The cost of inequality

Social and economic inequality is the main factor generating violence in Brazil, according to recent studies. And despite their high expenditures, crime fighting policies established over the past decades in the nation have not proven effective. Public security specialists now propose that economic development should be incorporated into public security models, challenging traditional assumptions in the field.

This view was discussed at Brazil’s Third Annual Forum of Public Security in Vitória, Espírito Santo State, at a round table that included experts from Brazil´s Institute for Economic and Applied Research, IPEA, the NGO Observatório de Favelas, as well  PUC-RJ, the Catholic University of Rio and a representative of the Civil Police Force of Pernambuco state.

According to Economist Rodrigo Soares, crime in Brazil is determined by social and economic conditions allied to public security policies: "The social and economic conditions are favorable for crime while crime fighting policies are weak in Brazil", said Soares, professor at the Pontifícia Universidade do Rio de Janeiro, PUC-RJ.

According to Soares, inequality reduces social cohesion, and generates unrest among groups submitted to privations. The legal job market offers limited opportunities, and the illegal one is wide open. Another factor that is relevant to the growth of criminality is Brazil’s predominantly young population, "younger populations tend to be more violent."

Crime fighting policies that increase the number of police officers and the number of prisons actually do have an effect in lowering crime rates, adds Soares, pointing out that such measures take criminals out circulation and act as deterrents. “If an individual knows the police is active and arresting people, this person may be dissuaded from acting. Certain punishment prevents crime,” said Soares.

The trick, according to Soares is to combine policing with policies that promote social inclusion, empower the state and provide access to public services. “That was how the homicide rate was lowered in Bogotá and São Paulo,” said Soares.

Daniel Cerqueira, from Brazil’s IPEA said that according to a recent study of homicides over 30 years in Rio de Janeiro and São Paulo inequality is the most relevant factor for violence. Other studies showed that there are higher rates of criminality in poorer municipalities where there is high percentage of youths who do not go to school and of teen parents. Cerqueira adds that violence often affects neighboring municipalities by what he calls contagion. In his view the public security actions have been proven inefficient, “in this failed model of policing, violence is a byproduct," said Cerqueira.

A divided city

Sociologist Jailson de Souza e Silva, coordinator of the Observatório das Favelas, commented some of the results of the Diagnóstico Social e Esportivo (Social and Sports Evaluation) of 53 shantytowns in Rio de Janeiro, a study carried out by his organization for the Panamerican games of 2007.

The study analyzed the impact of inequality among shantytowns according to location and population most vulnerable to lethal violence. Results show that areas most affected by a lack of services and infrastructure were also the ones with the highest homicide rates. In other words, when social and economic disadvantages overlap, they heighten vulnerability and social risk.

Preventative actions are less expensive and more efficient than punitive policies, according to the study, it also proposes that further studies are made of the cost benefit ratio of preventative programs. The study also proposes that investments are made in disadvantaged to bring their development indices closer to the social economic levels of the city as a whole.

"We must do away with the rationale of a city that fragments its urban space, and build one that is safer. We must create urban equipment that generates urban connections, that brings people closer together, and produce integrated policy that raises the awareness of the population and helps them build new relationships", said Souza e Silva.

IPEA Sociologist Patrícia Rivero, also took part in a groundwork study for setting future public policy guidelines. The study "Indicadores Socioeconômicos de Proteção e Risco para a Instrumentação de Políticas Públicas em Favelas” (Social and Economic Risk and Protection indicators for Instrumentalizing Public Policy in Favelas)  concluded that the areas surrounding the hills of Rio de Janeiro, where there is a concentration of poorer neighborhoods, also concentrate the highest rates of violence and homicide.

According to the study, public policies privilege wealthier areas of the city instead of being extended to the entire city, and promoting urban integration. Police violence and direct clashes imposed by law enforcement operations are more frequent in poorer areas, says the study, and thus lead to more civilian deaths caused by police officers; such deaths are reported by officers through “auto de resistência” (akin to “fallen while offering resistance”).

Concerned with boosting preventative measures, many Brazilian researchers, members of civil society organizations and policy makers have pinned their hopes on the recently launched National Security with Citizenship Program (Pronasci).

The costly war against drugs

A topic that rose to prominence in the discussions was the war on drugs, seen by participants as wasteful of resources as well as a crime inducing factor. Police captain Patrícia Soledade de Queiroz, from Pernambuco, believes that legalization could open up sources of income for social projects.

According to Rodrigo Soares, the illicit drugs market generates a tremendous amount of income that maintains organized crime. “Is this gigantic war on drugs worthwhile? How pernicious must the effects of drugs use be to justify the high costs of the policy and its limited efficacy?” asked Soares.

According to Jailson de Souza e Silva, 70% of Brazil’s prison population has been incarcerated for drug trafficking, at great cost to society. His study indicates that youths sentenced to prison for drug trafficking are not important for the drug distribution chain and are easily substituted, with no corresponding reduction in crime. “We cannot postpone debating the issue,” said Souza e Silva.

Direct, indirect and the intangible costs of violence

Violence takes away approximately 5% of Brazil’s Gross Internal Product if one considers its effect over expenditures and loss of expected income. The data comes from a study conducted by IPEA and Brazil’s National Statistical Science School, ENCE, based on indicators such as the cost of the health system, the public security system and the corrections system; economic losses were also calculated based on lives interrupted.

The direct cost of violence took into account the effects of violence on public and private expenditures. This included aspects such as the health system, security, the criminal justice system and the corrections system, as well as protection and prevention. Indirect costs include the loss of expected returns on investments in goods and services, and economic losses from lives interrupted or work disabilities. Indicators used vary according to study, making it difficult to compare results.

The IPEA and ENCE studies did not include costs accrued from the justice system, costs brought about by fear, pain and suffering, nor losses such as drops in tourism, and loss in productivity that pertain to trauma or death, among other factors induced by violence.

Even with the above considerations, the study arrived at the figure of 92.2 billion Reals a year (or roughly 47.8 billion US dollars) that is close to 5% of the Brazilian GIP, or 269.6 US Dollars per capita. This total corresponds to 14.7 billion US Dollars (1.65% of the GNP) of public sector expenditures and 30.9 billion US Dollars (3.43% of the GNP) of private sector expenditures.
 
The public sector allocates the majority of expenditures, 1.45% of the GNP to the security sector (law enforcement and offices of the government) and the remainder to the corrections system (0.15% of the GNP) as well as a further 0.06% of the GNP for the care of victims of violence in the health care system.

In the private sector, the main cost is related to the loss of human capital, estimated at 12.4 billion US Dollars, or 1.35% of the GNP. Researchers calculated how much the victims of violence would have earned had they lived to the levels of IBGE projected life expectancy, and projected earnings according to education levels, age, gender and location of residency.

Other relevant expenditures pertain to private security (0.8% of the GIP), insurance (0.75% of the GNP) and losses related to robberies and theft (0.53%). Despite using different indicators, results are in keeping with studies carried out over the past decade by other respected institutions in the largest cities of Brazil.

Research data from major cities indicate that the cost of criminality that varies from 3% to 5% of the city GIP in cities such as São Paulo, Rio de Janeiro and Belo Horizonte.

Translated by Lis Horta Moriconi