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Edition: U.S. Article Comments (1) Full Focus Editor's choice A selection of our top photos from the past 24 hours. 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"Beyond the trauma and... Email Print Related News UPDATE 2-WHO warns drugs misuse weakens fight vs diseases Thu, Apr 7 2011 U.S., Colombia closer to trade pact with labor deal Wed, Apr 6 2011 JPMorgan, others boost payouts after Fed tests Fri, Mar 18 2011 Economic hit from Japan quake seen up to $200 billion Wed, Mar 16 2011 Obama refocus on Latin America amid China push Wed, Mar 16 2011 Analysis & Opinion U.S. bank boards escape post-crisis clear-out Ryan plan would boost U.S. economic security Related Topics World » GUATEMALA CITY | Thu Apr 7, 2011 9:28pm EDT GUATEMALA CITY (Reuters) - Rising violence from drug cartels and street gangs in Central America is costing the region up to 8 percent of gross domestic product and could hit future growth, the World Bank said on Thursday. "Beyond the trauma and suffering of individual victims, crime and violence carry staggering economic costs at the national level," the World Bank said in a report. The 8 percent of GDP spent on law enforcement and healthcare is significant when considering the seven-country region's GDP grew about 2 percent in 2010, while the rest of Latin America grew around 6 percent, the bank said. Honduras, Guatemala and El Salvador suffer from some of the highest murder rates in the Western Hemisphere and the risks are growing as Mexican drug cartels increasingly set up shop in their poorer southern neighbors where institutions are weak. Drug cartels were the driving factor behind rising violence in the region, which also grapples with widespread youth street gangs that extort businesses and pay off corrupt officials, the report said. The atmosphere of insecurity could harm the investment climate in the region and divert already scarce government resources to crime reduction efforts and away from spending to boost economy activity, the bank said. There is "no easy fix" to the problem but a key step will be strengthening the region's faltering justice systems, since many criminals are never convicted, the report said. A 10 percent reduction in homicide rates could boost annual economic growth by 1 percent of GDP. Central America is still recovering from decades of civil war and has deep inequalities between the rich and poor. (Reporting by Mike McDonald; Editing by Eric Beech) World Tweet this Share this Link this Digg this Email Reprints We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language, all capital letters or appear to be spam, and we review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. Comments (1) NLightning1 wrote: Some would say that legalization of naroctics by America (followed by the legalization in central American countries) could be something akin to a “quick fix”. Though imperfect, it would have a more rapid effect than any other idea implemented thus far. Despite the common sense to this argument, most people are afraid that if these things were legal, they themselves or someone they knew would soon fall victim to addiction. Fear wins over rationality again. Apr 08, 2011 2:26am EDT -- Report as abuse See All Comments » Add Your Comment Social Stream (What's this?) © Copyright 2011 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Reader Feedback Mobile Newsletters RSS Podcasts Widgets Your View Analyst Research Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts Venture Capital Journal International Financing Review Project Finance International PEhub.com PE Week FindLaw Super Lawyers Attorney Rating Service Reuters on Facebook Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. 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