International Terrorism in Latin America

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International Terrorism in Latin America

A broad and costly security risk

John Price

InfoAmericas' President

http://tendencias.infoamericas.com/article_archive/2001/1001/1001_regional_trends.htm

The global hunt for Osama bin Laden and the al-Qaida terrorist network will push deep

into several Latin American countries, challenging the security apparatus of the region

and altering US-Latin American relations. Several countries in the region are known to

house al-Qaida networks as well as other Islamic terrorist cells affiliated with Egypt's

Jamaa Islamiyya, and the better known Hamas and Hezbollah. The September 11th

attacks have brought intense pressure from the US on Latin American governments to

cooperate in flushing out these rings. The resulting security measures implemented by

Latin American governments will undoubtedly impede commerce and encumber the

mobility of people and may also muffle civil liberties in some of the region's delicate

democracies. Some argue that a concerted crackdown on terrorism in Latin America is

long overdue. According to the U.S. State Department, Latin America experienced 193

terrorist attacks out of last year's world total of 4231.

A startling report published by the University of Miami's North-South Center this month

demonstrates the extent of Latin American links to mid-east terrorism. International

Terrorism: The Western Hemisphere Connection, by Antonio Garrastazu and Jerry Haar

was the inspiration for our article, which includes, with permission, several citations from

their work. InfoAmericas has complemented the political focus of the North-South Center

article by attempting to predict the economic implications of this security threat.

The notorious tri-border region

The most notorious hotbed of mid-east terrorism is the tri-border area of Paraguay

(Ciudad del Este), Argentina (Puerto Iguazú), and Brazil (Foz do Iguaçu). The economy

of Ciudad del Este, in particular, is dominated by illegal activity focused on three

nefarious markets: smuggling contraband products, pirating software and music, and

money laundering of cocaine production revenue. The region is also believed to launder

money from Afghan Opium sales. With a population of only about 300,000, Ciudad del

Este is home to some 55 different banks, which in 1997 laundered an estimated $45

billion of ill-gotten funds. The entire country of Paraguay has an official GDP of only

US$ 9 billion, but it exports an estimated $14 billion in contraband and pirated products

each year, mostly to Brazil.