Crime and Victimization: An Economic Perspective

Abstract

hy is there more crime and violence in some countries than in others?And why is violent crime rising so rapidly around the world?What groups of people are most at risk from various types of crime?What evidence do we have that "crime waves" exist?Does poverty lead to high rates of violent crime?Or is it income inequality?Should crime alleviation be added to the list of benefits from economic reforms that generate sustained growth?Is the pro-cyclical nature of public expenditures in most developing countries exacerbating crime waves?Is education the key to solving the crime problem?How effective is police presence in fighting crime?Do people trust the police and judiciary?Are cultural and sociological factors overriding determinants of crime rates?Or are they secondary to economic forces?In particular, what makes Latin America one of the most crime-prone regions in the world?These questions are of vital importance to policy makers.Although we can not provide definite answers to all these issues, this paper should contribute to understanding them better and approaching their solutions.The incidence of crime and violence varies widely across nations and regions of the world.Notwithstanding the enormous heterogeneity in the levels of crime and victimization rates, there are signs that over the past decades the problems of crime and violence have worsened considerably 219

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