efforts or even support conflicting goals.154 Improved international coordination could
allow the United States to better focus its own efforts and thereby increase the impact of its
programs. The Obama Administration has sought to improve donor coordination through the
“Group of Friends of Central America.”155
Human Rights Concerns
Congress remains concerned about how alleged human rights abuses committed by military and
police forces in some Central American countries are investigated and punished, the transparency
of judiciary systems in the region (particularly in Nicaragua), and whether security forces accused
of committing past abuses are being held accountable for their actions (particularly in
Guatemala).156 From FY2008 to FY2011, appropriations legislation that provided funding for

150 Casas-Zamora, November 2010, op. cit.
151 See, for example, GAO, August 1994, op. cit.; and GAO, International Programs Face Significant Challenges
Reducing the Supply of Illegal Drugs but Support Broad U.S. Foreign Policy Objectives
, GAO-10-921, July 21, 2010,
p. 6, http://www.gao.gov/assets/130/125042.pdf.
152 Testimony of Roberta Jacobson, Principal Deputy Assistant Secretary of State for Western Hemisphere Affairs, U.S.
Department of State, before the Senate Caucus on International Narcotics Control, May 25, 2011.
153 CRS interview with the CARSI Working Group in Guatemala, January 19, 2011.
154 IDB and WOLA, June 2011, op. cit.
155 U.S. Department of State, Bureau of Western Hemisphere Affairs, “The Central American Citizen Security
Partnership,” Fact Sheet, March 29, 2012.
156 For a summary of recent human rights developments in each country, see U.S. Department of State, Country
(continued...)
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Mérida Initiative and CARSI programs in Central America contained vetting requirements (per
Section 620J of the Foreign Assistance Act [FAA] of 1961)157 and human rights conditions.
Specifically, P.L. 110-252, P.L. 111-8, P.L. 111-117, and P.L. 112-10 required that 15% of INCLE
and FMF assistance be withheld until the Secretary of State reported in writing that the
governments of Central America were taking action in three areas:
1. establishing police complaints commissions with authority and independence to
receive complaints and carry out effective investigations;
2. implementing reforms to improve the capacity and ensure the independence of
the judiciary; and
3. investigating and prosecuting members of the federal police and military forces
who have been credibly alleged to have committed violations of human rights.
Each of those appropriations bills placed additional restrictions on FMF and international military
education and training (IMET) assistance to Guatemala and limited them to certain parts of the
Guatemalan military. In FY2011, the Department of State submitted human rights reports to
congressional appropriators for Belize, Costa Rica, El Salvador, Guatemala, Honduras, and
Panama but did not submit a report for Nicaragua since it was unable to report progress.
Human rights organizations have generally lauded the inclusion of human rights conditions in
Mérida/CARSI legislation, but some U.S. officials have privately complained about the number
of restrictions and requirements placed on the assistance. When combined with the delay in
appropriations legislation for each of the past several fiscal years, consultations with
congressional appropriators related to the so-called “15% withholding requirement” reports
mentioned above have contributed to significant delays in funds being released. While FMF funds
can be spent over two fiscal years, INCLE funds must be obligated in the fiscal year in which
they are appropriated. In recent years, this has created challenges for embassies, which have not
received some Mérida/CARSI funding until July or August that must be obligated by the end of
the fiscal year in September.
As noted above, Congress did not include the 15% withholding requirements from previous years
in the appropriations legislation (P.L. 112-74) that provided funding for CARSI in FY2012. It did,
however, maintain the vetting requirements and restrictions on FMF and IMET assistance to
Guatemala, and placed new human rights conditions on assistance to military and police forces in
Honduras (see “FY2012 Appropriations”). The appropriations legislation providing funding for
CARSI in FY2013 (P.L. 113-6) maintains the conditions enacted for FY2012.
Relation to Other U.S. Government Policies
An innovative component of the Mérida Initiative, as it was originally conceived, was the
principle of “shared responsibility,” or the idea that all countries involved in the initiative—the

