Transnational criminal organizations in Latin America have evolved from regional gangs into multinational empires with economic and security capacities rivaling those of states. Colombia illustrates this transformation most vividly: the country accounts for more than 70 percent of the world’s cocaine production, generating an illicit economy valued at around $183 billion annually—equivalent to the GDP of a mid-sized nation. Despite record seizures, supply routes remain too well-financed and adaptive to be effectively dismantled, ensuring that enforcement efforts do little to reduce overall production.
Beyond narcotics, illegal gold mining has become another lucrative stream of financing for criminal groups. In 2024, Colombia reported a 12-metric-ton gap between legal gold production and exports, equivalent to nearly $918 million in illicit trade. This “shadow market” operates by exploiting legal gold channels, laundering illegally mined ore through established exporters with false documentation. The consequences extend beyond security: toxic mercury use and deforestation from illegal mining have poisoned water systems and communities, creating long-term environmental and social costs for the state.
The rising economic power of these organizations’ fuels recruitment, particularly among vulnerable youth. Studies show that minors drawn into these networks overwhelmingly come from conflict-affected, low-income rural areas, with family histories of violence and armed group involvement. Recruits are typically just 13 to 14 years old, lured by incentives and the promise of income. This dynamic perpetuates a cycle: when one government cracks down on a criminal market, operations shift across borders to more permissive jurisdictions, spreading instability regionally. Breaking this cycle will require coordinated regional strategies that target not only illicit markets, but also the structural conditions that allow these organizations to thrive—combining law enforcement with social investment, youth protection, and regional cooperation.