(...continued)
Reports on Human Rights Practices, available at http://www.state.gov/g/drl/rls/hrrpt/.
157 According to Section 620J of the FAA of 1961, units of a foreign country’s security forces are prohibited from
receiving assistance if the Secretary of State receives “credible evidence” that such units have committed “gross
violations of human rights.” In response to this provision, the State Department has developed vetting procedures for
potential security force trainees.
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United States, Mexico, and the seven countries of Central America—would take steps to tackle
domestic problems contributing to drug trafficking and crime in the region.158 The Mexican and
Central American governments committed to address corruption and reform their law
enforcement and judicial institutions. For its part, the U.S. government pledged to address drug
demand, money laundering, and weapons smuggling.159 The importance of “shared
responsibility” has been reiterated by President Obama, Secretary of State Hillary Clinton, and
other Administration officials in meetings and public events with Mexican and Central American
officials. The Obama Administration has also begun to address some Central American
governments’ concerns about U.S. deportation policy. While Mexican and Central American
officials have welcomed the new rhetoric, they have periodically challenged the U.S.
government’s commitment to matching words with deeds, particularly with respect to addressing
drug consumption and U.S. gun policy.160
When debating future support for CARSI, Congress may consider whether to provide additional
funding simultaneously for these or other domestic activities that would enhance the United
States’ abilities to fulfill its pledges. For example, the Obama Administration has placed increased
focus on reducing U.S. drug demand, particularly among youth. The Administration has asked for
$10.7 billion for treatment and prevention programs in its FY2014 budget request, a 16% increase
over the FY2012 enacted level. As a result, the funds requested for domestic treatment and
prevention exceed those requested for domestic law enforcement for the first time.161
In the past few years, U.S. Customs and Border Patrol (CBP) and U.S. Immigration and Customs
Enforcement (ICE) have worked together to increase operations against bulk cash smuggling and
other forms of money laundering. CBP has increased southbound inspections of vehicles and
trains for bulk cash flowing into Mexico and Central America. In December 2009, ICE opened a
bulk cash smuggling detection center to assist U.S. federal, state, and local law enforcement
agencies in tracking and disrupting illicit funding flows. Despite these efforts, the vast majority of
illicit monetary transfers and shipments continue to flow southward undetected.162
The Department of Justice and its Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF)
have made efforts to staunch the flow of illegal guns from the United States to Mexico and
Central America. They have stepped up enforcement of domestic gun control laws, and have
sought to improve coordination with law enforcement bodies in the region. ATF maintains a
foreign attaché in Mexico City and a Regional Firearms Advisor in El Salvador to support
firearms-related investigations throughout the region. For example, ATF trains Central American

158 U.S. Department of State and Government of Mexico, “Joint Statement on the Mérida Initiative: A New Paradigm
for Security Cooperation,” October 22, 2007.
159 For more information, see CRS Report R41349, U.S.-Mexican Security Cooperation: The Mérida Initiative and
Beyond
, by Clare Ribando Seelke and Kristin Finklea.
160 Sofía Miselem, “Grupo de Tuxtla Demanda a EEUU Frenar Flujos de Recursos del Narcotráfico,” Agence France
Presse
, December 4, 2011; Fred Hiatt, “What Felipe Calderón Wants from the United States,” Washington Post, March
4, 2011.
161 However, if the funds requested for interdiction ($3.7 billion) and overseas antidrug efforts ($1.4 billion) are added
to the domestic law enforcement budget ($9.6 billion), the funds requested for those categories continues to exceed the
funds requested for treatment and prevention. See: Executive Office of the President, National Drug Control Budget:
FY 2014 Funding Highlights
, April 2013, http://www.whitehouse.gov/sites/default/files/ondcp/policy-and-
research/fy_2014_drug_control_budget_highlights_3.pdf.
162 William Booth and Nick Miroff, “Stepped-up Efforts by U.S., Mexico Fail to Stem Flow of Drug Money South,”
Washington Post, August 25, 2010.
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law enforcement officers how to use the eTrace program, through which investigators are
sometimes able to determine the origin and commercial trail of seized firearms, identify gun
trafficking trends, and develop investigative leads.163
In addition to the issues mentioned above, policymakers in Central America have expressed
concerns that increasing U.S. deportations of individuals with criminal records are worsening the
gang and security problems in the region.164 The Central American countries of Honduras,
Guatemala, and El Salvador have received the highest numbers of U.S. deportations (after
Mexico) for the past several fiscal years. Central American countries have typically had a lower
percentage of individuals deported on criminal grounds than other top-receiving countries like
Mexico, Jamaica, and the Dominican Republic. In FY2010 and FY2011, however, the percentage
of Central Americans deported on criminal grounds increased significantly.
For the past several years, Central American officials have asked the U.S. government to consider
providing a complete criminal history for each deportee who has been removed on criminal
grounds, including whether he or she is a member of a gang. While ICE does not provide a
complete criminal record for deportees, it may provide some information regarding an
individual’s criminal history when specifying why the individual was removed from the United
States. ICE does not indicate gang affiliation unless it is the primary reason for the individual
being deported. Law enforcement officials in receiving countries are able to contact the FBI to
request a criminal history check on particular criminal deportees after they have arrived in that
country. With support from CARSI, ICE and the FBI have developed a pilot program called the
Criminal History Information Program (CHIP) to provide more information about deportees with
criminal convictions to officials in El Salvador.
The U.S. government does not currently fund any deportee reintegration services programs for
adults in Central America, although it has done so in the past.165 As a result of budget shortfalls in
many countries, the types of support services provided to deportees returning from the United
States are very limited. The few programs that do exist tend to be funded and administered by the
Catholic Church, nongovernmental organizations, or the International Organization for Migration.
Outlook
The seven nations of Central America face significant security challenges. Well-financed and
heavily armed criminal threats, fragile political and judicial systems, and persistent social
hardships such as poverty and unemployment contribute to widespread insecurity. From FY2008-
FY2012, Congress appropriated $496.5 million under what is now known as the Central America
Regional Security Initiative to support security efforts in the region. While there are some signs
of progress, security conditions remain poor in several Central American nations. As Congress

163 U.S. Department of State, Bureau of Western Hemisphere Affairs, “U.S. Actions to Combat Trafficking in Arms in
the Western Hemisphere,” Fact Sheet, June 21, 2011.
164 Kate Joynes et al., “Central America, Mexico and the United States Formulate Shared Strategy to Fight Gang
Violence,” Global Insight Daily Analysis, April 9, 2008.
165 Testimony of Maureen Achieng, Chief of Mission for the International Organization for Migration (IOM) in Haiti
before the House Subcommittee on the Western Hemisphere, July 24, 2007. Although the U.S. government is not
currently funding deportee reintegration programs for adults in Central America, it is providing small amounts of
funding to IOM to assist unaccompanied minors who have been returned to El Salvador and Nicaragua. CRS phone
interview with State Department official, December 2, 2010.
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evaluates budget priorities and debates the form of U.S. security assistance to the region, it might
take into consideration the opinion of many analysts that improving security conditions in the
region will be a difficult, multifaceted endeavor. Central American leaders will need to address
long-standing issues such as incomplete institutional reforms, precarious tax bases, and the lack
of opportunities for young people.166 International donors will need to provide extensive support
over an extended period of time.167 And all of the stakeholders involved will need to better
coordinate their efforts to support comprehensive long-term strategies that strengthen institutions
and address the root causes of citizen insecurity.168

166 Casas-Zamora, November 2010, op. cit.
167 Villiers Negroponte, Spring 2010, op. cit.
168 Adriana Beltrán, “Stronger than the Iron Fist: Funes Administration Attempts a Different Approach to Crime and
Violence in El Salvador,” WOLA, March 18, 2011.
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Appendix. Central America Social Indicators
Table A-1. Central America Development Indicators
Human
Gross
Development
Life
Mean Years of
National
Index (HDI)
Expectancy at
Schooling
Income (GNI)
GNI Per
Country
Rank
Birth
(Adults)
US $ billions
Capita US $
Out of 187
countries and

territories
2012 2012 2011 2011
Panama 59
76.3
9.4
24.9
7,470
Costa Rica
62
79.4
8.4
39.9
7,640
Belize 96
76.3
8.0
1.3
3,710
El Salvador
107
72.4
7.5
22.4
3,480
Honduras 120 73.4 6.5 16.5
1,980
Nicaragua 129 74.3 5.8 9.1 1,510
Guatemala 133 71.4 4.1 45.3 2,870
Sources: HDI Rank, Life Expectancy at Birth, Mean Years of Schooling from the U.N. Country Profiles and
International Human Development Indicators; GNI and GNI per capita from the World Bank Development
Indicators.
Definitions: HDI Rank is from the U.N. Development Program’s Human Development Index, a composite
measure of three basic dimensions of human development: health, education, and income. Calculated for 187
countries and territories, with 1 = highest human development. Life Expectancy at Birth is the number of years a
newborn is expected to live if patterns of mortality prevailing at its birth were to stay the same throughout its
life. Mean Years of Schooling = average number of years of education received by people 25 years old and older
in their lifetime. Gross national income (GNI) from the World Bank Atlas Method is the broadest measure of
national income. It measures total value added from domestic and foreign sources claimed by residents. GNI per
capita is GNI divided by mid-year population.
Table A-2. Central America Poverty and Inequality Indicators
Population Living
Area in
Population
in Extreme
Income Gini
Country
Square Miles
(2012 Estimate)
Poverty
Coefficients
Belize 8,867
324,000
N/A
N/A
Costa Rica
19,730
4,798,000
7.3%
0.503
El Salvador
8,008
6,288,000
16.7%
0.454
Guatemala 42,042
15,051,000
29.1% 0.585

Honduras 43,278
7,922,000
42.8% 0.567

Nicaragua 50,336
5,979,000
20.9% 0.478

Panama 29,157
3,582,000
4.7%
0.531
Sources: Area from U.S. Department of State, Background Notes; Population, Population Living in Extreme
Poverty, and Gini Coefficients from U.N. Economic Commission for Latin America and the Caribbean, Statistical
Yearbook for Latin America and the Caribbean, 2012
, January 2013.
Note: Gini Coefficient—a value of 0.0 represents absolute equality; a value of 1.0 represents absolute inequality.
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Author Contact Information

Peter J. Meyer
Clare Ribando Seelke
Analyst in Latin American Affairs
Specialist in Latin American Affairs
pmeyer@crs.loc.gov, 7-5474
cseelke@crs.loc.gov, 7-5229


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